May 11, 2023

GFT Group stays on track for growth

Software group posts double-digit revenue and earnings growth

Group revenue up 10 percent compared to first quarter of 2022
Strongly improved Group earnings: adjusted EBIT +17 percent, EBT +12 percent
Diversification across sectors and clients continued: Insurance sector +4 percent, Industry & Others +24 percent; core market Banking with further growth: +10 percent
Guidance for 2023 confirmed: revenue of EUR 850 million, adjusted EBIT of EUR 80 million and EBT of EUR 72 million expected
GFT revenue in the U.S. grew by 62 percent.

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Stuttgart and New York, May 16, 2023 – GFT Technologies SE (GFT) continues to grow. With revenue growth of 10 percent, the software group once again outpaced the market in the first quarter of 2023. Adjusted EBIT rose by 17 percent and EBT by 12 percent compared to the same period last year.

GFT confirms guidance for 2023

“Our growth remains stable and we can confirm our guidance for 2023,” says Marika Lulay, CEO of GFT. “Although the global economic environment has become more challenging in recent months, we also see some positive signs. For example, we are growing faster than average in the world’s largest software market, the USA. We also expect demand to pick up further in the second half of the year.”

The GFT Group generated revenue of EUR 190.67 million in the first quarter of 2023. The company thus exceeded the prior-year figure of EUR 173.35 million by 10 percent. GFT continued to successfully implement its diversification strategy: in the Insurance sector, revenue rose by 4 percent, in the Industry & Others sector by 24 percent. In the Banking sector, revenue was up 10 percent on the previous year.

Business made particularly strong progress in the world’s largest software market, the USA, with an increase in revenue of 62 percent. This growth was driven above all by complex modernisation and transformation projects in the finance sector.

The Group had a total of 8,792 full-time employees (FTE) as of 31 March 2023. This corresponds to an increase of 8 percent compared to 8,120 employees at the end of the prior-year quarter.

GFT expects solid revenue and earnings growth for 2023

GFT continues to benefit from the ongoing digitalisation trends in its markets. The Group has outstanding expertise in shaping the digital transformation, enabling it to leverage market opportunities. The company therefore expects growth in all segments in 2023, with further increases in both revenue and earnings.

Compared to 2022, revenue is expected to grow by 16 percent and reach approximately EUR 850 million (2022: EUR 730 million). GFT expects earnings before taxes (EBT) of around EUR 72 million (2022: EUR 66 million). This represents year-on-year growth of 9 percent. The Group forecasts that adjusted EBITDA will improve to around EUR 80 million (2022: EUR 67 million), 19 percent more than in 2022. This guidance takes into account the acquisition of targens GmbH pro rata temporis as of 1 April 2023.

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GFT’s growth in the USA in the first quarter of this year is representative of several milestones. These include the integration of our U.S. operations with our larger North and South American teams in Canada, Brazil, Costa Rica and Mexico, as well as the expansion of our local leadership team,” said Marco Santos, CEO Americas at GFT. “I’m optimistic that this new dynamic will continue to propel us forward as we embrace the challenges and opportunities that come with growing digital demand in the U.S. market.

Marco Santos

CEO Americas, GFT

In EUR million	Q1 2023	Q1 2022	∆
Revenue	190.67	173.35	10%
EBITDA	19.89	18.52	7%
Adjusted EBIT*	16.28	13.91	17%
EBIT	14.83	13.45	10%
EBT	15.04	13.42	12%
Net income	10.54	9.58	10%
Earnings per share in EUR	0.40	0.36	10%
Operating cash flow	-3.04	3.62	<-100%
Employees (FTE, as of 31 March)	8,792	8,120	8%
In EUR million	31/03/2023	31/12/2022	∆
Net liquidity	29.65	35.70	-17%
Equity ratio (in percent)	41%	40%	1