Trend Micro Reports Earnings Results for Q2 2024
Rhea-AI Summary
Trend Micro (TMICY) reported strong Q2 2024 earnings with 13% year-over-year net sales growth and a 42% increase in operating income. Key highlights include:
- Enterprise platform-connected annual recurring revenue (ARR) grew 45%, contributing to total company ARR of over $1.65 billion
- Enterprise net sales increased 16% YoY
- Protected enterprise assets grew 13% to over 82 million
- Operating margin reached 18%
The company maintained its full-year 2024 guidance, expecting consolidated net sales of 271 billion yen ($1.84 billion) and operating income of 52.9 billion yen ($359 million). Trend Micro continues to innovate, launching new AI-driven cybersecurity capabilities and achieving recognition in vulnerability discovery and attack visibility.
Positive
- 13% year-over-year increase in global net sales
- 42% increase in operating income
- 45% growth in enterprise platform-connected annual recurring revenue (ARR)
- Total company ARR grew 6% to over $1.65 billion
- 16% year-over-year increase in enterprise net sales
- 13% growth in protected enterprise assets, totaling over 82 million
- 18% operating margin achieved in Q2
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, TMICY gained 11.94%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Increase of
13% globally in net sales growth at actual currency - Increase of
42% in operating income to drive18% operating margin - Increase of
45% in enterprise platform-connected annual recurring revenue (ARR), contributing to growing the total company ARR by6% to over US$1.65 Billion
In Q2, growth was powered by our enterprise platform across all global regions, with enterprise net sales increasing at
The company grew enterprise platform ARR by
Eva Chen, Co-Founder and CEO: "We closed the first half of the year strong, leveraging our 35 years of balancing IT and security operations to enable business continuity for our customers. Together with our customers, we are innovating across our Trend Vision One™ platform, helping organizations to embrace AI for better business outcomes while more effectively managing enterprise cyber risk."
Streamlined cyber risk management and contextualized visibility drove security teams to increasingly rely upon Trend, resulting in a
Kevin Simzer, COO: "We beat our internal plans for the quarter, both top and bottom line. Our unrelenting focus is on platform expansion and operational efficiency, delivering
For this quarter, Trend Micro posted consolidated net sales of
The company does not revise expected consolidated results for the full fiscal year ending December 31, 2024 (released on February 15, 2024). Based on information currently available to the company, consolidated net sales for the year ending December 31, 2024 is expected to be 271,000 million Yen (or US
Key business updates in Q2 2024
Innovative: Trend nurtures a culture of innovation to drive advancements across its cybersecurity platform.
- Debuted ability to secure AI-enabled private data centers with NVIDIA
- Released world's first security solution to protect the emerging market of AI PCs
- Unveiled AI-driven cyber risk management capabilities that enable customers, like AI-enabled healthcare technology leader Xsolis, to proactively reduce breach risk
Trusted: Trend is a trusted partner to the customers and communities that it serves.
- Launched new platform capabilities to automatically secure enterprise data as employees increase exploration of tools such as ChatGPT and AI models
- Released latest survey findings on gap between board of directors and their security leaders, with
46% confirming challenges measuring business value of cybersecurity strategies - Achieved
100% attack visibility in the latest MITRE Engenuity ATT&CK® Evaluation
Global: Trend has the most geographically diverse customer base in the industry, with hundreds of millions of sensors powering the Trend Vision One™ platform for superior attack surface risk management.
- Collaborated on law enforcement-led take down of a premier ransomware group, responsible for an estimated quarter of ransomware attacks worldwide
- Helped prevent breaches and save organizations millions of dollars with our vulnerability discovery program, exposing over
60% of public vulnerabilities globally, according to a new Omdia report - Proactively secured enterprise customers from 29 zero-day vulnerabilities across Windows, Linux, Chrome and VMWare, via Trend's ZDI Pwn2Own competitions
Trend Micro was awarded the following patents in Q2 2024:
Patent No. | Issue Date | Title |
12013937 | 06/18/2024 | Detection and Identification of Malware using a Hierarchical Evolutionary Tree |
12019782 | 06/25/2024 | Privacy Protection for Customer Events Logs of Cybersecurity Events |
11973791 | 04/30/2024 | Detecting Network Entities That Pose A Cybersecurity Risk To A Private Computer Network |
* Converted at Company Plan Rates, 1USD= 147 yen, 1EUR =
** Converted at Company Plan Rates, 1USD= 147 yen, 1EUR =
Notice Regarding Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements. Forward-looking statements are sometimes accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on our current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
About Trend Micro
Trend Micro, a global cybersecurity leader, helps make the world safe for exchanging digital information. Fueled by decades of security expertise, global threat research, and continuous innovation, Trend Micro's AI-powered cybersecurity platform protects hundreds of thousands of organizations and millions of individuals across clouds, networks, devices, and endpoints. As a leader in cloud and enterprise cybersecurity, Trend's platform delivers a powerful range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google, and central visibility for better, faster detection and response. With 7,000 employees across 70 countries, Trend Micro enables organizations to simplify and secure their connected world. www.TrendMicro.com.
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SOURCE Trend Micro Incorporated
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