WithSecure (WITH) Q4 2024 earnings summary

Executive summary

• Revenue grew 6% year-over-year to EUR 116.0 million, driven by strong cloud business and improved profitability.

• Elements Cloud ARR increased 6% to EUR 83.3 million; Cloud Protection for Salesforce (CPSF) ARR surged 52% to EUR 12.8 million.

• Consulting segment revenue declined and is being divested, with a goodwill impairment of EUR 13 million recognized.

• Adjusted EBITDA for the year was EUR 3.1 million, a significant improvement from EUR -16.1 million in 2023.

• Strong cash flow from operations and continued cost efficiency measures supported financial performance.

Financial highlights

• Group revenue: EUR 116.0 million (+6% year-over-year); Q4 revenue: EUR 29.9 million (+7%).

• Adjusted EBITDA: EUR 3.1 million (2023: EUR -16.1 million); Q4 Adjusted EBITDA: EUR 2.4 million (2023: EUR 0.2 million).

• Gross margin improved to 80.4% in Q4 2024 from 79.7% a year earlier.

• Operating expenses down 6% year-over-year in Q4, reflecting efficiency measures.

• Cash and cash equivalents: EUR 27.3 million at year-end (2023: EUR 36.6 million).

Outlook and guidance

• Elements Cloud ARR expected to grow 10–20% in 2025 from EUR 83.3 million.

• CPSF ARR projected to grow 20–35% in 2025 from EUR 12.8 million.

• Elements Company segment Adjusted EBITDA guidance set at 3–7% of revenue for 2025.

• Medium-term target: "Rule of 30+" (revenue growth % + Adjusted EBITDA % > 30) by 2027.

• Cyber security consulting business will be fully divested in 2025.