Alternative performance measures
SoftwareOne has defined a set of non-IFRS, or alternative, financial measures, which reflect the company’s internal approach to analysing its performance and which are also disclosed externally. These measures allow key decision makers at SoftwareOne to manage the company and make investment decisions. The company believes that such measures are also frequently used by external stakeholders such as sell-side research analysts, investors, and other interested parties to evaluate peers in the same industry.
Results overview
Link to full overview of SoftwareOne’s consolidated financial statements
Profit & loss summary
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in CHF million |
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Reported |
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Adjusted |
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2024 |
2023 |
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2024 |
2023 |
% Δ |
% Δ at CCY 3) |
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Revenue Software & Cloud Marketplace |
531.2 |
549.8 |
Adj. revenue Software & Cloud Marketplace |
532.3 |
549.7 |
–3.2 % |
–0.8 % |
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Revenue Software & Cloud Services |
484.2 |
461.5 |
Adj. revenue Software & Cloud Services |
484.6 |
461.2 |
5.1 % |
7.3 % |
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Total revenue |
1,015.4 |
1,011.3 |
Total adj. revenue |
1,017.0 |
1,010.9 |
0.6 % |
2.9 % |
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Delivery costs |
–337.2 |
–347.6 |
–3.0 % |
–1.2 % |
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Contribution margin |
679.8 |
663.3 |
2.5 % |
5.0 % |
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SG&A |
–456.5 |
–418.1 |
9.2 % |
12.4 % |
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EBITDA 1) |
116.0 |
161.7 |
Adj. EBITDA 1) |
223.4 |
245.2 |
–8.9 % |
–7.6 % |
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Depreciation, amortisation and impairment 2) |
–72.7 |
–65.9 |
Adj. depreciation, amortisation and impairment 2) |
–72.6 |
–65.9 |
10.2 % |
– |
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Earnings before net financial items and taxes |
43.3 |
95.8 |
Adj. earnings before net financial items and taxes |
150.7 |
179.3 |
–15.9 % |
– |
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Net financial items |
–11.4 |
–33.3 |
Adj. net financial items |
–31.1 |
–24.4 |
27.3 % |
– |
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Earnings before tax |
31.9 |
62.5 |
Adj. earnings before tax |
119.7 |
154.9 |
–22.7 % |
– |
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Income tax expense |
–33.6 |
–41.0 |
Adj. income tax expense |
–46.7 |
–45.3 |
3.1 % |
– |
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(Loss)/profit for the period |
–1.6 |
21.4 |
Adj. (Loss)/profit for the period |
73.0 |
109.6 |
–33.4 % |
– |
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EBITDA 1) margin (% revenue) |
11.4 % |
16.0 % |
Adj. EBITDA 1) margin (% revenue) |
22.0 % |
24.3 % |
-2.3pp |
– |
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Earnings per share (diluted) |
–0.01 |
0.14 |
Adj. earnings per share (diluted) |
0.47 |
0.70 |
–32.6 % |
– |
1) Earnings before net financial items, taxes, depreciation and amortisation
2) Includes PPA amortisation (including impairments, if applicable) of CHF 14.0 million and CHF 14.5 million in 2024 and 2023, respectively
3) Constant currency growth rate calculated on adjusted figures
Adjustments
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in CHF million |
2024 |
2023 |
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Total revenue |
1,015.4 |
1,011.3 |
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Adjustment details - Total revenue |
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Revenue recognition adjustment IFRS 15 |
–0.6 |
–0.2 |
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Discontinuation of MTWO vertical |
2.1 |
–0.1 |
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Total revenue adjustments |
1.6 |
–0.4 |
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Total adj. Revenue |
1,017.0 |
1,010.9 |
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Earnings before net financial items, taxes, depreciation and amortisation |
116.0 |
161.7 |
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Adjustment details - Earnings before net financial items, taxes, depreciation and amortisation |
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Revenue recognition adjustment IFRS 15 |
–0.5 |
–0.2 |
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Integration expenses |
1.6 |
2.2 |
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M&A and earn-out expenses |
11.9 |
20.9 |
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Operational excellence restructuring expenses |
14.2 |
39.3 |
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GTM restructuring expenses |
28.2 |
– |
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Cost reduction programme |
24.0 |
– |
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Discontinuation of MTWO vertical |
7.4 |
5.7 |
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Impairment of goodwill & customer base Russia |
– |
–0.3 |
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Other non-recurring items |
14.6 |
15.9 |
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Impact of additional provision for overdue receivables 4) |
6.0 |
– |
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Total Earnings before net financial items, taxes, depreciation and amortisation adjustments |
107.3 |
83.5 |
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Adj. Earnings before net financial items, taxes, depreciation and amortisation |
223.4 |
245.2 |
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Adjustments others |
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(Appreciation) / Depreciation of financial assets |
–19.6 |
8.9 |
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Tax impact of adjustments |
–13.1 |
–4.3 |
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Total adjustments other |
–32.7 |
4.7 |
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Total adjustments |
74.6 |
88.1 |
4) Relates to overdue receivables over 180 days outstanding and under legal dispute, with success rate of collection by SoftwareOne taken down to zero
Source: Management view
Net working capital
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in CHF million |
2024 |
2023 |
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Trade receivables |
2,616.0 |
2,317.2 |
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Other receivables |
102.5 |
92.1 |
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Prepayments and contract assets |
122.1 |
117.7 |
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Trade payables |
2,568.5 |
2,290.5 |
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Other payables |
237.2 |
215.8 |
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Accrued expenses and contract liabilities |
187.7 |
181.6 |
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Net working capital (after Factoring) |
–152.8 |
–160.9 |
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Receivables sold under Factoring |
151.7 |
192.7 |
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Net working capital (before Factoring) |
–1.1 |
31.7 |
Net debt / (cash)
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in CHF million |
2024 |
2023 |
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Cash and cash equivalents |
271.3 |
267.4 |
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Current financial assets |
62.4 |
43.9 |
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Total financial assets |
333.7 |
311.2 |
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Bank overdrafts |
4.8 |
0.4 |
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Other current financial liabilities |
316.0 |
121.2 |
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Other non-current financial liabilities |
3.0 |
3.4 |
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Total financial assets |
323.9 |
124.9 |
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Net debt / (cash) |
–9.8 |
–186.3 |
Non-IFRS financial measures and group key performance indicators (KPIs)
The group presents non-IFRS financial measures used by management to monitor the company’s performance, which may be helpful for external stakeholders in evaluating SoftwareOne’s financial results compared to industry peers. They include the following:
Adjusted EBITDA is defined as the underlying earnings before net financial items, tax, depreciation, and amortisation, adjusted for items affecting comparability in operating expenses.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.
Adjusted profit for the period is defined as the (loss)/profit for the period, adjusted for items impacting comparability in operating expenses and net finance income/(expenses) as well as the related tax impact.
Contribution margin is defined as total revenue net of third-party service delivery costs and directly attributable internal delivery costs.
Growth at constant currencies is defined as the change between two periods presented on a constant currency basis for comparability purposes and to assess the group’s underlying performance. Period profit and loss figures are translated from the subsidiaries’ respective local currencies into Swiss francs at the applicable average exchange rate of the prior year period. This calculation is based on the underlying management accounts.
Net debt/(cash) comprises group bank overdrafts, other current and non-current financial liabilities less cash and cash equivalents and current financial assets.
Net working capital is defined as the group’s trade receivables, current other receivables, prepayments and contract assets minus trade payables, current other payables and accrued expenses and contract liabilities.
Exchange rates
The table below shows the development of the Swiss franc, SoftwareOne’s reporting currency, against major currencies. In addition, the charts provide an overview of the currency breakdowns, including currencies which had the biggest impact on revenues and operating expenses during 2024. Related calculations are based on underlying management accounts and may slightly differ from exchange rates shown in the Consolidated financial statements.
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CHF to LCY |
2024 |
2023 |
% change |
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EUR |
1.05 |
1.03 |
2.0 % |
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USD |
1.14 |
1.11 |
2.4 % |
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CHF |
1.00 |
1.00 |
0.0 % |
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GBP |
0.89 |
0.90 |
–0.9 % |
FX exposure
