Software AG – bouncing back?
Software AG has posted its preliminary results for Q4 and full-year 2015. Q4 saw a significant bump in revenue: is the German home of ARIS and webMethods on a growth path again?
The company’s Q4 results show a 23% rise in revenue associated with its Digital Business Platform segment (which equates to the combination of ARIS and webMethods businesses) – from EUR 60.2m in Q4 2014 to EUR 74m in the same period last year. Although not citing final numbers, the company also highlighted an increase in bookings for cloud-based subscriptions of 130% across the full year. Software AG’s preliminary statement of profitability also looks reassuring, with operating profit up 8% for the year.
This growth from the parts of Software AG that are designed to deliver growth should be reassuring stuff for investors and for companies purchasing software and services from Software AG, but it’s also important to look at the bigger picture: these impressive contributions from the Digital Business Platform only enabled Software AG to post an overall revenue increase of 2% for the full year, due to its difficulties in the three preceding quarters.
As they say, one swallow does not make a summer. This is a good result, but we now need to see if Software AG can turn in another three quarters that improve on last year’s performances.