SNP reports record Q2 2024 results driven by strong partner business and software sales

Corporate News

SNP reports record Q2 2024 results driven by strong partner business and software sales

• Order entry increased by 45% to € 74.1 million (Q2 2023: € 51.0 million)
• Group revenue rose by 28% to € 62.0 million (Q2 2023: €48.5 million)
• EBIT improved significantly by € 7.4 million to € 8.4 million (Q2 2023: €1.0 million), EBIT margin to 13.6% (Q2 2023: 2.1%)
• Outlook recently raised: SNP expects both higher revenue and improved EBIT for the 2024 financial year

Heidelberg, Germany, August 8, 2024 – SNP Schneider-Neureither & Partner SE, a leading global provider of software for digital transformation, automated data migration and data management in the SAP environment, today published its half-year report for the 2024 financial year. After a very good start to the year in the first quarter, the company was also able to capitalize on the momentum in the second quarter and achieved record figures across all key financial metrics. Key drivers of the successful business development were the strong partner business and increased software sales. Revenue was up 28% to € 62.0 million, and EBIT improved from € 1.0 million to € 8.4 million. The EBIT margin increased accordingly by 11.5 percentage points to 13.6%. Supported by several new major client wins, order entry reached € 74.1 million (+45% compared to Q2 2023).

Jens Amail, CEO of SNP, comments: “Thanks to the phenomenal work of our team and our continued focus on 'winning together', we could further build trust with our customers and partners. With the recent global market dynamics our solutions become more relevant than ever – companies need to ramp-up their transformation capabilities and become more agile. With the recent announcement of our Kyano platform we will expand the market category we have shaped for many years. We remain focused on further operational improvements; however, we are convinced that the best is yet to come."

In the partner business, SNP recorded above-average growth with a 106% increase in order entry to €42.6 million and a 66% increase in revenue to €25.5 million. The service business contributed €38.4 million (+12% compared to Q2 2023) to Group revenue; the software business €23.6 million (+64% compared to Q2 2023).

Andreas Röderer, CFO of SNP, comments: “We are particularly proud that we are making progress in all business areas – both with partners and through our own sales organization. An important driver of this performance is the strong tailwind for S/4HANA and RISE with SAP projects. Based on the excellent development of revenue and earnings, we made progress in terms of operating cash flow.”

Recent Business Highlights:

• Expansion of the CrystalBridge platform: Introduction of SNP Kyano with enhanced features such as tighter ecosystem integration, more openness to source and target systems, and ongoing services for customers to improve data-enabled business agility.
• Transformation World 2024: With around 1,500 participants, the SNP event is increasingly developing into a global network meeting of different players from the SAP data environment and beyond.
• SAP transformation partner for BMW Group: Based on SNP's software platform, a separate data migration factory will be set up, which will be managed by BMW and SNP in cooperation. SNP is to migrate over 30 source systems in more than 50 projects to SAP S/4HANA for the BMW Group by the year 2030.
• Settlement of the legal disputes: The Annual General Meeting approved an agreement to settle the multi-year legal dispute with the community of heirs. This led to a positive EBIT effect of around €3 million in the Q2 results.
• Acquisition of Trigon Consulting: The acquisition of the consulting specialist for IT and business transformations, data migration and digitalization is already having a positive impact on SNP’s overall success.

Key figures

The following table summarizes the development of key Group figures in the second quarter of 2024:

Outlook 2024
Based on a strong performance year-to-date and ongoing market momentum, SNP has decided on July 19 to increase the guidance for 2024. The revenue forecast for the full year has been raised to a range between €225 million and €240 million (previous guidance: €215 million to €225 million). For the same period, EBIT is predicted between €16 million and €20 million (previous guidance: €13 million to €16 million). For its order entry, SNP still expects a book-to-bill ratio (order entry over sales revenue) greater than one.

The full half-year report 2024 is available on our website at https://investor-relations.snpgroup.com/en/publications/.

Investor and analyst call
The investor and analyst call will take place on August 8, 2024, at 2 p.m. CEST. Interested investors and analysts can register via the following link: https://webcast.meetyoo.de/reg/qQiJ43neqQuD.

As usual, a recording of the conference call will be made available one day later on SNP's website at https://investor-relations.snpgroup.com/en/publications/.

About SNP
SNP (ticker: SHF.DE) helps companies worldwide to tap into the full potential offered by their data and to embark on their very own journey to a digital future.

With its CrystalBridge® data excellence platform and its BLUEFIELD™ approach, SNP has established a comprehensive industry standard, enabling faster and more secure restructuring and modernization of SAP systems and realizing data-driven innovations via the cloud.

Some 3,000 customers worldwide from all sectors and of all sizes trust in SNP, including 20 DAX 40 and numerous Fortune 500 companies. The SNP Group has more than 1,400 employees worldwide in 35 locations in 21 countries. Headquartered in Heidelberg, the company generated revenue of €203.4 million in the 2023 fiscal year.

Further information is available at www.snpgroup.com

SNP contact
Marcel Wiskow
Director lnvestor Relations
Tel.: +49 6221 6425-637
Email: marcel.wiskow@snpgroup.com
presse@snpgroup.com