SoftwareONE (SWON) Guidance summary

Opening remarks and agenda

• Announced appointment of Raphael Erb as CEO effective 1 November 2024, succeeding Brian Duffy, and provided an update on current trading and financial guidance.

• Webcast with incoming CEO and CFO held to discuss leadership transition and financial guidance.

• Outlined agenda: CEO remarks, CFO financial update, and Q&A session.

• Noted that the full Q3 trading update will be on November 13, 2024.

Guidance on key objectives

• Full-year 2024 revenue growth guidance revised to 2%-5% YoY in constant currency, down from 7%-9%.

• Adjusted EBITDA margin guidance for 2024 lowered to 21%-23% from 24.5%-25.5%.

• 2026 targets updated to double-digit revenue growth and EBITDA margin approaching 27%.

• CEO's top priority is enhancing customer focus, empowering frontline teams, and improving the commercial model to drive growth.

• Dividend payout ratio remains at 30%-50% of adjusted profit.

Market trends and strategic opportunities

• APAC region delivered strong Q3 2024 revenue growth of 24.3% YoY in constant currency, while EMEA, NORAM, and LATAM underperformed.

• DACH market saw 11.3% YoY revenue growth, while other regions experienced declines.

• Observing a more cautious corporate spending environment and longer sales cycles in key markets, expected to persist through Q4 2024.

• Vendor incentive changes, especially from Microsoft, are impacting revenue and require organizational adaptation.

• Ongoing market opportunity as organizations continue to embrace cloud and AI.