Software AG falls after cuts outlook for 'mission critical' digital business

Software AG

15/07/2022 07:20

** Shares in Software AG  SOWGn.DE  slip 3.3% in pre-market
trade after the company has lowered its full-year outlook for
bookings in its digital business division
    ** Germany's second-largest software group expects
year-on-year increase of 12% to 18% in constant currency,
instead of 15% to 25% previously
    ** Software blamed the cut on weaker-than-expected digital
business bookings in Q2 and said there are early indications
that customers are delaying their decisions due to the changing
macroeconomic environment
    ** "Given the mission critical nature of Software AG's
Digital Business (DB) line with longer term sales cycles, we are
surprised by the provided arguments for yesterday’s surprising
DB bookings guidance cut," Baader Helvea says
    ** The brokerage adds that as earnings releases of other
software firms suggested software spending held up well in Q2,
it wouldn't rule out that "internal reasons also played a role"
    
   

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))