74Software (XPAR:74SW)

Full Year 2024 74Software SA Earnings Call Transcript

Feb 26, 2025 / 05:30 PM GMT

Release Date Price: €28.2 (+1.44%)

Transcript

Key Points

Positve

74Software (FRA:1XV) achieved a pro forma revenue of $690 million with a combined organic growth of 5.6% in 2024.
Axway, as a standalone business, added 121 new customers and achieved its most profitable year ever with a record high NPS employee engagement score.
The company successfully completed the rebranding and integration of Axway and SBS, maintaining focus and achieving objectives despite the complexities of the carve-out.
74Software (FRA:1XV) is leveraging its portfolio across both companies to maintain its position as an independent technology provider, focusing on delivering successful customer outcomes.
The company has a strong pipeline for 2025, with expectations of 2-4% organic growth and plans to improve unlevered free cash flow to 10% for the year.

Negative

The integration of SBS and Axway is still in its early stages, with SBS on a similar transformation journey as Axway, which may take 2-3 years to complete.
SBS's transition to a SaaS model involves long lead times for revenue recognition, with some projects taking up to 24 months to generate recurring revenue.
The company's leverage ratio is currently at 2.87 times, indicating a need for further deleveraging to reach a more comfortable range.
There is a significant difference in the profitability of Axway and SBS, with Axway at 20.9% and SBS at 6.9%, reflecting their distinct stages of corporate development.
The company faces challenges in aligning the budgeting processes and business models of Axway and SBS, which are at different stages of their transformation journeys.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

74SW.PA - 74Software SA
Full Year 2024 74Software SA Earnings Call
Feb 26, 2025 / 05:30PM GMT

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Presentation
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Unidentified_1 [1]
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And ladies and gentlemen, welcome to 74 Software 2024 full year results conference call. About today's presentation, all lines will be on the listen-only mode. Later we will conduct a question and answer session. You may register for questions at any time by pressing one on your telephone keypad.

And now I'd like to hand the call over to your host Patrick. Please go ahead.

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Unidentified_2 [2]
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Thank you, Sergey and thank you for joining us for today's 74 Software 2024 full year results and as we begin.

I want to remind everyone that today we

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