→ 2021 Full-year revenue of €285.5m, an organic decline of
2.7%, in line with the announcement of January 19, 2022 →
Dynamic Subscription activity, with organic growth of 18.9% over
the year → Recurring revenue representing 82% of total
revenue and 93% of product revenue → Margin on operating
activities up 110 basis points year-on-year to 11.5% of revenue, or
€32.9m
Regulatory News:
Axway Software's (Paris:AXW) Board of Directors, chaired by
Pierre Pasquier, today conducted an in-depth review of the
consolidated and annual financial statements1 for the year ended
December 31, 2021. Axway announces the following results for
2021:
Axway Software: 2021 Full-year results
Key income statement items*
2021
2020
(€m)
(% Rev)
(€m)
(% Rev)
Revenue
285.5
297.2
Organic growth
- 2.7%
Growth at constant exchange rates
- 2.7%
Total growth
- 3.9%
Profit on Operating Activities
32.9
11.5%
30.8
10.4%
Profit from Recurring Operations
19.9
7.0%
17.6
5.9%
Operating Profit
17.3
6.1%
17.6
5.9%
Net Profit attributable to the Group
9.6
3.4%
8.5
2.9%
Basic earnings per share (in €)
0.45
0.40
* Alternative performance measures are defined in the glossary at
the end of this document
Patrick Donovan, Chief Executive Officer, declared:
" In 2021, I was pleased with our teams’ efforts to implement
our new strategy. Although we faced unusual buying patterns in Q4,
which, as announced a few weeks ago, prevented us from achieving
our annual growth target, we still had several positive results for
the year. First, it should be noted that our sales teams met or
exceeded their objectives for 7 consecutive quarters before the Q4
2021 challenge. In fact, our main products grew year over year. In
addition, as in 2020, we continued to move forward, by improving
our profitability through a stable gross margin and lower operating
expenses. The continued growth of our Net Promoter Score confirmed
the high level of customer satisfaction and we also managed to
maintain strong engagement among our employees despite the
significant attrition observed in our markets. The pipeline
reassessment we have just completed, and the technological
excellence of our products allow me to reiterate my confidence in
our project and our strategy. Thanks to its clearly differentiating
added value, the Amplify API platform will drive Axway's future
growth and we will therefore continue to invest to fuel its
development. Organizational and strategic adjustments are underway
to enable us to sustain the independent, growing, and profitable
model we believe in for Axway. We therefore begin 2022 with
commitment, ready to meet the challenges of a market with limited
visibility and strong competition, leveraging the solid foundation
we have built since 2018."
Comments on business activity in 2021
In 2021, in an economic and health context that remained highly
uncertain, Axway launched a new 3-year strategic plan based on a
strong product vision. There were a number of important
developments throughout the year:
- Axway strengthened its business model,
aiming to capitalize on its leader position in its most dynamic
market, that of API management. While the anticipated spread of
APIs is now a market reality, investment in Amplify over recent
years has made it one of the first offerings capable of addressing
the complex data governance issues faced by large organizations.
This vision has enabled the company to continue to win new
customers at a sustained pace and has largely fueled the business
pipeline throughout the year.
- Efforts to constantly improve the Axway
customer experience continued and were reflected in important
reorganizations. To strengthen the privileged partner relationship
that the company seeks to offer each of its customers, teams were
created to unify a global vision by product line. Several major
contracts were won with long-standing customers who were
particularly satisfied with the relationship of trust established
with Axway. Over the year, the customer satisfaction indicator
increased 4 points compared to 2020, with a Net Promoter Score
reaching 29.
- Axway employee engagement remained strong
despite the turbulent environment. The Employee Engagement Score
was 66% for the year, once again reflecting the regular and
transparent dialogue established with all employees.
- Marketing investments were continued and
bore fruit. The digitalization of events and campaigns did not
prevent Axway from interacting effectively with its existing
customers and prospects, as evidenced by the 25% growth in
Amplify's pipeline over the year.
Comments on operational performance in 2021
In 2021, Axway generated revenue of €285.5m, down 2.7%
organically and 3.9% in total. While the scope of consolidation did
not change during the year, exchange rate fluctuations negatively
impacted revenue by €3.7m, mainly due to the depreciation of the US
dollar and the Brazilian real against the euro. Profit on operating
activities improved for the second year in a row, finishing at
€32.9m for the period, or 11.5% of revenue, compared to 10.4% in
2020. Optimized cost management and the planned reduction in
Research & Development expenses after several years of major
investment made it possible to improve profitability despite lower
business volumes.
Axway Software: Revenue by business line
Full-year 2021 (€m)
2021
2020 Restated*
2020 Reported
Total Growth
Organic Growth
License
18.6
25.3
25.8
- 28.0%
- 26.6%
Subscription
114.2
96.1
97.3
+ 17.4%
+ 18.9%
Maintenance
119.0
136.6
138.2
- 13.9%
- 12.9%
Services
33.8
35.6
36.0
- 6.0%
- 4.9%
Axway Software
285.5
293.5
297.2
- 3.9%
- 2.7%
* Revenue at 2021 scope and exchange rates
License revenue was €18.6m in 2021 (6% of total revenue),
an organic decrease of 26.6%. As customers favor more than ever the
economic and technological flexibility of subscription offers, the
License activity fell sharply over the year as expected. This
decline is explained in particular by the drop in the number of
significant contracts signed by the company at the end of the
year.
The Subscription activity generated revenue of €114.2m in
2021, with organic growth of 18.9% and 17.4% in total. Having grown
steadily over the past three years, the activity now represents 40%
of Axway's annual revenue. New customer wins accelerated throughout
the year for key products in Axway's portfolio, including the
Amplify API management offering which won 51 new customers in 2021.
Certain specialized products operating in the cloud suffered from a
high attrition rate, slowing overall activity growth. Sales
performance over the period was satisfactory, as evidenced by the
signing of new subscription contracts for an annual contract value
(ACV) of €33.2m, up 4.2% compared to the very high comparison base
in 2020.
The Signature Metric therefore fell 2.2% in 2021.
Maintenance revenue was €119.0m in 2021, or 42% of total
revenue. As expected, and in line with the first nine months of the
year, the activity reported a full-year organic decline of 12.9%.
This trend is explained by the migration of the value of certain
maintenance operations to the Subscription revenue line, as
customers adopt more flexible contractual models.
Axway's recurring revenue, which includes Subscription and
Maintenance contracts, represented 82% of the company’s revenue in
2021, i.e., €233.2m, an increase compared to 2020 (79%). This
includes €51.5m of upfront revenue, recognized on the signing of
subscription contracts. Recurring revenue also represented 93% of
Axway’s product revenue (Licenses, Maintenance and Subscription)
over the year, confirming the effective transition to recurring
contracts, which should offer better visibility and more stable
forecasts from 2023.
Still impacted by the health crisis and associated restrictions,
the Services activity generated revenue of €33.8m (12% of
total revenue) in 2021, down 4.9% organically. While activity grew
in some regions where remote services are possible, the situation
was much less favorable in most major European countries and in the
United States.
Axway Software: Revenue by geographic area
Full-year
2021 (€m)
2021
2020 Restated*
2020 Reported
Total Growth
Organic Growth
France
81.4
93.5
93.5
- 12.9%
- 12.9%
Rest of Europe
67.4
62.9
62.3
+ 8.1%
+ 7.2%
Americas
119.4
120.8
125.3
- 4.7%
- 1.2%
Asia/Pacific
17.3
16.4
16.1
+ 7.4%
+ 5.8%
Axway Software
285.5
293.5
297.2
- 3.9%
- 2.7%
* Revenue at 2021 scope and exchange rates
France reported revenue of €81.4m in 2021 (28% of total
revenue), an organic decline of 12.9%. In the country, at the end
of the year, several large deals were postponed, causing a
significant decrease in sales compared to the particularly high
comparison base of Q4 2020.
The Rest of Europe region achieved organic growth of 7.2%
in 2021, with revenue of €67.4m, representing 24% of total revenue.
The robust momentum of the Subscription activity (+50.9%) and the
resilience of the License activity (+6.7%) helped offset the
decline in other activities.
The Americas (USA & Latin America) generated revenue
of €119.4m over the year (42% of total revenue), with an organic
decrease of 1.2%. Although not sufficient to compensate for the
decline in License activity, Subscription activity accelerated
significantly over the year as expected (+18.4%).
Asia/Pacific achieved annual revenue of €17.3m (6% of
total revenue), with organic growth of 5.8%. Thanks to growth in
excess of 20% in the Subscription and Services activities, and more
generally a return to normal business levels, Axway enjoyed a good
year in the region.
Comments on 2021 net profit
Profit from recurring operations was €19.9m in 2021, or 7.0% of
revenue, compared to 5.9% the previous year. It includes
amortization of allocated intangible assets of €8.6m and a
share-based payment expense of €4.4m.
Operating profit for the year was €17.3m, or 6.1% of
revenue.
Net profit for the period was €9.6m, representing 3.4% of
revenue compared to 2.9% (€8.5m) in 2020 and 1.8% (€5.4m) in
2019.
Basic earnings per share were €0.45 for the year, up from €0.40
in 2020.
Financial position at December 31, 2021
At December 31, 2021, Axway's financial position was solid, with
cash of €25.4m and bank debt of €61.8m.
Free cash flow was €2.9m in 2021, compared to -€0.7m a year
earlier. The accumulation of Subscription contract signatures
should lead to an improvement in net cash from operating activities
from 2022.
Shareholders' equity stood at €372.2m at December 31, 2021,
compared to €355.5m at the end of 2020.
As a reminder, Axway renegotiated its bank lines until 2026,
thereby securing financing of up to €125.0m.
Change in the workforce
At December 31, 2021, Axway had 1,712 employees compared to
1,888 at December 31, 2020.
Proposed dividend for financial year 2021
At its upcoming Annual General Meeting scheduled for May 24,
2022, Axway will ask shareholders to approve the distribution of a
dividend with a value of €0.40 per share.
2022 Targets & Outlook
For 2022, Axway’s objective is to achieve organic revenue growth
of between 1% and 3%. The company also aims to improve its
profitability, with a margin on operating activities of between 12%
and 14% of revenue for the year.
In the medium term, Axway's ambitions remain:
- to achieve revenue of €500m through organic growth in sales and
through acquisitions
- to return to operating margin on business activity rates above
15%
- to sustainably increase earnings per share to above €1
Today, Tuesday, February 22, 2022, 6.30 p.m. (UTC+1): 2021
Full-Year Results Virtual Analyst Conference
- Virtual conference registration: Click here Or join by
phone by dialing one of the numbers below and announcing "Axway" at
the operator's request: - International: +44 (0) 33 0551 0200 /
France: +33 (0) 1 7037 7166 / USA: +1 212 999 6659
Please note that the meeting will be held in English.
Financial Calendar
Thursday, March 24, 2022: Filing of the 2021 Universal
Registration Document
Thursday, April 28, 2022, before market opening: Publication of
Q1 2022 Revenue
Tuesday, May 24, 2022, 2:30 p.m. (UTC+1): Annual Shareholders'
Meeting
Tuesday, July 26, 2022, after market closing: Publication of
2022 Half-Year Results
Tuesday, July 26, 2022, 6:30 pm (UTC+1): 2022 Half-Year Results
Virtual Analyst Conference
Glossary – Alternative Performance Measures
Restated revenue: Revenue for the
prior year, adjusted for the consolidation scope and exchange rates
of the current year.
Organic growth: Growth in revenue
between the period under review and the prior period, restated for
consolidation scope and exchange rate impacts.
Growth at constant exchange rates:
Growth in revenue between the period under review and the prior
period restated for exchange rate impacts.
ACV: Annual Contract Value – Annual
contract value of a subscription agreement.
TCV: Total Contract Value – Full
contracted value of a subscription agreement over the contract
term.
Signature metric: Amount of license
sales plus three times the annual contract value (3xACV) of new
subscription contracts signed over a given period.
Net Signature metric: Signature
metric net of the maintenance attrition by migration to new
subscription contracts
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.
NPS: Net Promoter Score – Customer
satisfaction and recommendation indicator for a company.
Employee Engagement Score:
Measurement of employee engagement through an independent annual
survey.
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 contract signatures, 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 2020 Universal
Registration Document filed with the French Financial Markets
Authority (Autorité des Marchés Financiers, AMF) on March 18, 2021,
under number D.21-0147. 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 (Euronext: AXW.PA) empowers customers to succeed using
hybrid integration to connect people, systems, businesses, and
digital ecosystems. Axway’s hybrid integration platform, Amplify,
helps enterprise power users, IT specialists, developers, and
partners accelerate digital transformation, create captivating
experiences, and innovate new services. Amplify speeds integrations
by combining traditional integration patterns with API Management
and Application Integration (providing over 150 prebuilt
connectors). Over 11,000 organizations in 100 countries rely on
Axway for their data integration challenges. To learn more, visit
www.investors.axway.com/en
Appendices (1/5)
Axway Software: Revenue by business line
1st
Quarter 2021 (€m) Q1 2021 Q1 2020Restated* Q1
2020Reported TotalGrowth OrganicGrowth License
3.8
3.7
3.9
-2.0%
2.8%
Subscription
23.7
14.8
15.7
50.9%
59.6%
Maintenance
29.8
34.1
35.4
-15.9%
-12.7%
Services
9.0
9.0
9.3
-3.1%
0.1%
Axway Software
66.3
61.7
64.4
3.1%
7.5%
* Revenue at 2021 scope and exchange rates
Axway Software: Revenue by business line
2nd Quarter 2021 (€m)
Q2 2021 Q2 2020Restated* Q2 2020Reported
TotalGrowth OrganicGrowth License
5.4
6.3
6.6
-17.4%
-13.7%
Subscription
28.1
20.9
21.5
30.5%
34.6%
Maintenance
30.2
34.1
35.3
-14.3%
-11.4%
Services
8.3
8.6
8.8
-6.0%
-3.1%
Axway Software
72.1
69.9
72.2
-0.2%
3.2%
* Revenue at 2021 scope and exchange rates
Axway Software: Revenue by business line
3rd Quarter 2021 (€m)
Q3 2021 Q3 2020Restated* Q3 2020Reported
TotalGrowth OrganicGrowth License
4.7
8.1
8.3
-42.8%
-41.3%
Subscription
27.8
21.9
21.9
26.9%
27.2%
Maintenance
29.5
33.7
33.6
-12.2%
-12.5%
Services
7.7
8.9
8.9
-13.5%
-13.4%
Axway Software
69.8
72.6
72.8
-4.1%
-3.8%
* Revenue at 2021 scope and exchange rates
Axway Software: Revenue by business line
4th Quarter 2021 (€m)
Q4 2021 Q4 2020Restated* Q4 2020Reported
TotalGrowth OrganicGrowth License
4.6
7.2
7.0
- 34.9%
- 36.8%
Subscription
34.6
38.5
38.1
- 9.3%
- 10.1%
Maintenance
29.4
34.7
33.9
- 13.1%
- 15.0%
Services
8.8
9.1
8.9
- 1.5%
- 3.3%
Axway Software
77.3
89.4
87.9
- 12.0%
- 13.5%
* Revenue at 2021 scope and exchange rates
Appendices (2/5)
Axway Software: Revenue by geographic area
1st Quarter 2021 (€m) Q1 2021 Q1
2020Restated* Q1 2020Reported TotalGrowth
OrganicGrowth France
18.8
17.9
17.9
5.1%
5.1%
Rest of Europe
16.7
13.6
13.5
23.2%
22.9%
Americas
26.5
27.4
30.1
-11.8%
-3.1%
Asia/Pacific
4.4
2.9
2.9
50.7%
50.8%
Axway Software
66.3
61.7
64.4
3.1%
7.5%
* Revenue at 2021 scope and exchange rates
Axway Software: Revenue by geographic area
2nd
Quarter 2021 (€m) Q2 2021 Q2 2020Restated* Q2
2020Reported TotalGrowth OrganicGrowth France
20.6
23.0
23.0
-10.6%
-10.6%
Rest of Europe
17.3
16.2
16.0
7.7%
6.8%
Americas
30.6
26.7
29.2
4.7%
14.5%
Asia/Pacific
3.6
4.0
4.0
-8.2%
-8.8%
Axway Software
72.1
69.9
72.2
-0.2%
3.2%
* Revenue at 2021 scope and exchange rates
Axway Software: Revenue by geographic area
3rd
Quarter 2021 (€m) Q3 2021 Q3 2020Restated* Q3
2020Reported TotalGrowth OrganicGrowth France
19.3
20.3
20.3
-4.9%
-4.9%
Rest of Europe
14.0
14.3
14.2
-0.9%
-2.1%
Americas
32.2
32.8
33.2
-2.9%
-1.7%
Asia/Pacific
4.3
5.2
5.2
-17.1%
-17.9%
Axway Software
69.8
72.6
72.8
-4.1%
-3.8%
* Revenue at 2021 scope and exchange rates
Axway Software: Revenue by geographic area
4th
Quarter 2021 (€m) Q4 2021 Q4 2020Restated* Q4
2020Reported TotalGrowth OrganicGrowth France
22.8
32.3
32.3
- 29.5%
- 29.5%
Rest of Europe
19.4
18.8
18.6
+ 4.4% + 3.4% Americas
30.1
34.0
32.8
- 8.4%
- 11.5%
Asia/Pacific
5.0
4.3
4.1
+ 22.6% + 18.1%
Axway Software
77.3
89.4
87.9
- 12.0%
- 13.5%
* Revenue at 2021 scope and exchange rates
Appendices (3/5)
Axway Software : Consolidated Income Statement
Full-year 2021
2021
2020
2019
€m
% Rev.
€m
% Rev.
€m
% Rev.
Revenue
285.5
297.2
300.0
of which License
18.6
25.8
52.8
of which Subscription
114.2
97.3
59.6
of which Maintenance
119.0
138.2
146.7
Sub-total Products
251.7
261.3
259.1
Services
33.8
36.0
40.8
Cost of sales
83.3
87.6
88.4
of which License and Maintenance
24.6
24.9
23.4
of which Subscription
27.0
28.3
26.7
of which Services
31.7
34.4
38.3
Gross profit
202.3
70.8%
209.7
70.5%
211.5
70.5%
Operating expenses
169.4
178.8
185.6
of which Sales and marketing
89.0
92.9
99.1
of which Research and development
55.3
60.4
61.3
of which General and administrative
25.0
25.5
25.1
Profit on operating activities
32.9
11.5%
30.8
10.4%
25.9
8.6%
Stock option expense
-4.4
-5.1
-2.7
Amortization of intangible assets
-8.6
-8.2
-8.6
Profit from recurring operations
19.9
7.0%
17.6
5.9%
14.6
4.9%
Other income and expenses
-2.7
0.0
-0.3
Operating profit
17.3
6.1%
17.6
5.9%
14.3
4.8%
Cost of net financial debt
-1.3
-1.4
-1.6
Other financial revenues and expenses
0.5
-2.7
-0.6
Income taxes
-6.9
-5.1
-6.8
Net profit
9.6
3.4%
8.5
2.9%
5.4
1.8%
Basic earnings per share (in €)
0.45
0.40
0.25
Appendices (4/5)
Axway Software: Simplified Balance Sheet
Full-year 2021
31/12/2021
31/12/2020
31/12/2019
(€m)
(€m)
(€m)
Assets
Goodwill
348.3
330.3
350.0
Intangible assets
15.1
23.4
33.9
Property, plant and equipment
14.3
15.4
12.5
Lease right-of-use assets
23.5
28.9
23.5
Other non-current assets
23.4
24.9
22.8
Non-current assets
424.6
422.9
442.7
Trade receivables
105.1
88.1
71.9
Other current assets
27.8
32.2
33.2
Cash and cash equivalents
25.4
16.2
21.1
Current assets
158.3
136.4
126.2
Total Assets
582.9
559.3
568.8
Equity and Liabilities
Share capital
43.3
42.7
42.5
Reserves and net profit
328.9
312.8
320.1
Total Equity
372.2
355.5
362.6
Financial debt - long-term portion
60.1
37.3
39.2
Lease liabilities - long-term portion
27.2
32.2
22.9
Other non-current liabilities
13.6
13.1
13.6
Non-current liabilities
100.9
82.5
75.7
Financial debt - short-term portion
1.7
2.9
3.5
Lease liabilities - short-term portion
6.2
5.6
6.8
Deferred Revenues
55.8
54.7
60.6
Other current liabilities
46.0
58.1
59.7
Current liabilities
109.8
121.4
130.6
Total Liabilities
210.7
203.9
206.2
Total Equity and Liabilities
582.9
559.3
568.8
Appendices (5/5)
Axway Software: Cash Flow Statement
Full-year 2021
2021
2020
2019
(€m)
(€m)
(€m)
Net profit for the period
9.6
8.5
5.4
Net charges to amortization, depreciation and provisions
20.2
19.9
20.5
Other income and expense items
3.9
4.4
2.8
Cash from operations after cost of net debt and tax
33.7
32.8
28.7
Change in operating working capital requirements (incl. employee
benefits liability)
-26.2
-23.7
-19.3
Cost of net financial debt
1.3
1.4
1.6
Income tax paid net of accrual
4.1
1.6
2.6
Net cash from operating activities
12.9
12.1
13.6
Net cash used in investing activities
-2.8
-8.1
-5.2
Proceeds from the exercise of stock options
2.0
0.6
0.0
Purchases and proceeds from disposal of treasury shares
-9.5
-0.2
-1.2
Dividends paid
-8.6
0.0
-8.5
Change in loans
21.5
-2.4
-3.6
Change in lease liabilities
-6.7
-4.4
-7.7
Net interest paid
-0.6
-0.7
-0.8
Other flows
0.1
-0.9
-1.5
Net cash from (used in) financing activities
-1.7
-7.9
-23.2
Effect of foreign exchange rate changes
0.7
-1.1
0.1
Net change in cash and cash equivalents
9.0
-4.9
-14.7
Opening cash position
16.2
21.1
35.8
Closing cash position
25.2
16.2
21.1
Axway Software: Impact on revenue of changes in scope and
exchange rates
Full-year 2021 (€m)
2021
2020
Growth
Revenue
285.5
297.2
- 3.9%
Changes in exchange rates
-3.7
Revenue at constant exchange rates
285.5
293.5
- 2.7%
Changes in scope
+0.0
Revenue at constant scope and exchange rates
285.5
293.5
- 2.7%
Axway Software: Changes in exchange rates
Full-year 2021For 1€
Average rate 2021
Average rate 2020
Change
US Dollar
1.183
1.142
- 3.4%
Brazilian Real
6.378
5.894
- 7.6%
1 Audit procedures have been carried out on the financial
statements. The Statutory Auditors’ report is in the process of
being issued.
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Investor Relations: Arthur Carli – +33 (0)1 47 17 24 65 –
acarli@axway.com Press Relations: Sylvie Podetti – +33 (0)1 47 17
22 40 – spodetti@axway.com
Axway Software (EU:AXW)
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Axway Software (EU:AXW)
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