Atoss Software: Margin lever pulled harder than expected; guidance upgraded; chg. - NuWays AG Research
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Atoss Software: Margin lever pulled harder than expected; guidance upgraded; chg. - NuWays AG Research

ATOSS released Q3 figures on Friday that were mixed on sales but outstanding on profitability. The EBIT margin guidance upgrade we had flagged as a real option in our preview materialised, but the step was larger than we and eCons expected. In detail:

Q3 sales grew 11.3% yoy to € 52.6m (eNuW: € 53.3m). Cloud & Subscriptions kept its strong pace, up 26% yoy to € 29.5m (eNuW: +25%). The shortfall came from the non-recurring side. Perpetual licence sales halved yoy to € 0.9m, while consulting stayed flat at € 10.2m. As a result, the recurring share rose further to c. 74%. Underlying KPIs remain solid: Cloud ARR grew 25% yoy to € 119m and net retention stood at 112% (ASES: 116%). Order momentum, however, slowed against a strong comparable base as growth in Cloud & Subscription order backlog decelerated to 8% yoy (H1: 14%). FY FY27, management eyes for new ACV growth of 3-7%.
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