SNP confirms preliminary figures for the third quarter 2024 and remains on its growth path

• Order entry increased by 24% to €74.9 million (Q3 2023: €60.2 million)
  
  
• Group revenue grew by 24% to €66.8 million (Q3 2023: €54.1 million)
  
  
• EBIT margin climbed to 12.2% (Q3 2023: 8.9%)
  
  
• Operating cash flow rose significantly to €12.8 million (Q3 2023: €7.3 million)
  
  
• EXA segment with massive improvements in revenue and earnings
  
  
• Outlook for 2024 as a whole raised for the second time  

Jens Amail, CEO of SNP, comments: “The success of our customers and partners continues to be the north star for our company. Thanks to the outstanding focus of our team on ‘winning together’ with our clients and the ecosystem, we are thrilled to report the best third quarter in our history. The current economical dynamics and the fast-paced market environment drive companies to invest in their business agility and transformation capabilities. We are thankful for the trust our customers and partners are putting into our solutions and strategy based on our software platform SNP Kyano. We are pleased with the operational progress we have made, and we remain optimistic for the balance of 2024 and beyond.”

In terms of revenue, the software business once again recorded stronger growth than the service sector: service revenue increased by 22% to € 43.5 million in the third quarter (Q3 2023: € 35.7 million). In the software business, revenue increased by 27% to € 23.3 million (Q3 2023: € 18.4 million). In the same period, the partner business generated € 24.5 million or 37% of consolidated revenue. This corresponds to growth of 46% compared to the previous year (Q3 2023: € 16.7 million).

On segment level, EXA achieved significantly above-average growth rates: Revenue increased by 104% to € 4.3 million in the third quarter (Q3 2023: € 2.2 million). In the same period, EBIT improved significantly to € 2.3 million (Q3 2023: € 0.0 million). The positive development is mainly due to the acquisition of major projects with big-name global customers.

Andreas Röderer, CFO of SNP, comments: “After the record results of the first half of the year, we are very pleased to be able to continue our growth course across all business segments. Particularly noteworthy are the strong development of our software business, the significant operational progress and our very high cash position. In view of these outstanding results, we look forward with great confidence to the continued progress of the fiscal year and achieving of our guidance that we raised once again.”

Recent Business Highlights:

• SNP expands in the Middle East: With its new location in Dubai, SNP will be able to access one of the world's fastest growing markets and create significant potential for SAP transformations.
• Rising up to the cloud: SNP has published a meta study examining the current state of SAP S/4HANA migrations. The key finding is that while companies are still facing challenges, they also see opportunities – and are increasingly relying on RISE with SAP for the migration.
• Novartis successfully completes SAP BW carve-out with SNP: SNP carried out the carve-out of the five terabyte SAP BW system containing sensitive data and enabled table-based data migration and data deletion within an SAP system using CrystalBridge Transformation.

Key figures

The following table summarizes the development of key Group figures in the third quarter of 2024:

Outlook 2024

On October 16, 2024, the Executive Board decided to once again revise its guidance for 2024. Due to the highly positive course of business in the third quarter of 2024 and the continuing market momentum, it expects that the company’s performance will once again surpass its expectations. The revenue forecast for 2024 as a whole has been revised upward to between € 240 million and € 250 million (previous forecast: € 225 million to € 240 million). Accordingly, the EBIT figure is expected to be in the range of € 21 million and € 25 million (previous guidance: € 16 million to € 20 million). The order entry forecast remains unchanged, with the book-to-bill ratio (order entry over sales revenue) envisaged to be greater than one.

The full interim statement for the third quarter of 2024 is available on our website at https://investor-relations.snpgroup.com/en/publications/.

Investor and analyst call

The investor and analyst call will take place on November 7, 2024 at 2 p.m. CEST. Interested investors and analysts can register via the following link: https://montegaconnect.de/event/qbz145y881mmunuizxeuex2etclq7h0l

As usual, a recording of the conference call will be made available one day later on SNP's website at https://investor-relations.snpgroup.com/en/publications/.

About SNP

SNP (ticker: SHF.DE) is the global technology platform leader and trusted partner for companies seeking unparalleled data-enabled transformation capabilities and business agility. SNP’s Kyano platform integrates all necessary capabilities and partner offerings to provide a comprehensive software-based experience in data migration and management. Combined with the BLUEFIELD approach, Kyano sets a comprehensive industry standard for restructuring and modernizing SAP-centric IT landscapes faster and more securely while harnessing data-driven innovations.

The company works with more than 3,000 customers of all sizes and in all industries worldwide, including 20 of the DAX 40 and 103 of the Fortune 500. The SNP Group has more than 1,500 employees worldwide at over 35 locations in 15 countries. The company is headquartered in Heidelberg, Germany, and generated revenues of EUR 203,4 million in the 2023 fiscal year.