Software AG ended 2019 with mixed results: positive development for the ARR metric, but missed the street’s expectations on cloud and IoT. DBP licence revenue stayed in negative territory, while Cloud and IoT have not taken off yet. Further investments are needed to support the Helix strategy and growth momentum in 2020, which should impact margins by 700-900bps. Although the transformation looks as though it is on track, this remains a risky bet.
29 Jan 2020
Helix wants further investments in 2020
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Helix wants further investments in 2020
Software AG ended 2019 with mixed results: positive development for the ARR metric, but missed the street’s expectations on cloud and IoT. DBP licence revenue stayed in negative territory, while Cloud and IoT have not taken off yet. Further investments are needed to support the Helix strategy and growth momentum in 2020, which should impact margins by 700-900bps. Although the transformation looks as though it is on track, this remains a risky bet.