German Linux superpower SUSE delivers a great quarter
Other technology companies may be pulling back, SUSE is growing and expanding,
SUSE, a leading Linux and open-source company's Q4 2022 results for the quarter ending October 31, 2022, are out and look pretty darn good. According to its financial statement, SUSE's adjusted revenue was up 11% year-on-year to $170.3 million, and adjusted Earnings before interest, taxes, depreciation (EBITDA) was up 37% year-on-year to $65.9 million.
SUSE's strong close to the financial year also delivered FY22 adjusted revenue of $658 million, up 14%, and an adjusted EBITDA margin of 37%. The company also expects to see adjusted EBITDA margin expansion from FY22 and, in the medium-term, expects adjusted revenue growth around the mid-to-high teens' percentage., and an adjusted EBITDA margin in excess of 40%. Not bad! Not bad at all!
In Q4, SUSE continued to improve all its product lines. This includes launching Rancher Prime, its prototype Adaptable Linux Platform (ALP), and its latest Kubernetes-based, edge-computing offer, SUSE Edge 2.0.
The company also recently reorganized its sales organization. And, while many companies are cutting back--I'm looking at you, Microsoft--SUSE has opened a new development center in Bangalore. Some companies still believe in the future rather than pulling back for fear of a recession.
For FY23, SUSE expects to deliver adjusted revenue growth of 11-13% at constant currency, comprising core revenue growth of around 10% and emerging revenue growth of around 25%, both at constant currency. With over 60% of Fortune 500 companies using SUSE software and its continuing SAP partnership, SUSE's future looks bright.
In a statement, SUSE CEO Melissa Di Donato, said, "Following our strong close to the year, we’re fully focused on delivering another robust performance in FY23, underpinned by the evolution of our go-to-market approach. Despite the challenging environment, our resilient business model, constant innovation, and our expanding markets make us confident in our sustainable growth in the years ahead.”
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