Very good afternoon from the very, very warm and sunny Helsinki, and welcome to WithSecure. My name is Laura Viita, I am the Investor Relations Director of WithSecure, and happy to wish you welcome to this second quarter of 2025 results release. Today, we will first have our CEO, Antti, talk through the business highlights, especially the breakthroughs made in the proactive threat management with our new tools and other things, of course. After Antti, there's going to be the CFO, Tom, talking through the financials of the quarter. We will have questions and answers at the end. If you have questions, you can send them over the webcast all the time. I will take them up with the presenters at the end. Warmly welcome, and with this, I'm handing over to the President and CEO of WithSecure, Antti Koskela. Thank you, Laura. First, I would like to go through the strategy, and then I go to the financials, so that it has been a very busy quarter for us. What has really happened during the second quarter is that digital sovereignty discussion accelerated in Europe, and this was quite a lot intensified by the removal of the email from ICC judged by Microsoft and following the U.S. administration decision. A lot of discussion started on becoming more European ever since. It was not only us talking about it. It's a theme that is in the market, and it's clearly influencing already technology choices done by the partners. We met many of our partners and customers in our SPHERE event here in Finland in May. We had around 400 customers and partners here, and the majority of them were new ones, first time with us, and clearly signaling the increased trend for new partners coming to work with WithSecure. We will have more smaller marketing sessions here to use through the rest of 2025. We actually have already had one in Germany, and we will have one in Japan and France through the rest of the year. What we launched at the SPHERE event, we launched extensions to our Elements Cloud and Co-Security Services, as everything we do evolves around Elements. We took exposure management to a new level by expanding the scope to various cloud platforms and also identities. We extended coverage of our extended detection and response to cover well the Azure cloud environments. We packaged all our managed services and software into an easily purchasable bundle, Elements Infinite, that we also launched to the market. What Laura was suggesting in the beginning, this zero-day vulnerability detection, this is quite groundbreaking. We are able to use telemetry from our EDR tools and the behavioral data and use that with AI models so we can detect vulnerabilities that nobody knows exist currently. This has usually been a work for security consultants, and it takes rigorous weeks and weeks of work. We have been able to do breakthroughs with the use of AI. This gets to the new level of proactive threat management, and this technology will, of course, be integrated to our exposure management products as we move further. The combination of exposure and XDR and the whole Elements is here the key. That's why it's so powerful. We are also busy during the quarter, we did two transactions. We closed two transactions during quarter two. We closed consulting, which is now called Reversec. That divestment was closed on June 1st. We also divested our Malaysian entity, and we transferred that to the buyer, LS Systems, who became the preferred distributor for WithSecure in the region. The start has been quite rapid, and we are looking positively towards the work with LS Systems in the region. It is also a very effective way for us to do marketing and sales in the region without having our own feet in the ground. Our key strategy is to work on these mid-market customers and the partners serving them, because most of our pipeline comes with the partner development, how we extend the scope with the partners. We have extended our partnerships in Japan. We are launching Elements MDR in Japan. We are extending many historical endpoint protection-only partners to EDR to access the Japanese mid-market. In the Netherlands, we have a quite broad spectrum of managed service providers. We signed after SPHERE, actually, I met the CEO at the event and had a handshake. They said they take WithSecure as the number one supplier because they need a European solution. That was done. In Finland, you may have seen that we launched a partnership with DNA. DNA is going heavily to the IT part and the cybersecurity in collaboration of WithSecure and Google, so that these form a combination. A lot of groundwork is done. Unfortunately, not all the groundwork is in the numbers yet, but what we are doing with the partners creates a good path for the funnel for the second half. That is where our confidence comes from, how we are talking here. We grew Elements Cloud and Co-Security Services 13%. This growth is increasingly driven by the new products, exposure management, Elements MDR, partners going with the mid-market playbook with the wide portfolio. Of course, the deal sizes with the wider portfolio are higher than with just selling endpoint protection. The negative part is, unfortunately, like we said in the investor days, we have certain enterprise customers that form a revenue concentration. As our focus is very much on the mid-market, there has been always a risk that some of these will churn to more in-house security operation centers and the tools around them. That has happened with one very large enterprise customer in the U.K. during Q2. With the earlier managed service churn and this one, our managed services part declined 22%. This basically offset the good work in the Elements side, and our ARR growth landed at 3%. Of course, that's the single topic driving the NRR number. Tom will talk about the net revenue retention on Elements software and managed services separately in his part. Like we announced, we have reorganized and are in the process of reorganizing our partner and customer-facing activities to accelerate our strategy of becoming a European flagship. What we are doing here essentially is focusing our sales and marketing efforts to a very globally aligned model where we have certain teams focusing on the mid-market expansion and certain teams focusing on revenue retention and consolidation of the more long-tail channel partner environment. It's very important for our strategy. We could have done this earlier, but I think we have been quite busy with some of the other projects during the first half. We thought this would be the right time that we did it right after this transaction from Malaysia and consulting. We also aligned the cost structure in managed services to reflect the business reality, so we commented on that one when we announced the reorganization program. Tom, correct me if I'm wrong, but these cost structure changes will have Q3 onwards impact so that they don't yet impact Q2, just for everybody to notice. Despite investing in Sphere, despite this revenue churn from managed service, we managed to do just a bit positive, which is a material difference from the previous year at the same time, if you remember that. Maybe with this one, I invite Tom as well to talk about how we are progressing with cloud protection. Thank you very much, and good afternoon from my part as well. On the Cloud Protection for Salesforce, on a comparable note, we still are growing very strongly, so 54%. Of course, compared to the previous quarter, this was a slower quarter for us and very back-end loaded in many ways. If you look, commenting a little bit behind the numbers, we still won quite a few customers. Unfortunately, we were also hit by a pretty large effect on CPSF because we have a fairly sizable operation in the U.S. That had a negative impact on the ARR. There were some timings and so on. Net together, only a slight increase from the previous quarter, but still on track to do well during this year. Of course, from this also, then the NRR for CPSF was going a bit lower. It was still a very good number, though, 122%. Compared to the first quarter, it was slightly down. As I said, the largest foreign exchange effect was from the dollars. We have quite a bit of Australian business as well and so on. Those would be impacted as well. Altogether, our ARR negative was about $400,000. The numbers are, in terms of customers, increasing quite well and so on as well. Of course, the big thing is that, as many of you who follow Salesforce know, they are pushing very hard the agent force and the AI tool applications on that. We have also now part of that. We are in the forefront of protecting that activity. Agent force will be also protected by a new app by Salesforce very soon. We see that as, of course, a great expansion to the Salesforce opportunity itself. At the same time, to remind you, everybody, that as we have said, you know, CPSF, we continue to develop it. We will see in the future what strategic options we will look at that. We have a very good track and phase at the moment going, and we have patience to continue to develop it. Maybe going to the numbers a little bit. Here you can see the cloud ARR for the Elements company and the development of that. Elements software and Co-Security Services growing 13%. Quite solid growth continues and good traction there and so on. The NRR and so on are also on a quite good level for this part of the business. As Antti already mentioned, on the managed services, we see a decline year- over- year in the 20% over 20%. This is because of the large, as I said, large enterprises going into their own way forward and not based on the mid-market offering that we are providing. This is particularly for the U.K. and has been there already for some quarters. Another picture. Our cloud ARR grew 3%. The combined NRR, net revenue retention, was 99%. The software part was quite higher, but then the net was driven down by the managed services. The on-premise revenue declined, and this is very much as planned and expected. We continue to see that in this way as well, but for some time in the future. This was no real big news for those who have been following us. From a profitability point of view, as I said, we did a positive result despite our, as always, our Q2 for the past years has been a big investment in marketing and the Sphere event. Despite that, we were on a positive result in Q2. Here again, the CPSF numbers, Cloud Protection for Salesforce numbers, strong ARR growth continues, some foreign exchange impact from that, and the NRR at 122%. The revenue, of course, follows the ARR. Good progress on the revenue side as well, as expected, when the ARR also goes well. From a profitability point of view, as we have said before and continue, we are not expecting this, or we don't want to do this to do profit at this stage. We want to invest everything we generate to further growth. This business will be break-even, approximately break-even, and has been so in the past as well. We will continue to invest in growth as much as we can in terms of not though harming the overall or cash flow for the company. Here is the combined numbers for us. 3% revenue increase in the quarter. Our OpEx continues to reduce. This is, of course, part of our efficiency measures that we have done before. We, of course, do this continuously. We've done some investments in sales and marketing to new customers and partners, though. In R&D, we continue to optimize our cloud environments and so on. G&A, as we have also said, we expect that to scale with the business and we keep that under control. We have very diligent continuous efficiency measures in place and continue to watch our spend and try to improve on the efficiency. As Antti mentioned in the beginning, the newly launched restructuring that will have also an impact on our cost structure in the future. At the moment, we are estimating that to reduce our structure annually about $6.5 million on an annual basis, our cost in the future. Those will come gradually Q3, Q4 then into our numbers. On our outlook, no change to the outlook. We're going into all of our businesses with a good pipeline for the second half. There's no need to change our guidance. We expect the ARR to grow for Elements for 10%- 20% this year. For the CPSF, our outlook is to grow 20% to 35%. On the profitability for Elements company, we expect EBITDA to be between 3% and 7% of our revenue. With that, I will invite back, and this is just to maybe recap, we are determined to hold on to our medium-term financial targets and be a rule of 30+ company in a couple of years' time. With that, now I invite back Laura, and then we can go to the Q&A section. All right, we will start with the questions from the room, please. Hi, Felix Henriksson from Nordea. I have a few questions. Starting off with managed services, was the decline and the magnitude of the decline in Q2 in line with what you had budgeted into your guidance? Should we expect the pace of the decline to remain broadly similar for the second half of the year as well? As we mentioned before, we were always aware of potential large customer enterprise risks in here. We have taken that into account. As I said, we are holding our guidance for the rest of the year. The growth model really happens through the mid-market and the partners. That's where I think we have a belief on the partner momentum. We have been signaling that also to you in this call and previous calls. I think we have a very healthy funnel for Elements Cloud also. Of course, we need to do a lot of work to get everything over the finish line, but I think the pipeline is there. Got it. Because I guess what I'm trying to get to is that do you expect the sort of headwind from the managed services decline to diminish or intensify in the second half of the year? Because that also impacts how much you need to close the software side. That is correct. Fully understood. Fully understood. Regarding the sort of software and Co-Security part of your Elements Cloud business, can you describe the pipeline a bit more in detail? Is this mainly related to the new partners that you've signed? What gives you the confidence to get to the guidance? Could you just describe your visibility a bit more? I think the key topic is that there's a wide understanding that you don't do modern cybersecurity with endpoint protection only. We see an increasing trend that existing partners and customers are upgrading to other modules. I think the more interesting partners are the partners, for instance, Reliance in the Netherlands, who basically sell as a managed service security by themselves. We are white labeling, and they sell it at the same time to their entire fleet. We don't sell to individual end customers one by one, but we are also able to package it to the partner and upgrade the entire fleet as well. Those give confidence that this opportunity can be turned. Got it. Lastly, you mentioned the $6.5 million savings target related to the new change negotiations. Is that a net savings number, or do you expect to invest part of that, reinvest part of that into the business? That is net saving. Yeah, that's a net saving. Got it. Underneath the number, we have, of course, reinvestment. The key thing here is that we are departing from a quite independent regional sales structure into a globally aligned one where we have a team focused on the mid-market and teams focused on the small to medium sized, the smaller part, smaller customers and partners serving them. They require a different mode of operation. This is what we have in the plans because we have not finalized consultation in every country. Hi, Waltteri Rossi from Danske Bank. About the planned cost cuts, how much would you say it's coming from a structural change in your business model, switching from the large customers in the mid-market? In other words, is it more of a response to the lower demand in large customers or a proactive shift in line with your strategy? This is 100% aligned with our strategy. There is so much as a leadership team we can do at the same time. You might have noticed that we have been busy with the consulting transaction and the Malaysian transaction. We finalized those end of May, and then we could start getting to our plan, which we announced in June. That took 30 days. I think that's pretty decent for that one. This has been always the plan. If you remember from Investor Day, the key thing is that we focus on the partners serving the mid-market, managed service providers, kind of IT managed service providers. That's the scaling effect. They have access to the mid-market. We have a lot of channel partners from WithSecure history. Those we are consolidating largely under distributors like we have done with the likes of F9 in Finland, Ingram Micro, and Infinigate. We continue to do so. Now I guess the efficiencies come two ways. That partly is adjusting the cost structure to the managed services business reality, but a big part comes from that actually us resourcing for the strategy. There are synergies consequently from that one. All right, thank you. Also, about the MDR decline, you mentioned that there was one large customer that partially churned. Can you specify what that means? Do you expect the same client still to continue churning? There is, of course, also some part that potentially churns in the future. That has been taken into account in our forecasts. And this was a significant part from a single customer that happened in Q2. All right, thank you. Still a few questions. You also say that the FX impact was a big reason why the Cloud Protection for Salesforce growth was quite slow in Q2. Can you give at least a ballpark number on what the FX neutral growth was this quarter in that segment? Did we announce the number there? You said $400,000? $400,000, so that's about the FX effect that we were hitting. Of ARR. Yes. Without that, of course, it would have been higher that amount. Could you explain once more, $400,000. Our ARR reduced by $400,000 compared to Q1 because of FX. All right, thank you. Got it. You also say that the discussion around digital sovereignty accelerated in Europe this quarter. Do you expect this to actually materialize in increased demand still this year? We already see increased demand from the partners, and that's why companies like DNA in Finland are launching with us. You saw the release 12th of June. We are launching with DNA to bring a European and Finnish alternative to the Finnish market from the telco. I think that's a big step forward. I think we have been doing quite groundbreaking work in the Netherlands. You have heard activity in our Investor Day. We have a big client talking publicly, Reliance. Reliance is a family office that has acquired seven managed service providers into the group. They are standardizing on WithSecure and upgrading that to the entire fleet. We see more partners like this coming. This gives me the confidence. All right, thank you. One last one related to the cost savings. You said that from Q3 onwards, it will benefit your margins gradually. How much will it actually benefit this year's results? As we said, it will be EUR 6.5 million net saving on an annual basis. I would say that a large portion of that, probably depending on how now the process goes, of course, will start to come into play at some point in Q4 and onwards. All right, thank you. Hi, it's Atte Riikola from Inderes. Maybe first now about the change negotiations. Do you have any estimate how much non-recurring items are going to come from those in Q3? We will tell when we are done with the processes. Regarding the ARR guidance, you seem like you have confidence that the ARR growth will pick up in the H2, but should we already see some improvement in Q3? Do you already have the pipeline that now in Q3 there's going to be improvement? Absolutely. We need to increase at that tempo in Q3 and definitely in Q4. I expect this to be quite back-end loaded, in which way, like our business usually is. It's again Q4 when we're going to see what's going to happen. Maybe still about that, if you calculate, you have to get in roughly $7 million ARR to get the lower end of your guidance. If there's still going to be some churn from the managed services, it sounds like a lot compared to your history. What gives the confidence still? I think it's important to understand that when, there's a reason why I mentioned this Reliance example, when you sell into a partner that is a managed service provider, they are not actually selling the technology to the end customers because they are providing a service. They switch on the technology and we get the full benefit quite quickly. I think that gives me the confidence on that one. There is a lot to do. I think that funnel supports it, and the funnel supports it, and there's no reason to be pessimistic about it. That would be guesswork. Can you say anything about what kind of numbers we are talking about if that kind of MSSP partner takes your technology and takes it to all of its clients? Better not to comment, I think you said. I think we have said, have we shared in the Investor Day about the opportunity that how the, if you move from EPP to wider, did we share that one? Yeah. I mean, if you, yes, so it, of course, multiple X. It's like 12x endpoint protection easily per seat. You already mentioned that there is growing interest towards European cybersecurity vendors. Is it now only seen from the partner perspective? Because now, of course, the ARR growth wasn't that fast in Q2. I think it's fair. It is fair. It is true because our business model is about we sell into the partners, then we get the multiplication effect. We are not selling into the end user. We are selling into the partner. Together with partners, we then sell into the customer. That's why this progress in setting up the partnerships, that's the foundational work that is so critical. If you look at the competitive landscape in Europe, has there been any changes this year? This has been the biggest change, this digital sovereignty. I think I've seen RFQs where only European vendors are eligible. We have three main contenders in this mess: ESET, Bitdefender, and WithSecure in Europe. We start to see those kinds of trends. Denmark has taken very drastic actions to remove U.S.-based technologies. I think they are removing Office 365 and moving to open source systems, and they are doing systematic actions. This is a big undercurrent, and it will not happen overnight, but it's a big undercurrent. It's a part of the European defense as well. If you look at this NATO spending, 5%, this 1.5%, cyber is part of the 1.5%, and the sovereignty part there. All right, thank you. All right, one more question from the room. Just a couple of housekeeping items. On working capital, there was quite a meaningful release in the quarter. Could you explain that a bit? Was that something structural, or is that something that will reverse in the back half of the year? That's probably mostly related to when we did the consulting divestment and so on. That had a big impact on the numbers as well. Okay, and then just another one related to SPHERE. I think you disclosed last year that the cost related to the event was roughly $1.2 million. Can you disclose how much it was this year? $750,000. It was in Tom 's slides. We had a significantly lower spend on that one. We had a very focused session for the right audience, customers, and partners, less of an industry event. Thank you. All right, thank you. I'm moving to the questions from the chat. Jaakko, our analyst, is online today and asks, given the talk around digital sovereignty in Europe, are you seeing especially good opportunities in the European public sector? You touched on it already, but maybe let's pick up. I think that's definitely an upside for us, is the public sector. There are increasing items on that one. Of course, there's a whole notion how we, as a nation, support Ukraine. I think that's a big part of the opportunity and so forth. All right. Again from Jaakko, after the churn of the large client in managed services in Q2, could you comment the remaining at-risk customers in the managed services portfolio? Of course, unfortunately, when these churn things happen, the risk reduces somewhat. As Antti said, there is also a part of managed services actually, which is growing. It just doesn't come true when large customers are... The number of our end customers in managed services is higher in this quarter than it was last quarter. I guess the answer is that once the churn happened, the risk reduces. Absolutely. All right. There's Jaakko and a member of the audience who both ask about the cloud ARR guidance. We talked about it already, but let's talk about it once more. The guidance implies rather steep acceleration in the second quarter. What gives you the confidence for such a change in the trading? The work we have done with the partners in the first half and the quality of the partnerships, and of course, having access to our sales funnel, I think sales funnel is the basis of our ARR guidance. All right. It looks like people are on their holiday because there's no more questions in the chat. If I still comment, I think this ARR topic is that it is really about that we have a good funnel, we have good partners. I think now it's us to prove and execute on that one. I think that's what we need to do. That's why we put the focused operational model as well in place for sales that we are able to capture these opportunities. Thank you, Antti, for recapping. Any questions in the room? No, none in the chat either. I think we are ready to wrap up and go back to the sunny city. Thanks for being with us today and have a nice summer. Thanks for following us in the future as well. Bye-bye. Thank you for happy holidays from my part. Thank you very much.