74software · EURONEXT:74SW
74software — H1 2025 Earnings Presentation
37 slides from 74software's earnings presentation, Jul 24, 2025
Slide 1: 2025 Half-Year Results Analyst Conference
2025 Half-YearResults Analyst Conference July 24, 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 OpeningRemarks Axway&SBS H12025 ClosingRemarks KeyDevelopments FinancialResults andQ&ASession Patrick Donovan Eric Bierry Tobias Unger ChiefExecutiveOfficer DeputyChiefExecutiveOfficer ChiefFinancialOfficer
Slide 4: Opening Remarks
01 OpeningRemarks Patrick Donovan ChiefExecutiveOfficer
Slide 5: 74Software – Combining Two Strong Brands…
74Software – Combining Two Strong Brands… A LISTED CENTRAL ENTITY SERVING ITS PORTFOLIO OF ENTERPRISE SOFTWARE 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 tru
Slide 6: Delivering More Together
Delivering More Together ENHANCED EQUITY STORY, EXPANDED STOCK COVERAGE STRONGER SHARED CORE FUNCTIONS, BETTER SERVICE & FINANCIAL STRENGTH TO THE BRANDS, LOWER COST STRONGER MARKET VISIBILITY & OPERATIONAL FIREPOWER OPPORTUNISTIC COMMERCIAL SYNERGIES DRIVING UPSELL & BROADER MARKET ACCESS ELEVATED
Slide 7: Faithful to our Roots and Culture
Faithful to our Roots and Culture OUR OUR OUR EMPLOYEES CUSTOMERS SHAREHOLDERS Making our Group Delivering brilliant Building a predictable and the place to be customer experience profitable long-term project We invest in culture, leadership and We design our products and services We focus on sustai
Slide 8: Sustained Momentum Reinforces Long-Term Objectives
Sustained Momentum Reinforces Long-Term Objectives H1 2025 revenue of €344.0m, up 6.5% organically and 6.2% in total Marked improvement in margin on operating activities, up 585bps to 12.0% of revenue (€41.3m) Strong H1 commercial momentum across both Axway and SBS, underpinned by disciplined execut
Slide 9: Axway & SBS Key Developments
02 Axway&SBS KeyDevelopments Eric Bierry DeputyChiefExecutiveOfficer
Slide 10: H1 2025 Business Highlights
H1 2025 Business Highlights ▪ Products now 75% of revenue, up 8pts YoY; ▪ Growth across all product lines in H1 Services down 19% in line with plan ▪ 58 new clients signed (vs. 49 in H1 2024), ▪ 230+ SaaS regulatory deals driving Modular including 6 deals above €1m, over half in MFT growth ▪ Managed
Slide 11: 74Software Incubation Zone
74Software Incubation Zone REGULATORY REPORTING SaaS public cloud solution for new European IREF regulation. 230+ SaaS services sold (109 live for 57 banks). From Spark To Scale DIGITAL ENGAGEMENT PLATFORM SaaS mobile-first platform for individuals and SMEs. 4 clients signed, 1 live as early adopter
Slide 12: H1 2025 Financial Results
02 H12025 FinancialResults Tobias Unger ChiefFinancialOfficer
Slide 13: H1 2025 Key Figures
H1 2025 Key Figures € 344m Revenue 65 + . % Organic Growth 12.0% Margin on Operating Activities ▪ ARR Axway: €256m ▪ ARR Growth Axway: 11.8% ▪ Axway: 16.6% ▪ ARR SBS: €233m ▪ ARR Growth SBS: 10.9% ▪ SBS: 7.9% 22.2% Unlevered FCF 1.83X Leverage ratio € . 0 20 Earnings per Share ▪ Before interest and
Slide 14: H1 2025 Income Statement
H1 2025 Income Statement Half-year 2024 Half-year 2024 Half-year 2025 Proforma Reported 6M AXW + 6M SBS Axway Standalone €m % of Rev. €m % of Rev. €m % of Rev. TOTAL REVENUE 344.0 323.9 148.7 Total costs of revenue -115.9 -117.1 -44.0 GROSS PROFIT 228.1 66.3% 206.9 63.9% 104.7 70.5% Operating expens
Slide 15: H1 2025 Change in Revenue
H1 2025 Change in Revenue 400 +8.9% +5.0% +6.5% 350 9 344 12 175 0 324 -1 300 250 Revenue in €m 200 150 149 100 50 0 Axway H1 2024 SBS H1 2024 Consolidation Proforma H1 2024 Growth Axway Growth SBS Consolidation, FX H1 2025 15
Slide 16: Revenue Breakdown by Type
H1 2025 Revenue Breakdown by Type Product revenue at 81% of H1 2025 total revenue (vs. 77% H1 2024) Maintenance & Support Customer-managed Subscriptions Own-managed Subscriptions Licenses Services 27% (vs. 30%) 29% (vs. 24%) 20% (vs. 17%) 6% (vs. 6%) 19% (vs. 23%) Recurring revenue at 75% of H1 2025
Slide 17: Revenue Breakdown by Product
H1 2025 Revenue Breakdown by Product 17% 18% 23% 18% 19% 24% 40% 44% 17% 20% 9% 11% 21% 48% 48% 23% H1 24 H1 25 Managed File Transfer B2B Integration Financing Products Modular Products API Management Specialised Products Integrated Products Banking Components 17
Slide 18: Annual Recurring Revenue (ARR)
H1 2025 Annual Recurring Revenue (ARR) Strong ARR growth for both brands 270 270 11.8% 11.8% 12.0% 12.0% 260 260 10.9% 10.4% 10.4% 250 250 9.4% 10.0% 10.0% 240 8.4% 240 230 7.2% 7.4% 8.0% 230 8.0% 6.6% 220 220 6.0% 6.0% 210 210 200 4.0% 200 4.0% 190 190 2.0% 2.0% 180 180 170 0.0% 170 0.0% Q4 Q1 Q2 Q
Slide 19: Margins on Operating Activities
H1 2025 Margins on Operating Activities Gross Profit Profit on Op. Activities 66.3% of Revenue 12.0% of Revenue 83.2% 7.0% 74.9% 20.3% 26.8% 11.3% 16.6% 71.6% 19.3% 58.4% 32.9% 10.7% 6.8% 7.9% 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
Slide 20: Cashflow Statement
H1 2025 Cashflow Statement Cash Flow Statement H1 2025 H1 2024 Change Axway in €m 74Software SBS Axway Axway Standalone H1 25 vs. H1 24 Operating cashflow 89.6 35.8 53.9 15.0 + 38.8 o/w change in NWC 55.0 29.4 25.6 2.6 + 23.1 o/w other operating cashflow 34.6 6.4 28.2 12.5 + 15.7 Investing cashflow
Slide 21: Accelerated Deleveraging in H1 2025
Accelerated Deleveraging in H1 2025 100 90 90 80 -5 -9 70 60 Net debt reduced by €58m in H1 2025 in €m 50 40 30 -42 20 16 -16 -1 10 0 Operating Cashflow Inv. CF Inv. CF Fin. CF Fin. CF FX and Other Net Change in Cash Capex Capitalized R&D Debt repayment Other 31/12/2024 30/06/2025 31/12/2024 30/06/2
Slide 22: Closing Remarks
03 ClosingRemarks Patrick Donovan ChiefExecutiveOfficer
Slide 23: 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 Rati
Slide 24: A Future of Dynamic Performance
A Future of Dynamic Performance Driven by both organic expansion and strategic acquisitions 2024 2025 2027 GUIDANCE GUIDANCE AMBITION AXW + 4 Months SBS 74Software 3 Years Plan ≈ €460m Ambition Revenue €461.9m Achieved ≈ €700m >€ 750m €1bn Mid-term 2 to 4% organic growth run rate 13 - 17% Targeting
Slide 25: Capital Allocation Priority
Capital Allocation Priority FOCUS ON FROM 2026 DELEVERAGING DISCIPLINED AND OPPORTUNISTIC APPROACH TO VALUE-CREATING M&A RETURN TO DIVIDEND SHARE BUYBACK < 2.0x As soon as Regular activation by end-2025 possible and of share buyback appropriate authorizations 25
Slide 26: Thank you
Thank you Q&A Session Call +44 (0) 33 0551 0200 or use the chat to ask a question
Slide 27: Appendices
Appendices 2025 Half-Year Results
Slide 28: Revenue Breakdown by Portfolio Brand & by Type
H1 2025 Revenue Breakdown by Portfolio Brand & by Type H1 2024 H1 2024 Total Organic H1 2025 €m / % Reported Restated Growth Growth Product revenue 143.3 130.5 129.7 9.8% 10.5% Recurring revenue 141.6 127.9 127.1 10.7% 11.4% o/w Maintenance & Support 27.2 34.6 34.3 -21.3% -20.6% o/w Customer-managed
Slide 29: Revenue Breakdown by Geography
H1 2025 Revenue Breakdown by Geography H1 2025 H1 2024 H1 2024 Total Organic Proforma Restated Growth Growth €m % of Rev. Europe 208.1 60.5% 203.0 203.2 2.5% 2.4% o/w France 99.5 28.9% 99.7 99.7 -0.2% -0.2% o/w UK 46.7 13.6% 44.8 45.0 4.3% 3.7% Americas 73.3 21.3% 65.6 64.6 11.7% 13.5% Middle East &
Slide 30: Margin on Operating Activities
H1 2025 Margin on Operating Activities 77.8% of Rev. 15.9% of Rev. 66.3% of Rev. 27.1% of Rev. 18.3% of Rev. 8.9% of Rev. 12.0% of Rev. 250 10 228 218 200 150 in €m - 93 100 - 63 50 41 - 31 0 Product Services Gross Research & Sales & General & Profit on Gross Profit Gross Profit Profit Development M
Slide 31: Margin Analysis – 74Software
Margin Analysis – 74Software H1 2024 H1 2025 Change Proforma €m % of Rev. €m % of Rev. €m Basis Points Product revenue 280.0 81.4% 248.7 76.8% + 31.3 + 461 Services revenue 64.0 18.6% 75.2 23.2% - 11.2 - 461 Total revenue 344.0 323.9 + 20.1 Total costs of revenue 115.9 117.1 - 1.2 GROSS PROFIT 228.1
Slide 32: Margin Analysis – Portfolio Brands (Axway)
H1 2025 Margin Analysis – Portfolio Brands H1 2024 H1 2025 Reported Change Axway Axway €m % of Rev. €m % of Rev. €m Basis Points Product revenue 143.3 89.1% 130.5 87.8% + 12.8 + 134 Services revenue 17.5 10.9% 18.2 12.2% - 0.7 - 134 Total revenue 160.8 148.7 + 12.1 Total costs of revenue 40.3 44.0 -
Slide 33: Margin Analysis – Portfolio Brands (SBS)
H1 2025 Margin Analysis – Portfolio Brands H1 2024 H1 2025 Proforma Change SBS SBS €m % of Rev. €m % of Rev. €m Basis Points Product revenue 137.7 74.8% 118.2 67.5% + 19.5 + 729 Services revenue 46.5 25.2% 57.0 32.5% - 10.5 - 729 Total revenue 184.2 175.2 + 8.9 Total costs of revenue 76.6 73.1 + 3.5
Slide 34: Balance Sheet
H1 2025 Balance Sheet H1 2025 FY 2024 H1 2025 FY 2024 IFRS IFRS Change IFRS IFRS Change Consolidated Consolidated Consolidated Consolidated in €m in €m Accounts receivables 246.7 293.5 - 46.8 Cash & cash equivalents -57.8 -41.4 - 16.4 Other current assets 123.3 101.9 + 21.4 Financial debt 249.6 291.
Slide 35: Capital Structure at 30/06/2025
Capital Structure at 30/06/2025 PASQUIER ODIN TREASURY MANAGERS PUBLIC FAMILY FAMILY SHARES SHARES 41.70% 11.07% 0.69% 1.17% 0.72% 43.04% 1.62% VOTING RIGHTS 40.94% 15.95% 0.55% 1.31% 0.84% 39.24% SHAREHOLDERS’ AGREEMENT 29,746,194 Shares outstanding 55.3% of shares outstanding / 59.6% of voting rig
Slide 36: 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 37: 74Software
74Software |