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Software AG reported Q1 figures that were above consensus and our expectations. The Digital Business again drove the revenue increase with another quarter of consecutive growth. The bookings growth within both the Digital Business and Adabas & Natural was in line with the company’s ambitions. The company also registered growth in ARR. Operating profit, too, was better than our estimates due to higher sales and lower costs. Following this release, the group confirmed its FY22 targets. Its FY23 ta
Companies: Software AG
AlphaValue
Software’s FY21 numbers were broadly in line with consensus on revenues but much higher on profitability. Bookings targets for A&N were met even though slippage caused DB’s bookings to be below guidance. Regardless, there was a good transition of bookings into revenues and DB did show some acceleration in the last quarter. The company’s guidance for FY22 is slightly above expectations and the confirmation of FY23 targets is a reassuring factor.
With its Q3 results, Software AG reported another consecutive quarter of total revenue growth. This was mainly driven by Digital Business. Bookings growth in Digital Business was affected by deal slippages. The shift to SaaS though, remained strong and annual recurring revenue also grew yoy. A&N bookings were better than expected. Operating margins were in line with expectations. The group, however, revised its bookings outlook for the year, which was a tad negative in our view.
As opposed to Q1, Q2 was above expectations both in terms of financials and bookings. This quarter showed an increased shift to subscriptions which supported the strong product revenue growth. Margins, too, improved due to lower than expected costs. The group signed various new logos and saw growth across all deal types. However, the company kept its guidance unchanged which implies that the second half will see more investments as part of the Helix programme.
Software AG’s Q1 results were broadly in line with management’s guidance, where Q1 saw growth in bookings and profitability subsided as a result of increased investment related to the Helix programme. Recurring revenues also grew yoy. Management confirmed FY21 targets and reiterated FY23 ambitions. All in all, 2021 indeed looks set to be a year of transformation and would, hopefully, lead to the anticipated growth and profitability over the medium term.
Software AG’s Q4 results beat our expectations in terms of bookings but were broadly in line with regards to other financial metrics. Q4 showed a brisk pace in subscription & SaaS bookings. Annual recurring revenue also increased qoq as well as yoy. The group also put forward its FY21 guidance and re-confirmed its FY23 ambitions mentioned in the previous quarter.
Software AG’s Q3 results were broadly in line with our expectations. The transformation of the group continues with a transition to a subscription-based model. Overall, H2 seems to be developing positively compared to H1 and this can be seen in the group’s updated guidance for FY20. The targets for FY23 remain unchanged.
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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.
Software AG released a very encouraging set of Q3 results, which clearly showed a strong improvement sequentially. Although there is still a mixed performance among divisions, with DBP (excluding IoT) back in positive territories and DBP Cloud & IoT declining, we have started to see the early benefits of the Helix strategy. Buy rating confirmed.
Software AG released a mixed set of results. Q2 revenue and profit were in line with the street’s expectations, which is very good news, while the DBP 2019 outlook was reduced. With both a new CEO and strategy announced in FY18 (Helix), upside is likely but it will take time.
In Q1 18, total revenues declined 9.4% to €186.6m but EBIT remained stable at around €42.1m (company definition) Revenues of the Business line IoT/Cloud jumped 115% from €3m to €6.4m Management raised its outlook for IoT/Cloud from 70-100% to 100-135% Revenues of DBP licences plummeted 36% to €23.4m and including IoT/Cloud 24% Stable operating performance driven by a strong A&N licence business
The company reported preliminary Q2 17 results. Final results will be reported on 20 July. Revenues increased 2% to €207.4m. EBIT improved 10.6% to €46.2m and the EBIT margin increased from 20.5% to 22.3%. The operating performance was driven by the two divisions Adabas & Natural and Digital Business Platform (DBP). Both divisions increased operating segment results. The EBIT margin of A&N improved from 66.9% to 69.6% and of the DBP division from 28.4% to 29.4%. Management confirmed the revenue
The company reported first quarter results. Revenues declined marginally by 0.1% to €205.9m. Total licence revenues dropped 21.7% to €46.3m, maintenance revenues increased 8.4% to €107.2m and service revenues grew by 8.7% to €52.1m. The gross margin increased from 72.8% to 73.3%. Real EBIT, however, dropped 19.1% to €39.6m and the EBIT margin declined from 21.3% to 19.2%. The non-IFRS EBITA margin, according to the company, declined from 28.7% to 27.4%. Based on real numbers, the EBITA margin de
The agenda of the AGM, which will be held on 17 May 2017, is quite interesting. Management is proposing to convert bearer shares into registered shares. The reason according to management is to address better and contact directly the shareholders. To become a new shareholder, the company has to agree before being registered in the share registry.
The company released Q4 16 results. Management was excited about the performance but it must have been a different company they were talking about. In Q4 16, total revenues increased 2.5% to €264m. EBIT declined by 6.4% to €73.6m. The EBIT margin reached 27.9% compared to 30.5% in Q4 15. The real EBITA remained nearly stable at €89.2m and the EBITA margin declined from 34.9% to 33.8%. According to management, the non-IFRS EBITA margin declined from 35.8% to 34.2%. In the financial year 2016, re
Research Tree provides access to ongoing research coverage, media content and regulatory news on Software AG. We currently have 5 research reports from 4 professional analysts.
This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored. We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.
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Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
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Eleco’s FY23 trading update highlights record recurring revenue growth of +22% to £20.7m, strong profitability that leads us to expect FY23E adjusted EBITDA +3% ahead of our previous forecast, and a confident outlook that leads us to reiterate our FY24-26E EBITDA and EFCF. Across the group, excellent execution of the SaaS transition has driven recurring revenue to 74% of group revenue from 64% in FY22, and ARR is +24% yoy to £22.6m (£19.7m at H1), including c£2m of ARR from the successful acquis
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On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
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A punchy 1H24 is especially impressive when compared with a very strong prior year. 1H24 EBITDA of £1.5m (21% EBITDA margin) was delivered from revenue of £7.0m, delivering EBITDA growth of 92% from rev growth of 15% (10% at constant currency). With no capitalised R&D, resulting free cashflow of £1.4m demonstrated impressive cash conversion, and an increase in net cash (no debt) to £9.7m, which provides assurance for the typically very large customers and partners. Given such strong performance,
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Maintel has reported a trading update for the year ending December 2023, indicating revenue in of at least £101m and adj EBITDA of “in excess of £9m”, compared with respective forecasts of £98m and £8.6m. Net debt of £18.1m also outperforms our expected year-end net debt of £18.6m. The group is continuing the trend established with the reintroduction of forecasts in April 2023, where growing confidence in delivery led to upgraded forecasts in both August and September, and still achieving outper
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ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).
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GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI
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