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Software AG: “The investments in our newer cloud offerings are well received in the market”

In the first nine months of 2020, Software AG increased incoming orders from 256 million euros to 302 million euros. Turnover was 597 million euros compared to almost 636 million euros in the first nine months of last year. The company reports a decrease in free cash flow from 102.9 million euros to 75.5 million euros. Before interest and taxes, the software Group’s operating profit fell from EUR 148.9 million to EUR 85.6 million, the bottom line per Software AG share from EUR 1.71 to EUR 1.01.

“Now that the figures for the third quarter are available, we have more clarity and context for our ongoing transformation. The move to subscription continues, and the rise in new orders shows that the market is taking this positively. The great performance that we have shown in the next nine months of transformation also strengthens our confidence in the rest of the year. We have therefore adjusted our forecast accordingly, ”says Sanjay Brahmawar, CEO of Software AG.

The company is raising its outlook for 2020. “The investments in our newer cloud offerings are well received in the market, and we are now seeing the strong effects of the transformation in our P&L. Our start into the fourth quarter gives us confidence that these trends will continue, and we look forward to closing the year in line with today’s forecast, “said Matthias Heiden, CFO of Software AG. The company expects an increase in incoming orders at DBP (excluding Cloud & IoT) between 3 and 10 percent and at DBP Cloud & IoT between 30 and 50 percent. In the A&N division, an increase in incoming orders of between 5 and 15 percent is forecast. The operating profit margin (EBITA, non-IFRS) should remain unchanged between 20 and 22 percent. By 2023, they want to increase sales to one billion euros.

The company also commented on the latest hacker attack: “Software AG contained the hacker attack on its systems that occurred in October. Customer services, including cloud services, were not affected by the incident. The Group’s internal systems have been restored and are working as usual. “

At a glance – chart and news: Software AG

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