Axway: Robust Q3 Growth with Organic Growth at +7.6% of Revenue

Paris - 27 October 2016

Revenue grew by a total of 7.8% over the first nine months

Axway (Paris:AXW) announces Q3 2016 revenue of €71.9 million, reflecting total growth of 9.2%. This performance is based on strong organic growth in Licenses (+15.2%), supplemented by solid growth in Maintenance and Services.

Over the first nine months of 2016, revenue totalled €216.6 million, a 6.3% increase in organic growth. This solid performance was driven by the Americas region and the strong growth in digital solutions.

Comments on activity

Revenue by business line (€M)

3rd Quarter 2016 

2015
Reported

 

2015
Restated

 

Total
Growth

 

Organic
Growth 1

     
Licenses 16.8 14.8 14.6 13.5% 15.2%
Maintenance 35.7 34.4 34.0 3.7% 4.8%
Services 19.4 16.7 18.2 16.6% 6.8%
Axway 71.9 65.9 66.8 9.2% 7.6%
Year to Date 9 Months 2016

 

2015
Reported

 

2015
Restated

 

Total
Growth

 

Organic
Growth 1

     
Licenses 54.3 49.0 48.5 10.7% 11.8%
Maintenance 105.8 102.4 101.5 3.3% 4.2%
Services 56.5 49.5 53.7 14.1% 5.2%
Axway 216.6 200.9 203.7 7.8% 6.3%

(1) At constant exchange rates and scope of consolidation
(2) Alternative performance indicators are defined in the glossary provided at the end of this document.

The robust Q3 growth was due to the excellent performance in Licenses (+15.2%), particularly in the Americas region. By type of offering, sales of digital solutions were particularly strong, with growth exceeding 40%.

Q3 growth by geographical area was driven by the Americas, Germany and the United Kingdom. France is continuing its transformation and expects its operations to stabilize during Q4 2016.

Revenue by geographical zone (€M)

3rd Quarter 2016 

2015
Reported

 

2015
Restated

 

Total
Growth

 

Organic
Growth 1

     
France 19.3 20.5 20.5 -6.1% -6.1%
Rest of Europe 17.6 16.1 15.4 9.3% 13.8%
Americas 31.7 26.1 27.7 21.4% 14.5%
Asia/Pacific 3.3 3.1 3.2 6.5% 5.0%
Axway 71.9 65.9 66.8 9.2% 7.6%
Year to Date 9 Months 2016 

2015
Reported

 

2015
Restated

 

Total
Growth

 

Organic
Growth 1

     
France 63.2 68.0 68.0 -7.1% -7.1%
Rest of Europe 49.4 47.6 46.6 3.7% 6.0%
Americas 93.2 75.7 79.8 23.1% 16.8%
Asia/Pacific 10.8 9.6 9.3 12.3% 15.0%
Axway 216.6 200.9 203.7 7.8% 6.3%

(1) At constant exchange rates and scope of consolidation

Over the first cumulative nine months of 2016, the Americas region represented 43% of the Group's business and recorded growth in excess of 16% compared to the first three quarters of 2015. Growth in Maintenance (49% of the Group's operations over the first nine months of the year) increased during Q3 compared with H1. The same held true for Services, which showed strong growth in Cloud operations (more than 35% over the course of Q3).

Financial position

Axway’s financial position remains robust. The company's cash position at the end of 2016 is forecast to be between €45 million and €50 million, with bank borrowing at approximately €30 million at the same date, excluding the impact of any changes in scope.

Prospects

The strong overall performance since the beginning of the year (and even more so during this period) bears witness to the successful execution of Axway's strategy to support its customers in their digital transformation. Q4 remains very important in terms of Licenses. At this stage, current commercial portfolio activity is encouraging and allows a positive outlook.

Financial Calendar

Wednesday 22 February 2017: Press Release on Axway's Full-Year 2016 Results
Thursday 23 February 2017: Conference on Axway's Full-Year 2016 Results

Glossary

Restated: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year.

Organic growth of revenue: Growth of operations between revenue for the period and the reprocessed revenue data for the same period of the preceding fiscal year.

Axway (Euronext: AXW.PA) empowers more than 11,000 customers worldwide to collaborate smarter, innovate faster and engage better with their partners, developers and customers. From integration technology that securely connects people, processes and things to an engagement platform that enables API management, identity management, mobile app development and analytics, Axway solutions are enabling digital business. Axway is registered in France with headquarters in the United States. 

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