WithSecure Reports Significant Cloud Growth, Future Outlook
WithSecure Financial Highlights for 2024
WithSecure Corporation has recently shared its financial performance results for the period ending in 2024. This report highlighted notable growth in the company's cloud products and services, solidifying its position in the market.
Fourth Quarter Achievements
During the fourth quarter of 2024, key financial metrics showcased impressive advancements:
- Annual Recurring Revenue (ARR) for Elements Cloud products increased by 6%, reaching EUR 83.3 million compared to EUR 78.4 million.
- Elements Cloud's revenue rose 9% to EUR 21.5 million, up from EUR 19.7 million from the same period previously.
- The ARR for Cloud Protection for Salesforce (CPSF) soared by an impressive 52%, totaling EUR 12.8 million.
- Adjusted EBITDA for WithSecure, encompassing both continuing and discontinued operations, improved to EUR 2.4 million, significantly higher than EUR 0.2 million from the last fiscal year.
- Cash flow from operational activities showed substantial improvement, rising to EUR 7.7 million from EUR 2.7 million in the previous year.
Performance of Cybersecurity Consultancies
Despite the positive trajectory for cloud services, the revenue from cybersecurity consulting saw a decline of 15%, falling to EUR 8.6 million. However, WithSecure is taking strategic steps, having signed a divestment agreement for its cybersecurity consulting segment, aiming to refocus its efforts on more profitable ventures.
Annual Growth Overview
In 2024, WithSecure realized a remarkable growth trajectory across various service sectors:
- Total revenue for Elements Cloud products reached EUR 83.3 million, a 9% increase from 2023.
- Cybersecurity consulting revenue dropped slightly by 3%, totaling EUR 32.3 million.
- Overall, WithSecure's Adjusted EBITDA for the year rebounded to EUR 3.1 million, compared to a significant loss the previous year.
Future Expectations
Looking ahead, WithSecure projects its cloud revenue to continue ascending. The company anticipates a growth rate of 10-20% in the ARR for its Elements Cloud products throughout the upcoming year. Similarly, the ARR for CPSF is predicted to grow by 20-35% from the end of this year, reinforcing WithSecure's commitment to expanding its service offerings.
Moreover, the anticipated divestment of the cybersecurity consulting business segment is expected to fortify the company’s core operations. WithSecure aims to leverage this restructuring to enhance overall profitability and brand focus.
Medium-Term Financial Objectives
For the upcoming period from 2025 to 2027, WithSecure has set ambitious targets, aiming to be recognized as a “Rule of 30+” company. This initiative encompasses strategies involving:
- Increasing annual revenue growth percentages.
- Elevating Adjusted EBITDA as a percentage of overall revenue.
Such targets signal WithSecure's solid commitment to innovation and robust financial health within the competitive cybersecurity landscape.
Leadership Insights
CEO Antti Koskela commented on the achievements and ongoing strategies, praising the team's dedication and expressing optimism about future growth. The company’s actions toward divesting the cybersecurity consulting segment demonstrates a clear focus on cloud-centric solutions, aligning with market demands.
Conclusion and Contact Information
WithSecure is primed for transformative success in the cybersecurity and cloud protection sectors, exhibiting resilience and adaptability during challenging economic times. The company encourages stakeholders to stay engaged through notifications of upcoming events and reports.
For further inquiries, please reach out to:
Tom Jansson, CFO
WithSecure Corporation
Laura Viita
VP, Controlling, Investor Relations and Sustainability
Phone: +358 50 487 1044
Email: investor-relations@withsecure.com
Frequently Asked Questions
What is WithSecure’s latest financial performance report about?
It discusses the company’s financial performance for 2024, highlighting growth in cloud services and the divestment of its cybersecurity consulting business.
How much did the ARR for Cloud Protection for Salesforce increase?
The ARR increased by 52%, reaching EUR 12.8 million in 2024.
What are WithSecure’s projections for future revenue growth?
The company expects an ARR growth of 10-20% for Elements Cloud products and 20-35% for CPSF in 2025.
Who can be contacted for more information regarding WithSecure's financials?
Tom Jansson, CFO, or Laura Viita, VP of Investor Relations, can be contacted via the provided email or phone number.
When is the next financial report due to be released?
The next report will be published on April 25, 2025, for the first quarter results.
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