Frankfurt The Linux software provider Suse again lowered its order forecast for the current financial year on Thursday due to the gloomy economic outlook. Investors then fled, causing the stock to plummet by 30 percent to a record low of 12 euros.
Suse now expects growth of around ten percent in the core business of the contract value (ACV), which is highly calculated for the year, after previously aiming for growth in the mid-ten percent range. Suse had already lowered this forecast in July. In the business with emerging software solutions, the Group now expects an increase of around 20 percent instead of 50 percent.
Traders pointed to the repeatedly lowered order forecasts as the reason for the falling stock. In addition, the free flow of capital was disappointing. Chief Financial Officer Andy Myers was hopeful: “Although we see a short-term impact on our ACV, I remain confident that we can take advantage of our market opportunities and meet our medium-term forecast.“
Suse: targets for adjusted Ebitda margin reaffirmed
He reiterated the targets for adjusted sales and adjusted operating return on sales (Ebitda margin) for the 2021/2022 financial year. In the third quarter, which ran until the end of July, sales climbed by 13 percent to 171.2 million euros.
The adjusted operating result (Ebitda) increased by 18 percent to EUR 65.1 million. However, the contract value in the core business, which is expected to be high for the year, fell by eight percent, while growth of 21 percent was recorded in the emerging business. Headwinds also came from the strong dollar.