In This Article:
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SoftwareONE Holding AG (SWONF) delivered CHF11.4 billion in gross billings and over CHF1 billion in revenue for 2024, with an adjusted ABTA of CHF223 million.
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The company has successfully implemented a cost reduction program, achieving CHF58 million in annualized savings, exceeding the original target.
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The announced combination with Crayon is expected to create significant value, with cost synergies estimated between CHF80 to CHF100 million.
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APEC region showed strong performance with nearly 16% growth for the year, driven by Microsoft and AWS business expansion.
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The company has renewed strategic partnerships, including a significant agreement with ServiceNow and recognition as AWS Global Nonprofit Consulting Partner of the Year.
Negative Points
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Q4 2024 was challenging with a 5.1% decline in revenue, attributed to a muted budget flush and rushed GTM implementation in key markets.
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The adjusted ABTA margin decreased by 2.3 percentage points to 22%, reflecting lower growth and macroeconomic challenges.
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Marketplace revenue declined by 0.8% for the full year due to sales execution issues and external macro conditions.
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The company faced headwinds from changes in Microsoft incentives, impacting revenue growth by 2 to 3%.
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There were significant organizational changes, including redundancies and external advisory costs, leading to CHF107.3 million in adjustments for 2024.
Q & A Highlights
Q: Can you provide any details about the successor to the CFO, and how will free cash flow develop this year?A: The successor will be external, and more details will be shared in the coming weeks. We expect a smooth transition. Regarding free cash flow, with reduced restructuring charges and improved working capital management, we anticipate positive cash flow generation in 2025. (Rodolfo Savitsky, CFO)
Q: Can you elaborate on the co-pilot progress in Q4 and expectations for 2025?A: In Q4, we added 67,000 co-pilot users, but saw a natural slowdown in adoption. We expect continuous growth in 2025, though not at a hyper-growth rate. Q1 volumes are typically lower than Q4, so we don't anticipate an increase in Q1. (Rafael Es, CEO)
Q: What are the expected synergies from the Crayon combination, and what is the CapEx outlook for 2025?A: The expected cost synergies from the Crayon combination are between CHF 80 to 100 million. For CapEx, we anticipate a modest reduction over the coming years, focusing on efficiency and automation investments. (Rafael Es, CEO and Rodolfo Savitsky, CFO)