SUSE reports strong FY2021 with Q4 ahead of expectations

SUSE has announced its results for the fourth quarter of financial year 2021, which ended 31 October 2021, with Q4 trading ahead of expectations and the revised guidance given with its Q3 results.

SUSE continued to drive forward its innovation program in the quarter, launching significant new products such as SUSE Rancher 2.6, the first major Rancher-related release from SUSE since the acquisition of Rancher Labs in December 2020.

Its Q4 results demonstrate continued strong growth, with ACV up 28 percent to $125m, giving a total growth of 26 percent for the full year. With continued high levels of growth in the cloud and across most regions and SUSE Rancher continuing to build rapidly, core ACV grew 17 percent to $98.7m in the quarter, in line with the overall growth for the year.

Group annual recurring revenue (ARR) increased from $480.3m to $560.0m, a growth of 17 percent, driven from both the SUSE ARR Core solutions and the acquired Rancher solutions. Adjusted revenues were $154m in Q4 and $575.9m for the full year, just above the top of SUSE’s guided range of $564m to $574m.

Adjusted EBITDA was $48m in Q4, contributing to a full year adjusted EBITDA of $212.1m and a full year margin of 37 percent, while adjusted cash EBITDA was $51.7m for Q4 and $278.2m for the year, comfortably above the top end of the previously guided range.

With a positive outlook for FY2022, SUSE expects to deliver mid- to high-teens growth in adjusted revenue and an adjusted EBITDA margin around mid-thirties percent. The acquisition of NeuVector just prior to the year-end provides another valuable opportunity to accelerate growth in the medium term.

Melissa Di Donato, CEO of SUSE, said: “FY21 was a great year for SUSE as we finished it with another strong quarter. Some of our top highlights for the year include two important and complementary acquisitions, SUSE’s public listing, and accelerated innovation with our new product offerings. We implemented all growth drivers and delivered on our commitments to the market, putting SUSE in a very solid position for FY22.”

Andy Myers, CFO of SUSE, added: “SUSE delivered again in Q4, meeting and mostly surpassing our guidance. We were pleased to complete the purchase of NeuVector with a mixture of existing cash and some new shares, giving us another product for incremental growth going forward. Each quarter, we continue to invest in growth by adding people and innovation to our solution portfolio.”