Darmstadt (pta/14.07.2022/21:30 UTC+2)
The Management Board of Software AG (MDAX®, ISIN DE000A2GS401/SOW) has decided to adjust its full year guidance for Digital Business bookings in 2022. This is due to softer than expected second quarter Digital Business bookings performance and the Group observing the early signs of prolonged customer decision making due to its clients having to manage a changing macro environment. While the overall demand environment remains robust, the Group anticipates this change in decision making behavior will extend into the second half of the year, increasing the possibility of delays in the closing of deals.
The rest of the Group's second quarter financial performance was in line with its expectations.
The Management Board adjusts its organic guidance for the full year 2022 as follows:
The resilience resulting from Group's shift to subscription and Software as a Service, combined with good visibility and predictability of its second half Adabas & Natural (A&N) pipeline, means that the Management Board confirms:
On top of the organic guidance for 2022, with the addition of StreamSets, the Group continues to expect full-year non-IFRS product revenue growth of between 12 percent and 16 percent and a full-year impact on non-IFRS EBITA of between -€17 million and -€13 million.
The Group also confirms its organic 2023 ambitions: €1 billion Group revenue, 25 percent to 30 percent operating profit margin (EBITA, non-IFRS), 85 percent to 90 percent recurring product revenue and roughly 15 percent Digital Business CAGR in 2023. With the addition of StreamSets to the organic business, the Group expects total revenue to be ahead of its €1 billion goal.
The company will continue the process to consolidate its overall preliminary results for the second quarter and first six months 2022. These will be published as planned on July 27, 2022.
Darmstadt, July 14, 2022
The Management Board
Person making the notification:
Senior Vice President of Corporate Development and Investor Relations
T: +49 6151 92-1274
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