Software AG will report cloud and IoT revenue separately in 2018
Software AG has given an update on its financial and strategic operations – and it says its IoT and cloud arms are doing so well it will begin reporting that revenue under a separate business line as of January.
During the calendar year, the company successfully formed a number of new strategic partnerships in IoT and Industry 4.0, which include the newly founded ADAMOS joint venture with global market leading manufacturing companies such as DMG MORI, Dürr, ZEISS and ASM PT as well as other scalable IoT projects with major global enterprises.
These successful partnerships and a high market demand show the growing relevance of the company’s leading technology and are accelerating its transition to the cloud. These collaborations will further help Software AG to scale and predict the business growth rates with every additional connected machine, device or sensor, the company added.
In addition to establishing a fast growing IoT business with recurring revenues, Software AG confirmed its 2017 outlook which had been raised in the previous quarter. In Q3, the three business lines of the Group all reported growth of 2% while EBIT increased by 1%. The company’s operating profit margin (EBITA, non-IFRS) remained very high at 32.2%. The forecast for product revenue growth in the Digital Business Platform (DBP) line remains unchanged at +5 to +10% at constant currency.
Elsewhere, Software AG has partnered with Coupa Software, a leader in cloud-based spend management, to make it easy for enterprises to integrate Coupa with most leading enterprise resource planning (ERP) systems, including those from SAP and Oracle. As part of this partnership, Coupa is expanding its CoupaLink certified solutions by adding Software AG’s webMethods Connector.
Picture credit: Software AG
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