Ad hoc Disclosure (Inside Information according to article 17 MAR) Software AG to accelerate business transformation with increased strategic investments in FY 2020.
The Management Board of Software AG (Frankfurt MDAX: SOW) pre-announces its financial figures (IFRS, preliminary) for the fourth quarter and 2019 fiscal year, and its outlook for 2020. Software AG delivered a revenue largely in line with expectations against the backdrop of significant and far-reaching transformation of the business. On a divisional basis, A&N delivered revenue was up 3 percent year-on-year. DBP (excl. Cloud & IoT) delivered results in the middle of the guidance range, with strong action around sales and go-to-market bringing improved quality and predictability to the North America region in particular. Cloud & IoT growth at 38% was below expectation, although a significant 5-year subscription contract with a global industrial company expected in Q4 2019 has since been signed.
The investments made in 2019 in product, sales and go-to-market, subscription and its partner channel have started to pay off and further clarify the company’s way forward. The Management Board believes now is the right time to make further investments in 2020, with a view to delivering higher sales growth earlier than first planned. Those investment areas are:
An analyst & media call will be held on Wednesday, 29 January 2020 at 09:30 CET.
For further details refer to the corresponding press release and the Software AG website.
Darmstadt, January 29, 2020
The Management Board