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F-Secure Oyj Interim / Quarterly Report 2021
3268_rns_2021-07-15_dbb0be33-6515-4f54-bffc-70d6daf246b2.pdf
Interim / Quarterly Report
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Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
HALF YEAR REPORT
1 JANUARY – 30 JUNE 2021
GROWTH ACROSS ALL BUSINESSES – REVENUE UP BY 10% IN Q2
F-Secure
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
HIGHLIGHTS OF APRIL-JUNE (Q2)
- Revenue increased by 10% to EUR 58.2 million (53.0m)
- Revenue from corporate security products increased by 9% to EUR 20.2 million (18.5m)
- Revenue from cyber security consulting increased by 19% to EUR 11.6 million (9.7m)
- Revenue from consumer security increased by 6% to EUR 26.3 million (24.8m)
- Adjusted EBITDA was EUR 8.1 million (10.2m), 14% of revenue (19%)
- A strategic review resulted in items affecting comparability (IAC) of EUR 2.3 million
- Earnings per share (EPS) was EUR 0.01 (EUR 0.02)
- Cash flow from operating activities before financial items and taxes was EUR 12.9 million (11.4m)
HIGHLIGHTS OF JANUARY-JUNE (H1)
- Revenue increased by 8% to EUR 116.0 million (107.8m)
- Revenue from corporate security products increased by 7% to EUR 39.7 million (37.0m)
- Revenue from cyber security consulting increased by 9% to EUR 23.6 million (21.6m)
- Revenue from consumer security increased by 7% to EUR 52.6 million (49.2m)
- Adjusted EBITDA was EUR 17.8 million (17.4m), 15% of revenue (16%)
- A strategic review resulted in items affecting comparability (IAC) of EUR 2.3 million
- Earnings per share (EPS) was EUR 0.04 (EUR 0.03)
- Cash flow from operating activities before financial items and taxes was EUR 19.2 million (21.0m)
CONTENTS
02 Highlights
03 Outlook (unchanged)
04 CEO Juhani Hintikka
05 Financial performance
13 F-Secure products and services
16 Key ratios and other key figures
17 Tables
Figures in this report are unaudited. Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
OUTLOOK (UNCHANGED)
F-Secure's financial outlook for 2021 is:
- Revenue from corporate security products is expected to grow at a high single-digit rate.
- Revenue from cyber security consulting is expected to grow but uncertainty remains due to the COVID-19 pandemic.
- Revenue from consumer security is expected to grow approximately at the same rate as in 2020.
- Adjusted EBITDA is expected to remain approximately at the previous year's level (EUR 35.7 million).
The COVID-19 pandemic continues to impact the predictability of cyber security consulting and can also impact the new sales of software solutions. The related risks are described in this Half Year Report for January–June 2021.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
CEO JUHANI HINTIKKA
F-Secure's revenue grew across all businesses during the second quarter. I was particularly pleased to see growth picking up in both corporate security products and cyber security consulting. While the company's revenue grew 10% year-on-year, the operational costs are returning to pre-pandemic level resulting in an adjusted EBITDA margin of 14%.
The revenue from corporate security products grew 9% year-on-year. In cloud-based business security software (endpoint protection platform, EPP), the growth in orders continued to outpace revenue growth driven by sales of the whole portfolio and complimented by landmark deals with large international customers in Cloud Protection for Salesforce. Demand for Managed Detection and Response (MDR) solutions strengthened due to the recent ransomware and supply chain attacks. F-Secure Countercept had many new customers committing to multi-year deals globally within the customer verticals such as retail, finance, critical infrastructure and professional services.
The revenue from cyber security consulting grew by 19% against a comparative period when this business was clearly hit by the COVID-19 pandemic. I was happy to see good development in the UK and Nordics although operations in some countries remain negatively impacted by the pandemic. It is strategically important that many customers chose us for targeted attack simulation and incident response assignments. This is a great testimony to our technical capability and reputation within advanced cyber security domains.
Consumer security continues to grow driven by the sale of our core products that had an increase in device activations and a solid renewal performance. In Q2, we signed multiple new deals within our partner network. As an example, a leading Nordic energy company decided to complement their offering with cyber security and chose F-Secure TOTAL to provide full protection for their customers. This demonstrates the potential among new partner verticals that are looking for a way to increase average revenue per customer and reduce churn within their customer base.
F-Secure is a cyber security technology company for which the ability to innovate is crucial. In Q2 we launched F-Secure ELEMENTS which is a modular, cloud-native platform that enables customers to choose between standalone solutions and the full suite of endpoint products. This platform meets the need for the servitization of cyber security and is an easy way for our customers to deploy new solutions, which helps us to implement the Land and Expand strategy. Another highlight was the great results of F-Secure's Detection and Response Capabilities in the 3rd MITRE Engenuity ATT&CK® Evaluation.
We start the second half of the year from an exciting position. F-Secure has positive momentum across all businesses, an enhanced offering and a 15% increase in deferred revenue year-on-year to give us tailwinds for the future. Furthermore, we completed a strategic review and analyzed different scenarios for building a platform for sustainable, long-term growth.
"I WAS PLEASED TO SEE GROWTH PICKING UP IN CORPORATE SECURITY PRODUCTS AND CYBER SECURITY CONSULTING."
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
FINANCIAL PERFORMANCE
| EUR m | 4-6/2021 | 4-6/2020 | Change % | 1-6/2021 | 1-6/2020 | Change % | 1-12/2020 |
|---|---|---|---|---|---|---|---|
| Revenue | 58.2 | 53.0 | 10% | 116.0 | 107.8 | 8% | 220.2 |
| Consumer security | 26.3 | 24.8 | 6% | 52.6 | 49.2 | 7% | 100.1 |
| Corporate security | 31.9 | 28.2 | 13% | 63.4 | 58.7 | 8% | 120.1 |
| Products | 20.2 | 18.5 | 9% | 39.7 | 37.0 | 7% | 74.3 |
| Consulting | 11.6 | 9.7 | 19% | 23.6 | 21.6 | 9% | 45.8 |
| Cost of revenue | -12.2 | -11.6 | 6% | -24.5 | -24.0 | 2% | -48.0 |
| Gross Margin | 45.9 | 41.4 | 11% | 91.5 | 83.8 | 9% | 172.2 |
| of revenue, % | 79.0% | 78.2% | 78.9% | 77.7% | 78.2% | ||
| Other operating income | 0.5 | 0.8 | -38% | 1.0 | 1.3 | -27% | 2.1 |
| Operating expenses 1) | -38.3 | -31.9 | 20% | -74.7 | -67.6 | 11% | -138.5 |
| Sales & Marketing | -24.0 | -20.1 | 20% | -46.4 | -43.8 | 6% | -89.4 |
| Research & Development | -10.0 | -8.7 | 15% | -19.8 | -17.5 | 13% | -35.9 |
| Administration | -4.2 | -3.1 | 36% | -8.4 | -6.2 | 36% | -13.2 |
| Adjusted EBITDA 2) | 8.1 | 10.2 | -20% | 17.8 | 17.4 | 2% | 35.7 |
| of revenue, % | 14.0% | 19.3% | 15.3% | 16.2% | 16.2% | ||
| Items affecting comparability (IAC) 2) | -2.3 | -2.3 | 0.4 | ||||
| EBITDA | 5.8 | 10.2 | -43% | 15.5 | 17.8 | -13% | 35.7 |
| of revenue, % | 10.0% | 19.3% | 13.3% | 16.6% | 16.2% | ||
| Depreciation & amortization | -2.7 | -3.3 | -18% | -5.5 | -6.5 | -16% | -12.6 |
| Impairment | -0.3 | ||||||
| PPA amortization | -0.7 | -0.8 | -11% | -1.5 | -1.7 | -13% | -3.2 |
| EBIT | 2.4 | 6.0 | -61% | 8.5 | 9.6 | -11% | 19.7 |
| of revenue, % | 4.1% | 11.4% | 7.3% | 8.9% | 8.9% | ||
| Adjusted EBIT 2) | 5.4 | 6.9 | -21% | 12.3 | 10.9 | 13% | 22.9 |
| of revenue, % | 9.3% | 12.9% | 10.6% | 10.1% | 10.4% | ||
| Earnings per share, (EUR) 3) | 0.01 | 0.02 | -55% | 0.04 | 0.03 | 22% | 0.08 |
| Deferred revenue | 83.2 | 72.3 | 15% | 81.0 | |||
| Cash flow from operations before financial items and taxes | 12.9 | 11.4 | 13% | 19.2 | 21.0 | -8% | 48.3 |
| Cash and financial assets at fair value through P&L | 44.4 | 39.8 | 12% | 51.4 | |||
| ROI, % | 7.8% | 22.5% | -65% | 15.2% | 18.5% | -18% | 18.5% |
| Equity ratio, % | 57.3% | 46.3% | 24% | 52.5% | |||
| Gearing, % | -14.4% | 14.3% | -201% | -14.1% | |||
| Personnel, end of period | 1,694 | 1,713 | -1% | 1,678 |
1) Excluding items Affecting Comparability (IAC) and depreciation and amortization
2) Adjustments are material items outside normal course of business associated with acquisitions, integration, restructuring, gains or losses from sales of businesses and other items affecting comparability. Reconciliation and a breakdown of adjusted costs is in note 5 of the Table Section of this report.
3) Based on the weighted average number of outstanding shares during the period 158,320,025 (1-6/2021).
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
Second quarter (Q2)
The company's total revenue in April–June increased by 10% year-on-year, and was EUR 58.2 million (53.0 m). The share of corporate security of total revenue was 55% (53%).
Corporate security
Revenue from corporate security increased by 13% year-on-year to EUR 31.9 million (28.2m).
Products
Revenue from corporate security products increased by 9% year-on-year to EUR 20.2 million (18.5m).
Revenue from business security software (endpoint protection platform, EPP) grew year-on-year. The positive new order development was complemented by a good renewal performance. The order growth derives from good momentum among our channel partners across most regions. On product level, multiple new contracts in cloud platform security were signed and EDR (Endpoint Detection and Response) software had solid growth while traditional EPP still accounts for a large share of the business.
Revenue from Managed Detection and Response (MDR) solutions (F-Secure Countercept) grew year-on-year. Several new F-Secure Countercept deals were closed in countries such as the USA, Germany, France and Finland. Renewal performance was good in Q2. The volume and magnitude of deals are expected to fluctuate also in the coming quarters.
Cyber security consulting
Revenue from cyber security consulting grew by 19% year-on-year and was EUR 11.6 million (9.7m).
Cyber security consulting performed better than during the comparative period in 2020 which was impacted heavily by the COVID-19 pandemic. In some regions, sales and service delivery faced challenges due to pandemic-related economic volatility which has resulted in lengthier sales cycles and project scheduling.
Consumer security
Revenue from consumer security increased by 6% year-on-year to EUR 26.3 million (24.8m). Revenue from both operator and direct sales channels grew.
Operators
The operator channel revenue grew year-on-year, driven by the sale of core endpoint protection solutions in addition to partners expanding their offering to F-Secure's new consumer products. In Q2, new contracts were signed across the portfolio which was accompanied with several partners rolling out F-Secure ID PROTECTION to their customer base. The close cooperation with the global partner network and acceleration in digitalization since the pandemic outbreak have generated an increase in product activation and usage rates.
Direct sales
Revenue from direct sales to consumers grew year-on-year and renewal performance remained on a good level. Average revenue per customer continued to grow as consumers are increasingly interested in bundled solutions to secure their digital lives, which is driving the sales of F-Secure TOTAL.
Revenue, MEUR
Revenue per business, % of revenue
Adjusted EBITDA, MEUR and % of revenue
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
Gross margin
Gross margin increased by EUR 4.5 million to 45.9 million (41.4m) and was 79% of revenue (78%). The increase in gross margin was due to increased revenue in scalable product businesses and improved performance in cyber security consulting.
Operating expenses
Operating expenses excluding depreciation and amortization, and items affecting comparability (IAC) increased by EUR 6.4 million to 38.3 million (31.9m). During the comparative period operative expenses were at an unusually low level due to the COVID-19 pandemic outbreak. Sales and marketing costs grew year-on-year due to increase in marketing activities and higher sales commissions. In addition, we are facing salary inflation in several markets.
Depreciation and amortization were 3.5 million (4.2m), where PPA amortization from acquisitions was EUR 0.7 million (0.8m). Items affecting comparability (IAC) totaled EUR 2.3 million and consisted of costs related to a strategic review.
Profitability
Adjusted EBITDA was EUR 8.1 million and 14% of revenue (10.2m, 19%). Adjusted EBIT was EUR 5.4 million and 9% of revenue (6.9m, 13%). Profitability decreased year-on-year because operating expenses during the comparative period were at an unusually low level.
EBITDA was EUR 5.8 million and 10% of revenue (10.2m, 19%). EBIT was EUR 2.4 million and 4% of revenue (6.0m, 11%) including EUR 0.7 million of PPA amortization (0.8m) and EUR 2.3 million of IAC items.
Cash flow
Cash flow from operating activities before financial items and taxes was positively impacted by changes in net working capital and totaled 12.9m (11.4m). Cash flow from operations was EUR 10.2 million (10.6m). The dividends of EUR 6.3 million that were approved in the AGM in March, were paid in April and are included in cash flows for financing activities.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
January–June (H1)
The company's total revenue in January–June increased by 8% year-on-year to EUR 116.0 million (107.8m). The share of corporate security of total revenue was 55% (54%).
Corporate security
Revenue from corporate security increased by 8% year-on-year and was EUR 63.4 million (58.7m) as corporate security products grew by 7% and cyber security consulting by 9%.
Consumer security
Revenue from consumer security increased by 7% year-on-year and was EUR 52.6 million (49.2m) as both operator channel and direct business grew.
Gross margin
Gross margin increased by EUR 7.7 million to EUR 91.5 million (83.8m) was 79% of revenue (78%). The increase in gross margin was due to increased revenue in scalable product businesses and improved performance in cyber security consulting.
Operating expenses
Operating expenses excluding depreciation and amortization, and items affecting comparability (IAC) increased by EUR 7.1 million to 74.7 million (67.6m). During the comparative period operative expenses were at an unusually low level due to the COVID-19 pandemic outbreak. Sales and marketing costs grew year-on-year due to increase in marketing activities and higher sales commissions. In addition, we are facing salary inflation in several markets.
Depreciation and amortization were 7.0 million (8.2m), where PPA amortization from acquisitions was EUR 1.5 million (1.7m). Items affecting comparability (IAC) totaled EUR 2.3 million and consisted of costs related to a strategic review.
Profitability
Adjusted EBITDA was EUR 17.8 million and 15% of revenue (17.4m, 16%) and adjusted EBIT was EUR 12.3 million and 11% of revenue (10.9m, 10%).
EBITDA was EUR 15.5 million and 13% of revenue (17.8m, 17%). EBIT was EUR 8.5 million and 7% of revenue (9.6m, 9%) including EUR 1.5 million of PPA amortization (1.7m) and EUR 2.3 million of IAC items.
Cash flow
Cash flow from operating activities before financial items and taxes decreased by EUR 1.8 million and was 19.2m (21.0m). Cash flow from operations was EUR 13.8 million (19.0m). The dividends of EUR 6.3 million that were approved in the AGM in March, were paid in April and are included in cash flows for financing activities.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
FINANCING, CAPITAL STRUCTURE AND CAPITAL EXPENDITURE
| EUR m | 4-6/2021 | 4-6/2020 | Change % | 1-6/2021 | 1-6/2020 | Change % | 1-12/2020 |
|---|---|---|---|---|---|---|---|
| Cash and financial assets at fair value through P&L | 44.4 | 39.8 | 12% | 51.4 | |||
| Bank loans, non-current | 16.0 | 22.0 | -27% | 19.0 | |||
| Lease liabilities, non-current | 5.6 | 7.6 | -27% | 4.9 | |||
| Bank loans, current | 6.0 | 16.0 | -63% | 11.0 | |||
| Lease liabilities, current | 4.1 | 4.4 | -5% | 4.9 | |||
| Capital expenditure | 3.3 | 7.1 | -53% | 7.1 | 9.7 | -27% | 14.3 |
| Capitalized development expenses | 1.3 | 1.3 | -6% | 3.0 | 2.9 | 4% | 5.5 |
| ROI, % | 7.8% | 22.5% | 15.2% | 18.5% | 18.5% | ||
| Equity ratio, % | 57.3% | 46.3% | 52.5% | ||||
| Gearing, % | -14.4% | 14.3% | -14.1% |
The financial position remained solid. The company has liquid assets of EUR 44.4 million (39.8m) and interest-bearing bank debt of EUR 22.0 million (38.0m). A repayment of EUR 3.0 million of the term loan was made in the current quarter and the remaining repayment (3.0m) in 2021 is due at the year-end. To guarantee liquidity, F-Secure has EUR 23.0 million committed revolving credit facility that was undrawn at the end of the quarter. In the comparative period, EUR 10.0 million of the revolving credit facility was withdrawn to decrease short-term liquidity risk during the COVID-19 pandemic. This was subsequently repaid with payments of EUR 5.0 million each in Q4/2020 and Q1/2021. In case withdrawn the revolving credit facility is presented in current interest-bearing liabilities.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
ORGANIZATION AND LEADERSHIP
Personnel
At the end of the quarter, F-Secure had 1,694 employees, which shows a net increase of 16 employees (1%) since the beginning of the year (1,678 on 31 December 2020), and a net decrease of 19 employees (-1%) compared with end of June in 2020 (1,713).
Leadership team
At the end of the quarter, the composition of the Leadership Team was the following:
Juhani Hintikka (CEO & President), Eriikka Söderström (CFO), Jyrki Tulokas (CTO), Ari Väntinen (CMO), Jari Still (CIO), Kristian Järnefelt (Consumer Security), Juha Kivikoski (Business Security), Edward Parsons (Cyber Security Consulting), Tim Orchard (Managed Detection & Response), Antti Hovila (Strategy & Portfolio) and Charlotte Guillou (People Operations & Culture).
F-Secure's CFO, Eriikka Söderström, has decided to leave the company on 30 September 2021.
SHARES, SHAREHOLDERS' EQUITY, OWN SHARES
The total number of company shares is currently 158,798,739. The company's registered shareholders' equity is EUR 1,551,311.18. The company held 411,358 of its own shares at the end of the quarter.
The company holds its own shares to be used in the incentive compensation plans, for making acquisitions or implementing other arrangements related to the company's business, to improve the company's financial structure or to be otherwise assigned or cancelled.
The company currently has performance- and market-based long-term share-based incentive programs for key employees.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
RISKS AND UNCERTAINTIES
The following risks and uncertainties can adversely impact F-Secure's sales, profitability, financial condition, market share, reputation, share price or the achievement of the company's short- and long-term objectives. The matters described here should not be construed as an exhaustive list. The most significant risks are:
COVID-19 pandemic
Cyber security consulting and the new sales of Managed Detection and Response (MDR) service are negatively affected by the COVID-19 pandemic. Slowdown in the new sales of software products and Managed Detection and Response (MDR) solutions may occur if the situation prolongs.
Goodwill is tested for impairment annually and whenever there is indication that it might be impaired. The annual impairment testing of Consulting and MDR goodwill was carried out at the end of 2020 and indicated no impairment although long-term forecasts include a higher level of uncertainty due to the prolonged pandemic. Management continues to assess the need for updated testing regularly.
Under the pandemic an increase in credit losses and delayed customer payments may occur. To date, significant risks have not realized, but the impacts of the pandemic on customers may arise in the longer term. As part of the quarterly assessment of allowances for expected credit losses under IFRS 9, a slight increase in the calculation of expected credit losses was decided to maintain.
Cyber security incident
Cyber security attacks threaten the confidentiality, integrity and availability of F-Secure's products, services and the enterprise. F-Secure builds cyber resilience by continually improving its capability to identify, protect, detect and respond to relevant threats.
Endpoint protection market disruption
Endpoint security market is highly competitive. Operating system manufacturers have increased their focus to built-in security features and at the same time new vendors and technologies have emerged. F-Secure has to succeed in maintaining in-depth understanding of cyber security threat landscape, hacker techniques and technologies used as well as continue to innovate in defense technologies.
Market consolidation
The cyber security market is consolidating due to economies of scale. F-Secure has to succeed in finding the right acquisition targets, as well as successfully integrating the target companies.
Risks relating to launch of new technologies
In a rapidly evolving industry, it is vital to keep products and services relevant to customers while introducing new technologies to the market on-time. F-Secure is driving technology simplification and R&D effectivization initiatives as well as investments in artificial intelligence to ensure a competitive product portfolio.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
MARKET OVERVIEW
Attracting and retaining talent
Competition for capable personnel is increasing and there is structural undersupply of talent in the cyber security industry. F-Secure is continuously developing and adopting new ways of recruitment, building its own talent and knowledge pools and investing in training and development of personnel.
Geopolitical risks
F-Secure operates globally in different countries, and local regulation is exposing the company to geopolitical risks, including, for instance, unfavorable tax matters or export controls. Changes in regulations or their application, applicable to current or new technologies or services, may adversely affect F-Secure's business operations.
Currency fluctuations
Increased amount of operations and sites outside the Eurozone in different currencies exposes F-Secure to an increased risk related to currency fluctuations.
The growing number and variety of connected devices as well as digital services continues to create security challenges for both businesses and individuals. Combined with the increasing complexity of IT systems, tightening regulation and increasing significance of geopolitics, these trends are driving demand for security products and services. While advanced cyber-attacks are becoming more common and persistent, criminals are targeting companies of all sizes along with consumers by taking advantage of vulnerabilities in popular software, both traditional and new connected devices as well as online services. Apart from pure criminal activity, governments and hacktivists use vulnerabilities and malware for things including espionage and surveillance.
Attacks against corporations often go undetected for months. As most companies lack relevant capabilities for detection and response, it is estimated that the demand for both Endpoint Detection and Response (EDR) solutions and Managed Detection and Response (MDR) will continue to increase rapidly. The new detection and response capabilities are supplementing existing endpoint protection solutions (EPP), causing the EPP market to be in transition. Overall, as organizations are increasingly adopting cloud services, they seek managed security services and cloud-based delivery to help them maintain control of their security.
The consumer security software market continues to be impacted by the changing device landscape, app stores and online sales overall. On the whole, the number of connected smart home devices is growing very rapidly, and as a result, telecommunication operators are investing heavily in upgrading connectivity and introducing new security related services into their offerings. As consumers become increasingly aware of the threats to their privacy and security, they seek to buy more comprehensive solutions to secure their digital lives.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
F-SECURE PRODUCTS AND SERVICES
Corporate security
In corporate security F-Secure provides a broad range of cyber security products, managed detection and response solutions and cyber security consulting to companies globally with a focus on the mid-market and local enterprises.
F-Secure Elements – one cloud-native platform for chosen cyber security solutions
F-Secure Elements is a flexible platform that allows our partners to choose from a traditional annual license, a monthly subscription or the pay-as-you-go model.
F-Secure Elements Endpoint Protection – Cloud-native endpoint security
F-Secure Elements Endpoint Detection and Response – Customer- or partner-managed software solution to protect against targeted attacks
F-Secure Elements Vulnerability Management – Automated vulnerability scanning and management platform
F-Secure Elements for Microsoft 365 – Security solution to ensure safety of Salesforce cloud environments and content shared in the platforms
Independent cyber security solutions
MDR: F-Secure Countercept – Advanced threat hunting and continuous response capabilities against targeted attacks delivered as a managed service. Provides 24/7 monitoring, alerts within minutes, and gives clear guidance on how to respond
F-Secure Cloud Protection for Salesforce – Cloud-hosted content-level security for Salesforce customers
F-Secure Business Suite – On-site deployed endpoint security
phishd – Anti-phishing behavior management platform
Cyber security services
F-Secure provides premium consultancy services for all areas of cyber security on four continents, including services such as:
- F-Secure Cyber Incident & Resilience Services
- F-Secure Security Assessments
- F-Secure Red Team Testing
- F-Secure Cyber Risk Management
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
Consumer security
In consumer security the company provides a comprehensive range of endpoint protection, privacy and password management solutions, and security for all the connected devices at home, both separately and as a bundled premium offering (F-Secure TOTAL). The majority of
F-Secure SAFE
- Easy to use antivirus and internet security, including Family rules to let you set healthy boundaries for your children's device use
F-Secure SENSE
- A software-based solution integrated in operators' broadband routers to secure all devices and the entire connected home against online threats
consumer sales comes from the sale of endpoint protection products through the operator channel, but the company also sells consumer products through various retail partners, as well as the company's own web shop.
F-Secure ID PROTECTION
- Combines personal information monitoring against data breaches with password manager to create strong passwords
F-Secure FREEDOME
- VPN that hides your online activity to ensure anonymous and secure internet browsing
F-Secure KEY
- A light and easy password manager, allowing you to store your passwords securely and access them from any device
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
EVENTS AFTER PERIOD-END
F-Secure's CFO, Eriikka Söderström, has decided to leave the company on 30 September 2021. The process to appoint a new CFO is in progress.
ADDITIONAL INFORMATION
F-Secure will arrange a Capital Markets Day for investors and analysts on Tuesday, 31 August 2021 at 13.00 EEST.
Financial calendar
During the year 2021, F-Secure Corporation will publish financial information as follows:
- Interim report January–September 2021, October 21, 2021
Contact information
Eriikka Söderström, CFO, F-Secure Corporation
Henri Kiili, Investor Relations and Corporate Finance Director, F-Secure Corporation
+358 40 840 5450
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
Highlights
Outlook
CEO Juhani Hintikka
Financial performance
Tables
KEY RATIOS AND OTHER KEY FIGURES
| PROFITABILITY | 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 |
|---|---|---|---|---|---|
| Revenue | 58.2 | 53.0 | 116.0 | 107.8 | 220.2 |
| Consumer security | 26.3 | 24.8 | 52.6 | 49.2 | 100.1 |
| Corporate security | 31.9 | 28.2 | 63.4 | 58.7 | 120.1 |
| Products | 20.2 | 18.5 | 39.7 | 37.0 | 74.3 |
| Consulting | 11.6 | 9.7 | 23.6 | 21.6 | 45.8 |
| Gross margin | 45.9 | 41.4 | 91.5 | 83.8 | 172.2 |
| Gross margin, % of revenue | 79.0% | 78.2% | 78.9% | 77.7% | 78.2% |
| Operating expenses | -44.1 | -36.2 | -84.0 | -75.5 | -154.6 |
| Operating expenses for adjusted EBITDA | -38.3 | -31.9 | -74.7 | -67.6 | -138.5 |
| Adjusted EBITDA | 8.1 | 10.2 | 17.8 | 17.4 | 35.7 |
| Adjusted EBITDA, % of revenue | 14.0% | 19.3% | 15.3% | 16.2% | 16.2% |
| EBITDA | 5.8 | 10.2 | 15.5 | 17.8 | 35.7 |
| EBITDA, % of revenue | 10.0% | 19.3% | 13.3% | 16.6% | 16.2% |
| Adjusted EBIT | 5.4 | 6.9 | 12.3 | 10.9 | 22.9 |
| Adjusted EBIT, % of revenue | 9.3% | 12.9% | 10.6% | 10.1% | 10.4% |
| EBIT | 2.4 | 6.0 | 8.5 | 9.6 | 19.7 |
| EBIT, % of revenue | 4.1% | 11.4% | 7.3% | 8.9% | 8.9% |
| ROI, % | 7.8% | 22.5% | 15.2% | 18.5% | 18.5% |
| ROE, % | 6.4% | 17.5% | 14.8% | 14.0% | 16.2% |
| CAPITAL STRUCTURE | |||||
| Equity ratio, % | 57.3% | 46.3% | 52.5% | ||
| Gearing, % | -14.4% | 14.3% | -14.1% | ||
| Interest bearing liabilities | 31.7 | 50.0 | 39.9 | ||
| Cash and financial assets at FVTPL | 44.4 | 39.8 | 51.4 | ||
| SHARE RELATED | |||||
| Earnings per share, basic and diluted | 0.01 | 0.02 | 0.04 | 0.03 | 0.08 |
| Shareholders' equity per share, EUR | 0.55 | 0.45 | 0.52 | ||
| OTHER | |||||
| Capital expenditure, MEUR excl. acquisition | 3.3 | 7.1 | 7.1 | 9.7 | 14.3 |
| Capitalized development expenses, MEUR | 1.7 | 1.3 | 3.0 | 2.9 | 5.5 |
| Depreciation and amortization excl. PPA amortization, MEUR | -2.7 | -3.3 | -5.5 | -6.5 | -12.9 |
| Depreciation and amortization, MEUR | -3.5 | -4.2 | -7.0 | -8.2 | -16.0 |
| Personnel, average | 1,678 | 1,688 | 1,674 | 1,685 | 1,691 |
| Personnel, period end | 1,694 | 1,713 | 1,678 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting. COVID-19 impacts on the accounting principles of this financial statement report are limited, and have been presented in the table section within relevant items. Otherwise, the accounting principles are the same as in the annual report 2020.
All figures in the following tables are EUR million unless otherwise stated. This Financial statement is unaudited.
INCOME STATEMENT
| 4-6/2021 | 4-6/2020 | Change % | 1-6/2021 | 1-6/2020 | Change % | 1-12/2020 | |
|---|---|---|---|---|---|---|---|
| Revenue | 58.2 | 53.0 | 10% | 116.0 | 107.8 | 8% | 220.2 |
| Cost of revenue | -12.2 | -11.6 | 6% | -24.5 | -24.0 | 2% | -48.0 |
| Gross margin | 45.9 | 41.4 | 11% | 91.5 | 83.8 | 9% | 172.2 |
| Other operating income | 0.5 | 0.8 | -38% | 1.0 | 1.3 | -27% | 2.1 |
| Sales and marketing | -25.4 | -21.7 | 17% | -49.1 | -47.0 | 4% | -95.6 |
| Research and development | -11.2 | -10.2 | 10% | -22.3 | -20.5 | 8% | -41.8 |
| Administration | -7.5 | -4.2 | 80% | -12.6 | -7.9 | 60% | -17.1 |
| EBIT | 2.4 | 6.0 | -61% | 8.5 | 9.6 | -11% | 19.7 |
| Financial net | -0.3 | -0.7 | -58% | -0.1 | -2.0 | -97% | -3.2 |
| Result before taxes | 2.1 | 5.3 | -61% | 8.5 | 7.6 | 12% | 16.5 |
| Income taxes | -0.7 | -2.2 | -70% | -2.2 | -2.4 | -10% | -3.6 |
| Result for the period total | 1.4 | 3.1 | -55% | 6.3 | 5.2 | 22% | 12.9 |
| Other comprehensive income | |||||||
| Exchange differences on translating foreign operations | -0.1 | -1.3 | 4.4 | -10.2 | 3.2 | ||
| Total comprehensive income (parent company owners) | 1.3 | 1.8 | -27% | 10.7 | -5.0 | 16.1 | |
| Earnings per share | 4-6/2021 | 4-6/2020 | Change % | 1-6/2021 | 1-6/2020 | Change % | 1-12/2020 |
| Earnings per share, basic and diluted, EUR | 0.01 | 0.02 | -55% | 0.04 | 0.03 | 22% | 0.08 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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BALANCE SHEET
| Assets | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Tangible assets | 13.9 | 17.1 | 14.1 |
| Intangible assets | 34.5 | 34.3 | 34.0 |
| Goodwill | 85.8 | 79.3 | 81.9 |
| Deferred tax assets | 4.1 | 3.0 | 4.0 |
| Other receivables | 1.1 | 0.6 | 0.6 |
| Total non-current assets | 139.3 | 134.3 | 134.6 |
| Inventories | 0.1 | 0.1 | 0.1 |
| Accrued income | 4.3 | 3.0 | 3.4 |
| Trade and other receivables 1) | 47.4 | 46.1 | 47.5 |
| Income tax receivables | 1.0 | 3.2 | 0.9 |
| Financial asset at fair value through profit and loss | 0.1 | 0.1 | 0.1 |
| Cash and bank accounts | 44.3 | 39.7 | 51.4 |
| Total current assets | 97.1 | 92.2 | 103.2 |
| Total assets | 236.4 | 226.5 | 237.8 |
| Shareholders' equity and liabilities | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| --- | --- | --- | --- |
| Equity | 87.8 | 71.5 | 82.3 |
| Interest bearing liabilities, non-current | 21.6 | 29.6 | 23.9 |
| Deferred tax liability | 0.9 | 2.4 | 1.3 |
| Deferred revenue, non-current | 25.9 | 19.1 | 23.8 |
| Other non-current liabilities | 0.3 | 1.3 | 1.5 |
| Total non-current liabilities | 48.8 | 52.4 | 50.6 |
| Interest bearing liabilities, current | 10.1 | 20.4 | 15.9 |
| Trade and other payables | 28.7 | 25.7 | 26.1 |
| Income tax liabilities | 3.7 | 3.3 | 5.7 |
| Deferred revenue, current | 57.3 | 53.2 | 57.2 |
| Total current liabilities | 99.8 | 102.6 | 104.9 |
| Total liabilities and equity | 236.4 | 226.5 | 237.8 |
1) Management has assessed the potential impact on trade receivables due to the COVID-19 pandemic and adjusted allowances for expected credit losses under IFRS 9.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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CASH FLOW STATEMENT
| 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 | |
|---|---|---|---|---|---|
| Cash flow from operations | |||||
| Result for the financial year | 1.4 | 3.1 | 6.3 | 5.2 | 12.9 |
| Adjustments | 5.5 | 6.9 | 10.7 | 13.1 | 24.7 |
| Cash flow from operations before change in working capital | 6.9 | 10.0 | 17.0 | 18.2 | 37.5 |
| Change in net working capital | 6.0 | 1.4 | 2.2 | 2.7 | 10.8 |
| Cash flow from operating activities before financial items and taxes | 12.9 | 11.4 | 19.2 | 21.0 | 48.3 |
| Net financial items and taxes | -2.7 | -0.8 | -5.5 | -2.0 | -1.6 |
| Cash flows from operating activities | 10.2 | 10.6 | 13.8 | 19.0 | 46.7 |
| Cash flow from investments | |||||
| Net investments in tangible and intangible assets | -2.0 | -2.2 | -3.4 | -4.8 | -7.9 |
| Acquisition of subsidiaries, net of cash acquired 1) | -3.7 | -3.7 | |||
| Cash flow from investments | -2.0 | -2.2 | -3.4 | -8.5 | -11.6 |
| Cash flow from financing activities | |||||
| Proceeds from interest-bearing liabilities | 10.0 | 10.0 | 10.0 | ||
| Repayments of interest bearing liabilities | -3.0 | -3.0 | -8.0 | -3.0 | -11.0 |
| Repayments of lease liabilities | -1.5 | -1.7 | -3.0 | -3.1 | -7.3 |
| Dividends paid | -6.3 | -6.3 | |||
| Cash flow from financing activities | -10.9 | 5.3 | -17.4 | 3.9 | -8.3 |
| Change in cash | -2.6 | 13.7 | -7.0 | 14.4 | 26.9 |
| Cash and bank at the beginning of the period | 47.1 | 26.2 | 51.4 | 25.4 | 25.4 |
| Effect of exchange rate changes on cash | -0.1 | -0.2 | 0.0 | -0.1 | -0.9 |
| Cash and bank at period end | 44.3 | 39.7 | 44.3 | 39.7 | 51.4 |
1) Payout of MWR InfoSecurity earnout in Q1/20 is presented in cash flow from investments.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| Share capital | Share premium fund | Unrestricted equity reserve | Treasury shares | Retained earnings | Translation difference | Total | |
|---|---|---|---|---|---|---|---|
| Equity 31 Dec 2019 | 1.6 | 0.2 | 6.2 | -2.1 | 67.1 | 3.2 | 76.1 |
| Total comprehensive income for the year | 5.2 | -10.2 | -5.0 | ||||
| Cost of share based payments | 0.4 | 0.8 | -0.9 | 0.3 | |||
| Equity 30 Jun 2020 | 1.6 | 0.2 | 6.6 | -1.4 | 71.4 | -7.0 | 71.5 |
| Share capital | Share premium fund | Unrestricted equity reserve | Treasury shares | Retained earnings | Translation difference | Total | |
| Equity 31 Dec 2020 | 1.6 | 0.2 | 6.5 | -1.3 | 79.6 | -4.1 | 82.3 |
| Total comprehensive income for the year | 6.3 | 4.4 | 10.7 | ||||
| Dividend | -6.3 | -6.3 | |||||
| Cost of share based payments | 0.3 | 0.4 | 0.4 | 1.1 | |||
| Equity 30 Jun 2021 | 1.6 | 0.2 | 6.8 | -0.8 | 79.9 | 0.3 | 87.8 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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1 SIGNIFICANT EXCHANGE RATES AND SENSITIVITY TO EXCHANGE RATE CHANGES
| One Euro is | Average rates | End rates | ||||
|---|---|---|---|---|---|---|
| 1-6/2021 | 1-6/2020 | 1-12/2020 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 | |
| USD | 1.2089 | 1.1039 | 1.1384 | 1.1884 | 1.1198 | 1.2271 |
| GBP | 0.8724 | 0.8670 | 0.8853 | 0.8581 | 0.9124 | 0.8990 |
| JPY | 129.62 | 119.29 | 121.51 | 131.43 | 120.66 | 126.49 |
Changes in exchange rates on profit before taxes
| +/-10% FX rate change | 1-6/2021 | 1-12/2020 |
|---|---|---|
| USD | -0.3/+0.3 | -0.4/+0.5 |
| GBP | +/-0.0 | +/-0.1 |
| JPY | -0.2/+0.2 | +/-0.1 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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2 SEGMENT INFORMATION
The Group has only one segment (security).
| 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 | |
|---|---|---|---|---|---|
| Revenue | 58.2 | 53.0 | 116.0 | 107.8 | 220.2 |
| Cost of revenue | -12.2 | -11.6 | -24.5 | -24.0 | -48.0 |
| Gross margin | 45.9 | 41.4 | 91.5 | 83.8 | 172.2 |
| Other operating income | 0.5 | 0.8 | 1.0 | 1.3 | 2.1 |
| Sales and marketing | -25.4 | -21.7 | -49.1 | -47.0 | -95.6 |
| Research and development | -11.2 | -10.2 | -22.3 | -20.5 | -41.8 |
| Administration | -7.5 | -4.2 | -12.6 | -7.9 | -17.1 |
| EBIT | 2.4 | 6.0 | 8.5 | 9.6 | 19.7 |
| Financial net | -0.3 | -0.7 | -0.1 | -2.0 | -3.2 |
| Result before taxes | 2.1 | 5.3 | 8.5 | 7.6 | 16.5 |
Disaggregation of revenue
| By sales channels | 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 |
|---|---|---|---|---|---|
| Consumer security | 26.3 | 24.8 | 52.6 | 49.2 | 100.1 |
| Corporate security | 31.9 | 28.2 | 63.4 | 58.7 | 120.1 |
| Products | 20.2 | 18.5 | 39.7 | 37.0 | 74.3 |
| Consulting | 11.6 | 9.7 | 23.6 | 21.6 | 45.8 |
| Total revenue | 58.2 | 53.0 | 116.0 | 107.8 | 220.2 |
| By geographical area | 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 |
| Nordic countries | 19.3 | 17.6 | 38.6 | 34.9 | 70.9 |
| Europe excl. Nordics | 26.2 | 22.9 | 52.2 | 47.9 | 98.9 |
| North America | 5.7 | 6.1 | 11.4 | 11.7 | 23.2 |
| Rest of the world | 7.0 | 6.4 | 13.8 | 13.3 | 27.1 |
| Total revenue | 58.2 | 53.0 | 116.0 | 107.8 | 220.2 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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3 INTANGIBLE AND TANGIBLE ASSETS
| 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 | |
|---|---|---|---|
| Book value at the beginning of the period | 130.0 | 140.6 | 140.6 |
| Additions | 7.1 | 9.7 | 14.3 |
| Disposals | -0.8 | -0.3 | -0.6 |
| Depreciation and amortization | -7.0 | -8.1 | -15.6 |
| Impairment | -0.3 | ||
| Translation differences | 4.8 | -11.2 | -8.3 |
| Book value at the end of the period | 134.1 | 130.7 | 130.0 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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4 FAIR VALUE MEASUREMENT OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable:
Level 1: Fair values of financial instruments are based on quoted prices in active markets for identical assets and liabilities
Level 2: Financial instruments are not subject to trading in active and liquid markets. The fair values of financial instruments can be determined based on quoted market prices and deduced valuation.
Level 3: Measurement of financial instruments is not based on verifiable market information, and information on other circumstances affecting the value of the instruments is not available or verifiable.
| Carrying value | Fair value | |||||||
|---|---|---|---|---|---|---|---|---|
| Financial assets | Financial liabilities | Hierarchy level | ||||||
| FVTPL | Amortised cost | Amortised cost | Total | 1 | 2 | 3 | Total | |
| Cash and bank | 44.3 | 44.3 | ||||||
| Financial assets at FVTPL | 0.1 | 0.1 | 0.1 | 0.1 | ||||
| Bank loans | 22.0 | 22.0 | 22.0 | 22.0 | ||||
| Trade payables | 5.7 | 5.7 | 5.7 | 5.7 | ||||
| Contractual maturities of financial liabilities | Less than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | Over 5 years | Total contractual cash flows | Carrying amount | |
| Bank loans | 6.0 | 16.0 | 22.0 | 22.0 | ||||
| Lease liabilities | 4.1 | 3.9 | 1.3 | 0.3 | 9.7 | 9.7 | ||
| Total financial liabilities | 10.1 | 19.9 | 1.3 | 0.3 | 31.7 | 31.7 |
The financing agreement is subject to conventional loan covenants which the Group complied with throughout the reporting period.
To guarantee liquidity, F-Secure has EUR 23.0 million committed revolving credit facility (RCF) that was undrawn at the end of the quarter. In the comparative period, EUR 10.0 million of the revolving credit facility was withdrawn to decrease short-term liquidity risk during the COVID-19 pandemic. This was subsequently repaid with payments of EUR 5 million each in Q4 2020 and Q1 2021. In case withdrawn the revolving credit facility is presented in current interest -bearing liabilities.
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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5 RECONCILIATION BETWEEN ADJUSTED EBITDA, EBITDA, ADJUSTED EBIT AND EBIT
F-Secure has included certain non-IFRS based alternative performance measures (APM) as of the second quarter of 2018. Alternative performance measures are provided to reflect the underlying business performance, and to exclude certain non-operational or non-cash valuation items affecting comparability (IAC). The aim is to improve comparability, and alternative performance measures should not be regarded as substitutes for IFRS based measures. Alternative performance measures include EBITDA, adjusted EBITDA and adjusted EBIT. Depreciations, amortization and impairments are excluded from EBITDA. Also, the adjusted EBITDA and adjusted EBIT exclude IACs which are material items outside the normal course of business. These items are associated with acquisitions, integration costs, gains and losses from the sale of businesses and other items affecting comparability.
| 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 | |
|---|---|---|---|---|---|
| Adjusted EBITDA | 8.1 | 10.2 | 17.8 | 17.4 | 35.7 |
| Adjustments to EBITDA | |||||
| Costs related to restructuring | 0.4 | 0.0 | |||
| Costs related to strategic review | -2.3 | -2.3 | |||
| EBITDA | 5.8 | 10.2 | 15.5 | 17.8 | 35.7 |
| Depreciation, amortization and impairment losses | -3.5 | -4.2 | -7.0 | -8.2 | -16.0 |
| EBIT | 2.4 | 6.0 | 8.5 | 9.6 | 19.7 |
| 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 | |
| Adjusted EBIT | 5.4 | 6.9 | 12.3 | 10.9 | 22.9 |
| Adjustments to EBIT | |||||
| PPA amortization | -0.7 | -0.8 | -1.5 | -1.7 | -3.2 |
| Costs related to restructuring | 0.4 | 0.0 | |||
| Costs related to strategic review | -2.3 | -2.3 | |||
| EBIT | 2.4 | 6.0 | 8.5 | 9.6 | 19.7 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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Classification of adjusted costs in operating expenses
| Operating Expenses 4-6 2021 | Cost related to strategic review | Expenses for adjusted EBIT | Depreciation | PPA amortization | Operating Expenses for Adjusted EBITDA 4-6 2021 | |
|---|---|---|---|---|---|---|
| Sales and marketing | -25.4 | -25.4 | 1.3 | -24.0 | ||
| Research and development | -11.2 | -11.2 | 1.2 | -10.0 | ||
| Administration | -7.5 | 2.3 | -5.1 | 0.2 | 0.7 | -4.2 |
| Operating expenses | -44.1 | 2.3 | -41.8 | 2.7 | 0.7 | -38.3 |
| Operating Expenses 1-6/2021 | Cost related to strategic review | Expenses for adjusted EBIT | Depreciation | PPA amortization | Operating Expenses for Adjusted EBITDA 1-6/2021 | |
| --- | --- | --- | --- | --- | --- | --- |
| Sales and marketing | -49.1 | -49.1 | 2.7 | -46.4 | ||
| Research and development | -22.3 | -22.3 | 2.5 | -19.8 | ||
| Administration | -12.6 | 2.3 | -10.3 | 0.4 | 1.5 | -8.4 |
| Operating expenses | -84.0 | 2.3 | -81.7 | 5.5 | 1.5 | -74.7 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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6 QUARTERLY FIGURES
| INCOME STATEMENT QUARTERLY | 4-6/2021 | 1-3/2021 | 10-12/2020 | 7-9/2020 | 4-6/2020 |
|---|---|---|---|---|---|
| Revenue | 58.2 | 57.8 | 57.9 | 54.5 | 53.0 |
| Cost of revenue | -12.2 | -12.2 | -12.2 | -11.8 | -11.6 |
| Gross margin | 45.9 | 45.6 | 45.7 | 42.7 | 41.4 |
| Other operating income | 0.5 | 0.5 | 0.4 | 0.4 | 0.8 |
| Sales and marketing | -25.4 | -23.7 | -26.2 | -22.5 | -21.7 |
| Research and development | -11.2 | -11.1 | -11.7 | -9.6 | -10.2 |
| Administration | -7.5 | -5.2 | -5.2 | -4.1 | -4.2 |
| EBIT | 2.4 | 6.2 | 3.1 | 6.9 | 6.0 |
| Financial net | -0.3 | 0.3 | -0.6 | -0.6 | -0.7 |
| Result before taxes | 2.1 | 6.4 | 2.6 | 6.3 | 5.3 |
| Income taxes | -0.7 | -1.5 | 0.1 | -1.3 | -2.2 |
| Result for the period total | 1.4 | 4.9 | 2.7 | 5.0 | 3.1 |
| EARNINGS PER SHARE QUARTERLY | |||||
| Earnings per share, basic and diluted, EUR | 0.01 | 0.03 | 0.02 | 0.03 | 0.02 |
| KEY FIGURES | |||||
| Gross margin, % of revenue | 79.0% | 78.9% | 79.0% | 78.3% | 78.2% |
| Adjusted EBITDA | 8.1 | 9.6 | 7.3 | 11.0 | 10.2 |
| Adjusted EBITDA, % of revenue | 14.0% | 16.7% | 12.6% | 20.2% | 19.3% |
| Adjusted EBIT | 5.4 | 6.9 | 4.3 | 7.7 | 6.9 |
| Adjusted EBIT, % of revenue | 9.3% | 11.9% | 7.4% | 14.0% | 12.9% |
| ROI, % | 7.8% | 22.5% | 11.6% | 24.2% | 22.5% |
| ROE, % | 6.4% | 23.4% | 13.4% | 27.3% | 17.5% |
| Equity ratio, % (YTD) | 57.3% | 54.0% | 52.5% | 49.2% | 46.3% |
| Gearing, % (YTD) | -14.4% | -14.2% | -14.1% | 8.4% | 14.3% |
| Interest bearing liabilities | 31.7 | 35.0 | 39.9 | 49.2 | 50.0 |
| Cash and financial assets at FVTPL | 44.4 | 47.1 | 51.4 | 42.8 | 39.8 |
| Capital expenditure, MEUR excl. acquisition | 3.3 | 3.7 | 2.1 | 2.4 | 7.1 |
| Capitalized development expenses, MEUR | 1.7 | 1.3 | 1.3 | 1.3 | 1.3 |
| Depreciation and amortization excl. PPA amortization, MEUR | -2.7 | -2.7 | -3.0 | -3.3 | -3.3 |
| Depreciation and amortization, MEUR | -3.5 | -3.5 | -3.7 | -4.1 | -4.2 |
| Personnel, period end | 1,694 | 1,670 | 1,678 | 1,693 | 1,713 |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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CALCULATION OF KEY FIGURES
| Equity ratio, % | Total equity | × 100 |
|---|---|---|
| Total assets – deferred revenue | ||
| ROI, % | Result before taxes + financial expenses (annualized) | × 100 |
| Total assets – non-interest bearing liabilities (average) | ||
| ROE, % | Result for the period (annualized) | × 100 |
| Total equity (average) | ||
| Gearing, % | Interest bearing liabilities – cash and bank and financial asset through profit and loss | × 100 |
| Total equity | ||
| Earnings per share, EUR | Profit attributable to equity holders of the company | |
| Weighted average number of outstanding shares | ||
| Shareholders’ equity per share, EUR | Equity attributable to equity holders of the company | |
| Number of outstanding shares at the end of period | ||
| Operating expenses | Sales and marketing, research and development, and administration costs | |
| EBITDA | EBIT + Depreciation, amortization and impairment |
F-SECURE HALF YEAR REPORT 1 JAN - 30 JUN 2021
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CYBER SECURITY LIVES HERE
F-Secure Corporation
Tammasaarenkatu 7
P.O. Box 24, 00181 Helsinki
Tel. +358 9 2520 0700
[email protected]
www.f-secure.com/investors