📋 Tender Overview
Software AG Frankfurt MDAX SOW announces financial figures IFRS preliminary for the fourth quarter and 2019 fiscal year and its outlook for 2020. Software AG delivered a solid full year performance with revenue in line with expectations against the backdrop of significant and far-reaching transformation of the business. On a divisional basis AN delivered a strong performance with revenue up 3 percent year-on-year. DBP excl. Cloud and IoT delivered results in the middle of the guidance range with strong action around sales and go-to-market bringing improved quality and predictability to the North America region in particular. Cloud IoT growth was below the guidance range although a significant 5-year subscription contract with a global industrial company expected in Q4 2019 has since been signed. Software AG also announces additional investment in 2020 to drive momentum in its Helix program and accompanying 2020 guidance metrics.I am pleased to report that against a backdrop of significant transformation in 2019 Software AG delivered overall revenue growth and profit in line with guidance. This is a testament to our strategy the strength of our products and our increasingly strong position in the market. We have addressed and overcome challenges particularly in our North America business while renewed focus and sharper execution has allowed us to manage costs while investing behind key growth opportunities like our partner ecosystem and simplification of our product offering. While our Cloud IoT business could not deliver the revenue in time we achieved 79 new IoT logos in the period and have signed a further landmark five-year IoT deal. As the only vendor in the market that can offer IoT capabilities integration and integration flow technologies all woven together as one I am excited about our ability continue growing in IoT particularly with the market now beginning to ignite. Our focus now rests on building momentum in 2020 with our 2019 experience helping us direct new investment to spur our growth and ensure we maximize the opportunity ahead of us said Sanjay Brahmawar CEO of Software AG.Our financial performance in FY 19 was robust. Throughout the year we have made good progress on our shift to a subscription model with our solid cash position allowing us to invest with energy in areas of our Helix plan that can support our growth in 2020 commented Arnd Zinnhardt CFO of Software AG.FY 2019 Business Line PerformanceAdabas Natural AN achieved a strong performance throughout the year and delivered revenue growth in FY 2019 of 3 percent generating 228.9 million. License sales increased by 7 percent on the prior year to 81.2 million FY 2018 74.4 million. AN maintenance revenues reached 147.0 million an increase of 1 percent FY 2018 143.2 million.Despite challenges in North America in the first half of the year Digital Business Platform DBP excl. Cloud IoT delivered results in line with stated guidance for the year experiencing an overall revenue decline of -3 percent to 432.2 million FY 2018 434.4 million. License revenues showed an 11 percent decline to 151.3 million but a much larger share of subscription and recurring revenue under the Helix growth strategy. DBP including Cloud IoT was flat for the year delivering revenues of 474.5 million FY 2018 464.7 million.While Software AGs Cloud IoT business delivered strong growth of 38 percent timings around contracts resulted in revenues for the year falling below guidance. Growth was below the guidance range although a significant 5-year subscription contract with a global industrial company expected in Q4 2019 has since been signed. The division delivered revenues of 42.3 million FY 2018 30.3 million. Q4 2019 delivered 16 percent revenue growth to 11.3 million compared to 9.6 million in Q4 2018 with a 35 percent increase in maintenance 2.0 million and a 31 percent increased in SaaS sales 6.6 million. License revenues for FY 2019 grew 44 percent to 12.6 million FY 2018 8.7 million.Software AG reported 890.6 million FY 2018 865.7 million in total revenue for the year a rise of 1 percent. Group license revenue declined 4 percent to 245.1 million FY 2018 249.4 million. Group maintenance revenue totaled 435.0 million FY 2018 415.4 million delivering 3 percent growth. Subsequently Software AGs total full year product revenue licenses maintenance SaaS was 702.7 million FY 2018 682.3 million which reflects 1 percent growth.The companys EBIT was 214.8 million FY 2018 231.6 million in the period under review. This reflects an EBIT margin of 24.1 percent FY 2018 26.8 percent. At 260.3 million FY 2018 272.9 million operating EBITA non-IFRS also performed well in line with expectations in the quarter. Subsequently the operating profit margin non-IFRS was 29.2.
