It states directly:
‘WithSecure has divested its Malaysian subsidiary and operations, which will be transferred to LS Systems Group. LS Systems will continue to operate as WithSecure’s strategic distributor in the Asia-Pacific region (excluding Japan).’
So it’s true – most of the Malaysian team was in technical support and development, not sales.
Which makes this move even more likely a cost-cutting measure, not a growth investment.
There has been no commercial investment, customer logos, or campaigns in the APAC region that would indicate growth ambition.
The distributor model may sound strategic, but in practice, this appears to be a controlled exit, dressed up as a narrative.
WithSecure has made significant strategic moves over the last year – cost cuts, company sales, a tighter narrative, and a full focus on the Elements platform.
I just read through this thread, and it’s clear how much sentiment has fluctuated concerning WithSecure. That already says a lot.
Therefore, I believe April 25th is now the moment. If Q1 doesn’t show momentum in ARR growth, it’s perfectly reasonable to ask: when will the new strategy truly start to reflect in the results?
The pieces are in place — but at this stage, it’s only about execution.
Below are Ate’s preliminary comments as the company releases its results on Friday.
We expect a moderate 6% growth in the company’s revenue and profitability to have improved from the comparison period accordingly. In the big picture, expectations regarding the company’s Annual Recurring Revenue (ARR) growth are focused on the end of the year, and for the beginning of the year, the sentiment is still expectant.
It’s hard to fully believe that we are once again in this situation, waiting for the strategy to materialize into results.
When reading the history of this thread, the same themes repeat time and again:
“Growth is coming.”
“Consulting sales sharpens the focus.”
“Sales pipeline traction is strong.”
Even analyses have leaned on an expectant mood since 2022.
But at some point, expectations should also be reflected in the numbers.
The operating environment has indeed been challenging, there’s no doubt about that. But other players in this field have managed to build momentum in similar conditions. The difference often emerges in execution and leadership.
I hope, on behalf of all parties, that these softer forecasts prove to be too cautious.
In my opinion, the strategy and turnaround have progressed and were already visible in the previous results; things have moved in a better direction, even though 2023-2024 was a very challenging time for many.
In 2022, a lot of expectations were loaded, but there are reasons for that, and after that, economic growth went downhill across the board.
Of course, everything depends on what these expectations are? At least not many expectations have been loaded into the current valuation of the stock.
The turnaround is progressing, and economic growth has also been promised. I believe steady, gentle development is ahead. I am following the development with quite positive feelings because the direction looks good, but there’s no need to hold your breath for this to become a short-term stock rocket.
I am awaiting a neutral-positive Q1 result, exactly what has been promised, and that is perfectly good enough for this moment. I wouldn’t even be disappointed if it’s slightly less.
The train is chugging in the right direction all the time, which is the main thing.
Trump’s tariff buzz is temporary; these escalations will probably fade over time, so no worries.
Patience is a virtue, and if you’re frustrated, you should get some 3-star Jallu for the weekend and enjoy life; it relieves unnecessary stress.
I expect steady growth from WithSecure, demand is constantly rising. The Rule of 30+ strategy is a good sign that the company has a clear direction: to grow profitably. I believe that “greater” growth will start to become visible during 2025–2026, and by 2027 it will also materialize as returns for investors.
There is a lot of potential, the risk is very moderate.
If the Rule of 30+ is the goal, what kind of ARR growth rate and operating margin percentage do you expect from the company over the next couple of years for it to materialize?
I think it’s important to be clear about what success looks like for these metrics.
Over 20% ARR growth seems completely unrealistic based on what we currently know.
1. Growth has been flat for over two years: ARR has remained at 6–8% with no signs of acceleration.
2. No significant new customers or regional expansion: WithSecure remains Finland-centric, and visibility elsewhere is limited.
3. Competitors are growing faster: Wiz, CrowdStrike, and Arctic Wolf are growing at a rate of 30–70%. WithSecure cannot keep up.
4. Go-to-market activities have not changed: No visible campaigns, no reinforced communication, no customer acquisition momentum.
5. Market opportunity does not automatically mean the ability to capitalize on it: Demand for cybersecurity is indeed growing, but WithSecure has not demonstrated that it can seize this opportunity.
Belief in macro trends is one thing. Execution is another.
Let’s see what Antti says on the 25th. This is his moment to inspire and make us believe.
In this case, WithSecure should not be considered an investment at all, and the mentioned companies could rather be considered.
However, if WithSecure’s growth picks up, with ARR exceeding 20%, it might be wise to monitor and confirm this growth and reconsider WithSecure as an investment, perhaps in 2027
After the demerger, the share price has fallen from its peak of 2.49 euros to the current 0.88 euros, a decrease of 65%, and is not far from its 52-week low of 0.70 euros.
This is the market’s view of the company’s turnaround so far.
For the direction to change, belief must meet execution, and growth must be visible in the numbers.
As investors, we should demand it now and put pressure on management, not just live in mere hope.
