I believe I also answered then that Finland’s revenue is not reported separately anywhere. Here is the geographical distribution of revenue from the annual report for continuing operations (no longer includes consulting). So it also gives a fairly good picture of the development of cloud sales, which accounts for the majority of the revenue.
In the Nordic countries, revenue grew by about 7%, and presumably Finland’s share of that total is very significant.
Somehow, reading this, it doesn’t come to mind that the biggest problem is the breadth of competitors’ portfolios? Or am I missing something?
Could it be that not everyone needs that maximally broad range of products to buy?
Funny you mention that – I showed this to my CISO friend, and his reaction was largely the same:
Breadth of offerings is not the problem: If SMBs aren’t buying volumes, it’s not due to a lack of options. More likely, it’s budget constraints, resource shortages, or simply sticking with familiar solutions.
Not everyone needs the whole package: Most mid-market companies just want basic endpoint protection, threat detection, and some form of identity protection – things often already provided through Microsoft or MSP partners.
And what really stuck with me was this: When the price point is lower, mere profits aren’t enough – more profits are needed. Without clear evidence of partner-driven sales outside the Nordics, it’s hard to see how a broad product portfolio alone can bring the necessary volume to accelerate ARR growth.
If Microsoft one day decided to bring its slightly better Defender as part of Business licenses (now part of Enterprise), then Withsecure and many others would quickly be in a tight spot.
I had to comment on this: It was brought already a couple of years ago, as part of the Microsoft 365 Business Premium package.
The slide is nonsense anyway.. The strength of cloud services is precisely to bring the same features regardless of the company’s size.
Perhaps I was unclear, but what I meant was that many advanced functionalities are still behind E-series licenses, even though Defender for Business (or whatever its name was) is probably quite okay for many SMEs. But many Finnish SOC operators also require E-series (or a competitor’s product) before they agree to take an organization under their surveillance. On the other hand, Withsecure’s customer base might be satisfied with Withsecure’s (or their partner’s) monitoring, even if they are not usually as extensive SOC operators.
But the core point hasn’t changed. Microsoft can, in principle, overnight move features between different packages and disrupt competitors’, including Withsecure’s, game.
Microsoft may also be aware that it’s walking a tightrope with that packaging. If they push others too hard, they might end up in the teeth of competition authorities, and after that, it will be more difficult. So, it might still be reasonable for them to focus on a segment that feels best and leave markets for others as well.
A couple more thoughts before a longer radio silence. The United States has threatened to shut down Starlink connections to Ukraine unless Ukraine agrees to US demands. Starlink connections are critical, for example, for Ukraine’s ability to use drones on the battlefield. In other words, the United States is blackmailing Ukraine and, at the same time, Europe with technological dependence. Previously, Russia blackmailed Europe with energy dependence, and now the United States is doing so with military dependence and technological dependence. In my opinion, this will have broad implications in the long run, and we are talking about some kind of paradigm shift. For example, how can a European public administration entity or an operator related to critical infrastructure acquire cybersecurity technology from the United States if it can be used for blackmail later in a crisis situation, and if a European alternative for cybersecurity technology exists?
Even if peace is achieved in Ukraine, various hybrid operations are unlikely to cease; rather, they are likely to increase. In preparing for these threats, cybersecurity technology is core, and European self-sufficiency will be important. Its importance is further highlighted by the fact that we are currently very susceptible to major problems from even minor technical disruptions, whether accidental or intentional. For example, an error in a CrowdStrike software update caused enormous problems in air traffic worldwide last July.
In February, the biggest net buyers of WS shares were found among nominee-registered owners, financial and insurance institutions, and the “other countries and international organizations” category, i.e., pretty much from abroad. The biggest sellers were households and non-profit organizations. Among funds, Aktia’s Mikro Markka was a big net seller. Danske’s and S-Pankki’s funds exited completely, as I wrote earlier. SEB was the biggest single net buyer. It remains to be seen if there is still selling pressure on the stock now that two large funds have exited completely. Of course, Aktia still has over 900k shares to sell, if they wish.
It’s a bit concerning that international buyers are accumulating shares while domestic funds are fleeing. The fact that Danske and S-Pankki have completely sold off and Aktia still has 900,000 shares left to sell doesn’t exactly inspire confidence.
Furthermore, it’s striking that there are no insider purchases. Usually, if management thought the stock was undervalued, one would expect at least a few purchases from their side.
It feels like the real test is whether these international buyers actually know something or are just absorbing selling pressure until a new decline is seen. It doesn’t exactly give the most convincing signal in the short term.
It would indeed be good to see insider purchases. Siilasmaa already has sufficient commitment to Withsecure (60M shares :)), but one would expect purchases from other board members and the management team. One can take a cue from Enento’s new chairman, who bought shares for over 800kEUR before starting the position! Last year, WS’s management could not buy shares as there was an insider project regarding the sale of consulting. Of course, it’s possible that WS still has an ongoing insider project, e.g., concerning CPSF. An outsider cannot know this, and the insiders cannot disclose it until afterwards.
A new name on the Top100 list is Karo Hämäläinen. He has been talking about his WS purchases for a while now, but this is the first time he made it onto the Top100 list.
Completely agree—insider purchases would send a strong signal to the market, especially since the stock is still priced low. Siilasmaa’s commitment is already convincing, but it would be important to see other board members and the management team also making purchases. That would increase confidence that they truly believe in the turnaround plan.
Enento’s example is good. A well-timed insider purchase—like their chairman made—would create positive sentiment and make it harder for bears to argue that management isn’t fully committed.
Regarding the insider project, you’re probably right. CPSF’s strategic review could explain the silence. But if not, even a moderate purchase from Antti, Tomi, or Lasse could make a big difference. It would also send a message that WithSecure’s management isn’t afraid of Microsoft’s bundling strategy.
Interesting to see Karo Hämäläinen on the Top100 list. His involvement might also attract small investors—and he’s not known for being quiet about his holdings. If insiders made more purchases soon, it could even create a small FOMO effect.
In short, if an insider project doesn’t prevent it, a few strategic purchases would be money well spent—both for confidence and communication.
New Strategic Partnership
Withsecure & Groupe Aurora
A French IT company founded in 2023, located in the Parc d’Activité Georges Petit area, at 43 Rue Marcel Sembat and 70 Boulevard Jean Jacques Bosc, 33130 Bègles, near Bordeaux. The company specializes in IT expert services and aims to promote more sustainable IT.
Here are the financial details of that small company:
Slightly unusual figures🤔
It’s great to get more collaboration
Look what you predicted! 
Now you can also get those comprehensive security features on top of the business package, which normally come in the E-series.
Apparently, and it’s not even an impossible price (12$ apparently).
Considering that it includes the endpoint device, identities, Office (e.g., emails), etc., all in one package, the price is very competitive (I would argue there isn’t much difference to Withsecure anymore). In addition, there are many service providers selling MS services, and they can now sell these to the same target audience they previously sold Withsecure to. If they also sell devices etc. at the same time, it’s convenient to get both device management and monitoring directly from MS.
The only area where Withsecure Countercept still stands out is its managed response. But many IT service providers can now easily offer the same service as part of an MS service using Microsoft’s tools, even to these non-enterprise users.
I believe this move will force Withsecure to focus on increasingly smaller client companies because for many companies in the 100-300 person size range, this BP + E5 security just became really attractive.
Edit: And regarding geopolitical concerns, it must be remembered that if a company already has M365, that ship has sailed. From a security of supply perspective, it doesn’t matter if endpoint security is from some European provider when a much more critical part of the business is still with Microsoft.
Good points from SRY01 and Musti. I would, however, believe that the majority of pricing goes through tenders, and outsiders have no visibility into them. What I myself have heard, and what was also exemplified at the investor days, is that MS tends to drastically raise prices as soon as it’s possible. There is dissatisfaction with this.
MS is in any case a really tough competitor and operates on a different scale than WS. However, to be a good investment, WS does not need to win the entire market, but rather a suitable slice of a really large and growing market. It doesn’t necessarily even need to gain market share, because the market is growing rapidly. Geopolitical concerns and dependence on US technology can help WS win tenders and accelerate growth in the future, as there is clearly now a desire for self-sufficiency in Europe. The current geopolitical turmoil certainly doesn’t harm WS. Of course, it’s difficult to estimate how much it will ultimately benefit.
Then there is, of course, CPSF, where WS claims to be both a technology and market leader. This is a less competitive market, and growth is likely easier for that reason. Of course, it’s still a small part of the whole.
It feels to me that in the discussion, WithSecure is being evaluated primarily in comparison to Microsoft, as if the most important criterion for an investment decision is which company is better overall. However, such a comparison is not very meaningful, because WithSecure does not directly compete against Microsoft’s entire offering, but operates in its own market segment where it has its own strengths and growth opportunities.
WithSecure will certainly never become a giant like Microsoft, but that is not its goal either. It is more essential to evaluate WithSecure’s own growth prospects, profitability, and strategic position. As an investment target, it should be examined from its own starting points, and not just in relation to the fact that someone else is a larger and more versatile player.
Furthermore, Microsoft’s strengths do not in themselves have a direct impact on WithSecure’s share value – or if they do, it is not the primary factor when making an investment decision. However, we are talking about whether WithSecure is a good investment target, not what Microsoft’s offering is. If Microsoft is such a superior alternative, then the logical solution would be to invest in it, wouldn’t it?
I don’t really understand since when in an investment strategy is the value or growth of any company compared to some other larger company?
The end result should be to focus on what WithSecure does and whether it will grow, not on what others are doing.
Perhaps I am wrong, but I will not be investing in Microsoft anytime soon. Good luck to all who do so, and success as well.
From WithSecure, Mikko Hyppönen and Ieva Ilves speaking here:
In the morning, a block trade of 198,330 units was made at 0.93 EUR. The bank was ENS-ENS, an internal trade of SEB.
WithSecure Plc, Stock Exchange Release, 11 March 2025 at 9:30 a.m.
WithSecure Plc Commences Acquisition of Own Shares
The Board of Directors of WithSecure Plc has decided to utilize the authorization granted by the Annual General Meeting held on 20 March 2024 to acquire the company’s own shares. The authorization covered the right to purchase approximately 10 percent of all the company’s shares, in one or more tranches, using the company’s distributable equity.
The acquired own shares will be used for the company’s share-based incentive schemes and Board remuneration.
The maximum number of own shares to be acquired is 350,000 shares, in one or more tranches. A maximum of EUR 400,000 will be used for the acquisition of shares. The target amount corresponds to approximately 0.2 percent of the company’s total number of shares, which is 176,016,849. The acquisition of shares will be carried out using the company’s distributable equity. The shares will be acquired in public trading through Nasdaq Helsinki, at the market price at the time of acquisition.
Own shares will be acquired in accordance with Article 5 of the Market Abuse Regulation (EU) No 596/2014 and the European Commission’s Delegated Regulation (EU) 2016/1052.
WithSecure has appointed Nordea to carry out the acquisition of own shares in accordance with applicable price and volume limits and applicable terms and conditions. The company has the right to discontinue the acquisition of shares at any time.
The acquisition of own shares will commence no earlier than 12 March 2025 and conclude no later than 30 April 2025.
The number of own shares currently held by WithSecure is 81,890 shares.
Is this share buyback a positive thing, or is it just for compensation?