Digital Business Platform license revenue up 23
percent in Q4
·
Impact of Go-to-Market transformation drives improvements in all key performance
parameters
·
Strong Adabas & Natural customer retention leads to stable maintenance
revenue
·
Highest Group maintenance revenue in company’s history, 10 percent up
year-on-year
·
Digital cloud market gains further relevance
·
Operating earnings exceed outlook 2015
·
Operating margin sets new historic record in Q4
·
2016 Outlook with strong digital business growth
[If
not stated otherwise, all figures rounded including potential currency impacts.]
Software AG (Frankfurt TecDAX: SOW) announced its preliminary financial figures (IFRS, preliminary) for the fourth quarter and the full year 2015. The company’s new Go-to-Market strategy had a positive impact on all key performance parameters. In the fourth quarter of the year, the Group set several new records: The Digital Business Platform reported a license increase of 23 percent, while its maintenance improved by 10 percent. Additionally, Software AG increased cloud bookings in 2015 by more than 130 percent.
Adabas & Natural showed the lowest decline in four years as A&N-based applications remained highly relevant for customers, supported by Software AG’s strong customer focus and innovative product developments.
With a rise in total revenues of 4 percent in Q4, the Group managed once again to increase its profitability over-proportionately: Both the operating earnings margin (EBITA, non-IFRS) at 36 percent as well as the EBIT margin (IFRS) at 31 percent set two new historic record levels. For the full year, the operating earnings margin reached 30 percent, exceeding the outlook (28 to 29 percent), already raised three months ago.
Driven by the positive developments in the fourth quarter, Software AG successfully closed the 2015 financial year with revenue and earnings growth. For 2016, the company is well positioned to further accelerate this profitable growth.
"The fourth quarter results underscore the huge market potential of our Digital Business Platform and confirm our undisputed technology leadership“, said Karl-Heinz Streibich, CEO of Software AG. “Our excellent product portfolio, the great progress in our Go-to-Market transformation, strong Adabas & Natural customer base retention, and continued efficiency improvements are the core reasons for our strong upwards trend, which is expected to continue in 2016 and beyond. The operational improvements and corresponding successes that we have seen over the past year have indeed matured from a quarter-by-quarter development into a real growth trend.”“In the past quarter, we lifted Software AG’s profitability to a new level through organic growth and focused process optimization", said CFO Arnd Zinnhardt. "For the future, we are optimally positioned and expect to further increase our company value.”