Serviceware SE: Serviceware exceeds its own expectations with continued strong growth momentum in the first half of 2020/2021

[ Report ]

Bad Camberg (pta005/23.07.2021/08:00) - -
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* Sales up 13.7 percent to EUR 40.2 million
* EBIT stable at previous year's level of EUR -0.6 million despite continued uncertainties surrounding corona
* Saas/Service share of sales increased to 47 percent, compared to 43 percent in the same period of the previous year
* Licensing business also shows disproportionately strong growth
* Significant cross-selling potential leveraged
* Full-year forecast confirmed after strong first half-year

Bad Camberg, 23 July 2021 Serviceware SE ("Serviceware," ISIN DE000A2G8X31) reports successful business development in the first half of financial year 2020/2021, even in the midst of the corona pandemic. All product divisions showed a positive development and the SaaS/Service as well as the license business acted as growth drivers in equal measure. Sales increased by 13.7 percent from EUR 35.4 million to EUR 40.2 million in the reporting period. The forecast for the financial year as a whole of around 10 percent was therefore exceeded in both the first quarter (+12.1 percent) and the second quarter (+15.2 percent). The SaaS/Service segment once again performed strongly, with revenues rising by a disproportionately high 22.5 percent from EUR 15.3 million to EUR 18.8 million. SaaS/Service revenues now account for around 47 percent of Serviceware's total revenue, up from around 43 percent in the same period of last year. Serviceware also recorded strong business development in the licensing business. Driven by a significant revival in customers' propensity to invest and catch-up effects, license revenues also increased by 31.3 percent from EUR 8.9 million to EUR 11.6 million in the first six months. In the medium term, however, Serviceware believes that the trend from license revenues to SaaS revenues will persist.

Serviceware continues to see strong demand for modules of its unique ESM platform, especially Serviceware Financial and Serviceware Performance, the modules for increasing the cost efficiency of service processes. In addition, sales of the modules for improving the quality of service processes are also picking up noticeably again, after demand for these modules had recently been less pronounced due to the pandemic. Serviceware succeeded in realising cross-selling potential and synergies with further increasing momentum in the first half of the year. An increasing number of the company's current and new customers are opting to use several modules from the ESM platform. Serviceware Financial and Serviceware Performance are combined particularly frequently. Among others, a leading international automotive supplier in the field of drive technology opted for this combination. In contrast, the Serviceware Knowledge, Serviceware Processes and Serviceware Resources modules are used together, by a large healthcare company from Austria, for example.

Serviceware also achieved further successes in its internationalisation strategy during the reporting period, winning corporate groups and large enterprises as new customers. A leading international airline, as well as a major German direct bank, will be using Serviceware Knowledge within their Groups in the future. A major European insurance company and an international wholesale Group, among others, opted for Serviceware Financial.

EUR 1.9 million was invested at the EBIT level in the first half of the year as part of the Accelerated Growth Programme (previous year: EUR 2.7 million). EBIT and EBITDA, at EUR -0.6 million and EUR 1.0 million respectively, were nevertheless and despite the dynamic sales expansion stable at the level of the same period of the previous year 2019/2020, which was only affected by the corona pandemic to a limited extent.

Dirk K. Martin, CEO of Serviceware: "We are very satisfied with our business development in the first half of 2020/2021. We continue to experience high demand for modules of our ESM platform and exceeded our own expectations in terms of revenue growth in both the first and second quarters. The development work of our international teams is bearing fruit and we are successful in winning large companies and corporations as new customers internationally. We are optimistic for the rest of the year."

Serviceware considers itself well positioned for further growth in the long term with its unique ESM platform. Drivers remain long-term trends such as the digitalisation of service processes and steadily increasing requirements for their cost transparency. For financial year 2020/2021, the company is currently confirming its full-year forecast of sales growth of around 10 percent as well as a further improvement in EBITDA.

About Serviceware

Serviceware is a leading provider of software solutions for the digitalisation and automation of service processes (Enterprise Service Management) with which companies can increase their service quality and manage their service costs efficiently.

The Serviceware Platform includes the software solutions Serviceware Processes, Serviceware Financial, Serviceware Resources, Serviceware Knowledge and Serviceware Performance. All solutions can be used in an integrated manner, but also independently from one another.

Serviceware partners with customers from strategic consulting through the definition of the service strategy to the implementation of the Enterprise Service Platform. Further components of the portfolio are safe and reliable infrastructure solutions as well as Managed Services.

Serviceware has more than 1,000 customers worldwide from various business sectors, including fifteen DAX companies and five of the seven largest German companies. The headquarters of Serviceware are in Bad Camberg, Germany. Serviceware employs more than 500 employees at fourteen international sites.

For more information visit www.serviceware-se.com.

Media Relations
edicto GmbH
Axel Mühlhaus
Tel. +49(0) 69/905505-52
Email: Serviceware@edicto.de

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