Serviceware SE: Serviceware SE with a successful start to the fiscal year 2022/2023

[ Report ]

Idstein (pta014/28.04.2023/08:00) -
* Transformation from licence to SaaS business model progressing well as planned
* SaaS/Service sales revenues increase disproportionately by 20.3 percent to EUR 13.2 million in Q1; total revenues +4.7 percent to EUR 22.0 million
* High order backlog underpins trend towards SaaS/Service business
* ESM platform enhanced with additional features
* Full-year forecast of revenue growth between 5 and 10 percent with improved EBITDA confirmed after a good Q1

Idstein, 28 April 2023 The first quarter of the fiscal year 2022/2023 of Serviceware SE ("Serviceware", ISIN DE000A2G8X31) was significantly characterised by the ongoing transformation of the business from one-off licence billing to an SaaS business model with monthly recurring revenues. Despite a systematic postponement of sales revenues into the future, which is, however, associated with greater planning certainty, as well as overall economic and geopolitical uncertainties, Q1 was once again a record quarter in the corporate history of Serviceware in terms of sales revenues.

The expansion of the SaaS business is progressing well in line with the strategy and Serviceware also expects significantly above-average growth for this business area in the coming quarters. Between December and February, SaaS/Service revenues rose by a disproportionately high 20.3 percent to EUR 13.2 million. Total sales revenues increased by 4.7 percent to EUR 22.0 million during the reporting period. SaaS/service revenues accounted for 60.0 percent of total revenues (prior year: 52.2 percent). The order backlog, essentially represented by the residual values from SaaS contracts, rose during the first quarter by 38.2 percent to EUR 44.8 million. Due to high temporary expenses for the expansion of the SaaS/Service business area, the EBITDA amounted to just under EUR -1.0 million after a black zero in the previous year. Serviceware expects this to have a clearly positive impact on earnings in the coming quarters. Following the good first quarter, Serviceware confirms its forecast for the full year and expects sales revenue growth of 5 to 10 percent with an improvement in EBITDA.

During the first quarter, Serviceware took further measures to increase efficiency and productivity, notwithstanding the expedited growth dynamics which were becoming apparent. In the field of human resources, the areas important for strategic product sales were strengthened, while downsizing was carried out in other administrative areas.

As part of its internationalisation strategy, Serviceware has once again achieved major successes. This includes modules from the Serviceware platform which were implemented or the expansion of the use of Serviceware solutions at a leading European wholesaler, a globally operating Fortune 500 retailer and a major European agricultural machinery manufacturer during the reporting period. The unique Serviceware ESM platform was further expanded, and new features were added during the reporting period. Releases included the Serviceware Financial, Serviceware Performance and Serviceware Processes software modules. Serviceware continues to leverage cross-selling potentials and synergies with increasing dynamism. During the first quarter, more than half of the new customers decided to use two or more modules from the ESM platform.

Dirk K. Martin, CEO of Serviceware: "Serviceware has made a good start to the current fiscal year despite a challenging market environment. We are confident about our future business development and expect to achieve our forecast with a further dynamization of growth. We are consistently expanding our ESM platform and are excellently structured to support our customers in the digitalisation of their services. We want to further enhance our good market position and are ideally positioned to benefit from the macroeconomic shift towards the digitalisation of service processes."

The Q1 quarterly report 2022/2023 is available for download on the website of Serviceware http://www.serviceware-se.com in the "Investor Relations" section.

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 17 DAX companies, as well as 5 of the 7 largest German companies. The head office of Serviceware is in Idstein, Germany. Serviceware employs more than 500 employees at 14 international sites.

For more information visit http://www.serviceware-se.com.

Media Relations
edicto GmbH
Axel Mühlhaus/Doron Kaufmann
Tel. +49(0) 69/905505-52
Email: investor-relations@serviceware-se.com

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