ATOSS Software : Half-Year Report 2023

Half-year Report 2023

Letter to shareholders

ATOSS Workforce Management solutions provide companies with a suitable tool, enabling them to act compliantly, create a positive employee experience and work more transparently, efficiently and flexibly.

Andreas F.J. Obereder 

CEO | ATOSS

Letter to shareholders

Dear Shareholders,

Ladies and Gentlemen,

ATOSS Software AG remains on course for further growth and is continuing its sustained corporate success in the first half of 2023. The consistent revenues and earnings records achieved through the highly dynamic pace of growth in the cloud are clear evidence of the success and competitive strength of ATOSS and are closely aligned with the rising demands made by companies on the digitization and optimization of their processes.

Smart.New.Work.

Since its inception, ATOSS has pursued the goal of shaping the transformation of the work environment for the benefit of companies, employees and society. Today, this task is more important than ever and its significance continues to grow in companies in the face of an ever increasing shortage of specialists and workers as well as demographic changes. Against this background, it is essential for companies of every sector and size to prioritize the digitization of their HR processes to enable them to maintain their profitable position in the market. Companies can only be successful in the market if they succeed in managing the deployment of their staff with pinpoint accuracy and responding quickly, flexibly and individually to supply and demand fluctuations.

At the same time, companies face the challenge of providing their staff with a modern, attractive and more humane working environment that meets first and foremost the growing needs of the younger generation in terms of work-life balance. ATOSS Workforce Management solutions provide companies with a suitable tool, enabling them to act compliantly, create a positive employee experience and work more transparently, efficiently and flexibly.

As the technology leader, we are proud to support companies' digital transformation in the 21st century. For this reason, we are investing in the refinement of our digital workforce management solutions.

Half-year Report 2023

Growth and stability

This investment is reaping rewards - as is impressively evidenced by our revenues and earnings figures at the end of the first half of 2023. In the first six months, for example, consolidated revenues were up by a very appreciable 37 percent year-on-year to EUR 73.2 million (previous year: EUR 53.6 million). In particular, the company made significant progress in expanding its cloud business. Revenues from Cloud & Subscriptions climbed 64 percent to EUR 24.8 million (previous year: EUR 15.1 million) and now account for 34 percent of total revenues (previous year: 28 percent). The return on revenues relative to operating earnings (EBIT) as of June 30 stands at 33 percent, significantly higher than the forecast made at the start of the year of at least 27 percent for the whole of 2023.

Growth stock on the TecDAX

This growth story is also attracting attention on the capital market. For example, ATOSS Software AG was admitted to Deutsche Börse AG's TecDAX at the start of trading on May 10, 2023. This ranking positions ATOSS as one of the 30 largest companies in the technology sector by market capitalization and trading volume in the Prime Standard within the family of DAX indices. At the same time, ATOSS Software AG remains part of the SDAX. We are exceedingly delighted by this admission, not least as it represents the exchange's confirmation and recognition of our long-term corporate strategy. At the same time, however, we also see it as a strong incentive to not only continue our profitable growth in our current 18th record year in succession but also to maintain this course in future. The involvement of General Atlantic as one of the world's most successful growth equity investors offers us a major opportunity here to leverage the enormous growth potential in our market even more actively. With General Atlantic as an investor and strategic sparring partner, we will maintain our success story and secure an even more prominent position for ATOSS on the global stage within a shorter timeframe.

Reaffirmed by the outstanding business development in the first half of the year, we have raised our previous guidance for the full year 2023 and now expect total revenues of at least EUR 142 million for the current year (previously: EUR 135 million) and an EBIT margin for the year of around 30 percent (previously: at least 27 percent).

With best wishes

Letter to shareholders

We are exceedingly delighted by the admission to the TecDAX, as it represents the exchange's confirmation and recognition of our long-term corporate strategy.

Andreas F.J. Obereder 

CEO | ATOSS

Facts and figures at a glance

Economic environment

The Germany economy has weakened appreciably in recent months and is now below its pre-Covid level. In June 2023, the ifo business climate index suffered a surprisingly sharp drop to 88.5 points from

91.5 in the previous month.1 Industrial weakness, in particular, has left the German economy adrift in choppy waters. As a result, in the first half of the year, several economic research institutes lowered their forecasts for German economic growth for the current year. For example, most economic pandits are now expecting the German economy to stagnate in the current year. Economic recovery will essentially depend on developments in China. As of June 2023, the German inflation rate stands at 6.4 percent.2

By comparison with the overall economy, the digital economy continues to prove largely crisis-proof and is looking at the future with optimism. This is evidenced by surveys from Bitkom and the ifo Institute. The digital index jointly prepared by both organizations stood at 12.1 points in June 2023, thereby clearly outpacing the overall economy. Information technology, in particular, is benefiting from consistently strong growth rates. The digital association Bitkom is expecting growth in the software sector of around 9.6 percent to EUR 41.5 billion.3

The company

The positive growth in revenues and earnings in the first half of 2023 proves customers' continuing interest in professional workforce management solutions as well as ATOSS' competitive strength.

The long-term growth of the key financial indicators remains very pleasing and matches the forecasts announced by the company.

1. ifo business climate index for Germany - results of ifo's economic surveys in June 2023; June 26, 2023
   2 DESTATIS Federal Statistical Office; Press Release No. 255 dated June 29, 2023

1. Bitkom - Press Release July 5, 2023 - Digital sector shows stable growth in tough environment

Facts and figures at a glance

in EUR

• Pursuant to IAS 33.64, earnings per share (EPS) were adjusted retroactively for previous periods due to the stock split carried out in June 2020