F-Secure withdraws its financial outlook for 2020 due to COVID-19 related market uncertainties – beginning of the year as expected

F-Secure Corporation, Stock Exchange Release, 9 April 2020, at 16.30 EEST

F-Secure withdraws its financial outlook for 2020 due to COVID-19 related market uncertainties – beginning of the year as expected

F-Secure withdraws its 2020 outlook due to COVID-19 related market uncertainties and provides a new outlook as soon as deemed possible. The company’s operations have performed as expected during the beginning of the year. However, the pandemic has caused uncertainties for the rest of the year.

F-Secure’s portfolio is well diversified into different cybersecurity sub-markets making the company’s vulnerability to external market shocks limited. Until now F-Secure’s software product businesses to both corporates and consumers have not been adversely impacted by the pandemic. The market uncertainty is not expected to have a significant effect on contract renewals. However, during the rest of the year F-Secure sees possible slowdown in the new sales of software products and Managed Detection and Response (MDR) service. Also more project based Cyber Security Consulting is likely to be negatively affected at the times of economic uncertainty.

The long-term outlook of all F-Secure’s business areas continues to be attractive as the cybersecurity market fundaments have not changed.

F-Secure has secured the health and safety of its employees and ensured full business continuity to the customers. The company continues to successfully deliver services according to service level agreements (SLAs) despite the company working fully remotely.

In order to prepare for the uncertainties in the future, F-Secure has explored different scenarios and will  implement potential mitigating actions if necessary.

For reference, in December 2019 F-Secure issued the following 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.

Contact information:

Eriikka Söderström, CFO, F-Secure Corporation

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Henri Kiili,  Investor Relations and Treasury Director, F-Secure Corporation

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