Inside information, profit warning: WithSecure Corporation lowers its 2024 Elements Cloud products and services ARR, Elements Cloud products and services revenue, and total group revenue outlook

WithSecure Corporation, Inside information, 11 October 2024, 17:30 EEST

Inside information, profit warning: WithSecure Corporation lowers its 2024 Elements Cloud products and services ARR, Elements Cloud products and services revenue, and total group revenue outlook

WithSecure Corporation lowers its Elements Cloud products and services ARR, Elements Cloud products and services revenue, and total group revenue outlook for 2024.

The company now expects its Annual Recurring Revenue (ARR) for Elements Cloud products and services to grow by 6–14 % from the previous year (previous outlook: 10–20 %). In the end of 2023, Elements Cloud ARR was EUR 78.4 million.

Revenue for Elements Cloud products and services is expected to grow by 8–12 % from previous year (previous outlook: 10–16 %). Previous year revenue from Elements Cloud products and services was EUR 76.1 million.

Total group revenue growth outlook is expected to be 2–5 % from previous year (previous outlook: 6–12%). Previous year revenue of the group was EUR 142.8 million.

Adjusted EBITDA for the year is expected to be positive, the outlook is maintained.

Rationale for updating the outlook

Growth in the key European markets continued. However, the growth in the DACH region slowed down in the third quarter of 2024. In the markets outside of European Union and Japan, especially in the United Kingdom and the United States, revenue growth did not meet the expectations. Elements Cloud ARR and revenue have been impacted by higher than anticipated churn of some large customers in the Managed Services, not fully compensated by acquisition of new business. In addition, the cyber security consulting business has not fully met its performance targets in the first and third quarter of 2024. The revenue gaps caused by these reasons are not fully recoverable in the last quarter of 2024.

New outlook for 2024

Annual recurring revenue (ARR) for Elements Cloud products and services will grow by 6–14 % from the end of 2023. At the end of 2023, Elements Cloud ARR was EUR 78.4 million.

Revenue from Elements Cloud products and services will grow by 8–12 % from previous year. Previous year revenue from Elements Cloud was EUR 76.1 million.

Total revenue of the group will grow by 2–5 % from previous year. Previous year revenue of the group was EUR 142.8 million.

Adjusted EBITDA of full year 2024 will be positive.

Previous outlook for 2024

Annual recurring revenue (ARR) for Elements Cloud products and services will grow by 10–20 % from the end of 2023. At the end of 2023, Elements Cloud ARR was EUR 78.4 million.

Revenue from Elements Cloud products and services will grow by 10–16 % from previous year. Previous year revenue from Elements Cloud was EUR 76.1 million.

Total revenue of the group will grow by 6–12 % from previous year. Previous year revenue of the group was EUR 142.8 million.

Adjusted EBITDA of full year 2024 will be positive.

Contact information:

Laura Viita,
Vice President, Controlling, investor relations and sustainability
WithSecure Corporation
+358 50 487 1044
investor-relations@withsecure.com