Ad hoc Disclosure (Inside Information according to article 17 MAR): Software AG publishes better-than-expected development of the Adabas & Natural segment for the second quarter of 2021; full year guidance for 2021 reconfirmed
The Management Board of Software AG (MDAX, ISIN DE000A2GS401 / SOW) pre-announces the financial development of the segment Adabas & Natural (A&N) for the second quarter of 2021 in an ad-hoc release.
According to a preliminary consolidation of the results, the company reports that Bookings in its A&N business line are ahead of market expectations for the second quarter. Second quarter A&N bookings will be around 40 €m, representing growth of around 48 percent at constant currencies compared to the same quarter of the previous year.
The combination of this second quarter A&N performance, second quarter Digital Business bookings that are slightly ahead of market expectations and second quarter Digital Business product revenue growth at constant currencies of around 10 percent on the prior year, means that the company expects second quarter total product revenue of around 181 €m and a respective non-IFRS EBITA margin of around 27 percent.
The strong business development in A&N seen in the second quarter was primarily driven by the closure of slipped deals from the first quarter and the early closure of deals originally expected to close later in the year.
The Management Board of Software AG confirms that guidance for the year 2021 remains unchanged, as follows:
2021 Guidance (at constant currency; except for margin):
The Group also confirms its mid-term 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.
The company will continue its process to consolidate its overall preliminary results for the second quarter and first half 2021, and these will be published as planned on July 21, 2021.
The conference call on the full financial results for the second quarter and the first six months of 2021 for investors, analysts and journalists will take place on July 21 at 0930 a.m. (CEST, 0830 BST).
Darmstadt, July 14, 2021
The Management Board
Person making the notification:
Senior Manager Investor Relations
Tel: +49 6151 92 1106
End of the Ad hoc Disclosure