SoftwareOne Holding, a Swiss software and cloud-services provider, has revised its revenue outlook for 2023 due to cautious purchasing behavior from some North American customers.
Lowered Growth Forecast
The company now expects revenue growth to be in the high single-digit percentage range, compared to its previous forecast of a double-digit increase.
Q3 Revenue Rise
For the third quarter, SoftwareOne reported a total revenue of 233.4 million Swiss francs ($262.4 million), marking a 3.9% rise from the same period last year.
Negative Foreign-Exchange Impact
The strengthening of the Swiss franc against major currencies like the dollar, euro, and pound resulted in a negative foreign-exchange translation of 4.5 percentage points on revenue growth.
Strong Adjusted Earnings
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 6.8% increase to CHF47.9 million. Cost savings that surpassed expectations contributed to this growth.
Exceeding Cost Savings Targets
SoftwareOne achieved CHF27 million in cost savings by the end of September, surpassing its full-year target of CHF15 million. The company remains on track to deliver CHF50 million in annual savings by next year.