![]() Through to 2026, these products are serving addressable markets growing 13 percent, 21 percent and 70 percent respectively. The Group’s products unlocking this opportunity are focused in the areas of Hybrid Integration, IoT & Analytics and Business Transformation. Its leading cloud-native products help enterprises build modern digital backbones that connect disparate systems and applications, draw insight from the data these systems produce, and leverage totally new data created by devices and systems operating in the hands of frontline business users at the edge of enterprise IT environments. Software AG continues to operate in a global market accelerating towards digital transformation. Digital Business conversion rate continued to improve year-on-year. Salesforce specialization driving success with sales teams now aligned to key growth product areas.New Digital Business innovation driving cross-sell from Adabas & Natural (A&N) with 8 out of top 10 A&N deals in the quarter including Digital Business cross-sell success.Product innovation in API Management with cloud-native vendor-agnostic developer portal, improved user experience and new partnerships with Cequence Security, Salt Security and Noname Security driving differentiation.Key growth drivers all delivering, with 57 new logo wins, strong retention underpinning Digital Business net retention rate (NRR) above 100, and migration multiplier of 1.5x in the first quarter.StreamSets acquisition now closed with clear value creation plan initiated to complement continued strong double digit standalone growth.20 organic guidance unchanged supported by solid first-quarter momentum in revenue and profit.Recurring revenue accounted for 89 percent of product revenue. Increasing quality and predictability of revenue with 10 percent recurring revenue growth.Transformation delivering revenue and profit expansion with 10 percent total product revenue growth and an operating margin (EBITA, non-IFRS) of 19.9 percent in the first quarter.Digital Business momentum continues with bookings growth of 15 percent, Digital Business product revenue growth of 8 percent and margin expansion of 4.6 percentage points year-on-year.This will enable investment behind opportunities where we see them, and with our ongoing focus on cost control and productivity, our solid start gives me confidence we can achieve our full year and 2023 targets.” Our revenue growth also continues to flow through to profit growth, which we expect to continue as our business model shift completes its transition from headwind to tailwind on our P&L. With Digital Business ARR growth of 12 percent in the first quarter, I am confident the quality and predictability of our revenue will continue to increase from here. Matthias Heiden, Software AG CFO, commented: “ Our transformation has made Software AG a higher quality, more predictable and more resilient business. With our StreamSets acquisition now closed, our fourth quarter momentum continuing into the start of the year, and with our ongoing investment to enable our people for success, I’m confident we’ll deliver a strong 2022 and continue to accelerate our sustainable, profitable growth thereafter.”ĭr. During that time, we have developed best-of-breed products in Hybrid Integration, IoT & Analytics and Business Transformation, the most exciting growth areas of our market. Our success, underpinned by continued Digital Business momentum, has been enabled by three years of successful transformation. Sanjay Brahmawar, Software AG CEO, commented: “Software AG has delivered four consecutive quarters of Digital Business product revenue growth, and we are now seeing that growth translate into margin expansion. RESTON, Va.-( BUSINESS WIRE)- Software AG (Frankfurt MDAX ®: SOW) today announced financial results for the first quarter of 2022. ![]()
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