News 3 mins read

Software AG: On track for 2023 ambitions

On February 23, 2021, we hosted Capital Markets Day for financial analysts and investors, highlighting Software AG’s undeniable transformation momentum.

Dr. Matthias Heiden Dr. Matthias Heiden

Two years ago, we started building a future of sustainable, profitable growth for Software AG; today that future is within our reach.

Although 2020 had its challenges, the momentum we have achieved is undeniable. Entering the third year of our Helix transformation program, Software AG is faster, fitter, and more agile than ever.

Not only are we on track for 2023, the faster-than-expected pace of our customers to subscription adoption – along with the competitive strength of our products – means we have a unique opportunity to win in the upcoming $28 billion marketplace.

This momentum has been delivered by a highly engaged team, a re-energized go-to-market organization, and a relevant, cloud-enabled product set – plus a growing and increasingly active partner channel.

So, on February 23, 2021, we hosted a very special Capital Markets Day event for financial analysts and investors. There we provided details on Software AG’s transformation progress so far, and its current strengths, along with five strategic priorities for 2021 to accelerate transformation:

  • Drive product innovation in the integration and API and IoT and analytics product areas
  • Enable productivity gains by ensuring teams have access to tools that enable them to operate even more effectively, making a positive contribution to the company’s operating margin
  • Maintain shift to subscription pace with customer success initiatives ultimately derive greater customer lifetime value from existing and new customer relationships
  • Accelerate culture change by working toward a common purpose: to connect technology and people for a smarter tomorrow
  • Unlock additional growth through M&A by strengthening our position in existing and new growth markets  
  • Clarity on our 2023 ambitions, including financial modelling and an updated reporting structure.

Momentum, Consistency and Conviction

Our fantastic people have made many changes in how we operate, how we sell, and how we work together – which combines to give us real momentum. Not only are we on track for 2023, we are also seeing an acceleration in the digital transformation markets we serve.

Within that $28 billion total available market, the integration & API market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10% to $13.5 billion by 2024; the IoT & analytics market at 26% to $9.8 billion by 2024; and the business process transformation market at 10% percent to reach $4.9 billion by 2024.

To advance progress in some of these areas, Software AG will bring forward to 2021 certain investments originally planned for future years. These investments, particularly in our subscription transformation, will power our ability to drive and grow the higher quality, more predictable revenue streams we are beginning to generate.

By fulfilling our purpose, connecting people and technology for a smarter tomorrow, we are building a clear connection with the original purpose of Helix: Sustainable profitability. We are thrilled to say that we are on track to accelerate our journey to a sustainable, profitable future for Software AG.

To hear more about Capital Markets Day 2021 and see presentations from our Board, please watch the replay below. 

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