Suse plunges on preliminary Q2 sales miss, outlook cut

Suse SA

11/05/2023 08:22

** Shares in Suse  SUSEG.DE  plunge around 20% after the
German software provider warned of lower than expected Q2
trading and cut its 2023 guidance
    ** The company expects adjusted revenue of $162.2 million in
Q2, below analysts' mean estimate of $172.5 million in a
company-provided consensus
    ** It says ongoing economic uncertainty has led to delayed
decision making and shorter contract durations, sales force
reorganisation and slower than anticipated sales growth through
the Cloud route-to-market
    ** It expects adjusted revenue to grow in a mid-single-digit
percentage this year, down from previous guidance for 11-13%
growth, with constant currency growth slightly lower
    ** Jefferies says the news raises some strategic questions
and suggests the new CEO has "work to do to lay out a new
strategy"
    ** "Persistent underperformance against targets makes it
hard for investors to focus on the silver linings," the
brokerage adds, noting the firm has missed estimates in four out
of the last six quarters
    ** The stock hits the bottom of the German small-cap index
 .SDAXI  and is on track for its worst day since September

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))