SoftwareOne Reports Q3 2024 Trading Update

SoftwareOne Holding AG released its Q3 2024 trading update, reporting a 3.1% revenue increase year-on-year in constant currency, amounting to CHF 236.7 million. Despite improvements in the contribution margin by 5.2%, adjusted EBITDA decreased by 15.8% due to lower-than-expected growth. The company faced mixed regional performances, with APAC and DACH regions experiencing double-digit revenue growth, while others like NORAM and LATAM lagged due to sales execution challenges.

CEO Raphael Erb acknowledges disappointing results, attributing them to rushed implementation of a new Go-to-Market model, affecting sales execution. In response, SoftwareOne is focusing on restoring agility and a client-centric approach, set to achieve over CHF 50 million in cost savings by mid-2025.

Additionally, the company is in talks regarding a possible going-private transaction, aiming to provide an update by February 2025. SoftwareOne maintains its full-year guidance of 2-5% revenue growth, with improvements in adjusted EBITDA anticipated throughout 2025.