Idstein, 28 July 2023 Serviceware SE ("Serviceware", ISIN DE000A2G8X31) recorded a significant upturn in growth during the 2nd quarter of fiscal 2022/2023 (year ending 30 November). After a 4.7 percent increase in revenues during the 1st quarter, sales revenues rose during the 2nd quarter significantly more strongly by 11.9 percent versus the same prior-year period to EUR 23.7 million. For the full first half-year, the increase in sales revenues versus the same prior-year period amounted to 8.3 percent with sales revenues totalling EUR 45.7 million. The number of new customers also increased noticeably during the second quarter versus the previous quarter. In addition, Serviceware is highly successful in leveraging cross-selling potential - an increasing number of customers are now already using several modules of the ESM platform. During the first half-year, Serviceware's foreign sales increased by a mid-double-digit percentage versus the same prior-year period.
In line with the strategy, the sales revenues from SaaS/Service contracts grew clearly disproportionately by 17.9 percent to EUR 26.8 million during the 1st half of 2022/2023. This means that these sales revenues already accounted for 58.7 percent of total sales revenues, compared to 54.0 percent a year earlier. The order backlog, which primarily consists of the residual values of current SaaS contracts and is recognized in the balance sheet under contract liabilities, increased significantly as at the reporting date of 31 May 2023. Compared to the end of fiscal 2021/2022, contract liabilities were 52.9 percent higher at EUR 49.6 million.
Harald Popp, CFO of Serviceware: "Our figures show a very clear dynamization of the revenue development during the 2nd quarter. We achieved this while still transforming our revenue structure from a licensing to an SaaS model. This is associated with another significant increase in the share of recurring revenues. The very pleasing development of contract liabilities reflects Serviceware's future growth potential."
In parallel to the positive revenue development during the reporting period, Serviceware has consistently implemented measures for the further optimization of structures and for the further growing integration of Artificial Intelligence (AI) in business processes and the product portfolio over the past few months. The effects from the further increase in efficiency, for example in the administrative area, are expected to have a positive impact on earnings as early as the second half of the fiscal year. Artificial Intelligence is an integral part of Serviceware's growth strategy. Since 2018, a dedicated AI competence center has been driving the company's innovation in this area. The corresponding expenditure is for the most part directly expensed during the respective period. During the reporting period, the integration of the OpenAI solution into the Serviceware ESM platform was implemented, among other things, so that the new AI module has been available for purchase by Serviceware customers since July. Serviceware now offers its customers a total of seven AI modules.
The EBITDA for the 2nd quarter of EUR -0.2 million was a significant improvement versus the previous quarter (EUR -1.0 million) and was at the same level as for the same prior-year period. For the full 1st half-year 2022/2023, the EBITDA amounted to EUR -1.2 million, versus EUR -0.2 million during the same prior-year period. For the full year 2022/2023, Serviceware reaffirms its forecast of a 5-10 percent increase in sales revenues with a simultaneous improvement in EBITDA.
Dirk K. Martin, CEO of Serviceware: "After a market-related slowdown last year, we are now significantly stepping up our growth again. The decisive factor here is that we can see that our long-term strategy is working. The digitalization of service processes is fundamentally changing global business and Serviceware is one of the leaders in shaping this irreversible change. Our global customer base is growing steadily, and with our excellent positioning in the use of Artificial Intelligence, we are able to further expand our market position. Currently, our opportunities as an independent, flexible and innovative provider are better than ever."
The 2022/2023 Interim Financial Report is available for downloading at www.serviceware-se.com.
About Serviceware
Serviceware is a leading provider of software solutions for the digitalisation and automation of service processes (Enterprise Service Management), with which companies can increase their service quality and manage their service costs efficiently.
The Serviceware platform includes the software solutions Serviceware Processes, Serviceware Financial, Serviceware Resources, Serviceware Knowledge and Serviceware Performance. All solutions can be used in an integrated manner, but also independently from one another.
Serviceware partners with customers from strategic consulting through the definition of the service strategy to the implementation of the enterprise service platform. Further components of the portfolio are safe and reliable infrastructure solutions as well as managed services.
Serviceware has more than 1,000 customers worldwide from various business sectors, including 17 DAX companies, as well as 5 of the 7 largest German companies. The head office of Serviceware is in Idstein, Germany. Serviceware employs more than 500 employees at 14 international sites.
For more information visit www.serviceware-se.com.
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