Atoss Software: Strong Q2 order momentum creates strong visibility; chg. - NuWays AG Research
Friday's Q2/H1 figures once again underlined the strength of ATOSS' recurring revenue engine, while management also provided confidence into FY27e backed by buoyant Q2 order intake.
ANNONS
Q2 sales increased 13.0% to € 51.8m (eNuW: € 51.6m), driven by continued strong momentum in Cloud & Subscriptions (+25.9% to € 28.7m; eNuW: € 28.5m). On the other hand, sales from legacy licenses continued to shrink, down 21.9% yoy, a drag that is self-inflicted and part of the ongoing cloud-shift. In fact, perpetual license sales now account for barely 2% of quarterly sales. Accordingly, the share of recurring revenues (Cloud & Subscriptions + Maintenance) is up another 2.5pp and now makes up almost 74% of total.
While the FY26 outlook remained unchanged, management upgraded the FY27 margin target, now eyeing for ≥35% (vs ≥33). Next to the order data, this is another key takeaway from the release, as it is indicates that cloud scaling and the efficiency gains from process optimisation and digitalisation are absorbing AI build-out without a dip, making this an impressive structural statement.
Overall, the print confirms the case as a high-quality compounder with strong visibility into further ARR acceleration. Reiterate BUY, PT € 134 based on DCF.
