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Investing.com -- Shares of ATOSS Software AG (ETR:AOFG) (XETRA:AOF) climbed 2% after the company reported its fourth-quarter earnings. Jefferies analysts described results as "good."
The Munich-based workforce management software provider announced a 9% increase in Q4 sales year-on-year (YoY) to €44.7 million, although this was slightly below the FactSet consensus of €45.8 million. The company attributed the increase to strong cloud revenue growth and a high EBIT margin resulting from effective cost management.
ATOSS Software (ETR:SOWGn)’s Q4 performance highlighted a significant rise in cloud revenues, up 35% YoY to €19.7 million. This growth in cloud and maintenance revenues contributed to 66% of the total revenues in the quarter, compared to 58% in the previous year, enhancing the company’s revenue visibility.
Despite a weaker order intake for new software licenses, the company’s overall annual recurring revenue (ARR) from cloud usage fees and maintenance rose 24% to €118.4 million for the fiscal year 2024.
The company’s EBIT for the quarter also surpassed expectations, increasing by 17% to €16.6 million, with an EBIT margin of 40%, exceeding the 37% margin from the previous year and the FactSet consensus of €15.8 million. This was partly due to the postponement of investments in expanding sales personnel resources.
Looking ahead, ATOSS Software provided new guidance for the coming years, expecting revenues of at least €190 million for the fiscal year 2025, with an EBIT margin of at least 31%. For 2026 and 2027, the company forecasts revenues of at least €215 million and €245 million, respectively.
These projections are slightly below the consensus estimates but align with the company’s long-term ambition to reach a revenue level of €400 million by 2030.
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