DGAP-News: ATOSS Software AG: Continuation of growth trajectory in the first half of the year matched by accelerated transformation of the business model to the cloud

According to preliminary figures for the second quarter, ATOSS Software AG once again impressively maintained its dynamic growth of the first three months, setting new sales and earnings records. Consolidated sales posted year-on-year growth of 13 percent in the first six months, jumping to EUR 45.7 million (prior year: EUR 40.6 million). In the process, the Group made significant progress in expanding its cloud business. The Munich-based software specialist is thereby excellently positioned to cash in on the very attractive growth opportunities in the market for workforce management - now and in the future.

Munich, July 26, 2021

ATOSS Software AG continues to chart its growth path and has maintained its consistent performance in the first half of 2021 in line with the budget. The demand for innovative, software-based solutions for the strategic management of employees is undiminished, especially in the current environment, as they enable companies to optimize their personnel needs along the entire value chain. Around 10,000 customers are now planning and managing more than 3.5 million employees in 52 countries with ATOSS Workforce Management solutions. And there is no end to the demand in sight given the sizable digitization deficit facing many companies. This is not least reflected in the half-yearly figures the company presented Group today.

Software sales in the period from January to June 2021 increased by an appreciable 18 percent, climbing to EUR 30.9 million (prior year: EUR 26.2 million). This equates to a 68 percent share of the Group's total sales (prior year: 64 percent). The successful expansion of sales from cloud and subscriptions which enjoyed a sustainable 52 percent boost to EUR 8.8 million (prior year: EUR 5.8 million) is worthy of special mention. The growth in software maintenance, which has been positive for years, also continued in the first half of the year. Sales here rose by 8 percent to EUR 14.1 million (prior year: EUR 13.0 million). Overall, the proportion of recurring revenues in total sales - and thereby the central, key factor in the company's future growth - continued to grow in line with the budget and has now reached 50 percent for the first time (prior year: 46 percent). Sales from consulting services showed moderate growth of 4 percent to EUR 12.1 million (prior year: EUR 11.6 million) - based on the previous year's figure which was already on a very high level.

The consistently high demand for digital workforce management from the Munich software pioneer is demonstrated by excellent order book figures following a strong order intake in the first half of the year. Annual Recurring Revenue (ARR for short), which has again posted a double-digit increase of 74 percent to around EUR 18.5 million (prior year: EUR 10.6 million), is most noteworthy in this context. Furthermore, the company succeeded in significantly expanding the proportion of orders received for cloud & subscriptions in the total orders for software to over 70 percent. By comparison: in fiscal 2020, the proportion of cloud orders received still stood at around 42 percent. With these developments, ATOSS is taking giant strides in the cloud transformation of its business model.

Notwithstanding the significant year-on-year increase in expenses - particularly for R&D as part of the continuous refinement of ATOSS software solutions as well as higher personnel costs resulting from its international expansion of capacity in Sales - the return on sales relative to operating earnings (EBIT) remains at a high level of 26 percent (prior year 28 percent). But the company's strong performance is also reflected in further key figures for the Group such as liquidity. For example, ATOSS' cash position of EUR 33.8 million (prior year: EUR 30.7 million) as of the end of the first half of the year remains very strong, also after the dividend distribution of EUR 1.67 per share (EUR 13.3 million) carried out on May 5, 2021.

Consequently, ATOSS remains a stronghold of growth and stability and is excellently positioned to post further growth in the future across all customer segments in the highly attractive growth markets revolving around workforce management and digitization. This performance is underpinned by a clear vision and strategy, groundbreaking technologies and solutions which generate sustainable value added for customers. With the expansion of the Executive Board to include Dirk Häußermann as the new co-CEO and Pritim Kumar Krishnamoorthy as the new CTO, the company has also established a platform for its further globalization and the continuation of its already successfully initiated cloud transformation.

Also against the background of the progress made in cloud transformation that is significantly above budget, the Executive Board is standing by its forecast for the whole of 2021, that was already raised at the start of the year. This forecast envisages sales rising to EUR 95 million. Furthermore, the company is budgeting an EBIT margin of 27 percent, taking account of the capital expenditure planned, particularly in sales geared to opening up new markets and in development capacity. The focus on the cloud, combined with greater emphasis on global alignment, will secure the company additional, sustainable growth prospects over the long term.

CONSOLIDATED OVERVIEW PURSUANT TO IFRS: HALF-YEAR COMPARISON IN KEUR (preliminary)

CONSOLIDATED OVERVIEW PURSUANT TO IFRS: QUARTERLY GROWTH IN KEUR (preliminary)

(1) Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date, adjusted to exclude borrowings (loans)
(2) Dividend of EUR 1.67 on 05/05/2021 (KEUR 13,282). As a result of the share split carried out in June 2020, the dividend paid in 2020 has been adjusted retrospectively for comparison purposes: Dividend of EUR 1.275 per share on 06/03/2020 (KEUR 10,140).
(3) In accordance with IAS 33.64, earnings per share (EPS) have been retrospectively adjusted for the previous period due to the share split carried out in June 2020.
(4) at the end of the quarter/year
(5) corrected to press release of 04/26/2021

Upcoming dates:

August 13, 2021 Publication of the 6-monthly financial statements
October 25, 2021 Publication of the 9-monthly financial statements
November 22 -24, 2021 ATOSS at the German Equity Forum

ATOSS

ATOSS Software AG is a provider of technology and consulting solutions for professional workforce management and demand-optimized workforce deployment. Whether conventional time management, mobile apps, detailed workforce forecasting, sophisticated workforce scheduling or strategic capacity and requirement planning, ATOSS has just the right solution - both in the cloud and on-premises. The modular product families feature the very highest level of functionality, browser-based high-end technology and platform independence. With around 10,000 customers in 52 countries, ATOSS workforce management solutions make a measurable contribution to increased value creation and competitiveness. At the same time, they ensure greater planning fairness and satisfaction at the workplace. Customers include companies such as ALDI SÜD, Coca-Cola, Deutsche Bahn, Douglas, Edeka, HUK-COBURG, Klinikum Leverkusen, Lufthansa, MEYER WERFT, Schmitz Cargobull, Sixt, Stadt Regensburg, thyssenkrupp Packaging Steel and W.L. Gore & Associates. Further information: www.atoss.com

ATOSS Software AG

Christof Leiber / Member of the Management Board
Rosenheimer Straße 141 h,
D-81671 Munich
Tel.: +49 (0) 89 4 27 71 - 0
Fax: +49 (0) 89 4 27 71 - 100
[email protected]