EQS-News: Outstanding growth in revenues and earnings in FY 2023 marks 18th record results in succession

According to provisional figures, ATOSS Software AG is once more able to report on an exceptionally strong financial year with new records for revenues and earnings. In total, revenues increased year-on-year by a very appreciable 33 percent, climbing to EUR 151.2 million (previous year: EUR 113.9 million). Operating earnings increased by a disproportionately high 68 percent to EUR 51.8 million (previous year: EUR 30.8 million) with an EBIT margin of 34 percent (previous year: 27 percent). Against the background of consistently strong demand for workforce management solutions, the Management Board is expecting to maintain its growth and success story in the 2024 financial year and beyond.

Munich, January 31, 2024

After a successful finishing burst in the fourth quarter, ATOSS Software AG remains true to its accustomed growth trajectory in FY 2023. For the eighteenth time in a row, the workforce specialist from Munich succeeded once again in topping its already high record figures for revenues and earnings from the previous year in impressive fashion. The company has thereby maintained and even expanded its strategic growth trajectory at a high level – also in these economically uncertain times. Group revenues were up by 33 percent to EUR 151.2 million over the year (previous year: EUR 113.9 million). Of this amount, software contributed a 38 percent increase in revenues totaling EUR 108.2 million (previous year: EUR 78.4 million), and continues to benefit from the appreciable effects of expanding business in the cloud. Altogether, revenues from the Cloud and Subscriptions were up by 55 percent to EUR 52.9 million (previous year: EUR 34.2 million) and now account for 35 percent of total revenues (previous year: 30 percent). Moreover, the revenue record in software is also due in particular to the significant year-on-year increase in non-recurring revenues from on-premises licenses totaling to EUR 19.6 million (previous year: EUR 12.6 million). Together with the 13 percent rise in software maintenance revenues amounting to EUR 35.7 million (previous year: EUR 31.6 million), recurring revenues advanced year-on-year by 35 percent, reaching EUR 88.6 million (previous year: EUR 65.8 million). Notwithstanding the strong increase in software license revenues, the share of recurring revenues from cloud and maintenance in total revenues slightly exceeded the prior year’s level at 59 percent (previous year: 58 percent). Revenues from consulting services expanded to EUR 33.2 million (previous year: EUR 28.1 million).

The demand for innovative, software-based solutions for strategic staff management remains unbroken, regardless of the tough macroeconomic conditions and growing geopolitical tensions. This trend is also reflected in the current order numbers of the ATOSS Group. For example, the order intake for new license subscriptions and non-recurring licenses with new and existing customers in the 2023 financial year is approximately at the same particularly high level of the previous year. The key indicators for the order development therefore showed positive growth overall. This is evidenced in particular by a cloud order backlog of EUR 64.3 million (December 31, 2022: EUR 43.3 million) which shows revenues from contractually committed cloud usage fees within the next 12 months. This key cloud indicator also includes cloud Annual Recurring Revenues (ARR for short) from current cloud usage fees which increased year-on-year by 44 percent to a total of EUR 58.9 million (December 31, 2022: EUR 41.0 million). Total ARR (consisting of cloud usage fees and maintenance revenues) climbed 28 percent to EUR 95.4 million as of December 31, 2023 (December 31, 2022: EUR 74.8 million). As of the end of the year, the on-premises order backlog amounts to EUR 4.7 million following EUR 7.3 million as of December 31, 2022.

The return on revenue in relation to operating earnings (EBIT) stands at 34 percent (previous year: 27 percent) - in spite of the expansion of R&D investments and the continuous, general build-up of staff - primarily due to the realization of non-recurring licenses in on-premises business and exceeding the forecast for the whole of 2023 of around 30 percent which had already been lifted after the first half of the year.

In addition, the strong revenue and earnings performance is visible in further significant financial indicators for the Group such as liquidity, for example. This figure was up by 45 percent to EUR 82.6 million in the past financial year (previous year: EUR 56.8 million) which is an impressive testament to the consistent stability of the business model. Combined with market forecasts which remain positive, the Management Board therefore views the future with optimism. ATOSS is excellently positioned to continue growing in the future in the very attractive growth markets revolving around workforce management and digitization across all customer segments. This is based on a clear vision and strategy, forward-looking technologies, and solutions that generate sustainable added value for the company’s customers. For this reason, the Management Board is expecting revenues of EUR 170 million and an EBIT margin of 30 percent for the 2024 financial year. With a look to 2025, the Board continues to assume revenues of at least EUR 190 million and an EBIT margin of at least 30 percent.

Based on its long-term dividend policy that provides for a distribution rate of 75 percent relative to earnings per share, the Management Board will propose to the Supervisory Board a dividend of EUR 3.37 per share (previous year: EUR 1.83 per share plus a special dividend of EUR 1.00 per share) as part of its profit appropriation resolution. The recommendations for the appropriation of net income put forward by the Management and Supervisory Boards will be resolved upon at the Annual General Meeting on April 30, 2024.

The Management Board contract of Dirk Häußermann, who has been responsible for the Internationalization and Marketing departments since April 2021 as the Co-CEO of ATOSS, ends on March 31, 2024. Dirk Häußermann will take on a new role outside ATOSS for personal reasons. Special mention must be made of his valuable contributions to and success with the internationalization strategy and cloud transformation.  ATOSS Software AG thanks Dirk Häußermann for his commitment and wishes him all the best and every success for the future. The Management Board contract of Andreas Obereder, CEO of ATOSS Software AG, has now been extended by 3 years until December 31, 2026. In addition to his previous domains, Mr. Obereder will also lead and manage the Internationalization and Marketing departments.

CONSOLIDATED OVERVIEW AS PER IFRS: YEAR ON YEAR COMPARISON IN KEUR

CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN KEUR

(1) Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date, adjusted to exclude borrowings (loans)

(2) Dividend of EUR 2.83 on 05/04/2023 (KEUR 22,507); Dividend of EUR 1.82 on 05/04/2022 (KEUR 14,475)

(3) at the end of the quarter/year

Upcoming dates:

March 11, 2024   Publication of the annual report 2023

March 11, 2024   Balance sheet press conference

April 25, 2024   Publication of the 3-monthly financial statements

April 30, 2024   Annual General Meeting 2024

July 24, 2024   Press release announcing the 6-monthly financial statements

August 12, 2024  Publication of the 6-monthly financial statements

October 23, 2024  Publication of the 9-monthly financial statements

ATOSS

ATOSS Software AG is a provider of technology and consulting solutions for professional workforce management and demand-optimized workforce deployment. Whether time & attendance management, mobile apps, workforce forecasting, soprevenuehisticated workforce scheduling or strategic capacity and requirement planning, ATOSS has just the right solution – both in the cloud and on-premises. The modular product families feature the highest level of functionality, technology and platform independence. With around 15,600 customers in more than 50 countries, ATOSS workforce management solutions make a measurable contribution to increased value creation and competitiveness. At the same time, they ensure greater planning fairness and satisfaction at the workplace. Customers include companies such as ALDI SÜD, Coca-Cola, Deutsche Bahn, Douglas, Edeka, HUK-COBURG, Klinikum Leverkusen, Lufthansa, Schmitz Cargobull, Sixt, Stadt Regensburg, thyssenkrupp Packaging Steel and W.L. Gore & Associates. Further information: www.atoss.com

ATOSS Software AG

Christof Leiber / Member of the Management Board

Rosenheimer Straße 141 h,

D-81671 Munich

Tel.: +49 (0) 89 4 27 71 – 0

Fax: +49 (0) 89 4 27 71 – 100

investor.relations@atoss.com