EQS-News: USU announces figures for Q3 and 9M 2023

Thanks to a recovery in international business and a significant rise in SaaS sales, USU Software AG and its subsidiaries (hereinafter also referred to as the “USU Group” or “USU”) increased their consolidated sales by 1.0% to EUR 32.9 million in the third quarter of 2023 (Q3 2022: EUR 32.6 million) despite orders being postponed on account of the economy. In the context of its strategic shift from one-time license business to software-as-a-service (SaaS) business, USU increased SaaS sales by 15.1% to EUR 4.3 million (Q3 2022: EUR 3.7 million). However, this combined with the above-mentioned postponement of orders entailed a year-on-year decline in license sales of around two-thirds to EUR 1.3 million (Q3 2022: EUR 4.0 million).
As of September 30, 2023, the USU Group increased its workforce by 7.8% or 59 employees year-on-year to 814 (September 30, 2022: 755), thus remaining above the targeted 800 mark as planned. The employee share purchase program initiated with a view to retaining skilled staff at USU in the long term and implemented at the end of the third quarter resulted in extraordinary staff costs (share-based compensation) of EUR 0.3 million in accordance with IFRS in the reporting quarter. As a result of this one-time expense and the decline in high-margin license sales, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 44.3% year-on-year to EUR 2.5 million in the third quarter (Q3 2022: EUR 4.4 million). At the same time, EBIT amounted to EUR 1.2 million (Q3 2022: EUR 3.2 million). This corresponds to a year-on-year decline in EBIT of 61.7%. Overall, USU’s consolidated earnings in the third quarter of 2023 came to EUR 0.9 million (Q3 2022: EUR 2.2 million), 61.7% lower than in the previous year. 
From a nine-month perspective, USU generated sales growth of 5.3% to EUR 97.8 million (Q1-Q3 2022: EUR 92.9 million). In this period, USU increased its SaaS sales by an above-average 20.4% to EUR 12.5 million (Q1-Q3 2022: EUR 10.4 million). As a result of the shift to SaaS and the postponement of orders in the reporting period, license sales in the first nine months of 2023 were down 64.8% year-on-year at EUR 3.5 million (Q1-Q3 2022: EUR 9.8 million), as expected. By contrast, consulting sales rose by 16.1% as against 2022 to EUR 61.8 million thanks to the sustained digitalization trend (Q1-Q3 2022: EUR 53.2 million).
All in all, operating profitability declined in the reporting period for the above reasons, leading to a year-on-year decrease in USU’s EBITDA of 28.0% to EUR 8.4 million (Q1-Q3 2022: EUR 11.7 million). Adjusted for the one-time expenses from share-based compensation of EUR 0.3 million (Q3 2022: EUR 0 million), adjusted EBITDA came to EUR 8.8 million (Q1-Q3 2022: EUR 11.7 million). At the same time, USU generated EBIT of EUR 4.8 million in the first nine months of 2023 (Q1-Q3 2022: EUR 8.2 million). This corresponds to a year-on-year decline in EBIT of 40.8%. USU’s consolidated earnings were down 42.8% year-on-year at EUR 3.3 million in the first nine months of 2023 (Q1-Q3 2022: EUR 5.8 million). This corresponds to diluted earnings per share of EUR 0.31 (Q1-Q3 2022: EUR 0.55), while basic earnings per share amounted to EUR 0.33 (Q1-Q3 2022: EUR 0.58).
With an equity ratio of 49.9% (December 31, 2022: 50.4%), Group liquidity of EUR 9.8 million (December 31, 2022: EUR 15.5 million) and no liabilities to banks, the USU Group’s financial situation is still extremely sound and secure.
Based on the current forecast and the high level of orders on hand at EUR 85.6 million (September 30, 2022: EUR 73.8 million), the Management Board is confirming its forecast for 2023 as a whole of sales growth to between EUR 132 million and EUR 139 million with a targeted further significant expansion in SaaS business and EBITDA of between EUR 13 million and EUR 15 million after adjustment for the one-time expenses.
The Management Board is also reiterating the current medium-term planning, which includes average organic sales growth of 10% in the next few years and, in view of the continued growth in SaaS business, an increase in the adjusted EBITDA margin to between 17% and 19% by 2026. 

USU Software AG
As a leading provider of software and service solutions for IT and customer service management, USU enables companies to manage the requirements of today’s digital world. Global organizations use our solutions to cut costs, become more agile, and reduce risks – with smarter services, simpler workflows, and better collaboration. With more than 45 years of experience and locations worldwide, the USU team brings customers into the future. 
In addition to USU GmbH, which was founded in 1977, USU Software AG – which is listed in the Prime Standard of Deutsche Börse (ISIN DE 000A0BVU28) – includes the subsidiaries USU Solutions Inc., USU SAS, and USU GK.

Further information: www.usu.com.