Cloudy services giant SoftwareOne has reported an 8.4 per cent year-on-year revenue growth in the third quarter of 2023.
The company’s adjusted EBITDA registered a 14.1 per cent year-on-year increase with a margin of 20.5 per cent.
SoftwareOne claims that one of the key reasons for its resilient performance has been the success of its operational excellence programme, which delivered bucketloads of cost savings.
In EMEA, the company demonstrated resilience with a 9.6 per cent year-on-year revenue increase to CHF136.7m.
This growth was driven by robust momentum in key markets such as the UK, Netherlands, and Spain.
In APAC, SoftwareOne sustained a robust revenue surge, witnessing a 19.8 per cent year-on-year.
However, in NORAM, cautious client spending and extended sales cycles led to a disappointing 4.7 per cent year-on-year growth.
The software & cloud marketplace reported a 5.7 per cent year-on-year revenue increase. Gross billings in the Microsoft business reached USD $3.9 billion in Q3 2023, marking a substantial nine per cent increase compared to the same period in 2022.
Software and cloud services showcased remarkable growth, with an 11.4 per cent year-on-year revenue increase.
This growth was driven by core service lines, digital workplace, and software sourcing & portfolio management, with particular momentum in Beniva, a ServiceNow partner acquired in mid-2023.
The company now anticipates high single-digit revenue growth for 2023, adjusting down from the previous double-digit forecast.
However, the adjusted EBITDA margin target remains unchanged at 24-25 per cent, underscoring the company’s commitment to maintaining a balanced and sustainable financial position.
Additionally, the dividend payout ratio target remains at 30-50 per cent of adjusted profit for the year.
