Hopefully, we’ll focus, because after the measures you already mentioned, change negotiations are only now/again starting, meaning efficiency must be improved again -isn’t the pipeline full of orders/is AI already doing the work/are there the wrong kind of people inside? I doubt the turnaround, unlike with SSH. Well, that too was ‘let’s hope, let’s hope’ for a long time until
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It’s natural on some level that the further packages are built “ready”, certain tasks have been done, and perhaps “builders” or others are no longer needed as much.
A perfectly healthy measure, and I wouldn’t be surprised if, after a certain period, as things mature, there’s another round.
Even on a construction site, you don’t need a foundation builder once the job is cast, nor an electrician after the electricity has been wired.
And as mentioned in the news: “a harmonized operating model that -accelerates- the strategic goal of becoming the flagship of European cybersecurity.”
It’s unfortunate if certain positions are not needed, but on the other hand, if an additional 6.5m shillings remain in the cash register (which they won’t), I don’t blame it; this is how the corporate world works.
I can’t connect this to a drop in turnover, and it doesn’t seem to be, as the outlook is reported to remain unchanged.
I take this more as an effort is also being made to generate money for the cash register or free up money for investments. I see this as positive for the company.
On the other hand, the company is simultaneously being prepared for sale. I need to get the purchase orders ready.
A brief comment on the report. Customer losses in managed services continue as in previous quarters. Because the guidance is maintained, ARR growth will continue despite this. The development reported in Q1 is thus expected to continue. More will be heard in a couple of weeks.
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What is the basis for the company being sold?
Here are Joni’s comments on the change negotiations. 
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Was this even new? Expansion from French to UK
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SSH probably has more interesting products for this sector than WS.
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This strategy chosen by WithSecure as a software company most likely aims precisely at enabling the largest possible profit with the smallest possible workforce. Software companies are known to have a high operating margin. Such a company can, of course, also be a good acquisition target, which some on the forum speculate about.
And could the same thing happen to WithSecure as just happened to SSH?
I don’t think anyone has the right answer to this.
I’ll answer anyway:
If Withsecure starts releasing positive news, like delivering evidence, this will be followed by momentum and some kind of hype.
So, absolutely it can, as they have a perfectly decent strategy and a vision to match.
There is a need for European cybersecurity, and Withsecure might succeed, but so far there are no signals of success.
Q2 in a couple of weeks will hopefully tell us something. The flagship is a nice vision and it’s good to talk about it, but things need to materialize if they want to get a reaction in the share price.
There are many good signals from the right things and the right things done; they just need to show up in the numbers, and if that happens, they will surely be visible in the next earnings reports and beyond. If we go 3-4 earnings reports forward and none of the work done is visible, I would be very surprised.
The situation and a strong share price increase would require a bunch of significant news from Withsecure, and yes, that could happen.
However, I’m not holding my breath for such things; a realistic scenario is probably steady growth according to plans.
I don’t see a scenario where things go in a worse direction.
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Sounds realistic. Steady growth will not, however, yield high valuation multiples as peer group members grow strongly and compete widely, and an industrial partner like SSH is likely a less probable option for WS, although generally the best solution, so a merger or being acquired will then remain the only speculative element for a significant rise in valuation multiples. It largely depends on the main owners, if/when the product is sound - how shareholder value appreciation can be realized, as in the case of SSH, where the basis for growth and value creation apparently finally emerged?
Could WithSecure’s CPSF operation have possibilities for a similar solution as with SSH, meaning some big company would become the main owner, and the question is what kind of company that could be? And doesn’t the management also have a bit of this kind of strategy, when it separated these three operations, of which consulting has already been sold.
The European Commission published the AI Code of Practice, which is a voluntary code of conduct for generative AI before the actual AI Act comes into force.
I’m thinking about this from WithSecure’s perspective; WS is already largely in line with these requirements:
Luminen does not store user data
GDPR compliant, data stays in the EU
Information security and privacy at the core from the start
An opportunity? Especially as customers start demanding accountability in AI solutions. Public administration, larger companies, etc.
Who knows..
Q2 is looming, should we start getting nervous/excited?
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How does this really relate to WS?
It feels a bit like every little development is interpreted as a positive for WS, whether it’s about some AI recommendations, NATO defense appropriations, etc. What’s next, will a potential US icebreaker order also flow directly into WS’s coffers?
Focus on the core business; it doesn’t look very good based on this week’s news.
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Critical thinking is always necessary.
However, I don’t think the connection to WS is entirely pulled out of thin air. Of course, not every AI news story should automatically be linked to WS, but in this case, we are specifically talking about the responsibility, privacy, and data processing of AI solutions, and these are precisely the areas where WithSecure has traditionally been strong.
WS’s Luminem product does not store user data content, operates within the framework of GDPR, and is hosted within the EU.
If and when AI regulation tightens, many national and European customers may prioritize precisely these kinds of solutions where responsibility and data security are built-in.
Of course, this does not yet mean cash flow, but it is justified to see this as an opportunity, also as a good topic for discussion, as we are talking about “WithSecure as an investment target,” so the discussion field is likely broad.
In investment strategy, long-term opportunities are an important element.
Additionally, WithSecure sees the matter as important, so if the matter doesn’t otherwise relate to WS, it at least does in that way.
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Hi everyone! We are organizing a prediction contest for WithSecure’s second quarter revenue and profit, and there will also be prizes. WithSecure will publish its Q2 results on Wednesday, July 16.
The three best predictors will each receive a WithSecure backpack, a WithSecure t-shirt, and Inderes Premium (value €200) for one year as prizes. Winners will be determined based on who has:
- The most accurate prediction for revenue
- The most accurate prediction for profit
- The most accurate prediction for both revenue and profit (overall accuracy)
You can submit your predictions on Inderes’ WithSecure company page under Investor Consensus.
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Now it seems that the positive hype around these cybersecurity companies is intensifying. It is certainly an industry where many who have invested in it could see chunky profits in the future. For example, SSH has risen 120% this year. Let’s hope that WithSecure also rises and gets its share in this cybersecurity business.
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Atte is again in a pre-party mood (I don’t mean Torstaikalle), as WithSecure drops its Q2 report next Wednesday
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Yesterday was a really positive day, and now that some analyst commentary came out, we are down 5%…