Axway Software: Upward Revision of 2022 Annual Targets
27 January 2023 - 3:45AM
Business Wire
Regulatory News:
Axway (Paris:AXW) today announces an upward revision of its
organic growth and profitability guidance for the fiscal year ended
December 31, 2022. While the company will present its detailed
annual results on February 22, 2023, as planned, current unaudited
estimates indicate that the previously communicated targets for
2022 should be exceeded.
This performance is explained by the historically high level of
activity recorded by the company at the end of year. In fact,
thanks to an organic increase in the Subscription activity of more
than 100% in Q4 2022 over Q4 2021, on a full-year basis Axway now
expects:
- Organic revenue growth of between 4.5 and 5.5%, compared to 1
to 3% previously;
- Operating profit from business activity representing between
14 to 15% of revenue, compared with 12 to 14% previously.
It should also be noted that, in accordance with its
communication of October 24, 2022, Axway will recognize in its
annual financial statements a non-cash charge estimated at between
€75m and €85m related to the write-off of unamortized intangible
asset value or goodwill following the different product portfolio
rationalization operations carried out in 2022.
Patrick Donovan, Chief Executive Officer, declared:
“Thanks to an exceptional year-end dynamic, Axway achieved a
record sales level in Q4 2022, allowing us to raise our annual
targets. While in the first 9 months of the year, growth in the
Subscription activity was largely impacted by the ramp-up of Axway
Managed contracts, which generate revenue over time, in Q4 2022,
signings and renewals of Customer Managed Subscription contracts
generated approximately €50 million in upfront revenue. On
different occasions over the past few months, we reiterated our
confidence in our ability to meet our initial growth guidance
thanks to a solid business pipeline for the end of the year... not
only were we able to close these deals, but we also won several
others and saw an overall increase in their duration and total
value due to customers' willingness to lock in contractual pricing
during this inflationary period. This excellent performance
confirms the relevance of our strategy and recent decisions but
does not change the reality of our markets. In an economic and
geopolitical context that remains uncertain, and while Axway
operates mainly in mature markets, our ambition for 2023 will be to
maintain positive organic revenue growth of between 0 and 3% and to
achieve an operating margin in the range of 15 to 18%. We will come
back to all this in detail in a few weeks when we present our
results.”
Financial Calendar
Wednesday, February 22, 2023, after market closing: Publication
of 2022 Full-Year Results
Wednesday, February 22, 2023, 6:30 pm (UTC+1): 2022 Full-Year
Results Virtual Analyst Conference
Disclaimer
This press release contains forward-looking statements that may
be subject to various risks and uncertainties concerning Axway’s
growth and profitability. Activity during the year and/or actual
results may differ from those described in this document as a
result of a number of risks and uncertainties set out in the 2021
Universal Registration Document filed with the French Financial
Markets Authority (Autorité des Marchés Financiers, AMF) on March
24, 2022, under number D.22-0145. The distribution of this document
in certain countries may be subject to prevailing laws and
regulations. Persons present in these countries and in which this
document is disseminated, published, or distributed, should obtain
information about such restrictions, and comply with them.
About Axway
Axway enables enterprises to securely open everything by
integrating and moving data across a complex world of new and old
technologies. Axway’s API-driven B2B integration and MFT software,
refined over 20 years, complements Axway Amplify, an open API
management platform that makes APIs easier to discover and reuse
across multiple teams, vendors, and cloud environments. Axway has
helped over 11,000 businesses unlock the full value of their
existing digital ecosystems to create brilliant experiences,
innovate new services, and reach new markets. Learn more at
axway.com
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version on businesswire.com: https://www.businesswire.com/news/home/20230126005694/en/
Investor Relations: Arthur Carli – +33 (0)1 47 17 24 65 –
acarli@axway.com Press Relations: Sylvie Podetti – +33 (0)1 47 17
22 40 – spodetti@axway.com
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