Quarterly Statement Q2 2023

Following the presentation of provisional figures, in the second quarter of 2023 ATOSS Software AG continued its dynamic development of the first three months with considerable success and achieved new records in revenues and earnings. In the first six months of the fiscal year 2023, consolidated revenues increased by a very appreciable 37 percent year-on-year to EUR 73.2 million (previous year: EUR 53.6 million). In particular, the Group made significant progress in expanding its cloud business. Viewed against the background of the business development in the first half of the year, the Management Board has raised its revenues and earnings forecast for the current financial year.

ATOSS Software AG remains on course for growth and is continuing its sustained corporate success in the first half of 2023. The Munich-based specialist for workforce management lifted its revenues in the first half of the year very significantly by 37 percent to EUR 73.2 million. Of this amount, software revenues contributed a 42 percent increase in revenues totaling EUR 51.8 million (previous year: Mio. EUR 36.5 million). Driven by the dynamic expansion of the cloud business, revenues from the Cloud and Subscriptions were up by 64 percent to EUR 24.8 million (previous year: EUR 15.1 million) and are now accounting for a share of total revenues of 34 percent (previous year: 28 percent). Moreover, the revenues record in software is also due in particular to the significant increase in non-recurring revenues of on-premises licenses compared with the first half of the previous year. Together with the 15 percent rise in software maintenance revenues amounting to EUR 17.7 million (previous year: EUR 15.4 million), recurring revenues advanced year-on-year by 40 percent, reaching EUR 42.5 million (previous year: EUR 30.4 million). Notwithstanding the strong increase in software licenses revenues, the share of recurring revenues from cloud and maintenance in total revenues remained stable at 58 percent (previous year: 57 percent). In the first six months revenues with consulting services expanded to EUR 16.4 million (previous year: EUR 13.8 million).

Overall, the Group's order situation is robust despite the clouding of the economic environment. This is based on the significantly higher than planned order intake in the previous year, which more than compensates for the slight weakening of demand in the first half of 2023 compared to prior year period. This is reflected in a cloud order backlog of EUR 56.3 million (December 31, 2022: EUR 43.3 million) and in an on-premises order backlog of EUR 5.9 million (December 31, 2022: EUR 7.3 million). The cloud order backlog shows revenues from contractually secured cloud usage fees within the next 12 months. Cloud Annual Recurring Revenues (in short: ARR) increased by 25 percent to a total of EUR 51.5 million (December 31, 2022: EUR 41.0 million). Total ARR (consisting of cloud usage fees and maintenance revenues) trended upwards to EUR 87.1 million as of June 30, 2023 (December 31, 2022: EUR 74.8 million).

As of June 30, 2023, the return on revenues relative to operating earnings (EBIT) stands at 33 percent (previous year: 26 percent) - notwithstanding the year-on-year increase in R&D expenditure resulting from the expansion of technology leadership as well as the continuous general increase in the headcount – which is markedly above the forecast for 2023 as a whole of 27 percent in any case, mainly due to the sharp rise in non-recurring license revenues.

The strong performance of ATOSS is also reflected by other key financial indicators for the Group, such as liquidity and operating cash flow. Despite the dividend payment of EUR 2.83 per share on May 4, 2023 (totaling EUR 22.5 million), liquidity was up by 40 percent year-on-year to EUR 56.9 million (previous year: EUR 40.6 million). As of June 30, 2023, cash flow from operating activities rose significantly by EUR 17.0 million from EUR 8.1 million in the prior year to EUR 25.1 million.

With the figures now presented, ATOSS has once again demonstrated the consistency of its impressive positive development. Consequently, ATOSS remains a guarantor of growth and stability and, with its business model, is excellently positioned to continue growing in the future in the very attractive growth markets revolving around workforce management and digitization across all customer segments. This position is based on a clear vision and strategy, forward-looking technologies, and solutions that generate sustainable added value for the company’s customers.

Reaffirmed by the outstanding business development in the first half of the year, the Management Board is raising its previous guidance for the full year 2023 and now expects total revenues of at least EUR 142 million for the current year (previously: EUR 135 million) and an EBIT margin for the year of around 30 percent (previously: 27 percent in any case). In view of the current economic environment and its impact on the order situation the medium term forecast up to 2025 remains unchanged. The company anticipates revenues of EUR 160 million in 2024 and EUR 190 million in 2025. In 2025, the margin is expected to exceed 30 percent.