ATOSS lifts its profit target as subscriptions take more of the mix
Cloud subscriptions grew faster than group revenue and lifted recurring income, while weaker one-off licence sales kept the revenue outlook near the bottom of guidance.
ATOSS sells software that helps employers record time, forecast staffing needs and build work schedules. Its nine-month results show that more customers are paying for the software through cloud subscriptions. Group revenue rose 12% to €155.8m, while cloud and subscription revenue grew 26% to €85.2m.
That shift increased recurring revenue by 17% to €113.8m. Cloud subscriptions and maintenance together represented 73% of group revenue, compared with 70% a year earlier. The cloud and subscription order backlog for the next twelve months also rose 23% to €125.0m, giving ATOSS more contracted income to recognise as it provides the service.
The mix matters because not every part of the business is growing. One-off software licence revenue fell to €3.7m from €6.0m. Management now expects full-year revenue near the lower end of its €210m to €215m range, even though subscriptions are developing at the upper end of its expectations.
Profitability moved the other way. The nine-month EBIT margin rose to 37% from 35%, and ATOSS raised its full-year margin target from at least 34% to around 37%. The company attributes the improvement to cost control and productivity gains, including the use of AI in product development. The next annual figures will show whether subscription growth can keep supporting margins while one-off licence sales remain softer.