The software publisher will not meet its revenue target in 2021 due to project delays or revisions to customer budgets. The title accuses the blow on the stock market.
Axway issues an alert on its end-of-year sales | Photo credits: Photo by Markus Spiske on Unsplash
Axway is issuing a half-warning. In a press release published Wednesday evening, the software publisher, which provides large companies with solutions to better manage strategic data flows, indicates that if it will indeed meet its operating margin objective of at least 11%, in 2021 it will not post the long-awaited 2% to 4% organic growth in its turnover. Now, Axway expects an organic decline of 2.7% of its annual revenues, implying a contraction of 13.5% in the last quarter. ” Over the period, several projects saw their schedule pushed back or their budget reallocated. Some major customers and prospects, exposed to significant recruitment difficulties in their IT and administrative teams, have not launched the expected projects. These staffing shortages could continue throughout fiscal 2022 “explains the company. In 2021, its turnover will be around 285.5 million euros, against just over 300 million expected. Above all, analysts could be tempted to revise their forecasts for the current year downwards given the message of caution delivered by Axway.
On the stock market, the title is sanctioned: it fell by 4.9%, to 23.30 euros. It is now down 9% since the start of the year.
PC