Shares of Atoss Software, the German workforce specialist, saw a 4.7% increase in value to EUR211.50 today, following an upgrade in its full-year guidance. The revision is attributed to the company's thriving cloud and subscription business.
The company has updated its 2023 revenue target to a minimum of 145 million euros ($153.6 million), marking an increase from the previously forecasted EUR 142 million during its H1 revision. According to InvestingPro data, this new target aligns with the company's recent revenue growth, which accelerated by 27.33% in the last twelve months up to Q2 2023. This new target indicates the company's confidence in its growing operations and market presence.
In addition to this, Atoss Software aims to exceed its projected EBIT margin of around 30%, a testament to its strong operational efficiency and profitability. InvestingPro data shows that the company's EBIT for the last twelve months up to Q2 2023 was $44.79 million, demonstrating its robust profit-making abilities.
The company's Q3 financials provided additional support for the revised guidance. It reported a net profit increase of EUR8.6 million, up from EUR5.5 million year-over-year (YoY). This surge in profits boosted total revenue by 31% YoY, reaching EUR37 million.
While the software revenue component contributed EUR27.2 million, it was the cloud and subscriptions segment that displayed significant growth. This segment soared by 52% to reach EUR13.6 million, accounting for 37% of total revenue. This notable performance underlines the segment's increasing importance in Atoss Software's revenue structure and its potential for future growth.
InvestingPro Tips also highlights that Atoss Software has been consistently increasing its earnings per share and operating with a high return on assets. These factors, along with the company's accelerating revenue growth, indicate a promising outlook for investors. For more insights and tips, you can visit InvestingPro. With over 22 additional tips listed, it's a valuable resource for investors looking to stay ahead of the market trends.
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