Serviceware SE: Serviceware SE on track to achieve its annual targets after good business development during the first 9 months

Idstein (pta007/27.10.2023/08:00 UTC+2)

• Total sales revenues +9.6 percent to EUR 67.8 million
• SaaS/Service revenues increase disproportionately by 18.8 percent to EUR 41.9 million
• Positive EBITDA during the 3rd quarter of 2023
• Order backlog from SaaS contracts has grown by 78.7 percent to EUR 58.0 million since the end of fiscal 2021/2022
• Serviceware continues to push the use of Artificial Intelligence
• Annual forecast confirmed

Idstein, 27 October 2023 Serviceware SE ("Serviceware", ISIN DE000A2G8X31) has significantly increased sales revenues during the first nine months of fiscal 2022/2023, continued the transformation of its revenue structure from licensing revenues to SaaS revenues and returned to the black in terms of EBITDA during the third quarter. The successful business development is driven by the high demand for Serviceware products for digital service processes and enterprise management, which by now also extensively use Artificial Intelligence (AI).

During the first nine months, total sales revenues increased by 9.6 percent to EUR 67.8 million (prior year: EUR 61.8 million). This means that revenue growth was at the upper end of the forecast range for the full year, with revenue growth of five to ten percent. During the third quarter of 2023, revenue growth amounted to 12.5 percent. During the first nine months, revenues in the SaaS/Service segment rose clearly disproportionately compared to total sales revenues by 18.8 percent from EUR 35.2 million to EUR 41.9 million. The development continued to gain momentum here as well, with a plus of 20.4 percent during the third quarter. Serviceware also anticipates disproportionately high growth in the SaaS segment in the coming quarters. SaaS/Service sales now account for around 62 percent of total revenues, up from previously 57 percent.

The EBITDA improved noticeably during the third quarter compared to the two previous quarters and turned positive. It was reported at EUR +0.54 million in Q3 after EUR -0.41 million in the previous year. EUR 0.34 million of the EBITDA for the third quarter of 2023 were accounted for by capitalised development costs, which had to be capitalised during the reporting period in accordance with IAS 38. The measures introduced during the first half of the year to increase efficiency and productivity likewise contributed to the improvement in EBITDA. After nine months, the EBITDA stood at EUR -0.61 million, after previously EUR -0.58 million. For full year, Serviceware confirms its forecast of a revenue increase of five to ten percent with an improvement in its EBITDA.

The order backlog, including primarily the residual values of current SaaS revenues and recognised in the balance sheet under contract liabilities, reached a new high in the first nine months and amounted to EUR 58.0 million at the end of August. This corresponds to an increase of 78.7 percent since November 2022, the end of the 2021/2022 fiscal year.

Serviceware is experiencing a high demand for its software solutions and was able to acquire a large European telecommunications group as well as another DAX-listed group as customers during the reporting period. The software solutions for controlling the costs of IT and Shared Services are in particularly high demand in the current economically challenging environment. Serviceware also made progress in expanding its ESM platform. Serviceware Financial 6.5 and Serviceware Resources 8.3 were added to the platform, among others.

Serviceware has a strong market position in the integration of Artificial Intelligence into digital service processes and has maintained its own AI competence centre since 2018. During the reporting period, ChatGPT was integrated into the ESM platform. A focus in the expansion of the ESM platform will continue to be on the further integration of Artificial Intelligence in all modules and processes, as it is becoming increasingly apparent that AI is a game changer that is transforming digital service processes for the long term. With AI, the degree of automation, quality and efficiency of these processes can be significantly enhanced, and customer enquiries can be answered faster and even more precisely.

Dirk K. Martin, CEO of Serviceware: "We are satisfied with the development during the first nine months. The growth dynamics of the first two quarters gathered even more momentum during the third quarter. With our ESM platform, we are excellently positioned to support companies in the digitalisation of their processes and can revolutionise service processes for users through the use of AI. We want to further expand our market position as one of the world's leading providers of ESM and are confident about our business development this year and beyond."

The 9-month Interim Report 2022/2023 is available for downloading on the website of Serviceware www.serviceware-se.com in the "Investor Relations" section.

About Serviceware

Serviceware is a leading provider of software solutions for the digitalization and automation of service processes (Enterprise Service Management), with which companies can increase their service quality and manage their service costs efficiently.

The Serviceware Platform consists of seamlessly integrated software solutions that can also be used independently of each other. Since 2018, Serviceware has been focusing on the potential of artificial intelligence in service management. Today, AI is the central innovation factor of the Serviceware Platform, which is constantly being further developed in the company's own AI competence center in cooperation with TU Darmstadt.

Serviceware partners with customers from strategic consulting through the definition of the service strategy to the implementation of the Serviceware Platform. Further components of the portfolio are safe and reliable infrastructure solutions as well as managed services.

Serviceware has more than 1,000 customers worldwide from various business sectors, including 18 DAX companies, as well as 5 of the 7 largest German companies. The head office of Serviceware is in Idstein, Germany. Serviceware employs 500 people at 14 international locations.

For more information, please visit www.serviceware-se.com.

Media Relations
edicto GmbH
Axel Mühlhaus/Doron Kaufmann
Tel. +49(0) 69/905505-52
Email: investor-relations@serviceware-se.com

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Emitter:	Serviceware SE Serviceware-Kreisel 1 65510 Idstein Germany
Contact Person:	Investor Relations edicto GmbH
Phone:	+49 69 90550552
E-Mail:	serviceware@edicto.de
Website:	www.serviceware-se.com/de
ISIN(s):	DE000A2G8X31 (Share)
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