Investors

Business model

Business model

F-Secure is a globally operating Finnish cyber security company. We offer a comprehensive range of cyber security products and services related to endpoint security, privacy protection, password management and digital identity protection, and router security that protects the connected home. The solutions of F-Secure allow customers to take care of all their cyber security and privacy needs. We operate globally in over 100 countries and have some 16 million subscribers in all channels. In the financial year 2021, F-Secure employed 245 people on average.

Geographical distribution of external revenue*

EUR million
IFRS (unaudited)
1 Jan – 31 Mar

2022 2021
Europe excl. Nordic countries 12.4 12.6
Nordic countries 9.6 9.1
North America 4.0 3.4
Rest of world 1.4 1.2
Total 27.4 26.3

Geographical distribution of external revenue1–3/2022*

*The financial information presented in the table have been prepared on a carve-out basis from WithSecure’s consolidated financial statements using the historical book values for income and expenses, assets and liabilities and cash flows attributable to the consumer security business.

Two primary sales channels

F-Secure operates in two channels: Partner channel and direct channel.

Partner channel

Our global network of some 170 channel partners is our primary sales channel. The largest group among the partners is communication service providers, such as broadband or mobile broadband operators. Channel partners also include retailers, banks, and insurance companies. Our business model in the partner channel is primarily built around selling recurring security service subscriptions.

We also generate professional services revenue when we, e.g., integrate our solutions with a channel partner’s invoicing systems (typically one-off) or when providing customer support (annual fee). Additionally, we provide channel partners with both expert and cloud-based services such as marketing automation, customer journey audits, or Net Promoter Score (NPS) measurement subject to separate one-off or recurring fees.

Direct channel

We also sell cyber security and privacy solutions directly to consumers through app stores such as Apple App Store and Google Play and our own online store. Direct channel customers include individual consumers, families and small offices or home office customers to a limited extent. In direct channels, we focus on acquiring and converting new customers and retaining existing customers, especially in the higher average revenue per user (ARPU) premium customer segment where customers are interested in all-in-one security solutions.

In addition to direct customer purchases, the direct channel serves the affiliate marketing of F-Secure (affiliate partners) and consumers who have purchased the solution, e.g., through a retail outlet and renew their subscription directly through F-Secure after the original purchase. In the direct channel, our business is based almost wholly on recurring subscription revenue, whether for a fixed period that can be renewed automatically after the initial subscription period or a monthly recurring subscription.

Sales by channel*

Revenue of F-Secure for the three-month period ended 31 March 2022 was EUR 27.4 million.

Revenue from the partner channel increased by 4.3% from the comparison period and represented an estimated 80% of total revenue.

Revenue from the direct channel grew by 3.2% and was around 20% of total revenue.

*The financial information presented have been prepared on a carve-out basis from WithSecure’s consolidated financial statements using the historical book values for income and expenses, assets and liabilities and cash flows attributable to the consumer security business.

Our customers

Communication service providers

Communication service providers include cable operators, internet service providers, mobile operators and converged network operators.

Examples of communication service providers include Frontier Communications Parent Inc. (USA), Elisa Oyj (Finland), Vodafone Group Plc (several countries), StarHub Limited (Singapore), Nifty Corporation (Japan), Ziggo B.V. (Netherlands) and Swisscom AG (Switzerland).

Retail

In retail, F-Secure enables retail partners to sell its products electronically in various forms. This can include, e.g., providing product license keys in a box, print-on-receipt, and electronic software distribution (ESD).

Our online sales partners include, e.g., Amazon.com, Inc., NotebooksBilleger.de AG, and Verkkokauppa.com Oyj.

Banks and insurance companies

Banks and insurance companies represent a new and growing channel partner segment. The insurance sector is looking for new ways to generate value, security and peace of mind for their customers and the banking sector is actively targeted by cybercriminals to get access to consumers’ online bank accounts or credit card details. According to F-Secure channel partners more than 90% of consumers feel that banks are trusted providers of cyber security solutions.

F-Secure banks and insurance channel partners include MAIF in France and Insured Nomads in the United States.

Direct channel

Direct channel customers include individual consumers, families, and to a smaller degree, small office/home office customers that buy consumer products. Sales and marketing in the direct channel currently focus on selected European markets and consumers with high ARPU potential.

Customer acquisition happens directly through the F-Secure online store, and application stores, such as Apple App Store and Google Play.

Key figures

See our financial development

Strategy

Read about our strategy