Software AG Q1 results show robust performance in the first quarter of its second transformation year, reporting strong bookings growth against a background of significant global challenge. Software AG’s IoT and A&N business performed well ahead of expectations, with competitive new business wins driving strong performance, while DBP (excl. Cloud & IoT) saw some deals slip from the first quarter into the second quarter.
The Group also saw a strong development in subscription and SaaSbased bookings portion, which rose to 69% from 53% last year in its DBP (incl. Cloud & IoT) business.
It say it has taken active steps to support its customers’ operations during the COVID-19 outbreak, particularly with respect to business continuity, remote monitoring and analytics, and supporting customers’ ability to get back to full pace in due course. Toward the end of the quarter Software AG did see a low single-digit percentage negative impact from Professional Services projects cancelled or postponed as a result of COVID-19. The Group expects to deliver a solid performance in the first half of 2020. However, with limited visibility into the second half of the year, the Group has revised its financial guidance for the two DBP revenue lines. The Group’s guidance for A&N and its non-IFRS EBITA margin remains unchanged.
