Serviceware SE: Serviceware SE narrows forecast for full year 2023/2024 to upper range after another record quarter

Idstein (pta006/25.10.2024/08:00 UTC+2)

• Record quarter Q3: total sales revenues +17.5 percent to EUR 25.9 million / SaaS/Service revenues +19.8 percent to EUR 18.0 million
• EBITDA doubled to EUR 1.2 million in Q3
• Total sales revenues after nine months at EUR 76.2 million (+12.5 percent) / SaaS/Service sales revenues grow disproportionately by 21.3 percent to EUR 50.8 million
• EBITDA turns around after nine months from EUR -0.6 million to EUR +2.8 million
• Use of Artificial Intelligence in ESM platform further stepped up
• Sales revenue forecast for the full year concretised at the upper end of the forecast range: Serviceware now expects sales revenue growth of between 10 and 15 percent

Idstein, 25 October 2024 Serviceware SE ("Serviceware", ISIN DE000A2G8X31) continued its very good business development during the third quarter of fiscal 2023/2024 and again achieved new record levels in total sales revenues and SaaS/Service revenues. In the third quarter, Serviceware was able to increase sales revenues by 17.5 percent to a record level of EUR 25.9 million. SaaS/Service sales revenues also grew by 19.8 percent to a new record level of EUR 18.0 million. The EBITDA improved significantly as well and, at EUR 1.2 million, was twice as high as in the same quarter of the previous year. The development over the first nine months is equally positive. Total sales revenues rose by 12.5 percent to a record level of EUR 76.2 million, meaning that revenue growth after three quarters was at the upper end of the forecast range of 5 to 15 percent for the full year. Sales revenue growth in the SaaS/Service segment was once again significantly above average at 21.3 percent to EUR 50.8 million. SaaS/Service sales revenues thus accounted for 66.6 percent of total sales revenue after nine months (prior year: around 62.0 percent). The EBITDA turned around from EUR -0.6 million to EUR +2.8 million after nine months. Contract liabilities, which represent already fixed future sales based on binding contracts, rose by 42.4% to EUR 78.9 million since the end of the 2022/2023 fiscal year.

In view of the very good business development during the first nine months, the strong market position and a foreseeable strong final quarter, Serviceware is concretising its sales revenue forecast for the full year to the upper end of the previous forecast range. Sales revenue growth of between 10 and 15 percent is now anticipated, compared to 5 to 15 percent previously. Serviceware continues to expect a significant improvement in EBIT and EBITDA compared to the previous year.

During the reporting period, Serviceware has continuously developed its innovative ESM platform further with additional releases for almost all modules and is also making good progress as planned with transforming the business model from a licence to a SaaS business model. The growth driver here is Artificial Intelligence (AI), which is already being used throughout the modules and processes of the Serviceware ESM platform. Serviceware has introduced the new AI Process Engine for creating workflows, data modelling and the design of dialogues, among other things. This process modelling software was initially released in Service Lifecycle Management in September 2024. Over the next few months, the fields of application for the AI Process Engine are to be extended to other services.

Serviceware has also pushed ahead with its international sales activities. In North America, the company has entered into a partnership with the consulting firm Maryville Consulting in the area of IT financial management. Since the partnership was finalised in May, the pipeline has been significantly expanded. The first deals from the partnership are expected in the coming weeks.

Dirk K. Martin, CEO at Serviceware: "Serviceware has had strong nine months with new record figures. The fourth quarter will also be very good. Due to our excellent development, we are concretising our previous forecast to the upper end of our forecast range. We are continuing to drive forward the transformation of our business model and expand AI in our ESM platform. We are making very good progress with our international expansion strategy. Our market position and operational development are increasingly reflected in our key financial figures. Serviceware is excellently positioned to continue its growth trajectory in the coming years."

The 9-month report 2023/2024 is available for download on the Serviceware website 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
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ISIN(s):	DE000A2G8X31 (Share)
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