Trend Micro Incorporated (TMICY) Q1 2025 Earnings Call Transcript

2025-05-10 15:58:11 ET

Trend Micro Incorporated (TMICY)

Q1 2025 Results Conference Call

May 8, 2025 03:00 AM ET

Company Participants

Mahendra Negi - Chief Financial Officer

Eva Chen - Chief Executive Officer & Co-Founder

Kevin Simzer - Chief Operating Officer

Akihiko Omikawa - Executive Vice President Japan & Cyber Security Institute

Conference Call Participants

Hideaki Tanaka - Morgan Stanley

Satoru Kikuchi - SMBC Nikko Securities

Presentation

Mahendra Negi

So this is the First Quarter Summary Results. The revenue has grown by 2%, and the operating profit has increased by 24% and operating profit margin is growing nicely. And we will be presenting another slide to explain this in detail. But out of this operating profit due to the stock price increase there are some remuneration linked to the stock price is included here.

So if the stock price does not go up and then practically, there is an increase of 34%. But the recurring profit, minus 9%, main reason is due to the translation loss of the exchange rate because of the lower dollar, higher yen, there was some translation loss, and that is posted here. And pre-GAAP is minus 8%, and this is totally different from the previous quarter. So what is happening, so that is explained by using this slide.

And that is mainly coming from the consumer business of minus 27%. And the reason for that, well, already in our fourth quarter last fiscal year, as we have explained in our earnings results meeting, there is the EC payment across the company in overseas digital company and this function is nonfunctional effectively. So in order to avoid any inconvenience to our customers, we have extended the renewal license by 2 months....

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