74software · EURONEXT:74SW
74software — FY2024 Earnings Presentation
42 slides from 74software's earnings presentation, Feb 26, 2025
Slide 1: 2024 Full-Year Results Analyst Conference
2024 Full-Year Results Analyst Conference February 26, 2025 Paris, France – Euronext Studio
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENT This presentation contains forecasts that may be subject to various risks and uncertainties concerning the Company’s future growth and profitability. The Company highlights that contract signatures, which represent investments for customers, are historically more
Slide 3: Agenda
Agenda 01 02 03 04 74Software Opening Deep-dive on SBS 2024 Closing Remarks Remarks and update on Financial Results and Q&A Session Axway activities
Slide 4: Meet the Executive Team
Meet the Executive Team Patrick Donovan Chief Executive Officer Eric Bierry Deputy Chief Executive Officer Tobias Unger Chief Financial Officer 4
Slide 5: 74Software Opening Remarks
01 74Software Opening Remarks
Slide 6: Entering a New Era…
Entering a New Era… A LISTED CENTRAL ENTITY SERVING ITS ENTERPRISE SOFTWARE PORFOLIO COMPANIES LEVERAGING A PORTFOLIO OF RECOGNISED BRANDS AND LEADING PRODUCTS WITH ALWAYS THE SAME PURPOSE: To be an independent technology provider that sustainably grows enduring value, based upon trust, for our cust
Slide 7: Faithful to our Roots and Culture
Faithful to our Roots and Culture OUR EMPLOYEES OUR SHAREHOLDERS Delivering Brilliant Customer Experience The Place to Be Building a Predictable and Profitable Long-Term Project OUR CUSTOMERS 7
Slide 8: With a Strong Start, Together!
With a Strong Start, Together! 2024 proforma revenue of €690.0m with organic growth of 5.6% 2024 proforma profit on operating activities of €94.0m or 13.6% of revenue Axway at record-high NPS, excellent Employee Engagement, with its most profitable year, at the top of its targets SBS with strong gro
Slide 9: Deep-dive on SBS & Update on Axway activities
02 Deep-dive on SBS & Update on Axway activities
Slide 10: 2024 Business Highlights
2024 Business Highlights 2024 IN A NUTSHELL PRODUCT LINES TRENDS § MFT: Significant new customer § Added 121 new Customers acquisitions § Strong North American growth § API Management: Strong growth in § Continued Analyst Recognitions usage and bookings § Growth in both Customer Managed § 15 early a
Slide 11: Net Promoter Score, Employee Engagement, Profit on Operating Activities
52 Net Promoter Score 70 Employee Engagement Score 20.9% Profit on Operating Activities highest in Axway's history highest in Axway's history highest in Axway's history 11
Slide 12: Transformation in the Rear View
Transformation in the Rear View 6-Year 2011 (IPO) 2024 2023 2022 2021 2020 2019 Average to 2018 Organic Revenue Growth (%) 3.4% 5.8% 5.5% -2.7% 0.5% 3.3% 2.6% Excluding disposed products 3.4% 5.8% 7.4% 0.3% 1.6% 4.9% 3.9% 1.0% avg Profit on operating activities (€m) 68.4 62.8 46.3 32.9 30.8 25.9 €50
Slide 13: A Year of Strategic Milestones
A Year of Strategic Milestones Strong achievement in recurring and product revenue, as planned New product-centric, Services revenue to land at 30% of total, market-led operating model ensuring effective implementation and usage Mid 2023 June 2024 FY 2024 January H2 2024 2024 Strategic pivot from Ca
Slide 14: Zoom on the Product Portfolio
Zoom on the Product Portfolio INTEGRATED BANKING PRODUCTS 47% Fully integrated core banking processing platforms that are market leaders in their chosen markets, most notably of Revenue Middle East and African retail banking, French mid- market banks and retail banks in the Benelux region. France UK
Slide 15: SBS Incubation Zone
SBS Incubation Zone REGULATORY REPORTING SaaS public cloud solution for new European IREF regulation. 100+ banks signed, 30 live as early adopters DIGITAL ENGAGEMENT PLATFORM SaaS mobile-first platform for individuals and SMEs. 4 clients signed, 1 live.as early adopter DIGITAL CORE SaaS public cloud
Slide 16: 2024 Financial Results
2024 Financial Results : a L > 74Software
Slide 17: 2024 Key Figures
2024 Key Figures Proforma basis except if otherwise noted € 690m Annual Revenue 56 + . % Organic Growth 13.6% Margin on Operating Activities § ARR Axway: €246m § ARR Growth Axway: 7.4% § Axway: 20.9% § ARR SBS: €225m § ARR Growth SBS: 11.8% § SBS: 6.9% 5.7% Unlevered FCF 2.87X Leverage ratio € 1.67
Slide 18: 2024 Proforma Income Statement
2024 Proforma Income Statement @5@R @5@R @5@T WDABAD"a =XCV$BAfKALiNaO(N C(lADO(N S@"$IFG$d$S@"$VeV S@"$IFG$d$R"$VeV Imnao$VOafNaLAf( !" #$AB$C(EF !" #$AB$C(EF !" #$AB$C(EF G,GI.$C/L/MN/ OP5F5 ROSFP TSPF5 !"#$A&C"(#(&"E&*+,+I.+ /012O 10124 542/ UC,VV$WC,X=G RR>F> O?F5# T@5F@ OPFT# @TSFA A@FO# 6S+*$#
Slide 19: Change in Revenue
Change in Revenue '800 +3.4% +7.8% +5.6% '700 '26 '2 '690 '334 '651 '11 -'1 '600 '500 Revenue in €m '400 '319 '300 '200 '100 '0 SBS 2023 Proforma 2023 Growth SBS Proforma 2024 Axway 2023 Consolidation Growth Axway Consolidation, FX 19
Slide 20: Revenue Breakdown by Type
Revenue Breakdown by Type Reporting structure for revenues explained Product revenue 79% (vs. 79%) of total revenue Maintenance & Support Customer-managed Subscriptions Own-managed Subscriptions Licenses Services 28% (vs. 34%) 27% (vs. 22%) 17% (vs. 16%) 7% (vs. 8%) 21% (vs. 21%) Recurring revenue 7
Slide 21: Revenue Breakdown by Product and Region
Revenue Breakdown by Product and Region 15% 5% 42% 12% 18% 5% 28% 12% 30% 25% 21% Managed File Transfer B2B Integration API Management Specialised Products 22% 2023 12% 20% 14% 18% 25% 19% 10% 47% 2024 France UK Rest of Europe Americas Financing Products Modular Products Integrated Products Banking
Slide 22: Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) Strong ARR growth for both companies Axway SBS '300 +7.4% '300 +11.8% '284 '250 '40 '246 '250 '17 '225 '215 '200 -'79 '200 -'7 in €m in €m '150 '150 '100 '100 '50 '50 - - Recurring Upfront New business, ARR Recurring Upfront New business, ARR Revenue Subscription Churn
Slide 23: Margin on Operating Activities
Margin on Operating Activities 77.3% 19.7% 65.0% 25.4% 17.4% 8.6% 13.6% of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. '500 '28 '449 '450 '420 '400 '350 '300 in €m '250 -'175 '200 '150 -'120 '100 '94 -'59 '50 '0 Services Gross Profit Research Research & & General & General & Profit on Produ
Slide 24: Cashflow
Cashflow IFRS consolidated basis (12m Axway + 4m SBS) – SBS generates most of its cashflow in first half of the year! Delta 2024 2024 2023 vs. 2023 12m Axway Reported in €m 4m SBS 12m Axway Axway + 4m SBS Axway Operating cashflow 31.7 -7.1 39.0 32.1 6.9 o/w change in NWC -37.1 -12.6 -24.5 -32.9 8.4
Slide 25: Balance Sheet
Balance Sheet IFRS consolidated 400 195 350 -19 300 195 4 292 250 in €m 200 128 150 100 92 50 32 41 17 -304 -9 0 Acquisition Debt Debt 31.12.2024 Cash 31.12.2023 Capital Increase Other Financing CF Other Investing CF Debt 31.12.2023 RCF Movement Operating CF Acquisition Debt Purchase SBS Cash 31.12.
Slide 26: Closing Remarks and Q&A Session
04 Closing Remarks and Q&A Session
Slide 27: Our Software House Mindset
Our Software House Mindset WE KNOW THE KEYS TO OUR SUCCESS… Customer Centric, Agile Portfolio Of Focused R&D, Engaged People, NPS Driven Leading Products Sales And Marketing Efficient Organization … AND THE DISCIPLINE IT REQUIRES Standardizing Optimizing R&D, Sales Offers & Products & Marketing SLY
Slide 28: A Future of Dynamic Growth
A Future of Dynamic Growth Driven by both organic expansion and strategic acquisitions 2024 2025 2027 GUIDANCE GUIDANCE AMBITION AXW + 4 Months SBS 74Software 3 Years Plan Ambition Revenue ≈ €460m ≈ €700m >€ 750m €1bn €461.9m Achieved Mid-term 2 to 4% organic growth run rate Targeting Profit on Oper
Slide 29: Capital Allocation Priority
Capital Allocation Priority FOCUS ON RETURN SHARE DELEVERAGING TO DIVIDEND BUYBACK < 2.0x As soon as Regular activation possible and of share buyback by end-2025 appropriate authorizations 29
Slide 30: Thank you
Thank you Q&A Session Call +44 (0) 33 0551 0200 or use the chat to ask a question
Slide 31: Appendices
Appendices Full-Year Results 2024
Slide 32: Change in Revenue
Change in Revenue '800 '700 '19 '690 '210 -'1 '600 '500 '125 '7 '0 '462 Revenue in €m '400 '319 '11 '300 '200 '100 '0 Growth Axway Growth SBS (4m) IFRS cons. 2024 Growth SBS (8 m) Proforma 2024 Axway 2023 SBS 2023 (4m) Consolidation, FX SBS 2023 (8m) Consolidation, FX 33
Slide 33: Revenue Breakdown by Portfolio Company & by Type
Revenue Breakdown by Portfolio Company & by Type ,<,5(!"#A#"B? ,<,5(!"#A#"B? ,<,5(!"#A#"B? ,<,5(!"#A#"B?( !"#$#% CDa?F =c= d#+;#@S$?CS#+ 25=#ACa?") !"#$ABC(")*)+A) ,-./- ,L1/2 31/P( L55/1 R)BA""S+T(")*)+A) ,9./2 ,15/2 31/P( 5-P/9 !"#$%&C()*(&(+*$,$-.//!0) &'() *+,(* -.('# */)(' !"#$M.2)!O*04O&(&5*6$
Slide 34: Revenue Breakdown by Geography
Revenue Breakdown by Geography 5O5/ 5O5< 5O5< FA@:? e-f:gT9$ B-A&A-": '(;@:@(> c-AD@d c-AD@d !" #$A&$'(E* G,-A.( /0M*2 2O*P# /OM*5 /0O*0 5*R# 5*0# !"#$%&'()F +,-.K 01.02 +,3.1 +,3.1 4+.K2 4+.K2 !"#$56 ,7.7 +7.82 31., 1U.3 +1.02 +8.82 S"(-T9:; 0RO*5 50*M# 0<2*< 0<2*< 0O*5# 0O*5# =T>>?($G:;@$A$S&-T9:
Slide 35: Margin Analysis – 74Software
Margin Analysis – 74Software @T@W @T@= /PABAP", /PABAP", Nn,0e( V@"$ilm$X$V@"$DGD V@"$ilm$X$V@"$DGD !" #$AB$C(EF !" #$AB$C(EF !" G,I.I$/A.01I !"#$%&'(")*)+%) ,--./ 01.12 ,/0.- 03.-2 P(56.0 S(,1 8)"*9&):(")*)+%) /-6.; 5/.52 /<-./ 5;.62 P(//.3 P(,1 NA1,O$P(E(05( RSTFT R9VFW X$=>FR NA1,O$?AI1I$AB$P(E(0
Slide 36: Margins on Operating Activities
Margins on Operating Activities '300 81.9% 2.8% 73.3% 18.6% 25.0% 8.9% 20.9% '250 71.3% 24.9% 57.2% 31.4% 10.5% 8.3% 6.9% of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. of Rev. '250 '27 '207 '241 '1 '242 '200 '180 '200 '150 -'61 in €m in €m '1
Slide 37: Margin Analysis – Portfolio Companies
Margin Analysis – Portfolio Companies S;SR S;SD C(FAP1(n No,0c( idl,m idl,m !" #$AB$C(EF !" #$AB$C(EF !" G,I.I$/A.01I !"#$%&'(")*)+%) ,-./- 0-/12 ,0,/3 00/P2 5(11/P 5(61 S)"*8&)9(")*)+%) .P/0 1:/-2 .6/P 11/32 ;(:/< ;(P0 NA1,O$P(E(05( RSTF9 RVTF; <$V;F9 NA1,O$=AI1I$AB$P(E(05( 99F; 9>FS <$;F9 ?C@AA$/C
Slide 38: Margin Analysis – Portfolio Companies
Margin Analysis – Portfolio Companies T9T@ T9TR /PABAP", /PABAP", Nm,0e( >Tl$CGC >Tl$CGC !" #$AB$C(EF !" #$AB$C(EF !" G,I.I$/A.0MI !"#$%&'(")*)+%) ,-./0 12/-3 ,P1/5 06/S3 8(.-/5 9(.,5 :)"*;&)<(")*)+%) ..6/, P6/-3 20/- ,2/,3 8(.,/0 8(.,5 NAM,O$P(E(05( RSTF9 RRRFV ;$T<F9 NAM,O$=AIMI$AB$P(E(05( >??F9 >
Slide 39: Balance Sheet
Balance Sheet !"!O$ !"!O$ !"!#$A&CD$ !"!#$A&CD$ CNPF5MN/$ EVL+;N CNPF5MN/$ EVL+;N EF+,FI./LMN/ EF+,FI./LMN/ RSTL9 RSTL9 !"#$A !"#$A &CCD)"FG#,-C-!./01-G 2O456 7T95: ;#77656 </G=#>#C/G=#-?)!./1-"FG @A75A# @7B5T# @#2A5T CF=-,#C),,-"F#/GG-FG 7:75O 4254 ;#BO5B D!"/"C!/1#a-0F 2O759 O254 ;#7OO56 &CCD)"FG#
Slide 40: Capital Structure at 31/12/2024
Capital Structure at 31/12/2024 PASQUIER ODIN TREASURY MANAGERS PUBLIC FAMILY FAMILY SHARES SHARES 41.70% 11.07% 0.29% 1.24% 1.18% 42.37% 2.15% VOTING RIGHTS 41.61% 16.21% 0.26% 1.43% 1.35% 39.13% SHAREHOLDERS’ AGREEMENT 29,746,194 Shares outstanding 55.5% of shares outstanding / 59.9% of voting rig
Slide 41: Glossary and Alternative Performance Measure
Glossary and Alternative Performance Measure § Axway ARR: Annual Recurring Revenue – Expected annual billing amounts from all active maintenance and subscription agreements. § SBS ARR: Annual Recurring Revenue – Monthly recurring revenue (MRR) for the last month of the reporting period multiplied by
Slide 42: 74Software
74Software |