SNP Confirms Sustained Growth in the Third Quarter of 2023 with Strong Software Business

Corporate News

SNP Confirms Sustained Growth in the Third Quarter of 2023 with Strong Software Business

• Order entry volume increase of 50% to € 60.2 million driven by high market acceptance of software platform CrystalBridge
• Group revenue climbs 30% in Q3 2023 to € 54.1 million; strong increase of 40% in software revenue
• EBIT increases significantly to € 4.8 million in Q3 2023 (Q3 2022: € 0.1 million)
• Increased outlook for 2023 as a whole confirmed

Heidelberg, October 26, 2023 – SNP Schneider-Neureither & Partner SE, a leading global provider of software for digital transformations, automated data migrations and data management in the SAP environment, has published its interim report for the first nine months of 2023. In the third quarter of the 2023 fiscal year, the company increased its order entry volume by around 50% to € 60.2 million (Q3 2022: € 40.1 million). In the same period, revenue rose by around 30% to € 54.1 million (Q3 2022: € 41.6 million). Operating earnings (EBIT) improved significantly to € 4.8 million (Q3 2022: € 0.1 million).

Jens Amail, CEO of SNP SE, comments on the successful development of the company: “For us, everything revolves around the success and the value we create for our customers and partners. We are humbled by the market response to our software platform CrystalBridge, leading to the best-ever Q3 in our history. We see progress and operational results in all key focus areas. Our S/4HANA business more than doubled in the first nine months, partner-driven order entries are higher than ever, we see exceptional growth rates in the world’s largest IT markets, and the share of our software business becomes bigger. We appreciate that there is still a lot of work ahead of us, but thanks to the strong commitment of the incredible SNP team, we have never been in a better position at this time of the year.”

High Growth Rates in the First Nine Months of the Year

The order entry volume rose by 38% to € 169.6 million in the first nine months of 2023 (9M 2022: € 122.7 million). At the same time, revenue increased by 20% compared with the previous year to € 149.6 million (9M 2022: € 124.9 million). Service revenue of € 101.1 million accounted for roughly € 68% of Group revenue in the first nine months of 2023 (9M 2022: € 88.0 million or around 70%). Software revenue recorded a significant increase of 31% and, at € 48.6 million, provided roughly 32% of Group revenue (9M 2022: € 37.0 million or around 30%).

The EBIT figure has picked up significantly to € 8.3 million (9M 2022: € 1.9 million). The improvement in SNP’s financial performance is attributable, in particular, to the high level of capacity utilization, economies of scale as well as the increased share of software revenue. The EBIT margin also rose accordingly to 5.5% after reaching 1.5% in the previous year. Operating cash flow has also improved significantly in the first nine months of the 2023 fiscal year, from € -12.9 million in the previous year to € -1.6 million.

Andreas Röderer, CFO of SNP SE, comments: “Profitability is a core priority for our corporate management strategy. The rising revenue volume enables us to implement targeted measures in order to considerably lower the cost ratio for operating expenses. At the same time, we have made significant progress in improving our operating cash flow. This is likewise attributable to measures implemented to optimize our operational processes.”

Equity Ratio Increases by 3 Percentage Points to 43.5%

SNP is also very well positioned in terms of capital. Equity has increased significantly to € 112.5 million compared with the end of the previous year (December 31, 2022: € 107.2 million). The equity ratio reached a value of 43.5% on lower total assets (December 31, 2022: 40.5%).

Raised Outlook Confirmed

Thanks to the positive course of business and the continuing momentum, the management of SNP has confirmed the outlook for the year 2023 as a whole which was raised on October 9:

• Order entry is expected to reach to between € 220 to 240 million (previous order entry forecast: € 210 to 230 million);
• Revenue is expected to be around the upper end of the notified range of between € 190 and 200 million.
• The EBIT figure is expected to reach, or even slightly exceed, the upper end of the notified range of € 5 to 10 million.

Further details can be found in the Interim report Q3 2023:
https://investor-relations.snpgroup.com/en/publications/

About SNP

SNP (ticker: SHF.DE) helps companies worldwide to unlock the full potential of their data and shape their own tailored journey towards a digital future. SNP’s Data Excellence Platform CrystalBridge and the BLUEFIELD approach have set a comprehensive industry standard for restructuring and modernizing SAP systems faster and more securely while harnessing data-driven innovations in the cloud.

The company works with more than 3,000 customers of all sizes and in all industries worldwide, including 20 of the DAX40 and 103 of the Fortune 500. The SNP Group has more than 1,400 employees worldwide at over 35 locations in 15 countries. The company is headquartered in Heidelberg, Germany, and generated revenues of EUR 173.4 million in the 2022 fiscal year.

More information is available at www.snpgroup.com 

Contact SNP
Marcel Wiskow
Director lnvestor Relations
Phone: +49 6221 6425-637
Email: marcel.wiskow@snpgroup.com
presse@snpgroup.com