SimCorp A/S

Q3 reported revenue growth was 15.7% and local-currency growth was 10.2%; CFO said revenue growth was 16% reported and 10% organically. Q3 EBIT was €20.2 million, with an EBIT margin of 16% versus 22.6% a year ago. Free cash flow was €14.5 million in Q3, down by close to €10 million year over year. For the first nine months, reported revenue growth was 5.6% and local-currency growth was 1.6%; EBIT was €41.9 million, and free cash flow was €44.7 million. ARR was close to €310 million, up 15.2% reported and 11.3% local currency, and revenue signed on contract was €451 million. Full-year 2022 guidance was lowered to the low end of prior ranges: 7% to 12% local-currency revenue growth, 10% to 15% ARR growth, and 23% to 26% EBIT margin, excluding expected exceptional costs of €3 million to €5 million for Ukraine support and €8 million to €10 million for operating model restructuring. Management said Q4 needs €98 million to €123 million of signed revenue versus €68 million last year to reach guidance.

Christian Kromann emphasized that SimCorp is seeing good momentum into Q4, especially in North America, where he said the company is more optimistic after a big win and a growing pipeline. He framed the strategy around four growth levers: platform leadership, SaaS acceleration, ecosystem scaling, and bolt-on acquisitions/JVs. His tone was constructive but cautious, stressing that the pipeline is strong while unsigned deals and a volatile macro environment create timing risk.

Michael Rosenvold said Q3 revenue growth was 16% reported and 10% organically, with EBIT margin at 16% versus 22.6% last year. For the first nine months, he cited 6% reported revenue growth, 2% organic growth, and a 12% EBIT margin versus 23% last year; excluding €8.6 million of one-off costs, the nine-month EBIT margin would have been 14%. He highlighted almost €3 million of Ukraine-related support costs and €6 million of restructuring costs, and said free cash flow was around €45 million but weaker than prior years, prompting a strong focus on cash management in Q4.

Analysts focused on why guidance was only at the low end despite a strong pipeline, and management said the issue is timing risk: deals are moving, but decision dates are uncertain in the current macro backdrop. On renewals, Michael said 2023 should see a slightly higher level than 2022, with a more meaningful uptick in 2024; Christian added that renewals have a timing mismatch because order intake happens when signed while revenue follows the prior contract ramp. Management also said Q4 professional services should remain solid but likely not as strong as Q3, and that most Q4 revenue is expected to come from existing clients, though new logos are also expected. They declined to quantify the new North America Tier 1 bank deal, saying it is confidential, but characterized it as a decent revenue opportunity.