Software AG Significantly Increases Revenue and Earnings in Q3
Software AG (Frankfurt MDAX: SOW) today released its financial results (IFRS, preliminary) for the third quarter of 2018. A growing number of large corporations worldwide chose Software AG's leading technology to implement their digitalization strategies. Demand for the Germany based company’s solutions is especially high in the rapidly growing, global Internet of Things (IoT) market. The company’s new Cloud & IoT business continued its dynamic growth in the third quarter with €9.1 million in total revenue, an increase of 144 percent. Fueled by high demand for independent, open and cloud-based platforms, annual recurring revenue (ARR) in the Cloud & IoT business increased by 111 percent. Furthermore, license revenue from Software AG’s Digital Business Platform (excl. Cloud & IoT) rose by 15 percent to total €37.1 million. The Adabas & Natural (A&N) database business also continued on a positive course. Thanks to above-average license growth at 48 percent, total revenue in this business line rose 11 percent to €52.3 million (2017: 48.9 million) in the quarter under review. In addition to revenue growth in all product business lines, Software AG also increased its profitability. Earnings before interest and taxes (EBIT) improved to €54.5 million (2017: €50.4 million). Operating earnings (EBITA, non-IFRS) increased to €63.8 million (2017: €63.6 million). This resulted in an operating margin (EBITA, non-IFRS) of 30.5 percent (2017: 32.2 percent). At €38.1 million (2017: €33.8 million) income after taxes also increased by 13 percent year-on-year.
About Software AG
Software AG (Frankfurt TecDAX: SOW) helps companies with their digital transformation. With Software AG’s Digital Business Platform, companies can better interact with their customers and bring them on new ‘digital’ journeys, promote unique value propositions, and create new business opportunities. In the Internet of Things (IoT) market, Software AG enables enterprises to integrate, connect and manage IoT components as well as analyze data and predict future events based on Artificial Intelligence (AI). The Digital Business Platform is built on decades of uncompromising software development, IT experience and technological leadership. Software AG has more than 4,500 employees, is active in 70 countries and had revenues of €879 million in 2017.
Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany
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