74software · EURONEXT:74SW
74software — Q3 2024 Earnings Presentation
22 slides from 74software's earnings presentation, Oct 24, 2024
Slide 1: Q3 2024 Revenue Analyst Conference Call
Q3 2024 Revenue Analyst Conference Call October 24, 2024 1
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS 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 mor
Slide 3: Agenda
Agenda 1 Operational Commentary on Q3 2024 2 SBS Update Patrick Donovan Group CEO 3 Looking to Q4 2024 and Beyond Eric Bierry 4 Q&A Session Deputy Group CEO 3
Slide 4: Operational Commentary on Q3 2024
Operational Commentary on Q3 2024 Patrick Donovan Group CEO Eric Bierry Deputy Group CEO 4
Slide 5: Q3 2024 Highlights
Strong revenue performance year-to-date Organic Growth of 5.6% for first nine months MFT momentum continues Q3 2024 Growth in new customers, especially in North American market Core products continue market leadership HIGHLIGHTS Most recently announced leadership in Gartner 2024 APIM Magic Quadrant
Slide 6: Q3 2024 Brands Revenue
Q3 2024 Brands Revenue AXWAY PERIMETER Revenue by business line Q3 2023 Q3 2023 Total Organic 3rd Quarter 2024 (€m) Q3 2024 Restated* Reported Growth Growth Subscription 48.4 36.9 37.0 30.8% 31.2% of which Axway Managed 12.8 11.8 11.9 7.7% 8.3% of which Customer Managed 35.5 25.0 25.1 41.7% 42.1% Ma
Slide 7: Q3 & 9M 2024 Group Revenue
Q3 & 9M 2024 Group Revenue AXWAY + SBS Consolidated revenue Q3 2023 Q3 2023 Total Organic 3rd Quarter 2024 (€m) Q3 2024 Restated* Reported Growth Growth Axway Scope 78.3 69.0 69.4 12.8% 13.4% SBS Scope (1 month) 34.3 28.9 - - 18.8% Intra-Group Operations -0.1 0.0 - - 173.8% Group's Revenue 112.4 97.
Slide 8: Customer Success as a Company Value
Customer Success as a Company Value Axway Axway Managed Axway Net Promoter Score Q3 Booking Value Growth New Customers 52 + 35% 20% compared with 34* representing 37% of total of booking value at end Q3 2023 booking value vs. 18% in 9M 2023 ° restated to include support surveys in both periods 8
Slide 9: SBS Update
X SBS Update Patrick Donovan Group CEO Eric Bierry Deputy Group CEO 9
Slide 10: Successful launch of SBS integration
Successful launch of SBS integration NEW CORPORATE PROJECT INITIATED FIRST SYNERGIES AND SHARED OPPORTUNITIES ENTHUSIASTIC CUSTOMER’ FEEDBACKS FOCUSED BUSINESS TEAMS 10
Slide 11: A Robust Enterprise Software House
A Robust Enterprise Software House 5000 26 €676m 5th Employees Countries 2023 Proforma Revenue Enterprise software vendor in France INTEGRATION BANKING APP BANKING MFT APIM PLATFORM FINANCING B2B AFAH PLATFORM 11
Slide 12: With Awarded Leading Products
With Awarded Leading Products Gartner Magic Quadrant The Forrester Wave G2 Reports Leader in Leader in Leader in Full Life Cycle API Management API, API Management Software B2B & MFT 16 October 2024 1 July 2024 Summer 2024 Deal Survey Omdia Universe Sales League Table Ranked 3rd World Leader for 1st
Slide 13: SBS is a Unique Opportunity to Grow Axway's Portfolio
SBS is a Unique Opportunity to Grow Axway’s Portfolio Helping banks and lenders from around the world make financial services accessible to everyone, everywhere, at any time. 650+ €359m 80+ 3,600 16 Customers 2023 Carve-out Revenue Operating Countries Employees Locations SOPRA BANKING PLATFORM SOPRA
Slide 14: SBS has a Strong Potential for Higher Recurring Revenues
SBS has a Strong Potential for Higher Recurring Revenues ACCELERATE TRANSITION TO A SUBSCRIPTION MODEL LEVERAGING POWERFUL BUSINESS UNITS Support & Others Specialized Market Solutions 6% 14% Tieto FS License UK Core Banking Systems 13% Maintenance & Components 33% 67% Asset Finance 11% Delta APAK Lu
Slide 15: Looking to Q4 2024 & Beyond
Looking to Q4 2024 & Beyond Patrick Donovan Group CEO 15
Slide 16: A Day-to-day Software House Mindset
A Day-to-day Software House Mindset AXWAY’S RECENT SUCCESS PILLARS 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 & Marketi
Slide 17: Clear Roadmap to Strong Ambitions
Clear Roadmap to Strong Ambitions 2023 2024 2025 2027 RESTATED* GUIDANCE AMBITION AMBITION AXW + 12 Mo. SBS AXW + 4 Months SBS AXW + SBS 3 YEARS PLAN Revenue €651m ≈€ 460m ≈ €700m >€ 750m 18 months 2 to 4% to materialize organic growth full synergies run rate Targeting Profit on Operating Activities
Slide 18: Always The Same Ambitions
Always The Same Ambitions OUR CUSTOMERS OUR EMPLOYEES OUR SHAREHOLDERS Delivering brilliant Building a predictable, The place to be Customer experience profitable model An independent technology provider that sustainably grows enduring value 18
Slide 19: Capital Allocation Priorities
Capital Allocation Priorities 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 19
Slide 20: Q&A Session
Q&A Session Call +44 (0) 33 0551 0200 or use the chat to ask a question Next Events Wednesday, February 26, 2025, after market closing: Publication of 2024 Full-Year Results Wednesday, February 26, 2025, 6:30 pm (UTC+1): 2024 Full-Year Results Virtual Analyst Conference 20
Slide 21: Thank you
Thank you ©2024 Axway
Slide 22: Alternative Performance Measures
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 p