Strong Q1 revenue growth for SUSE

SUSE has reaffirmed its guidance for the current year following the release of a strong set of results for the first quarter of its 2022 financial year.

The company continued to deliver on its strategy in the quarter, reporting 16 percent growth in adjusted revenue (17 percent at constant FX) and a 34 percent adjusted EBITDA margin. Group ARR was $574m, up 17 percent on the prior year.

ACV grew 5 percent in Q1 to $143.8m, reflecting the impact of several multi-year deals signed in the prior period. Core ACV grew by 8 percent to $119.9m, while emerging ACV declined by 9 percent to $23.9m, though this was due to a legacy SUSE contract not being renewed. Excluding this, growth was 14 percent.

Adjusted Cash EBITDA was $93.1m for Q1, as long-term contracts delivered over $40m change in deferred revenue. The integration of NeuVector is proceeding well, with previews of the source code published faster than anticipated.

Melissa Di Donato, CEO of SUSE, said:  “In the first quarter, SUSE once again delivered strong revenue growth and high profitability as we continue to implement our proven business strategy. Customers depend upon our innovative, interoperable solutions and ability to help them adapt to evolving market conditions while reaping the benefits of developments in technology. We continue to expand our workforce and are well positioned to drive value for all our stakeholders in the months and years ahead.”

Andy Myers, CFO of SUSE, added: “Today we are reaffirming our guidance for the current year and for the medium term. With another quarter of strong financial performance completed, we are continuing to invest in the business, increasing our capacity to innovate, sell and serve our customers as we facilitate their transition to the cloud.”