74Software: Axway and SBS Deliver Strong 2024

• Group revenue of €461.9m in 2024, with organic growth of 4.0%
• Proforma Group revenue of €690.0m in 2024, with organic growth of 5.6%
• Axway 2024 revenue of €329.8m, with 3.4% organic growth at the top end of the guidance
• SBS 2024 proforma revenue with organic growth of 7.8% to €362.0m
• Proforma profit on operating activities up 57 basis points to 13.6% of revenue (€94.0m), with Axway stand-alone reaching an all-time high of 20.9% of revenue
• Positive ARR growth of 7.4% in Axway and 11.8% in SBS, building a strong foundation for the Group's future

PARIS--(BUSINESS WIRE)--Regulatory News:

74Software's (Paris:74SW) Board of Directors, chaired by Pierre Pasquier, today conducted an in-depth review of the consolidated and annual financial statements for the year ended December 31, 2024. Consequently, 74Software announces:

Key Income Statement Items
	2024 Proforma 12m AXW + 12m SBS		2024 IFRS Consolidated 12m AXW + 4m SBS		2023 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
TOTAL REVENUE	690.0		461.9		319.0
GROSS PROFIT	448.8	65.0%	320.2	69.3%	231.8	72.7%
PROFIT ON OPERATING ACTIVITIES	94.0	13.6%	87.7	19.0%	62.8	19.7%
OPERATING PROFIT	51.1	7.4%	61.4	13.3%	47.6	14.9%
NET PROFIT	24.6	3.6%	39.3	8.5%	35.8	11.2%
EARNINGS PER SHARE	0.85 €		1.67 €		1.71 €

Patrick Donovan, Chief Executive Officer, stated:

"In 2024, our Group achieved significant milestones, including the acquisition of most of SBS's activities, which doubled our size and expanded our expertise into banking applications. This acquisition was financed through a successful capital increase and new bank loans, reflecting strong confidence from our shareholders and financing partners. The combination of Axway and SBS led to the creation of 74Software in December, marking a new era.

Despite the potential disruption due to the transaction, the group’s core businesses both delivered strong years. The Axway business finished 2024 with record-high customer NPS, excellent employee engagement, and its most profitable year at the top of its financial targets. The SBS business also grew strongly, continued its transformation towards the software operating model, and signed the first customers for its composable, modular SaaS banking platform. In 2024 SBS saw record Customer NPS and improved profitability as planned.

74Software envisions a future of dynamic growth, driven by both organic expansion and strategic acquisitions. Our approach, rooted in disciplined management and a focused software publisher mindset, will be crucial to our success. We remain dedicated to our core mission: to be an independent enterprise software provider that consistently delivers sustainable value, built on trust, for our Customers, Employees, and Shareholders.

Finally, on a more personal note, we have communicated for a while now our mid-term ambitions of growing the group to a run rate above €500m in revenue, at a good level of profitability, to build a strong platform for the long term. This ambition is now clearly achieved. Now, I am setting my personal mid-term ambition to build 74Software to above €1 billion in revenue, highly profitable, and to carry forward the great company we are continuing to build to serve all our customers well, provide employees with a rewarding place to work and deliver value for our shareholders".

Comments on business activity in 2024

2024 was a transformative year for the Group, culminating in the creation of 74Software in December. 74Software aims to centralize support functions and services for its enterprise software brands, Axway and SBS, positioning itself as a major player in the European enterprise software market with expertise spanning data management, infrastructure and banking applications.

Since the closing of the transaction, the two businesses have continued to ensure the expected results were achieved. SBS had a dynamic first four months under its new banner, and Axway performed strongly, leading to a robust year-end for 74Software. While business teams remained focused on their respective projects, 74Software began uniting efforts to support operations and drive future organic and external growth.

The new Group achieved its annual revenue target and exceeded profitability forecasts, benefiting from the combined strengths of Axway and SBS, setting a strong momentum for 2025. Over the year, several important developments have taken place:

- In 2024, Axway achieved significant milestones, surpassing sales targets and gaining 121 new customers. The company saw exceptional growth in North America and strong multi-year renewals, particularly in API Management and B2B Integration. With its products and offers recognized by the most influential market analysts, Axway has maintained its commitment to customer excellence, achieving an NPS of 52. The year was marked by strategic initiatives to attract new customers, retain existing ones, and expand within the current customer base, all while fostering a culture of continuous improvement and innovation.

- SBS performed well during 2024 despite changes in its environment and shareholder structure following its sale. Before the sale, SBS's service-focused business (around 20% of its business activities, including more than 1000 employees) was transferred to Sopra Steria. The business in scope of the transaction continued to advance the software-as-a-service (SaaS) transformation started in 2021, focusing its investments on its composable, modular banking platform. The first three customers were signed for this market-leading offer, with over 20 rolling out its first single component around instant payments in 2024. Overall, SBS added 24 new clients in 2024, ending the year with over 700 customers.

Comments on operational performance in 2024 (proforma basis)

Revenue Breakdown by Portfolio Company
	2024 Proforma	2023 Proforma	2023 Restated	Total Growth	Organic Growth
€m / %
Axway Scope (12 Months)	329.8	319.0	319.0	3.4%	3.4%
SBS Scope (12 Months)	362.0	333.9	335.7	8.4%	7.8%
Consolidation	-1.7	-1.5	-1.5
74Software	690.0	651.4	653.2	5.9%	5.6%

In 2024, 74Software's proforma revenue reached €690.0m, with 5.6% organic growth and a 5.9% overall increase from 2023. The annual organic growth was 3.4% for Axway and 7.8% for SBS.

Revenue Breakdown by Type
	2024 Proforma	2023 Proforma	2023 Restated	Total Growth	Organic Growth
€m / %
Product revenue	544.1	517.4	518.7	5.2%	4.9%
Recurring revenue	496.8	464.3	465.5	7.0%	6.7%
o/w Maintenance & Support	194.8	218.4	218.8	-10.8%	-11.0%
o/w Customer-managed Subscription	183.4	143.7	143.7	27.6%	27.6%
o/w Own-managed Subscription	118.6	102.2	103.0	16.1%	15.2%
License revenue	47.3	53.1	53.3	-10.9%	-11.2%
Services revenue	146.0	134.1	134.5	8.9%	8.5%
Total revenue	690.0	651.4	653.2	5.9%	5.6%

Product revenue saw an organic increase of 4.9%, driven by both Axway (+4.0%) and SBS (+5.9%), highlighting the robust demand for the Group’s software products. In line with 74Software’s strategy, license revenue as well as maintenance & support revenue continue to drop, whilst customer- and own-managed subscriptions increase strongly. Product revenues accounted for 79% of total revenues, with most of it being recurring revenue (91% of product revenue).

Axway’s product revenue continues to shift from maintenance and support revenues (-21.3%) towards both customer-managed and Axway-managed subscriptions, propelled by the transition to a subscription-based business model. Customer-managed and Axway-managed subscriptions grew by 17.3% and 9.3%, respectively. Within customer-managed subscriptions, the upfront revenue recognized under IFRS rules amounted to €104.8m.

SBS’s product revenue experienced strong organic revenue growth (+7.8%) but noted a marked drop in License revenue (-17.8%) as the focus shifted to customer- or SBS-managed offerings for new business, which surged by 325.3% and 20.3%, respectively. The growth in these revenue lines primarily stems from new offerings to both existing and new clients. Within customer-managed subscriptions, the upfront revenue recognized under IFRS rules amounted to €9.0m.

Services revenue increased by 8.5%, driven by SBS, and constituted 21% of total revenue. While Axway’s service revenue decreased by 1.9%, making up 11% of Axway’s revenues, SBS’s service revenue stood at €110.2m, representing 30% of SBS’s revenues. This reflects the difference in business models between Axway and SBS, as well as the more complex and less standardized implementation projects required for banking applications compared to more technical infrastructure software.

ARR, a key indicator for Axway and SBS, is calculated according to slightly different methodologies in the two companies (see definitions). Axway ARR grew by 7.4% to €246m at the end of 2024, while SBS's ARR rose by 11.8% to €225m, due to strong demand for both companies' offerings.

Comments on product line performance

Axway, a prominent player in application infrastructure and middleware, achieved significant milestones in 2024 as outlined in the key portfolio highlights below:

- Managed File Transfer experienced exceptional growth over 2023, particularly in North America. A major new customer transitioned from an important competitor in the largest deal of the year, highlighting the competitiveness of Axway's cloud offerings. Additionally, MFT was named a Leader in its category in the Winter 2024 reports released by G2.

- API Management outperformed other product lines in booking amount, driven by several multi-year renewals with substantial upsell due to API volume growth. Amplify Integration saw robust growth, with 33 new customers, particularly in EMEA. Moreover, Axway was positioned as a Leader in The Forrester Wave™: API Management Software, Q3 2024, and recognized for the 9^th time in its history in the 2024 Gartner Magic Quadrant™ for API Management.

- B2B Integration had an impressive year, marked by successful migrations and renewals. A significant five-year deal underscored the robustness of Axway's B2B solutions, highlighting its essential role in customers' digital transformation efforts. In addition, Axway was positioned as a Leader in the IDC MarketScape: Worldwide Business-to-Business Middleware 2024 Vendor Assessment and named a Leader in its category in the Winter 2024 reports released by G2.

- Specialized Products, including Axway’s Financial Accounting Hub (AFAH), continued to push the transition to subscription models and continued expansion with key clients and partners.

SBS, is a leading player in banking and financing software, serving over 700 financial institutions, with more than 1500 entities using SBS’ products. The brand’s software solutions cater to retail banks, corporate banks, microfinance institutions, payment or credit factories, and specialized finance institutions (e.g., auto captive). SBS won various accolades in 2024, for example as a Leader in the Quadrant®: Global Retail Core Banking 2024 report and was named a Contender in the Forrester Wave™ Digital Banking Processing Platforms 2024 report. More specifically, during the year:

- Financing Products saw strong demand from the auto finance offering, with an especially important new client, which is one of the largest North American groups in floor plan financing for car dealerships, on the SBS Digital Audit solution. The UK mortgage market also continued to expand with strong demand for SaaS offerings, anticipating an extended scope to new banking services.

- Modular Products, the latest addition to SBS's portfolio, was impressively embraced by customers, particularly in core banking, digital engagement, and regulatory reporting. The ongoing overhaul of banks' legacy systems fueled the demand for these cutting-edge products throughout the year.

- Integrated Products contracted slightly mainly due to reduced service revenues from SBS’ core banking product in the Benelux market, where a major customer project was successfully wrapped up. At the same time, SBS adeptly positioned its new modular offerings, securing several new contracts in the region. This strategic shift prompted customers to pivot from integrated products to the modular product line in a progressive transformation journey, securing long-term relationships.

- Banking components demonstrated solid growth, driven by Tier 1 banks in France and in North Africa with the willingness to combine best of breed components on cards, payments (including the new European Payment initiative) and lending (individuals and SMEs). These components effectively met the sophisticated needs of discerning bank customers.

Comments on 2024 profit on operating activities (proforma basis)

Profit on Operating Activities - Group
	2024 Proforma 12m AXW + 12m SBS		2023 Proforma 12m AXW + 12m SBS		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	544.1	78.8%	517.4	79.4%	+ 26.7	- 58
Services revenue	146.0	21.2%	134.1	20.6%	+ 11.9	+ 58
Total revenue	690.0		651.4		+ 38.6
Total costs of revenue	241.3		227.2		+ 14.1
GROSS PROFIT	448.8	65.0%	424.2	65.1%	+ 24.5	- 10
Operating expenses	354.7	51.4%	339.2	52.1%	+ 15.5	- 66
o/w research & development	174.9	25.4%	163.8	25.1%	+ 11.1	+ 20
o/w sales & marketing	120.4	17.4%	118.5	18.2%	+ 1.8	- 75
o/w general & administrative	59.4	8.6%	56.8	8.7%	+ 2.6	- 11
PROFIT ON OPERATING ACTIVITIES	94.0	13.6%	85.1	13.1%	+ 9.0	+ 57
Product gross profit	420.4	77.3%	402.5	77.8%	+ 17.8	- 54
Services gross profit	28.4	19.4%	21.7	16.2%	+ 6.7	+ 324

Proforma profit on operating activities increased to €94.0m for the year, representing an operating margin on business activity of 13.6% of revenue, compared to 13.1% in 2023.

A slight reduction in the gross margin was more than offset by good cost control on operating expenses. Product margin came in at 77.3%, a slight drop from 77.8% in 2023, whilst services margin increased strongly from 16.2% to 19.4% of revenue. Both Axway and SBS contributed to the increase in margin on operating activities.

Comments on 2024 net profit (proforma basis)

Proforma profit from recurring operations was €68.7m in 2024, or 10.0% of revenue. It includes amortization of allocated intangible assets of €19.6m and a share-based payment expense of €5.8m.

After accounting for other operating income and expenses, which include restructuring costs of €12.9m, exceptional costs related to Axway’s acquisition of SBS amounting to €2.8m and various smaller non-recurring items, the proforma operating profit for the year stood at €51.1m or 7.4% of revenue.

Proforma net profit for the year was €24.6m, representing 3.6% of revenue. Proforma basic earnings per share were €0.85.

Financial position on December 31, 2024

As of December 31, 2024, 74Software's financial position was healthy, with cash reserves of €41.4m and net debt of €250.3m (before IFRS16). This resulted in a leverage ratio of 2.87x and a gearing ratio of 0.47x, comfortably meeting our bank debt covenant ratios.

The consolidated group financials, which incorporate SBS for 4 months in 2024, show a net change in cash position of the Group of €23.9m, resulting from an operating cashflow of €31.7m, a cashflow from investing activities of -€312.9m (reflecting the acquisition of SBS) and a cashflow from financing activities of €304.7m (resulting from net proceeds from the capital increase of €128.3m and new bank financing of €195.1m). Unlevered free cashflow, which excludes exceptional items and net interest expenses, came in at €26.3m or 5.7% of revenues.

Shareholders' equity stood at €532.4m on December 31, 2024, compared to €346.3m at the end of 2023.

Change in the workforce

On December 31, 2024, the 74Software Group increased its workforce significantly with the acquisition of SBS to 4,787 employees compared to 1,465 in Axway standalone on December 31, 2023.

Targets & Ambitions

In 2025, 74Software will focus on expanding its global platform and supporting its portfolio companies, Axway and SBS, to grow the brands in their respective markets. Axway will continue to increase its subscription-based revenues while further transforming its maintenance revenues. SBS will advance its transformation into a pure software model, with a higher contribution from SBS-managed offerings and a reduced reliance on service revenues. Free cash flow will be utilized to reduce leverage.

As part of the 2024 capital raise, the Group had already provided its 2025 guidance, aiming for revenue growth between 2% and 4%. 74Software targets around €700 million in revenue and a margin from operating activities of between 14% (€100 million) and 16%.

The company confirms these targets and its ambitions for unlevered free cash flow of around 10% of revenues, with a leverage ratio below 2x.

By 2027, at the same scope, 74Software ambitions to achieve revenue above €750m and a margin on operating activities of more than 17%. By 2028, the Group is aiming for a margin on operating activities at around 20% of revenue.

Today, Wednesday, February 26, 2025, 6.30 p.m. (UTC+1):

2024 FULL-YEAR RESULTS - VIRTUAL ANALYST CONFERENCE

Register here or join by phone by dialing one of the numbers below:

• France: [phone]
• USA: [phone]
• International: [phone]

Please note that the meeting will be held in English.

Financial Calendar

Monday, March 24, 2025: Filing of the 2024 Universal Registration Document
Thursday, April 24, 2025, before market opening: Publication of Q1 2025 Revenue
Tuesday, May 20, 2025, 2:30 p.m. (UTC+2): Annual Shareholders' Meeting

About 74Software

74Software is an enterprise software group founded through the combination of Axway and SBS – independently operated leaders with unique experience and capabilities to deliver mission-critical software for a data driven world. A pioneer in enterprise integration solutions for 25 years, Axway supports major brands and government agencies around the globe with its core line of MFT, B2B, API, and Financial Accounting Hub products. SBS empowers banks and financial institutions to reimagine tomorrow's digital experiences with a composable cloud-based architecture that enables deposits, lending, compliance, payments, consumer, and asset finance services and operations to be deployed worldwide. 74Software serves more than 11,000 companies, including over 1,500 financial service customers. To learn more, visit 74Software.com

Appendices (1/6)

Income Statement
	2024 Proforma 12m AXW + 12m SBS		2024 IFRS Consolidated 12m AXW + 4m SBS		2023 Reported Axway Standalone
	€m	% of Rev.	€m	% of Rev.	€m	% of Rev.
TOTAL REVENUE	690.0		461.9		319.0
Total costs of revenue	241.3		141.7		87.2
GROSS PROFIT	448.8	65.0%	320.2	69.3%	231.7	72.6%
Operating expenses	354.7		233.1		168.9
PROFIT ON OPERATING ACTIVITIES	94.0	13.6%	87.7	19.0%	62.8	19.7%
Share-based expenses	-5.8		-6.1		-4.2
Amortization of allocated intangibles	-19.6		-8.6		-3.2
PROFIT FROM RECURRING OPERATIONS	68.7	10.0%	73.0	15.8%	55.4	17.4%
Other operating income and expenses	-17.7		-11.7		-7.9
OPERATING PROFIT	51.1	7.4%	61.4	13.3%	47.6	14.9%
Cost of financial debt	-18.3		-10.2		-4.6
Other financial income and expenses	-5.9		-4.6		-0.2
Income tax expenses	-2.2		-7.4		-7.0
NET PROFIT	24.6	3.6%	39.3	8.5%	35.8	11.2%
Earnings per share	0.85 €		1.67 €		1.71 €

Profit on Operating Activities - Group
	2024 Proforma 12m AXW + 12m SBS		2023 Proforma 12m AXW + 12m SBS		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	544.1	78.8%	517.4	79.4%	+ 26.7	- 58
Services revenue	146.0	21.2%	134.1	20.6%	+ 11.9	+ 58
Total revenue	690.0		651.4		+ 38.6
Total costs of revenue	241.3		227.2		+ 14.1
GROSS PROFIT	448.8	65.0%	424.2	65.1%	+ 24.5	- 10
Operating expenses	354.7	51.4%	339.2	52.1%	+ 15.5	- 66
o/w research & development	174.9	25.4%	163.8	25.1%	+ 11.1	+ 20
o/w sales & marketing	120.4	17.4%	118.5	18.2%	+ 1.8	- 75
o/w general & administrative	59.4	8.6%	56.8	8.7%	+ 2.6	- 11
PROFIT ON OPERATING ACTIVITIES	94.0	13.6%	85.1	13.1%	+ 9.0	+ 57
Product gross profit	420.4	77.3%	402.5	77.8%	+ 17.8	- 54
Services gross profit	28.4	19.4%	21.7	16.2%	+ 6.7	+ 324
Net capitalization of R&D	19.4	2.8%	23.2	3.6%	-3.8	-75
in % of gross R&D	10.0%		12.4%		-2.4%

Appendices (2/6)

Profit on Operating Activities - Axway Standalone
	2024 Axway		2023 Reported Axway		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	293.9	89.1%	282.4	88.5%	+ 11.5	+ 61
Services revenue	35.8	10.9%	36.5	11.4%	- 0.7	- 58
Total revenue	329.8		319.0		+ 10.8
Total costs of revenue	88.0		87.2		+ 0.8
GROSS PROFIT	241.8	73.3%	231.8	72.7%	+ 10.0	+ 66
Operating expenses	172.8	52.4%	168.9	52.9%	+ 3.9	- 54
o/w research & development	61.2	18.6%	60.1	18.8%	+ 1.1	- 29
o/w sales & marketing	82.4	25.0%	81.6	25.6%	+ 0.8	- 59
o/w general & administrative	29.2	8.9%	27.2	8.5%	+ 2.0	+ 33
PROFIT ON OPERATING ACTIVITIES	69.0	20.9%	62.8	19.7%	+ 6.2	+ 123
Product gross profit	240.8	81.9%	230.1	81.5%	+ 10.7	+ 44
Services gross profit	1.0	2.8%	1.6	4.4%	- 0.6	- 163

Profit on Operating Activities- SBS Standalone
	2024 Proforma 12M SBS		2023 Proforma 12M SBS		Change
	€m	% of Rev.	€m	% of Rev.	€m	Basis Points
Product revenue	251.7	69.5%	236.4	70.8%	+ 15.4	- 124
Services revenue	110.2	30.5%	97.5	29.2%	+ 12.7	+ 124
Total revenue	362.0		333.9		+ 28.0
Total costs of revenue	155.0		141.5		+ 13.5
GROSS PROFIT	207.0	57.2%	192.4	57.6%	+ 14.5	- 45
Operating expenses	181.9	50.3%	170.3	51.0%	+ 11.6	- 74
o/w research & development	113.7	31.4%	103.7	31.1%	+ 10.0	+ 36
o/w sales & marketing	38.0	10.5%	36.9	11.1%	+ 1.0	- 58
o/w general & administrative	30.2	8.3%	29.6	8.9%	+ 0.6	- 53
PROFIT ON OPERATING ACTIVITIES	25.1	6.9%	22.2	6.6%	+ 2.9	+ 29
Product gross profit	179.6	71.3%	172.3	72.9%	+ 7.3	- 156
Services gross profit	27.4	24.9%	20.1	20.6%	+ 7.3	+ 424

Quarterly Revenue Breakdown by Portfolio Company
	Q1	Q2	Q3	Q4	2024 Proforma
€m
Axway Scope (12 Months)	76.9	71.7	78.3	102.8	329.8
SBS Scope (12 Months)	82.4	92.8	87.5	99.3	362.0
Consolidation					-1.7
74Software	159.3	164.5	165.8	202.1	690.0

Appendices (3/6)

Quarterly Revenue Breakdown by Type
	Q1	Q2	Q3	Q4	2024 Proforma
€m / %
Product revenue	121.9	126.9	130.9	166.1	545.7
Recurring revenue	116.3	113.0	121.1	148.0	498.4
o/w Maintenance & Support	47.9	48.3	48.4	50.9	195.5
o/w Customer-managed Subscription	40.8	35.8	42.3	65.3	184.2
o/w Own-managed Subscription	27.6	28.8	30.4	31.8	118.7
License revenue	5.6	13.9	9.8	18.1	47.3
Services revenue	37.5	37.7	34.9	36.0	146.0
Total revenue	159.4	164.5	165.7	202.1	690.0

Quarterly Revenue Breakdown by Type - Axway
	Q1	Q2	Q3	Q4	2024 Proforma
€m / %
Product revenue	67.9	62.6	69.3	94.2	293.9
Recurring revenue	66.5	61.3	65.2	90.7	283.7
o/w Maintenance & Support	17.1	17.5	16.8	17.0	68.4
o/w Customer-managed Subscription	37.0	30.2	35.5	60.8	163.6
o/w Own-managed Subscription	12.4	13.5	12.8	13.0	51.7
License revenue	1.4	1.3	4.1	3.5	10.2
Services revenue	9.0	9.1	9.0	8.7	35.8
Total revenue - Axway	76.9	71.7	78.3	102.9	329.8

Quarterly Revenue Breakdown by Type - SBS
	Q1	Q2	Q3	Q4	2024 Proforma
€m / %
Product revenue	54.0	64.3	61.6	71.9	251.7
Recurring revenue	49.8	51.7	55.9	57.4	214.7
o/w Maintenance & Support	30.8	30.8	31.6	33.9	127.1
o/w Customer-managed Subscription	3.7	5.6	6.7	4.5	20.6
o/w Own-managed Subscription	15.2	15.3	17.5	18.9	66.9
License revenue	4.2	12.6	5.7	14.6	37.1
Services revenue	28.5	28.5	25.9	27.3	110.2
Total revenue SBS	82.4	92.8	87.5	99.2	362.0

Appendices (4/6)

Revenue Breakdown by Portfolio Company & Type
	2024 Proforma Axway	2024 Proforma SBS	2024 Proforma Consolidation	2024 Proforma 74Software
€m / %
Product revenue	293.9	251.7	-1.6	544.1
Recurring revenue	283.7	214.7	-1.6	496.8
o/w Maintenance & Support	68.4	127.1	-0.8	194.8
o/w Customer-managed Subscription	163.6	20.6	-0.8	183.4
o/w Own-managed Subscription	51.7	66.9	-0.0	118.6
License revenue	10.2	37.1	-0.0	47.3
Services revenue	35.8	110.2	-0.1	146.0
Total revenue	329.8	362.0	-1.7	690.0

Revenue Breakdown by Portfolio Company & Type
	2023 Proforma Axway	2023 Proforma SBS	2023 Proforma Consolidation	2023 Proforma 74Software
€m / %
Product revenue	282.4	236.4	-1.5	517.4
Recurring revenue	273.6	191.5	-0.8	464.3
o/w Maintenance & Support	87.0	131.8	-0.4	218.4
o/w Customer-managed Subscription	139.6	4.8	-0.8	143.7
o/w Own-managed Subscription	47.0	54.9	0.3	102.2
License revenue	8.8	44.9	-0.6	53.1
Services revenue	36.5	97.5	-0.0	134.1
Total revenue	319.0	333.9	-1.5	651.4

Revenue Breakdown by Regions
	2024		2023 Proforma	2023 Restated	Total Growth	Organic Growth
	€m	% of Rev.
Europe	418.6	60.7%	408.2	410.1	2.5%	2.1%
o/w France	194.6	28.2%	197.8	197.8	-1.6%	-1.6%
o/w UK	93.3	13.5%	78.9	80.7	18.2%	15.5%
Americas	150.2	21.8%	136.3	136.3	10.2%	10.2%
Middle East & Africa	85.4	12.4%	74.4	74.4	14.7%	14.7%
Asia & Pacific	35.8	5.2%	32.4	32.4	10.7%	10.7%
74Software	690.0		651.3	653.1	5.9%	5.7%

Appendices (5/6)

Simplified Balance Sheet
in €m	2024 IFRS Consolidated	2023 Reported Axway	Change	in €m	2024 IFRS Consolidated	2023 Reported Axway	Change
Accounts receivables	293.5	178.0	+ 115.5	Cash & cash equivalents	-41.4	-16.7	- 24.7
Other current assets	101.9	32.3	+ 69.6	Financial debt	291.8	92.3	+ 199.5
Accounts payables	-28.7	-11.3	- 17.4	Net debt	250.4	75.6	+ 174.8
Deferred revenue	-88.6	-49.1	- 39.5	Equity	532.4	346.0	+ 186.4
Other current liabilities	-158.0	-55.4	- 102.6	CAPITAL EMPLOYED	782.8	421.6	+ 361.2
Net working capital	120.1	94.5	+ 25.6
Tangible fixed assets	25.0	9.3	+ 15.7
Goodwill	497.4	302.1	+ 195.3		2024 IFRS Consolidated	2023 Reported Axway	Change
Other intangibles	192.3	5.1	+ 187.2
Fixed assets	714.7	316.5	+ 398.2	Ratios
Other assets	78.1	51.0	+ 27.1	NWC as a % of revenue	26.0%	29.6%	- 3.6
Other liabiities	-130.1	-40.2	- 89.9	DSO (days)	145	182	- 37
Other assets - liabilities	-52.0	10.8	- 62.8	Net debt / total capital	32.0%	17.9%	+ 14.1
INVESTED ASSETS	782.8	421.8	+ 361.1	Equity / total capital	68.0%	82.1%	- 14.1

Cash Flow Statement
	2024	2024	2024	2023	Change
in €m	12m AXW + 4m SBS	4m SBS	12m AXW	Reported Axway
Operating cashflow	31.7	-7.1	39.0	32.1	6.9
o/w change in NWC	-37.1	-12.6	-24.5	-32.9	8.4
Investing cashflow	-312.9	-0.9	-312.1	-12.6	-299.5
Financing cashflow	304.7	13.7	291.0	-21.1	312.1
NET CHANGE IN CASH	23.9	6.1	17.9	-1.6	19.5
Unlevered free cashflow	26.3	-10.9	37.2	27.1	10.1
as a % of revenue	5.7%	-8.2%	11.3%	8.5%	+2.8%

Headcount
	31/12/2024	31/12/2023	Change
Europe	3090	1044	2046
Americas	378	357	21
Asia - Pacific	882	64	818
Middle East - Africa	437	0	-
TOTAL	4787	1465	3322

Appendices (6/6)

Impact on revenue of changes in scope and exchange rates
€m / %	2024 IFRS Consolidated	2023 Reported	Growth
Revenue	461.9	319.0	+ 44.8%
Changes in exchange rates		-0.3
Revenue at constant exchange rates	461.9	318.7	+ 44.9%
Changes in scope		+125.6
Revenue at constant scope and exchange rates	461.9	444.3	+ 4.0%

Changes in main exchange rates
For 1€	Average Rate 2024	Average rate 2023	Change
US Dollar	1.082	1.081	- 0.1%
Great Britain Pound	0.847	0.870	+ 2.7%

Glossary and Alternative Performance Measures

Axway ARR: Annual Recurring Revenue – Expected annual billing amounts from all active maintenance and subscription agreements.

SBS ARR: Annual Recurring Revenue – Monthly recurring revenue (MRR) for the last month of the reporting period multiplied by 12. Where contracts are affected by seasonality or contracted volume-based elements, the last 12 months of revenue are aggregated in determining ARR. Expected recurring revenue from contracts signed but not yet active are not included in ARR.

NPS: Net Promoter Score – Customer satisfaction and recommendation indicator for a company.

Organic growth: Growth in revenue between the period under review and the prior period, restated for consolidation scope and exchange rate impacts.

Profit on operating activities: Profit from recurring operations adjusted for the non-cash share-based payment expense, as well as the amortization of allocated intangible assets.

Proforma: Proforma measures assume the acquisition of SBS happened at the beginning of the respective reporting period.

Restated revenue: Revenue for the prior year, adjusted for the consolidation scope and exchange rates of the current year.

Unlevered free cashflow: Free cashflow before exceptional items and before net interest expense.