Software AG Q1 Profit Down; Backs FY21, Mid-term View - Quick Facts

Software AG (STWRY.PK) reported Friday that its first-quarter non-IFRS net income was 17.0 million euros or 0.23 euro per share, compared to last year's 27.9 million euros or 0.38 euro.

EBIT in the first quarter was 15.3 million euros, down 34 percent year-on-year, and operating profit or EBITA, non-IFRS was 24.5 million euros, down 38 percent.

EBITA magrin, non-IFRS, was 13.4 percent , down from 19.2 percent last year.

Group revenue fell 12 percent to 183.1 million euros from prior year's 207 million euros. For the first quarter, product revenue was 146.5 million euros, down 4 percent lower than last year.

Recurring revenue grew 6 percent and was 89 percent of total product revenue. Subscription and SaaS recurring revenues grew 77 percent and 42 percent respectively.

During the first quarter, Software AG's overall bookings of 88.8 million euros represented 4 percent growth and were driven by continued strong progress in Digital Business.

Looking ahead, the company reiterated 2021 guidance. EBITA margin, non-IFRS, is expected to be 16 percent to 18 percent.

Further, the company confirmed mid-term ambitions of 1 billion euros Group revenue, 25 percent to 30 percent operating margin, 85 percent to 90 percent recurring product revenue and roughly 15 percent Digital Business CAGR in 2023.

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