adesso SE
OTC:ADSGF
adesso SE
adesso SE engages in the provision of information technology (IT) services focused on consulting and software development. The company is headquartered in Dortmund, Nordrhein-Westfalen and currently employs 5,814 full-time employees. The company went IPO on 2000-06-21. The company provides business consulting, IT consulting, software development, IT management, and solutions, including drebnis, a claims management system; inSIGHT, a data transport tool; inFOCUS 360, a direct channels to customer tool; inBOUND, a Web service for regionalization of agen-managed lottery gaming; inRELATION, a mutli-channel sales for insurers with Microsoft Dynamics CRM tool, and Mobile Rettern, a smartphone-based first-aider notification system. The firm cooperates with various IT partners and uses the Java, Microsoft and Mainframe technologies in its practice and projects. The firm is active in Germany, Austria, Switzerland, the United Kingdom, Turkey and the United States and operates a number of subsidiaries, including Adesso hosting services GmbH, Turkey Bilgi Teknolojileri Ltd, Smarthouse Media GmbH, flitcon GmbH and Born Informatik AG.
adesso SE engages in the provision of information technology (IT) services focused on consulting and software development. The company is headquartered in Dortmund, Nordrhein-Westfalen and currently employs 5,814 full-time employees. The company went IPO on 2000-06-21. The company provides business consulting, IT consulting, software development, IT management, and solutions, including drebnis, a claims management system; inSIGHT, a data transport tool; inFOCUS 360, a direct channels to customer tool; inBOUND, a Web service for regionalization of agen-managed lottery gaming; inRELATION, a mutli-channel sales for insurers with Microsoft Dynamics CRM tool, and Mobile Rettern, a smartphone-based first-aider notification system. The firm cooperates with various IT partners and uses the Java, Microsoft and Mainframe technologies in its practice and projects. The firm is active in Germany, Austria, Switzerland, the United Kingdom, Turkey and the United States and operates a number of subsidiaries, including Adesso hosting services GmbH, Turkey Bilgi Teknolojileri Ltd, Smarthouse Media GmbH, flitcon GmbH and Born Informatik AG.
Revenue Growth: adesso reported strong organic revenue growth of 13% for both Q3 and the first nine months, reaching EUR 1.14 billion after nine months and a record EUR 375 million in Q3.
Profitability: EBITDA rose 17% year-over-year to EUR 77.9 million after nine months, with the Q3 EBITDA at EUR 40.8 million. The EBITDA margin improved to 7.2%, but remains below the long-term target of 11-13%.
Guidance On Track: Management confirmed they are on track to reach the upper end of their full-year revenue and EBITDA guidance, expecting revenues between EUR 1.35–1.45 billion and EBITDA of EUR 105–125 million.
Sector Performance: Insurance, health, and utilities sectors posted strong growth, while automotive remains weak and public sector growth slowed due to delayed budget impacts.
Utilization & Margins: Margin improvement slowed in Q3 due to higher vacation and flat utilization, but management views this as a temporary issue, not a trend reversal.
International Operations: Foreign subsidiaries, especially Austria and Italy, showed strong growth and improved profitability, while a few regions remain loss-making but are improving.
Working Capital & Cash Flow: Net working capital increased faster than revenue, pressuring free cash flow, but management expects significant improvement in Q4.
