Serviceware SE: Serviceware SE remains on a successful course with a record half-year and the best Q2 in the company's history

Idstein (pta007/26.07.2024/08:00 UTC+2)

Serviceware SE remains on a successful course with a record half-year and the best Q2 in the company's history

• SaaS/Service sales revenues increase by 22.2 percent to a record level of EUR 32.8 million during the first half of 2023/2024
• Total sales revenues increase by 10.2 percent to a record level of EUR 50.3 million
• EBITDA after six months at EUR 1.6 million after previously EUR -1.2 million
• Operating cash flow turns around from EUR -2.3 million to EUR +9.3 million
• Order backlog rises by 35.3 percent to a record EUR 75.0 million
• Use of AI in Serviceware ESM platform expanded as planned
• Annual forecast confirmed

Idstein, 26 July 2024 Serviceware SE ("Serviceware", ISIN DE000A2G8X31) has continued its high growth momentum and achieved records in total sales revenues and SaaS/Service revenues both during the first half-year 2023/2024 and in the second quarter. The record highs in the company's 26-year history go hand in hand with the expansion of Serviceware's ESM platform, national and international successes in the operating business and the comprehensive integration of Artificial Intelligence in almost all business processes and products. The record level of total sales revenues is all the more significant as it was achieved despite the transformation from one-off licence billing to an SaaS business model. The new all-time highs in SaaS/Service sales revenues and their share in total revenues underpin the positive development. The order backlog also set a new record.

Total sales revenues rose by 10.2 percent from EUR 45.7 million to EUR 50.3 million during the first six months. The second quarter was the strongest quarter in the history of Serviceware with sales revenues of EUR 25.4 million (prior year: EUR 23.7 million). In the SaaS/Service segment, the increase in sales during the first half of the year was once again disproportionately high at 22.2 percent to EUR 32.8 million (prior year: EUR 26.8 million). In Q2, SaaS/Service sales revenues also rose to a new record of EUR 16.8 million (prior year: EUR 13.6 million). During the first half of the year, SaaS/Service revenues accounted for 65.1 percent of total sales revenues, up from 58.7 percent. Profitability also improved significantly during the first half of the year. The EBITDA turned around from EUR -1.2 million to EUR +1.6 million. At EUR 9.3 million (prior year: EUR -2.3 million), the operating cash flow was at an excellent level as well. Serviceware's order backlog, which consists of residual values of current SaaS and maintenance contracts and thus reflects already fixed sales revenues for future periods, increased by 35.3 percent to a record EUR 75.0 million since the end of fiscal 2022/2023 (November 2023). After a strong first half-year, Serviceware confirms the forecast for the full year. In terms of sales revenues, Serviceware anticipates an increase of between 5 and 15 percent compared to the previous year. Serviceware expects a further significant improvement in EBIT and EBITDA.

Serviceware has expanded the ESM platform, with which the company has a strong offering for all services, with releases for almost all ESM modules. The platform is in particular being expanded to include new applications and tools with Artificial Intelligence. Serviceware continues to consistently implement its AI First strategy to make the ESM platform AI-native. Shortly after the end of the reporting period, in June 2024, the company presented the new "AI Process Engine", with which it is revolutionising the automation of service processes.

Serviceware was also successful in its internationalisation strategy. In North America, its market position was strengthened through a partnership in the area of IT financial management with the Maryville Consulting Group, a leading consulting company specialising in technology and innovation management. Serviceware also stepped up its growth in Asia, where it gained its first major customer, a Fortune Global 500 company. The demand for software solutions from Serviceware remains at a high level. The company succeeded in realising a large number of projects with existing and new customers. Among others, a leading European energy company opted for the AI-supported knowledge management solution from Serviceware and a Fortune 150 company from the logistics sector decided in favour of the ESM platform with the Serviceware Financial and Serviceware Performance modules.

Dirk Martin, CEO at Serviceware: "Our first half-year was characterised by several records. The transformation to the SaaS business model is progressing dynamically and we also managed to achieve all-time highs in total sales revenues. All of this is accompanied by a significant improvement in profitability and a high positive operating cash flow. Our strong financial figures are the result of our holistic platform strategy with a strong focus on Artificial Intelligence. AI is the game changer in the automation of service processes. We recognised this development early on, which is one of the reasons why we are now a global leader in this field. We are also making very good progress with our internationalisation strategy and are winning over companies worldwide with our innovative software solutions. We are very confident about our development during the current fiscal year and beyond. We confirm our conservative forecast for the full year once again today."

The Interim Financial Report 2023/2024 is available for downloading on the website of Serviceware www.serviceware-se.com in the "Investor Relations" section.

About Serviceware

Serviceware is a 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 more than 450 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)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Stuttgart, Tradegate