→ Annual revenue of €319.0m in 2023, with organic growth of
5.8% compared to 2022 → Solid ARR growth up 6.6% vs. end
2022, reaching €228.7m → Margin on operating activities up
500 basis points year-on-year to 19.7% of revenue, or €62.8m →
Progressive increase in free cash flow, in line with forecasts,
representing 6% of revenue over the year
Regulatory News:
Axway Software's (Paris:AXW) Board of Directors today conducted
an in-depth review of the consolidated and annual financial
statements1 for the year ended December 31, 2023. As a consequence,
Axway’s management team announces:
Axway Software: 2023 Full-year results
Key income statement items*
2023
2022
(€m)
(% Rev)
(€m)
(% Rev)
Revenue
319.0
314.0
Organic growth
+ 5.8%
Growth at constant exchange rates
+ 3.0%
Total growth
+ 1.6%
Profit on Operating Activities
62.8
19.7%
46.3
14.7%
Profit from Recurring Operations
55.4
17.4%
37.4
11.9%
Operating Profit
47.6
14.9%
-46.4
-14.8%
Net Profit attributable to the Group
35.8
11.2%
-40.0
-12.8%
Basic earnings per share (in €)
1.71
-1.85
* Alternative performance measures are defined in the glossary at
the end of this document
Patrick Donovan, Chief Executive Officer,
declared:
"For Axway, 2023 marked the conclusion of a strategic plan that
has focused the efforts of our teams over the last 3 years. Today,
I can proudly say that together we have been successful in Axway's
development over this period. This positive dynamic is the fruit of
several fundamental evolutions. We have built a high-performance,
subscription-based business model focused on our main product
lines. Around our products, we have put in place an aligned
organization, by product and by region, which has not only improved
customer satisfaction, but also strengthened the engagement of our
employees. These elements are reflected in a significant
improvement in our results, which not only exceed our commitments,
but above all enable us to project ourselves towards the next stage
of our enterprise project, supported by a strong financial
situation. Although the comparison basis of Q4 2022 was not matched
in Q4 2023, the company exceeded its internal forecasts at the end
of the year. Bookings, in particular of Customer Managed
subscription contracts, were higher than anticipated and
accelerated our revenue recognition. While this accounting effect
turned out to be favorable in 2023, on a like-for-like basis,
Axway's normative performance projections remain unchanged."
Comments on business activity in 2023
In 2023, in a market that is steadily accelerating towards the
cloud, Axway has taken advantage of its renewed business model to
consolidate its position as a leading publisher in the management
of critical data flows. The company has continued to offer large
enterprises high-performance, secure software solutions capable of
supporting their development over the long term.
Axway's year was punctuated by several highlights, including
:
- A new revenue and profitability high for
the company, which for the year benefited from a record level of
customer satisfaction, with a Net Promoter Score of 37, compared
with 35 at the end of the prior year. This performance is a direct
result of the day-to-day commitment of Axway's employees who, in a
context of major organizational evolution, have been focusing for
several years on continuous improvement of customer experience with
Axway’s products and services.
- The maximization of customer use of Axway's
products and the extension of contract durations were confirmed.
These trends perfectly reflect the consistency of the matrix
structure that the company has adopted, with management by product
and by geography. Over the year, the total value of bookings
increased by 5.1% compared with 2022, while more than 100 new
customers chose Axway to accompany them in their digital
transformation projects.
- Axway's products and vision in its
different technology markets have once again been awarded in 2023.
For the 8th time in its history, Axway has been recognized among
the world leaders in the API Management market in the 2023 edition
of the Gartner Magic Quadrant™ for API Management. In parallel, the
API Management, B2B Integration and MFT offerings, which make up 3
of Axway's 4 main product lines, were each named leaders in their
respective categories in the Winter 2024 reports of the G2 global
evaluation platform for enterprise solutions.
- After refocusing its product portfolio in
2022 by disengaging from activities that were no longer aligned
with its growth and profitability objectives, Axway adopted a more
offensive strategy in 2023 by consolidating 2 new companies within
its scope. In late March, Axway acquired Belgian company AdValvas,
a European expert in electronic invoicing processes, whose
offerings immediately strengthened the B2B product line. Over a
9-month period, the order book grew steadily, reflecting strong
interest in certified expertise in the PEPPOL network. Then, in
mid-October, Axway finalized the acquisition of French company
Cycom Finances and its accounting mapping solution, PaE. This
acquisition, which complements Axway's Financial Accounting Hub
(AFAH) offering, led to the establishment of a strategic
partnership with KPMG in France, and generated, just a few weeks
after its completion, a first significant signature with a leading
European banking institution.
At a time when Axway has set itself ambitious external growth
targets for the coming years, the company's objective is to
maintain an agile portfolio of high-performance products, capable
of keeping pace with the rapid evolution of its industry.
Comments on operational performance in 2023
In 2023, Axway's revenue totaled €319.0m, up 5.8% organically
and 1.6% in total. Changes in the consolidation scope, mainly due
to the rationalization of the product portfolio in 2022, had a
negative impact of €8.2m for the year. Currency fluctuations,
notably the depreciation of the US dollar against the euro, also
had a negative impact of €4.4m on full-year revenue. Profit on
operating activity rose once again, reaching €62.8m for the year,
or 19.7% of revenues, compared with 14.7% in 2022.
Axway Software: Revenue by business line
Full-year 2023 (€m)
2023
2022Restated* 2022Reported TotalGrowth
OrganicGrowth License
8.8
10.2
11.6
- 23.8%
- 13.7%
Subscription
186.6
146.5
154.0
+ 21.2% + 27.4% Maintenance
87.0
107.9
111.2
- 21.7%
- 19.4%
Services
36.5
36.8
37.3
- 2.1%
- 0.6%
Axway Software
319.0
301.4
314.0
+ 1.6% + 5.8% * Revenue at 2023 scope and exchange
rates
License activity revenue totaled €8.8m for the year, down
13.7% organically. In line with expectations, after several years
of contraction linked to the rise of subscription-based offers,
license sales gradually stabilized during the year, and are now
mainly driven by a specialized product. It is reported that revenue
returned to growth in Q3 and Q4, although this was not enough to
offset the decline recorded in H1. Nevertheless, the trend reversal
observed points to a more balanced 2024 outlook.
The Subscription activity maintained a very solid
momentum throughout 2023. With organic growth of over 50% in the
first 9 months of the year, the activity was faced with a record
comparison basis at the end of the year. This did not prevent
further organic growth of 1.8% in Q4 2023, enabling the activity to
achieve annual revenue of €186.6m, up 27.4% on 2022. Several major
Customer Managed signatures enabled the company to exceed its
revenue forecast in year-end. For the full year, upfront revenue
from Customer Managed subscription contracts amounted to €93.4m,
compared with €78.7m in 2022. The annual value of new subscription
contracts (ACV) signed reached €49.9m in 2023, an increase of
1.4%.
Maintenance revenue reached €87.0m in 2023, down 21.7%
overall and 19.4% organically. While the contract renewal rate
reached 94%, the decline in activity was mainly due to lower
license sales and the continued migration of customers to
subscription-based offers.
At the end of December 2023, Axway's ARR (Annual Recurring
Revenue) which combines recurring revenues from all active
Maintenance and Subscription contracts, including, where
applicable, upfront subscription revenue recalculated monthly, was
€228.7m, up 6.6%2 at constant scope and exchange rates. In
addition, revenue from renewable contracts reached 86% of total
revenue in 2023.
The Services activity was virtually stable compared with
the previous year, with annual revenue of €36.5m (-0.6%). The
activity was mainly supported by several major MFT migration
projects across Europe. As expected, Services are now stabilizing
at between 10 and 15% of Axway's total revenue.
Axway Software: Revenue by geographic area
Full-year
2023 (€m)
2023
2022Restated* 2022Reported TotalGrowth
OrganicGrowth France
99.9
90.9
91.6
+ 9.0% + 9.9% Rest of Europe
76.1
67.8
68.4
+ 11.2% + 12.1% Americas
126.4
123.1
133.3
- 5.1%
+ 2.7% Asia/Pacific
16.6
19.6
20.8
- 20.0%
- 15.3%
Axway Software
319.0
301.4
314.0
+ 1.6% + 5.8% * Revenue at 2023 scope and exchange
rates
In France, Axway achieved revenue of €99.9m in 2023
thanks to dynamic organic growth of 9.9%. In the country, activity
was driven by the acceleration of migrations to subscription-based
offers, and by a significant increase in usage across all product
lines in the portfolio. Proof of the excellent sales momentum, the
value of bookings from new customers rose by 43% over the year.
The Rest of Europe region also reported a marked increase
in revenue in 2023. Sales reached €76.1m, up 12.1% on the previous
year. This good performance was made possible by growth in the
region's largest countries, particularly Germany, where the new
organization and focus on sales continue to produce excellent
results.
The Americas (USA & Latin America) recorded revenue
of €126.4m in 2023, representing 40% of Axway's total annual
revenue. In the region, business grew organically by 2.7% over the
year. While in North America, Axway once again benefited from its
leadership in the MFT market to strengthen its positions against
its main competitors, in Latin America the Amplify API management
offering underpinned performance.
In Asia/Pacific, Axway posted annual revenue of €16.6m,
down 15.3% organically. In contrast to the previous year, in 2023
customers in the region favored Axway Managed subscription
contracts, which represented 55% of bookings. Although these
contracts do not generate immediate revenue recognition, they do
generate income throughout their term.
Comments on 2023 net profit
Profit from recurring operations was €55.4m in 2023, or 17.4% of
revenue, compared to 11.9% the previous year. It includes
amortization of allocated intangible assets of €3.2m and a
share-based payment expense of €4.2m.
Operating profit for the year was €47.6m, or 14.9% of
revenue.
Net profit for the year was €35.8m, representing 11.2% of
revenue. Basic earnings per share were €1.71.
Financial position at December 31, 2023
At December 31, 2023, Axway's financial position was solid, with
cash of €16.7m and bank debt of €92.3m.
Free cash flow was €18.8m in 2023, compared to €2.2m a year
earlier. As anticipated, the accumulation of annually-billed
subscription contracts improved net cash flow from operating
activities.
Shareholders' equity stood at €346.3m at December 31, 2023,
compared to €327.8m at the end of 2022.
Change in the workforce
At December 31, 2023, Axway had 1,465 employees compared to
1,525 at December 31, 2022.
Proposed dividend for fiscal year 2023
Axway's Board of Directors will not propose the payment of a
dividend in respect of the 2023 financial year.
2024 Targets
For 2024, Axway anticipates organic growth of between 1% and 3%,
and a profit on operating activity of around 20% of revenue.
Today, Wednesday, February 21, 2024, 6.30
p.m. (UTC+1): 2023 Full-Year Results Virtual Analyst
Conference
→ Virtual Conference Registration: Click here
Or join by phone by dialing one of the numbers below:
→ France: +33 (0) 1 70 37 71 66 → USA: +1 786
697 3501 → International: +44 (0) 33 0551 0200
Please note that the meeting will be held in
English.
Financial calendar
Monday, March 25, 2024: Filing of the 2023 Universal
Registration Document
Thursday, April 25, 2024, before market opening: Publication of
Q1 2024 Revenue
Thursday, May 16, 2024, 2:30 p.m. (UTC+2): Annual Shareholders'
Meeting
Tuesday, July 23, 2024, after market closing: Publication of
2023 Half-Year Results
Tuesday, July 23, 2024, 6:30 p.m. (UTC+2): 2023 Half-Year
Results Virtual Analyst Conference
Thursday, October 24, 2024, before market opening: Publication
of Q3 2024 Revenue
Glossary & Alternative performance measures
ACV: Annual Contract Value – Annual
contract value of a subscription agreement.
ARR: Annual Recurring Revenue –
Expected annual billing amounts from all active maintenance and
subscription agreements.
Employee Engagement Score:
Measurement of employee engagement through an independent annual
survey.
Growth at constant exchange rates:
Growth in revenue between the period under review and the prior
period restated for exchange rate impacts.
NPS: Net Promoter Score – Customer
satisfaction and recommendation indicator for a company.
Organic growth: Growth in revenue
between the period under review and the prior period, restated for
consolidation scope and exchange rate impacts.
Profit on operating activities:
Profit from recurring operations adjusted for the non-cash
share-based payment expense, as well as the amortization of
allocated intangible assets.
Restated revenue: Revenue for the
prior year, adjusted for the consolidation scope and exchange rates
of the current year.
TCV: Total Contract Value – Full
contracted value of a subscription agreement over the contract
term.
Disclaimer
This press release contains forward-looking statements that may
be subject to various risks and uncertainties concerning Axway’s
growth and profitability, notably in the event of future
acquisitions. Axway highlights that signature of contracts, which
represent investments for customers, are more significant in the
second half of the year and may therefore have a more or less
favorable impact on full-year performance. In addition, Axway notes
that potential acquisition(s) could also impact this financial
data. Furthermore, 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 2022 Universal
Registration Document filed with the French Financial Markets
Authority (Autorité des Marchés Financiers, AMF) on March 24, 2023.
The distribution of this document in certain countries may be
subject to prevailing laws and regulations. Natural 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
Appendices (1/5)
Axway Software: Revenue by business line
1st Quarter 2023 (€m) Q1 2023 Q1 2022Restated*
Q1 2022Reported TotalGrowth OrganicGrowth
License
2.1
3.5
3.7
-42.6%
-39.5%
Subscription
37.8
24.7
26.4
43.1%
53.1%
Maintenance
22.5
27.9
27.9
-19.5%
-19.6%
Services
9.5
9.0
9.0
6.1%
5.4%
Axway Software
71.8
65.1
66.9
7.3%
10.3%
2nd Quarter 2023 (€m) Q2 2023 Q2
2022Restated* Q2 2022Reported TotalGrowth
OrganicGrowth License
0.9
1.9
2.6
-66.6%
-54.8%
Subscription
40.9
27.6
29.5
38.7%
48.2%
Maintenance
22.1
27.2
28.1
-21.3%
-18.6%
Services
9.7
9.1
9.3
4.5%
6.0%
Axway Software
73.6
65.9
69.5
5.9%
11.7%
3rd
Quarter 2023 (€m) Q3 2023 Q3 2022Restated* Q3
2022Reported TotalGrowth OrganicGrowth License
2.7
1.9
2.3
16.2%
41.8%
Subscription
37.0
24.6
27.4
35.2%
50.7%
Maintenance
21.1
26.6
28.3
-25.3%
-20.7%
Services
8.6
9.2
9.6
-10.4%
-7.2%
Axway Software
69.4
62.3
67.5
2.7%
11.3%
4th Quarter 2023 (€m) Q4 2023 Q4
2022Restated* Q4 2022Reported TotalGrowth
OrganicGrowth License
3.2
2.9
3.0
+ 6.6% + 9.1% Subscription
71.0
69.7
70.7
+ 0.3% + 1.8% Maintenance
21.3
26.1
26.9
- 20.8%
- 18.5%
Services
8.8
9.4
9.5
- 7.9%
- 6.5%
Axway Software
104.2
108.1
110.1
- 5.4%
- 3.6%
* Revenue at 2023 scope and exchange rates
Appendices (2/5)
Axway Software: Revenue by geographic area
1st
Quarter 2023 (€m) Q1 2023 Q1 2022Restated* Q1
2022Reported TotalGrowth OrganicGrowth France
24.7
17.9
18.1
36.2%
38.3%
Rest of Europe
13.5
12.6
13.2
1.7%
6.9%
Americas
30.9
29.3
30.3
1.9%
5.2%
Asia/Pacific
2.8
5.3
5.3
-46.8%
-47.4%
Axway Software
71.8
65.1
66.9
7.3%
10.3%
2nd Quarter 2023 (€m) Q2 2023 Q2
2022Restated* Q2 2022Reported TotalGrowth
OrganicGrowth France
20.8
19.4
19.6
6.0%
7.2%
Rest of Europe
22.2
14.0
14.0
58.7%
58.8%
Americas
26.4
27.4
30.5
-13.6%
-3.6%
Asia/Pacific
4.3
5.2
5.4
-20.7%
-17.3%
Axway Software
73.6
65.9
69.5
5.9%
11.7%
3rd Quarter 2023 (€m) Q3 2023 Q3
2022Restated* Q3 2022Reported TotalGrowth
OrganicGrowth France
19.7
14.8
15.1
30.4%
32.4%
Rest of Europe
15.7
14.6
14.7
7.0%
7.9%
Americas
29.8
28.7
32.8
-9.1%
4.0%
Asia/Pacific
4.2
4.2
5.0
-15.9%
-0.7%
Axway Software
69.4
62.3
67.5
2.7%
11.3%
4th Quarter 2023 (€m) Q4 2023 Q4
2022Restated* Q4 2022Reported TotalGrowth
OrganicGrowth France
34.7
38.8
38.8
- 10.4%
- 10.4%
Rest of Europe
24.7
26.7
26.5
- 6.8%
- 7.5%
Americas
39.3
37.7
39.6
- 0.8%
+ 4.4% Asia/Pacific
5.3
4.9
5.1
+ 4.7% + 9.4%
Axway Software
104.2
108.1
110.1
- 5.4%
- 3.6%
* Revenue at 2023 scope and exchange rates
Appendices (3/5)
Axway Software : Consolidated Income Statement
Full-year
2023
2023
2022
2021
€m
% Rev.
€m
% Rev.
€m
% Rev.
Revenue
319.0
314.0
285.5
of which License
8.8
11.6
18.6
of which Subscription
186.6
154.0
114.2
of which Maintenance
87.0
111.2
119.0
Sub-total Products
282.4
276.7
251.7
Services
36.5
37.3
33.8
Cost of sales
87.2
91.4
83.3
of which License and Maintenance
24.1
26.4
24.6
of which Subscription
28.2
29.4
27.0
of which Services
34.9
35.6
31.7
Gross profit
231.7
72.7%
222.6
70.9%
202.3
70.8%
Operating expenses
168.9
176.4
169.4
of which Sales and marketing
81.6
93.2
89.0
of which Research and development
60.1
57.3
55.3
of which General and administrative
27.2
25.9
25.0
Profit on operating activities
62.8
19.7%
46.3
14.7%
32.9
11.5%
Stock option expense
-4.2
-3.4
-4.4
Amortization of intangible assets
-3.2
-5.5
-8.6
Profit from recurring operations
55.4
17.4%
37.4
11.9%
19.9
7.0%
Other income and expenses
-7.9
-83.8
-2.7
Operating profit
47.6
14.9%
-46.4
-14.8%
17.3
6.1%
Cost of net financial debt
-4.6
-2.1
-1.3
Other financial revenues and expenses
-0.2
1.0
0.5
Income taxes
-7.0
7.4
-6.9
Net profit
35.8
11.2%
-40.0
-12.8%
9.6
3.4%
Basic earnings per share (in €)
1.71
-1.85
0.45
Appendices (4/5)
Axway Software: Simplified Balance Sheet
Full-year 2023
31/12/2023
31/12/2022
31/12/2021
(€m)
(€m)
(€m)
Assets
Goodwill
302.1
297.8
348.3
Intangible assets
5.1
8.7
15.1
Property, plant and equipment
9.3
12.5
14.3
Lease right-of-use assets
17.8
20.1
23.5
Other non-current assets
33.2
34.9
23.4
Non-current assets
367.6
374.0
424.6
Trade
receivables
178.0
148.1
105.1
Other current assets
32.3
30.6
27.8
Cash and cash equivalents
16.7
18.3
25.4
Current assets
227.0
197.1
158.3
Total
Assets
594.6
571.1
582.9
Equity and Liabilities
Share capital
43.3
43.3
43.3
Reserves and net profit
303.0
284.5
328.9
Total Equity
346.3
327.8
372.2
Financial
debt - long-term portion
88.0
84.6
60.1
Lease liabilities - long-term portion
19.7
23.5
27.2
Other non-current liabilities
16.5
11.7
13.6
Non-current liabilities
124.2
119.8
100.9
Financial
debt - short-term portion
4.3
3.2
1.7
Lease liabilities - short-term portion
4.0
5.8
6.2
Deferred Revenues
49.1
55.6
55.8
Other current liabilities
66.7
58.9
46.0
Current liabilities
124.1
123.5
109.8
Total
Liabilities
248.3
243.3
210.7
Total Equity
and Liabilities
594.6
571.1
582.9
Appendices (5/5)
Axway Software: Cash Flow Statement
Full-year 2023
2023
2022
2021
(€m)
(€m)
(€m)
Net profit for the period
35.8
-40.0
9.6
Net charges to amortization, depreciation and provisions
19.3
16.5
20.2
Other income and expense items
1.4
85.3
3.9
Cash from operations after cost of net debt and tax
56.6
61.8
33.7
Change in
operating working capital requirements (incl. employee benefits
liability)
-32.9
-41.0
-26.2
Cost of net financial debt
4.6
2.1
1.3
Income tax paid net of accrual
3.9
-10.0
4.1
Net cash from operating activities
32.1
13.0
12.9
Net cash used
in investing activities
-12.6
-11.1
-2.8
Proceeds from the
exercise of stock options
-
-
2.0
Purchases and proceeds from disposal of treasury shares
-4.8
-13.7
-9.5
Dividends paid
-8.4
-8.5
-8.6
Change in loans
3.4
20.7
21.5
Change in lease liabilities
-7.2
-7.2
-6.7
Net interest paid
-3.7
-1.2
-0.6
Other flows
-0.4
0.6
0.1
Net cash from (used in) financing activities
-21.1
-9.4
-1.7
Effect of foreign
exchange rate changes
-0.2
0.7
0.7
Net change in cash and cash equivalents
-1.8
-6.9
9.0
Opening cash
position
18.3
25.2
16.2
Closing cash position
16.5
18.3
25.2
Axway Software: Impact on revenue of changes in scope and
exchange rates
Full-year 2023 (€m)
2023
2022
Growth
Revenue
319.0
314.0
+ 1.6% Changes in exchange rates
-4.4
Revenue at constant exchange rates
319.0
309.6
+ 3.0% Changes in scope
-8.2
Revenue at constant scope and exchange rates
319.0
301.4
+ 5.8% Axway Software: Changes in exchange rates
Full-year
2023For 1€ Average rate2023 Average rate2022
Change US Dollar
1.081
1.053
- 2.6%
______________________________ 1 Audit procedures have been
carried out on the financial statements. The Statutory Auditors’
report is in the process of being issued. 2 Axway's ARR to end 2022
has been restated to take account of a change in methodology, and
thus amounts to €214.5m.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221248504/en/
Investor Relations: Arthur Carli – +33 (0)1 47 17 24 65 –
acarli@axway.com
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