Yesterday's earnings call with financial analysts highlighted several significant customer wins and expansions.
SOFTWARE AG SOFTWARE
The growth engine for Software AG is its digital business line, which consists of three main product sets - webMethods integration and API management, Cumulocity IoT and analytics, and ARIS business process transformation. It's a deeper partnership to drive even further growth on software sales. This definitely is more than just a partnership for them to do services for us. So we expect Persistent to become a very strong new business driving force in the US. They're building solutions on top of our middleware, our API management, our Cumulocity IoT platform and StreamSets, and they're going to take the solutions to their installed base, they're going to take it to new customers. We are very much invested in Persistent and Persistent has invested in our technology, which effectively means that they are training their people - thousands of their people are being trained on our technology. While it's not an exclusive relationship, Brahmawar believes it's a wake-up call to other ecosystem partners to lift their own investment in Software AG. Software AG will now subcontract all digital business implementation work in the region to Persistent, which is also committed to building solutions of its own on the Software AG product set. But for now, we just see the robustness in that market.Ī closer relationship in North America with Persistent, a global technology consultancy specializing in middleware, is designed to help accelerate that drive for growth. Nobody can predict this, we can only get prepared.
Maybe in six to nine months, it might change a bit. They're spending 35% more than the pandemic time. Companies and organizations are spending 10% more than they were spending last year. If you think about the current macro, then I would say the US is still behaving as though there is no real hit. It is 50% of the total addressable market, and it's a market that's growing in a very robust way. Brahmawar says the opportunity there remains strong: Husk is based in the US, where Software AG is eager to expand market share. Ninety days into the role, has done a really good job in bringing that rigor and a better understanding of certain deals, where. We went through a very deep, very rigorous look into pipeline deal closure - how do we improve the linearity to make sure that everything is not so tailended towards the last two weeks of the quarter, and really step up the performance from each of the regions?. Husk has moved quickly to put new processes in place, as Brahmawar recounts: The change of CRO came on the heels of a disappointing sales performance in Q2, when a number of deals slipped past the quarter end as customer decision cycles lengthened in response to the uncertain economic climate. Last quarter, Joshua Husk joined as its Chief Revenue Officer, while Dr Benno Quade was promoted internally to the role of Chief Operating Officer. Dr Matthias Heiden, CFO, will leave at the end of the year, to be replaced by Daniela Bünger, an experienced finance executive in roles at consultancies Atos and Accenture. Brahmawar's contract as CEO has just been renewed for a further three years, but elsewhere there are changes in the company's top management.
SOFTWARE AG PROFESSIONAL
I caught up with Sanjay Brahmawar, CEO, for a briefing on the Q3 results and accompanying news, including a major new professional services partnership in the US. Current guidance remains unchanged to reach €1 billion total revenue in FY23 at 20-22% EBITDA margins on a non-IFRS basis. Its ongoing shift to recurring revenue has now reached 92% of all product revenue, ahead of its goal for the year, even without the impact of its recent acquisition of StreamSets, a SaaS DataOps vendor. Software AG reported Q3 results yesterday, which saw revenue growth getting back on track at 12% year-over-year, after a lackluster 4% in Q2.
0 kommentar(er)
