AVEVA Group PLC FY 2022 Q3 Trading Statement and Board Update (9239B)
17 February 2022 - 6:00PM
UK Regulatory
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RNS Number : 9239B
AVEVA Group PLC
17 February 2022
AVEVA GROUP PLC
FY 2022 Q3 Trading Statement and Board Update
Solid ARR growth continues, and full year outlook confirmed
AVEVA Group plc ('AVEVA' or 'the Group') announces the following
trading update for the period to 31 December 2021(1) .
AVEVA increased Annualised Recurring Revenue (ARR)(2) by 9.6%
year-on-year in the 12 months to 31 December 2021, driven by growth
in the annualised value of the Group's subscription contracts. ARR
growth in Q3 FY 2022 was broad based, with increases from key
industries, including Food, Manufacturing, Energy, Pharmaceuticals
and Mining.
AVEVA intends to accelerate ARR growth during the next financial
year, driven by a focus on growth in SaaS, new business wins, the
launch of integrated AVEVA / OSIsoft products and pricing uplifts
that reflect the global inflationary environment.
As expected, given a very strong comparator in the prior year
that included the benefit of several large contract renewals with
point-in-time revenue recognition, AVEVA's revenue declined by a
low single digit rate year-on-year in Q3 FY 2022 on a constant
currency basis. This included a large contract renewal and
expansion with Schneider Electric.
The Group's sales pipeline for the remainder of the financial
year is solid, supporting management plans for good revenue growth
in the final quarter, giving a revenue outlook for the full year
that is in line with expectations.
The integration of OSIsoft continues to progress very well and
AVEVA is on-track to achieve at least the previously announced cost
synergies and is making strong progress towards achieving the
targeted revenue synergies.
For example, excellent progress has been made with product
integration, which is key to achieving revenue synergies. AVEVA
Data Hub, a product that allows customers to access and share a
variety of significant operations and engineering data streams,
including PI System data, on the Cloud, will be fully available
early in the next quarter.
Board and management update
AVEVA announces that, after careful consideration, the Directors
have requested that Philip Aiken remains as Chairman for a further
year beyond AVEVA's 2022 AGM. Philip continues to provide
exceptional leadership, which is particularly valuable as we
complete the successful integration of OSIsoft and embed the
foundations to support the next phase of subscription-led growth
.
In addition, from 1 March 2022, James Kidd, AVEVA's Deputy CEO
and CFO, will become AVEVA's Chief Strategy and Transformation
Officer. James will remain on the Board as one of the two Executive
Directors. This role will focus on driving both organic and
inorganic growth initiatives.
The role of Chief Financial Officer will be assumed by Brian
DiBenedetto, also starting on 1 March. Brian has made a valued
contribution to AVEVA's finance function during James' recent
period of compassionate leave, having transferred from Schneider
Electric.
(1) All commentary on growth includes both AVEVA and OSIsoft in
the prior year comparator and is adjusted for foreign exchange
translation movements, disposals and the impact of the deferred
revenue haircut under IFRS 3 (Business Combinations).
(2) ARR makes it easier to track recurring revenue progression
by annualising revenue associated with Subscription, Cloud and
Maintenance contracts. It removes distortions caused by revenue
recognition standards by annualising the revenue associated with
contracts at a point in time. It is calculated on a constant
currency basis.
Enquiries:
AVEVA Group plc
Matthew Springett, Head of Investor Relations: +44 (0) 7789 818
684
Kira Popper, Investor Relations Manager: +44 (0) 7787 220
464
FTI Consulting LLP
Edward Bridges / Dwight Burden: +44 (0) 203 727 1000
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