MACNICA HOLDINGS,INC. Q3 FY2026 earnings call

• Company Core Strengths

  • 1 out of every 3 Macnica employees is an engineer, enabling end-to-end technical support from customer assistance to in-house product design and development, creating strong differentiation from competitors.
  • Global coverage across 26 countries with 92 locations, supporting over 23,500 customers seamlessly across regions.
  • Partnership network with over 300 leading advanced technology vendors globally, giving Macnica access to cutting-edge cybersecurity innovation ahead of most peers.

• Cybersecurity Business Positioning

  • Macnica was the world's first distributor partner for CrowdStrike, signing in 2013 just two years after CrowdStrike's founding, and holds the number 1 domestic market share for CrowdStrike products in Japan to this day.
  • Macnica developed its own in-house Macnica Attack Surface Management (ASM) service, which holds the number 1 domestic market share in Japan for two consecutive years per third-party industry research.
  • Macnica maintains an independent in-house Security Research Center that researches cyberattack trends targeting Japanese companies, shares insights with the industry and public sector, and informs the development of localized security services for the Japanese market.

• CrowdStrike Strategic Positioning

  • CrowdStrike was founded to address flaws in legacy cybersecurity, which could not keep up with the 60,000-70,000 new viruses emerging daily. It built a cloud-native, AI-powered cybersecurity platform from inception, and reached $4 billion run rate revenue in 12 years, faster than any other major cloud software company historically.
  • The global cybersecurity market is projected to be a $300 billion (≈45 trillion yen) opportunity within 3 years, with double-digit annual growth across all regions globally.
  • CrowdStrike currently offers over 36 modular security solutions on its core platform, with 4 more in development, allowing customers to seamlessly integrate multiple security capabilities on a single unified infrastructure.

Macnica Holdings operates three business segments: 1) Semiconductor Segment: accounts for approximately 90% of total company revenue, and Macnica hit 1 trillion yen in total revenue in FY2022. 2) Network Segment: is a fast-growing segment, with projected 2024 full-year revenue of 150 billion yen. Within the domestic Network Segment, ~70% of revenue comes from cybersecurity-related products, top 5 vendors (CrowdStrike, Box, Splunk, Trellix, CyberArk) account for ~40% of Network Segment product revenue, and the remaining 60% comes from early-stage venture cybersecurity products. Geographically, Japan accounts for just under 70% of Network Segment revenue, with the rest from international markets. 3) CPS (Cyber-Physical System) Solutions Segment: is a newer emerging business focused on developing cutting-edge solutions and services. CrowdStrike, Macnica's key partner, has reached $4 billion (≈600 billion yen) in annual run rate revenue, with 30,000 total customers and 10,000 employees, and a valuation of $100 billion (≈15 trillion yen).

• Macnica projects the Network (cybersecurity-focused) Segment will reach 150 billion yen in revenue in 2024, continuing its strong historical growth trajectory.
• The global cybersecurity market is expected to grow at 12-16% annually over the next 3 years, reaching a total $300 billion market opportunity, with double-digit growth across all global regions.
• Macnica plans to accelerate investment in international expansion of its cybersecurity business, targeting high-growth Asia-Pacific and Middle East markets by leveraging its first-mover advantage from Japan's more mature cybersecurity market.
• Both Macnica and CrowdStrike expect continued strong growth from their long-standing partnership, with plans to deepen collaboration to expand market share in Japan and global markets.

• Cyberattacks are evolving rapidly: the average time from initial attacker contact to full system infiltration and spread is now just 48 minutes, leaving organizations very little time to detect and stop intrusions.
  • Over 50% of modern attacks do not use malware, so traditional legacy defenses (virus scanners, firewalls, intrusion prevention systems) cannot detect these intrusions.
• Adversaries are increasingly using generative AI to conduct more convincing and scalable attacks: AI enables low-skilled attackers to conduct hacking, generates convincing phishing content, and powers deepfake scams (one documented deepfake scam stole $26 million via a fake CFO video for wire transfer approval).
• Rising geopolitical tensions have led to a sharp increase in state-sponsored cyber espionage, cybercrime, and hacktivism, increasing overall breach risk for all organizations.

Q: How did Macnica secure a partnership with CrowdStrike so early, before most other distributors? / A: Macnica and CrowdStrike board chair Gerhard Watzinger had an established trusted relationship dating back to 2001, when Macnica became the Japanese distributor for SafeBoot, where Watzinger served as CEO from 2004 to 2007. After SafeBoot was acquired by McAfee, Watzinger took an executive role at McAfee, and the successful collaboration between the two sides resulted in Macnica being selected as CrowdStrike's very first distribution partner when it launched.

Q: What are examples of AI use in modern cybersecurity, for both defenders and attackers? / A: CrowdStrike was one of the first cybersecurity firms to use AI (originally called machine learning) for threat detection starting in 2012-2013. In 2023 it launched Charlotte AI, a ChatGPT-style tool that lets security engineers ask natural-language questions about attacks and receive tailored response guidance built directly into the CrowdStrike Falcon platform. For attackers, generative AI is lowering the barrier to entry for hacking: North Korean threat group Labyrinth Chollima uses AI to generate large-scale phishing content and deepfake scams for fraud, leading to a growing volume of more convincing attacks that organizations must prepare for.

Q: How has rising geopolitical tension changed demand for cybersecurity? / A: Higher geopolitical tension leads to a sharp increase in all types of malicious cyber activity: state-sponsored hacking, for-profit cybercrime, and politically motivated hacktivism. This leads to a broad increase in breach risk for private and public sector organizations, so demand for robust modern cybersecurity has risen accordingly, and CrowdStrike has increased its readiness to protect government and commercial customers amid this elevated risk.

Q: How does Macnica conduct cybersecurity market education and promotion? / A: Macnica runs a staged promotion strategy aligned with product lifecycle: early-stage products get exposure via trade shows, roundtables for early adopters, and SEO-focused content marketing to build awareness. Growth-stage products use case study seminars to demonstrate value to potential customers, paired with customer success programs to build trust and retention. In 2024, Macnica hosted the Macnica Security Forum 2024, a dedicated cybersecurity conference with 80 sessions covering the latest trends like generative AI and zero trust security.