Software AG
Built from real-time financials, refreshed daily. For a full Analyst Grade with bull/bear case, price targets, and qualitative risk analysis, generate a SWDAF research report →
Price Chart
About the company
Software AG is a global enterprise specializing in software development, licensing, maintenance, and IT services, with operations spanning Germany, the United States, and other international markets. The company structures its business across three primary segments: Digital Business Platform, Adabas & Natural, and Professional Services. Its comprehensive offerings include advanced Internet of Things (IoT) and analytics solutions.
- CEO
- Sanjay Brahmawar
- IPO
- 2013
- Employees
- 4,707
- HQ
- Darmstadt, DE
Get TickerSpark's AI analysis on SWDAF
Create an account to generate AI analysis on any ticker — technical setup, analyst consensus, earnings watch, insider pulse, financial health, and peer context. Ready in about a minute.
Get Pro Access →Already have an account? Log in
Similar companies
Peers in the same neighborhood.
- Market Cap
- $3.01B
- P/E
- -486.40
- Fwd P/E
- 26.68
- PEG
- 12.83
- P/S
- 2.69
- P/B
- 1.74
- EV/EBITDA
- 19.53
- Div Yield
- 0.00%
- Gross Margin
- 75.93%
- Op Margin
- 6.57%
- Net Margin
- -0.52%
- ROE
- -0.35%
- ROIC
- -0.59%
Latest fiscal year · YoY change
- Revenue
- $1.00B+4.4%
- Gross Profit
- $759.55M+5.7%
- Op Income
- $65.68M
- Net Income
- $-5,227,000-127.5%
- EPS
- $-0.07-127.2%
- OCF Growth
- -107.3%
- FCF Growth
- -322.7%
- 52W High
- $44.87
- 52W Low
- $36.17
- 50D MA
- $38.45
- 200D MA
- $38.29
- Beta
- 0.78
- RSI (14)
- 54
- Avg Volume
- 48
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Software AG said Q2 came in line with plan, with strong ARR and revenue growth, improving margins, and management reaffirming full-year guidance despite a cautious macro backdrop.· July 24, 2023
- Digital business ARR rose 12% YoY in constant currency and 2% sequentially; total ARR reached €718 million, up 12% YoY and 2% sequentially.
- Total revenue was €248 million in Q2, up 14% YoY; first-half revenue was €459 million, up 8%.
- Non-IFRS EBITDA margin was 21.9% in Q2 and 17% in the first half, supported by cost savings and the shift toward subscriptions.
- SaaS ARR grew 33% YoY and now represents 90% of total digital business ARR, reinforcing the company’s cloud-first strategy.
- Free cash flow was negative €35 million in Q2 and negative €14 million in the first half, but management said this reflects temporary transformation and one-off effects.
Q2 total revenue was €248 million, up 14% year on year, and first-half revenue was €459 million, up 8%. Total ARR grew 12% year on year and 2% sequentially to €718 million. Digital business ARR increased 12% YoY; SaaS ARR grew 33% YoY; A&N ARR grew 11% YoY; A&N product revenue rose 49% YoY to €73 million in Q2. Total product revenue was €211 million in Q2, up 17% YoY, and €381 million in the first half, up 9%. Non-IFRS EBITDA margin was 21.9% in Q2 and 17% in the first half. Free cash flow was negative €35 million in Q2 and negative €14 million in the first half. Management said full-year 2023 guidance remains unchanged and it is confident in hitting all guidance targets.
Sanjay Brahmawar said the company delivered against its plan despite a challenging macro environment, with demand still robust even as customers scrutinize IT spending and sales cycles remain extended. He framed Silver Lake’s 84% ownership stake as a positive strategic step, arguing it brings aligned long-term support, financial backing, and software expertise. Strategically, he said Software AG will simplify the portfolio, double down on innovation and integration, accelerate cloud-first execution, and launch a major product in October.
Daniela Bunger walked through the quarter’s numbers, highlighting €718 million of total ARR, €248 million of Q2 revenue, and a 21.9% non-IFRS EBITDA margin. She said total costs were €226 million in Q2 and €434 million in the first half, with cost reductions already showing in sales and marketing and administration as part of the €30 million to €35 million savings program. She also noted €19 million of non-IFRS adjustments in Q2, negative €35 million free cash flow in the quarter, and said the cash flow weakness is tied to transformation effects, share-based payments, and StreamSets-related impacts that should phase out over coming quarters.
The only analyst question focused on regional performance and U.S. headcount. Sanjay said North America, especially the Americas, performed strongly due to good deal execution, better pipeline conversion, and contributions from a pull-forward A&N deal. On headcount, he said the decline was planned as part of the specialization model and central-layer reductions, while attrition was described as normal and not a concern.
The quarter showed broad-based execution, with ARR growth, revenue growth, and margin improvement all moving in the right direction while management reiterated full-year guidance. Management also sounded encouraged by North America momentum, SaaS demand, and the strategic shift toward a simpler, cloud-first, AI-enabled platform.
Management acknowledged customers remain cautious, with extended sales cycles and careful IT spending still weighing on the business. Free cash flow was negative, and the company said it is still in a “trough” of business-model transformation, with cash headwinds expected to continue before they fade. The A&N beat was partly helped by an earlier-than-expected significant deal, and management declined to raise A&N guidance despite the strong quarter.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 2.0%
- Shares Outstanding
- 78.26M
- Float Shares
- 1.60M
Our SWDAF coverage
Recent articles, reports, and earnings notes.
No research on SWDAF yet
For a full analyst-grade research report — grades, price targets, financials, chart analysis — generate one on demand.
Generate SWDAF report →