→ First-half revenue of €148.7m, up 1.9% organically and 2.2%
in total → Annual Recurring Revenue (ARR) at €229.9m, up
7.2% compared with end-June 2023 → Profit on operating
activities consistent with expectations at 11.5%, in line with
first-half 2023 → Sopra Banking Software acquisition project
well on track to complete fully in Q3 2024
Regulatory News:
Axway Software (Paris:AXW):
Axway Software's Board of Directors, chaired by Pierre Pasquier,
approved on July 18, the financial statements for the first half of
2024, which were subject to a limited review by the statutory
auditors1. As a consequence, Axway’s management announces:
Axway Software: 2024 Half-year results
Key income statement items*
Half-year 2024 Half-year 2023
(€m) (% Rev) (€m) (% Rev)
Revenue
148.7
145.5
Organic growth + 1.9%
Growth at constant exchange rates + 2.2%
Total growth + 2.2%
Profit on Operating Activities
17.1
11.5%
17.8
12.2%
Profit from Recurring Operations
12.5
8.4%
14.7
10.1%
Operating Profit
8.3
5.6%
11.2
7.7%
Net Profit attributable to the Group
2.8
1.9%
3.7
2.5%
Basic earnings per
share (in €)
0.13
0.17
* Alternative performance measures are defined in the
glossary at the end of this document
Patrick Donovan, Chief Executive Officer, declared:
"In the first half of 2024, we maintained a measured pace,
achieving 1.9% organic growth, aligned with our guidance range,
while diligently managing expenses to maintain a healthy 11.5%
margin on operating activities, consistent with our full-year
ambitions. Unlike the exceptional start in 2023, H1 2024 has
reflected a more balanced outlook. Higher-than-expected bookings on
Axway Managed offerings, which will drive future subscription
revenue but had minimal impact in the first half, hindered our
ability to sustain a stronger growth momentum. Axway Managed
offerings represented over 42% of our bookings in the first 6
months of the year, indicating a trend likely to persist. As Axway
advances towards its annual objectives, we are steadfast in our
commitment and eager to complete the acquisition of Sopra Banking
Software during the third quarter."
____________________________________ 1 The interim consolidated
financial statements were subject to limited review procedures.
Comments on business activity in the first half of
2024
In the first half of 2024, Axway's performance aligned with its
annual objectives. After experiencing a robust Q1, the company saw
a deceleration in growth during Q2 due to delays in finalizing some
key contracts. The Americas region maintained steady mid-digit
growth throughout the entire first half, and the Asia-Pacific
region continued to progress. France and Europe, which had shown
significant growth over the past two years, faced a downturn in Q2
due to a high comparison basis. Nevertheless, Axway continued to
successfully attract new customers, which accounted for 25% of
bookings during the period.
Several highlights marked Axway's recent news. In February, the
company announced its project to acquire Sopra Banking Software, an
acquisition that will more than double Axway's revenue and
strengthen the company's position in the financial services and
banking industries, while diversifying its product portfolio,
geographical coverage, and customer base. Simultaneously, the
company continued its efforts to further enhance the relevance of
its offerings and customer satisfaction. To this end, Axway Summits
in North America, Brazil and Europe, held between April and June,
were a great success, attracting several hundred customers, eager
to discover Axway's vision and new capabilities.
On the product side, Axway's Amplify API Management platform's
robustness continued to support customer transaction growth,
leading to strong performance for the product line in H1 2024. This
highlights the platform's crucial role in enhancing customer
success and satisfaction, especially for those with the most
advanced systems. The MFT offering was also in high demand over the
half-year, buoyed by the success of Axway's Managed offerings,
which provide customers with high-end, reliable and secure cloud
services, designed to meet all their expectations and
challenges.
Finally, Axway was positioned as a Leader in The Forrester
Wave™: API Management Software2 by Forrester Research. This new
recognition testifies to the company’s relentless efforts in
delivering innovative solutions that drive digital transformation
and business growth for its customers. The API Management, B2B
Integration and MFT offerings, were also each named leaders in
their respective categories of the Summer 2024 reports of the G23
evaluation platform for enterprise solutions.
Comments on operational performance in the first half of
2024
In H1 2024, Axway's revenue totaled €148.7m, up 1.9% organically
and 2.2% in total. Within the H1 2023 restated figures, currency
fluctuations had non-significant impact, while changes in the
consolidation scope resulting from the 2023 acquisitions, had a
positive impact of €0.4m. Profit on operating activities amounted
to €17.1m for the period, or 11.5% of revenue.
Axway Software: Revenue by business
line
Half-year 2024 (€m)
H1 2024
H1 2023 Restated*
H1 2023 Reported
Total Growth
Organic Growth
Subscription
93.2
79.0
78.7
18.5%
18.0%
of which Axway Managed
25.9
22.6
22.3
16.5%
14.8%
of which Customer Managed
67.3
56.4
56.4
19.3%
19.3%
Maintenance
34.6
44.6
44.6
-22.3%
-22.3%
Subtotal - Renewable Contracts
127.9
123.6
123.3
3.7%
3.4%
License
2.6
3.0
3.0
-12.2%
-12.1%
Services
18.2
19.3
19.2
-5.4%
-5.7%
Axway Software
148.7
145.9
145.5
2.2%
1.9%
* Revenue at 2024 scope and exchange rates
The Subscription activity continued to perform strongly
in H1 2024, achieving organic growth of 18.0% to €93.2m in revenue.
Axway Managed offerings revenue saw organic growth of 14.8%,
supported by the full impact of deals signed in 2023 in addition to
those concluded in H1 2024, while Customer Managed offerings
revenue soared by 19.3%. Upfront revenue from Customer Managed
contracts signed in the first 6 months of the year represented
€39.4m. Axway continued to win new business, as illustrated by the
annual value of new subscription contracts (ACV) signed in H1 2024,
which totaled €15.9m. Axway Managed offerings once again attracted
a growing number of customers, accounting for 42% of total bookings
in H1 2024, which will boost future revenue for the activity. This
trend is expected to continue for the foreseeable future.
In H1 2024, Maintenance generated €34.6m in revenue,
making up 23% of Axway's overall revenue. The activity experienced
an organic decline of 22.3%, due to the continued shift of
customers to subscription models, yet maintained a high renewal
rate of around 91%.
At the end of June 2024, Axway's Annual Recurring Revenue (ARR)
reached €229.9m, up 7.2% on a like-for-like basis, compared to
€214.5m at the end of June 2023. In H1 2024, revenue from renewable
contracts represented 86% of total revenue.
License revenue for the first half amounted to €2.6m,
reflecting a 12.1% organic decline. Q2 revenue showed a strong
recovery with a 44.3% increase compared to the previous year,
partially offsetting Q1's sharp decline. Axway expects the
full-year activity revenue to remain consistent with last year's
figures, contributing 2 to 4% of the company's total revenue.
______________________________________ 2 The Forrester Wave™:
API Management Software, Q3 2024, Forrester Research, Inc., July 1,
2024. To learn more click here. 3 To learn more about Axway’s G2
evaluations click here.
The Services activity, representing approximately 12% of
Axway's total revenue, experienced a slight organic decrease in H1
2024, with revenue of €18.2m, marking a 5.7% drop from the same
period last year. Full-year revenue is expected to be slightly down
on the previous year, due to the higher than expected proportion of
Axway Managed contracts signed in H1.
Axway Software: Revenue by geographic
area
Half-year
2024 (€m)
H1 2024
H1 2023 Restated*
H1 2023 Reported
Total Growth
Organic Growth
France
41.7
45.6
45.5
-8.3%
-8.4%
Rest of Europe
38.6
36.1
35.6
8.4%
7.0%
Americas
60.2
57.2
57.2
5.2%
5.2%
Asia/Pacific
8.1
7.0
7.1
14.4%
16.0%
Axway Software
148.7
145.9
145.5
2.2%
1.9%
* Revenue at 2024 scope and exchange
rates
France posted first-half revenue of €41.7m in H1 2024,
representing an expected organic decline of 8.4%. This contraction
is attributable to the high comparison basis resulting from the
previous year's strong performance, which made growth difficult,
notably due to significant upfront revenues recorded last year when
major subscription migration projects were signed.
Across the Rest of Europe, Axway maintained a robust
growth trajectory, reporting revenue of €38.6m in H1 2024, with an
organic growth rate of 7.0%. This positive trend was driven by good
performances in key markets such as Germany and Southern Europe,
leveraging the Amplify API Management and MTF offerings. Axway's
strategic commitment to enhancing customer value and expanding its
market reach played a pivotal role across the region.
Axway continued its upward trajectory in the Americas
(USA and Latin America), reporting €60.2m in revenue over H1 2024,
reflecting a strong 5.2% organic growth rate. Thanks to a solid
reputation for security, Axway has seen several new customers
choose its MFT and APIM offerings to replace competing solutions.
The region remains a cornerstone of Axway's global strategy,
accounting for 40% of its overall revenue in the first half.
Axway achieved promising results in Asia/Pacific with
revenue totaling €8.1m in H1 2024, reflecting a very solid organic
growth rate of 16.0%, driven by the ramp-up of major deals
contracted in 2023.
Comments on net profit for the first half of 2024
Profit from recurring operations was €12.5m in H1 2024, or 8.4%
of revenue, compared to 10.1% (€14.7m) in H1 2023. It includes
amortization of allocated intangible assets of €1.7m and a
share-based payment expense of €2.9m.
Operating profit for the half-year was €8.3m, or 5.6% of
revenue, compared to €11.2m or 7.7% of revenue in H1 2023.
Net profit for the period was €2.8m, representing 1.9% compared
to 2.5% in H1 2023.
Basic earnings per share were €0.13 for the period, down from
€0.17 in H1 2023.
Financial position at June 30, 2024
At June 30, 2024, Axway's financial position was solid, with
cash of €16.9m and bank debt of €87.7m.
Free cash flow was €6.7m in H1 2024, compared to €16.5m a year
earlier. Due to the timing of some collections and payments that
will recover in H2, Axway expects that 2024 full-year free cash
flows will improve compared to the 2023 level.
Shareholders' equity stood at €355.9m at June 30, 2024, compared
to €314.6m at the end of June 2023.
Update on Sopra Banking Software acquisition project
On July 10, 2024, Axway announced that all regulatory conditions
precedent to the completion of the acquisition were satisfied, with
the exception of the AMF's approval of the prospectus to be
submitted by Axway in connection with the contemplated rights issue
to help finance the transaction.
Axway's intention is to launch the rights issue before the end
of July 2024. The indicative timetable for the rights issue will be
set out in the operation prospectus, which is expected to be
approved by the AMF in the next few days. The rights issue
constitutes the final step in the project to acquire Sopra Banking
Software, which is expected to be finalized in Q3 2024.
Change in the workforce
At June 30, 2024, Axway had 1,471 employees compared to 1,465 at
December 31, 2023.
2024 Targets
For 2024, Axway confirms that it expects organic growth of
between 1% and 3% and a profit on operating activity of around 20%
of revenue. These confirmed targets apply to Axway’s current
structure. Guidance including Sopra Banking Software will be
disclosed to the market at the time of the launch of the rights
issue.
Today, Friday, July 19, 2024,
8.30 a.m. (UTC+2):
2024 Half-Year Results Virtual
Analyst Conference
→ Virtual Conference
Registration: Click here - Please note that the meeting will
be held in English.
Financial calendar
Thursday, October 24, 2024, before market opening: Publication
of Q3 2024 Revenue.
Glossary & Alternative performance measures
ACV: Annual Contract Value – Annual
contract value of a subscription agreement.
ARR: Annual Recurring Revenue –
Expected annual billing amounts from all active maintenance and
subscription agreements.
Growth at constant exchange rates:
Growth in revenue between the period under review and the prior
period restated for exchange rate impacts.
Organic growth: Growth in revenue
between the period under review and the prior period, restated for
consolidation scope and exchange rate impacts.
Profit on operating activities:
Profit from recurring operations adjusted for the non-cash
share-based payment expense, as well as the amortization of
allocated intangible assets.
Restated revenue: Revenue for the
prior year, adjusted for the consolidation scope and exchange rates
of the current year.
Disclaimer
This press release contains forward-looking statements that may
be subject to various risks and uncertainties concerning Axway’s
growth and profitability, notably in the event of future
acquisitions. Axway highlights that signature of contracts, which
represent investments for customers, are more significant in the
second half of the year and may therefore have a more or less
favorable impact on full-year performance. In addition, Axway notes
that potential acquisition(s) could also impact this financial
data. Furthermore, activity during the year and/or actual results
may differ from those described in this document as a result of a
number of risks and uncertainties set out in the 2022 Universal
Registration Document filed with the French Financial Markets
Authority (Autorité des Marchés Financiers, AMF) on March 24, 2023.
The distribution of this document in certain countries may be
subject to prevailing laws and regulations. Natural persons present
in these countries and in which this document is disseminated,
published, or distributed, should obtain information about such
restrictions, and comply with them.
About Axway
Axway enables enterprises to securely open everything by
integrating and moving data across a complex world of new and old
technologies. Axway’s API-driven B2B integration and MFT software,
refined over 20 years, complements Axway Amplify, an open API
management platform that makes APIs easier to discover and reuse
across multiple teams, vendors, and cloud environments. Axway has
helped over 11,000 businesses unlock the full value of their
existing digital ecosystems to create brilliant experiences,
innovate new services, and reach new markets. Learn more at
axway.com
Appendices (1/4)
Axway Software: Revenue by business
line
1st Quarter 2024 (€m)
Q1 2024
Q1 2023 Restated*
Q1 2023 Reported
Total Growth
Organic Growth
License
1.4
2.1
2.1
-36.3%
-35.8%
Subscription
49.4
37.9
37.8
30.9%
30.3%
Maintenance
17.1
22.3
22.5
-23.8%
-23.4%
Services
9.0
9.5
9.5
-5.2%
-5.5%
Axway Software
76.9
71.9
71.8
7.1%
6.9%
2nd Quarter 2024
(€m)
Q2 2024
Q2 2023 Restated*
Q2 2023 Reported
Total Growth
Organic Growth
License
1.3
0.9
0.9
47.0%
44.3%
Subscription
43.8
41.1
40.9
7.1%
6.6%
Maintenance
17.5
22.3
22.1
-20.9%
-21.3%
Services
9.1
9.7
9.7
-5.6%
-5.9%
Axway Software
71.7
73.9
73.6
-2.5%
-3.0%
* Revenue at 2024 scope and exchange
rates
Axway Software: Revenue by
geographic area
1st
Quarter 2024 (€m)
Q1 2024
Q1 2023 Restated*
Q1 2023 Reported
Total Growth
Organic Growth
France
23.9
24.8
24.7
-3.2%
-3.5%
Rest of Europe
17.4
13.8
13.5
29.5%
25.9%
Americas
32.1
30.6
30.9
4.2%
5.2%
Asia/Pacific
3.4
2.7
2.8
21.5%
25.1%
Axway Software
76.9
71.9
71.8
7.1%
6.9%
2nd
Quarter 2024 (€m)
Q2 2024
Q2 2023 Restated*
Q2 2023 Reported
Total Growth
Organic Growth
France
17.8
20.8
20.8
-14.4%
-14.4%
Rest of Europe
21.2
22.2
22.2
-4.4%
-4.7%
Americas
28.1
26.7
26.4
6.3%
5.3%
Asia/Pacific
4.7
4.3
4.3
9.8%
10.2%
Axway Software
71.7
73.9
73.6
-2.5%
-3.0%
* Revenue at 2024 scope and exchange
rates
Appendices (2/4)
Axway Software : Consolidated Income Statement
Half-year 2024 H1 2024 H1
2023 Full-year 2023 €m % Rev.
€m % Rev. €m % Rev.
Revenue
148.7
145.5
319.0
of which License
2.6
3.0
8.8
of which Subscription
93.2
78.7
186.6
of which Maintenance
34.6
44.6
87.0
Sub-total Products
130.5
126.3
282.4
Services
18.2
19.2
36.5
Cost of sales
43.9
42.9
87.2
of which License and Maintenance
6.3
6.4
24.1
of which Subscription
19.4
18.6
28.2
of which Services
18.1
17.9
34.9
Gross profit
104.7
70.5%
102.6
70.5%
231.7
72.7%
Operating expenses
87.6
84.8
168.9
of which Sales and marketing
41.8
42.1
81.6
of which Research and development
31.2
29.4
60.1
of which General and administrative
14.6
13.3
27.2
Profit on operating activities
17.1
11.5%
17.8
12.2%
62.8
19.7%
Stock option expense
-2.9
-1.4
-4.2
Amortization of intangible assets
-1.7
-1.7
-3.2
Profit from recurring operations
12.5
8.4%
14.7
10.1%
55.4
17.4%
Other income and expenses
-4.1
-3.5
-7.9
Operating profit
8.3
5.6%
11.2
7.7%
47.6
14.9%
Cost of net financial debt
-2.7
-2.1
-4.6
Other financial revenues and expenses
-0.9
0.4
-0.2
Income taxes
-2.0
-5.9
-7.0
Net profit
2.8
1.9%
3.7
2.5%
35.8
11.2%
Basic earnings per share (in €)
0.13
0.17
1.71
Appendices (3/4)
Axway Software: Simplified Balance Sheet
Half-year 2024
6/30/2024 6/30/2023
12/31/2023 (€m) (€m) (€m)
Assets
Goodwill
302.7
299.3
302.1
Intangible assets
9.4
6.9
5.1
Property, plant and equipment
10.2
10.4
9.3
Lease right-of-use assets
15.5
12.9
17.8
Other non-current assets
31.2
32.6
33.2
Non-current assets
369.1
362.1
367.6
Trade
receivables
166.3
135.2
178.0
Other current assets
38.8
34.0
32.3
Cash and cash equivalents
16.9
14.2
16.7
Current assets
222.0
183.4
227.0
Total
Assets
591.1
545.4
594.6
Equity and Liabilities
Share capital
43.3
43.3
43.3
Reserves and net profit
312.6
271.4
303.0
Total Equity
355.9
314.6
346.3
Financial
debt - long-term portion
83.3
83.8
88.0
Lease liabilities - long-term portion
18.9
13.2
19.7
Other non-current liabilities
16.3
14.1
16.5
Non-current liabilities
118.6
111.2
124.2
Financial
debt - short-term portion
4.4
3.7
4.3
Lease liabilities - short-term portion
2.5
6.1
4.0
Deferred Revenues
60.1
66.5
49.1
Other current liabilities
49.7
43.3
66.7
Current liabilities
116.7
119.7
124.1
Total
Liabilities
235.3
230.8
248.3
Total Equity
and Liabilities
591.1
545.4
594.6
Appendices (4/4)
Axway Software: Cash Flow Statement
Half-year 2024
H1 2024 H1 2023
Full-year 2023 (€m)
(€m) (€m) Net profit
for the period
2.8
3.7
35.8
Net charges to amortization, depreciation and provisions
3.3
9.4
19.3
Other income and expense items
4.1
-1.0
1.4
Cash from operations after cost of net debt and tax
10.1
12.2
56.6
Change in
operating working capital requirements (incl. employee benefits
liability)
2.6
4.5
-32.9
Cost of net financial debt
2.7
2.1
4.6
Income tax paid net of accrual
-0.3
4.4
3.9
Net cash from operating activities
15.0
23.1
32.1
Net cash used
in investing activities
-2.7
-8.6
-12.6
Proceeds from the
exercise of stock options
0.0
-
-
Purchases and proceeds from disposal of treasury shares
-2.2
-4.4
-4.8
Dividends paid
0.0
-8.4
-8.4
Change in loans
-5.1
-0.4
3.4
Change in lease liabilities
-3.2
-3.5
-7.2
Net interest paid
-2.2
-1.6
-3.7
Other flows
0.1
-0.3
-0.4
Net cash from (used in) financing activities
-12.6
-18.6
-21.1
Effect of foreign
exchange rate changes
0.1
-0.1
-0.2
Net change in cash and cash equivalents
-0.2
-4.2
-1.8
Opening cash
position
16.5
18.3
18.3
Closing cash position
16.3
14.2
16.5
Axway Software: Impact on revenue of changes in scope and
exchange rates
Half-year 2024 (€m)
H1 2024
H1 2023
Growth
Revenue
148.7
145.5
+ 2.2%
Changes in exchange rates
+0.0
Revenue at constant exchange rates
148.7
145.5
+ 2.2%
Changes in scope
+0.4
Revenue at constant scope and exchange rates
148.7
145.9
+ 1.9%
Axway Software: Changes in exchange rates
Half-year
2024For 1€
Average rate H1 2024
Average rate H1 2023
Change
US Dollar
1.081
1.081
- 0.1%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718450349/en/
Investor Relations: Arthur Carli – +33 (0)1 47 17 24 65 –
acarli@axway.com
Axway Software (EU:AXW)
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