F-Secure Oyj - Inside information
F-Secure lowers its outlook for revenue growth in 2018
F-Secure lowers its outlook for revenue growth in 2018
F-Secure Corporation, Stock Exchange Release, 18 October, 2018 at 19:15 EEST
F-Secure lowers its outlook for revenue growth in 2018. F-Secure expects that revenue from corporate security will grow by around 30%, and revenue from consumer security to decrease by 0-4% compared to the previous year. The profitability outlook remains unchanged.
Corporate security revenue growth is expected to be lower than anticipated due to the following factors:
- During the third quarter, renewal rates for endpoint protection (EPP) solutions remained high, but new sales were below expectations, as during the previous quarter. New EPP sales were impacted by the delayed launch of the company’s new fully automated endpoint detection and response (EDR) solution, due to come out by early November.
- Sales pipeline for the company’s detection and response solutions sold as a managed service (RDS, MWR's Countercept) has developed positively, but sales cycles are slightly longer than anticipated.
- On-going integration activities at MWR InfoSecurity have an impact on the performance of the acquired service business, especially in the UK.
F-Secure continues its strategic transformation and seeks significant growth in corporate security. In July, the company completed a significant acquisition (MWR InfoSecurity) to accelerate its strategy execution. With RDS, Countercept and EDR, F-Secure now has a very competitive and comprehensive offering for the detection and response market, which is in rapid growth. This is expected to provide significant growth opportunities for the company in the long term.
F-Secure will publish its July-September interim report on Friday 2 November 2018.
New outlook for 2018
The company's new outlook for 2018 including the acquisition of MWR InfoSecurity is:
- Revenue from corporate security is expected to grow by around 30% compared to 2017
- Revenue from consumer security is expected to decrease by 0-4% compared to 2017
- Adjusted EBITDA is expected to be in the range of EUR 14-18 million
- M&A related acquisition and integration costs in 2018 are expected to be 3.5-4.0 million
Previous outlook for 2018 (published 8 August 2018)
The company's old outlook for 2018 including the acquisition of MWR InfoSecurity is:
- Revenue from corporate security is expected to grow by over 35% compared to 2017
- Revenue from consumer security is expected to stay at the same level as in 2017
- Adjusted EBITDA is expected to be in the range of EUR 14-18 million
- M&A related acquisition and integration costs in 2018 are expected to be 3.5-4.0 million
Contact information
Tapio Pesola, Investor Relations Manager, F-Secure
+358 44 373 4693
investor-relations@f-secure.com