SoftwareONE (SWON) H1 2024 earnings summary

Executive summary

• Achieved 7% revenue growth in H1 2024 to CHF 529.9 million, with improved margins and strong regional performance, despite macroeconomic uncertainty and challenges in DACH and Colombia.

• Vision 2026 implementation is progressing, with a new go-to-market model launched in key markets and operational excellence program completed, delivering CHF 76 million in annualized cost savings.

• Board is evaluating a potential going-private transaction, with discussions ongoing following receipt of indicative offers.

• IFRS reported profit for H1 2024 was CHF 27.9 million, down from CHF 33.8 million in H1 2023.

• Digital sales transformation and Copilot 365 adoption accelerated, with user base doubling to over 600,000 and 240+ new service engagements in Q2 2024.

Financial highlights

• H1 2024 revenue reached CHF 529.9 million, up 7.0% YoY in constant currency; Q2 revenue CHF 283.0 million, up 6.7%.

• Adjusted EBITDA for H1 2024 was CHF 121.9 million (+11.3% YoY ccy), with margin at 23.0% (+1.0pp); Q2 adjusted EBITDA CHF 76.5 million, margin 27.0%.

• Contribution margin improved to 67.8% in H1 2024 (+3.0pp YoY); marketplace contribution margin at 88.4%, services at 43.7%.

• Adjusted EPS (diluted) rose 20.1% YoY to CHF 0.39; basic and diluted IFRS EPS at CHF 0.18.

• Net debt at CHF 208.7 million as of June 30, 2024; net working capital at CHF 182.6 million.

Outlook and guidance

• Full-year 2024 revenue growth guidance revised to 7–9% (from 8–10%) in constant currency, reflecting macro headwinds and Colombia public sector impact.

• Adjusted EBITDA margin guidance maintained at 24.5–25.5% of revenue.

• Vision 2026 targets mid-teen revenue growth and margin approaching 28%.

• Dividend payout policy remains at 30–50% of adjusted profit.

• Expect acceleration in H2 growth as new sales organization becomes fully operational.