F-Secure lowers its outlook for corporate security revenue growth in 2019 and guides clearly improving profitability for 2020
F-Secure Corporation, Stock Exchange Release, 12 December 2019 at 14.40 EET
F-Secure lowers its outlook for corporate security revenue growth in 2019 and guides clearly improving profitability for 2020
Change in 2019 outlook
F-Secure expects that revenue from corporate security will grow approximately 27-30% from previous year instead of over 30% as per previous guidance. Consumer security revenue and group EBITDA outlooks remain unchanged.
Corporate security revenue growth is expected to be lower than anticipated due to the following factors:
- Utilization rates in cyber security consulting have been softer in some regions than expected during the last quarter of 2019.
- Significant multi-year deals in Managed Detection and Response (MDR) have been signed during the year in several main markets of the company. As the signing of some of these deals has been delayed the revenue recognition for 2019 is lower than expected.
New outlook for 2019:
- Revenue from corporate security is expected to grow approximately 27-30% compared to 2018
- Revenue from consumer security is expected to stay approximately at the same level as in 2018
- Adjusted EBITDA is expected to be above EUR 21 million including the impact of IFRS 16
Previous outlook for 2019:
- Revenue from corporate security is expected to grow by over 30% compared to 2018
- Revenue from consumer security is expected to stay approximately at the same level as in 2018
- Adjusted EBITDA is expected to be above EUR 21 million including the impact of IFRS 16
Outlook for 2020:
- Organic revenue growth in corporate security is expected to continue in 2020 although slower than in 2019. The negative impact of terminated non-strategic products in growth rate is estimated to be a few percentage points in 2020.
- Revenue from consumer security is expected to be approximately at the same level as in 2019.
- Adjusted EBITDA is expected to clearly increase compared to 2019.
This outlook replaces previously disclosed forecasts and forward looking statements.
Contact information
Eriikka Söderström, CFO, F-Secure
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Henri Kiili, Investor Relations and Treasury Director, F-Secure
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