SoftwareONE boasts double-digit growth across key areas in Q3 results
Swiss group SoftwareONE has posted double-digit growth across the board in its third quarter 2022 results.Revenues grew 12.5 per cent year on year to CHF 235.2m (£205m). Gross profit was also up 11.4 per cent to CHF 215.6m (£188.5m)While adjusted EBITDA surged 27.7 per cent to CHF 44.9m (£39m) in Q3. "We delivered yet another quarter of over mid-teens growth in Q3 2022. This demonstrates both the resilience of SoftwareONE's business model and our customers' commitment to investing in digital transformation despite increasingly difficult macroeconomic conditions," said SoftwareONE CEO, Dieter Schlosser."As their trusted advisor, our priority remains helping them reap the full benefits of moving to the cloud, ranging from flexibility and productivity gains to growth and innovation."The group's CFO, Rodolfo Savitzky, added that the Swiss partner will remain focused on operational excellence and cost discipline. SoftwareONE on the rise internationally SoftwareONE's growth was not limited by country borders and instead enjoyed a healthy increase internationally. All the group's key regions contributed to strong gross profit growth. NORAM and LATAM continue to deliver double-digit growth on the back of good results in Microsoft. EMEA grew 24 per cent led by services, including the contribution from the acquisition of Predica in February. Strong performance across main SoftwareONE business linesDuring an earnings webcast, Schlosser noted how some customers, particularly in the public sector, are taking a more considered approach to their investments. He said these customers are more focused on moving to the cloud in a cost-optimised way, a journey he claims SoftwareONE are also well placed to support. The public sector accounts for 15 per cent of the group's gross profit. Diving into the performance of each business line, Solutions & Services delivered just over 25 per cent gross profit growth. This is down compared to earlier periods when the business was scaling out rapidly.However, Schlosser said it is more indicative of the level of growth he expects to see going forward, which is 20 per cent to 30 per cent.Cloud Services also had a solid quarter, with Azure up over 100 per cent due to accelerating demand from customers, with similarly impressive performances across SoftwareONE's other hyperscaler practices, AWS and Google. "I'd also like to highlight the high double-digit growth in Application Services and SAP Services, driven by customer demand for cloudified applications and the impending deadline of SAP migrations to the cloud," Schlosser told listeners on the call.Meanwhile, Software & Cloud gross profit grew 11 per cent to CHF 119m (£104m).The group said this extends the robust momentum seen in H1, driven by strong results across the hyperscalers, including Microsoft and SoftwareONE's ISV portfolio.