Suse rises on upbeat 2022/23 guidance after Q4 ACV beat
21/11/2022 11:44
** Shares of Suse SUSEG.DE jump around 4% after the German
software company gave better-than-expected outlook for FY
2022/23 as Q4 annual contract value (ACV) beat estimates
** The group's prelim. adj. revenue was $170.3 mln in Q4, up
12% YoY at constant currency, while ACV rose 16% to $138.3 mln
** It expects to post adj. EBITDA margin of 36-37% for the
year ended Oct. 31
** J.P.Morgan says Q4 ACV is 7% above Vara consensus driven
by a beat in emerging markets, while revenue is in line
** Suse sees adj. revenue growth of 11-13% at constant
currency for FY 2022/23, with adj. EBITDA margin expanding from
the prior year
** JPM, which expected a positive share reaction ahead of
market open, says the outlook implies FY 2022/23 EBITDA clearly
above current consensus
** Jefferies says the upside in outlook is likely driven by
the improved exit runrate of ACV in the Emerging unit, which
materially beat expectations
** The broker adds the revenue outlook for next year is
about 8% ahead of consensus
** The Suse stock is among top performers on the German
small-cap index .SDAXI
(Reporting by Anastasiia Kozlova)
((Anastasiia.Kozlova@thomsonreuters.com))