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Trend Micro Incorporated ( OTCPK:TMICY ) Q3 2024 Earnings Conference Call November 12, 2024 2:00 AM ET Company Participants Mahendra Negi - CFO Kevin Simzer - COO Akihiko Omikawa - EVP Japan and Global Consumer Business Conference Call Participants Makoto Ueno - Daiwa Securities Hideaki Tanaka - Morgan Stanley Hiroko Sato - Jefferies Satoru Kikuchi - SMBC Nikko Securities Mahendra Negi This is the summary of Q3. Net sales grew by 6% and operating expenses grew by 1% and operating income grew by 30%. And operating margin improved 22% -- from 18% to 22%, 18% was last year.
You might remember, 1 year ago, in 2022, it decreased from 12% to 18%, and this year, it's 22%. So we are definitely seeing improvement in terms of our operating margin. Now total operating expenses includes the remuneration that is linked to the share price because of the share price increase.
Excluding that, JPY 16 billion or 24% of our operating margin is what we have posted, and pre-GAAP growth is only 1% as you can see at the bottom of the slide. Kevin-san will explain the details later. But I would like to share just one comment on consumer business in Japan.
In the case of consumer business in Japan, the 3-year version sales is a big as a percentage and the 3-year version basically is renewed in advance, and there is a bit of discount that is applied. But we stopped doing that from this quarter. And we're going to increase the value added.
We have actually increased the price this year. So price increase and also the absence of the discount for the earlier renewal contributed do this. And compared to last year, 7% lower in terms of consumer business in Japan.
But it is not really affecting the renewal. In this.
