ATOSS Software SE: Steady Growth Amid Economic Challenges

ATOSS Software SE, covered by NuWays AG, has shown resilient growth in its Q2 financial performance despite facing economic headwinds. The company reported a 9.2% year-over-year increase in Q2 sales, reaching €45.8 million. This growth was largely driven by the Cloud & Subscriptions segment, which saw a significant 29% increase year-over-year. In contrast, the Licenses business experienced a 61% decline due to the ongoing transition to cloud services and broader economic challenges.

The decline in sales intake, attributed to longer sales cycles and cautious customer sentiment, is expected to reverse with new leadership and hiring strategies. Despite a drop in the EBIT margin to 33.6%, the company maintains confidence in meeting its target margins with improved revenue and hiring developments expected in the coming quarters.

Looking ahead, the European Workforce Management market is anticipated to grow by 10% per annum until 2030, driven by regulatory changes, staff shortages, and increased digitalization. ATOSS is well-positioned to capitalize on these trends with its regulatory expertise and robust product offerings, making it a compelling investment case at a target price of €152.