Swiss-based SoftwareOne announced on Thursday the appointment of Raphael Erb as CEO, effective Nov. 1, as it adjusted its full-year revenue growth forecast downward due to a weaker-than-expected third quarter. The company revised its 2024 revenue growth target to 2-5% year-over-year, down from an earlier forecast of 7-9%, after all markets except Asia-Pacific and the German-speaking region underperformed, yielding quarterly revenue growth of 3.1%—below both internal and market expectations.
The company also lowered its adjusted EBITDA forecast to 21-23%, down from the previous 24.5-25.5%, following a 4% decline in the third quarter. In response to the challenging environment, SoftwareOne has implemented cost-saving initiatives since Q3, aiming to reduce corporate overheads and achieve over 50 million Swiss francs ($58 million) in savings.
Daniel von Stockar, Chairman of the Board, expressed confidence in Erb’s capability to lead SoftwareOne back to double-digit growth, citing his extensive experience and 25-year tenure with the company.
The leadership transition coincides with renewed interest in a potential acquisition, as SoftwareOne continues discussions regarding a going-private transaction. The company noted that while talks are progressing, they remain complex given the current business climate.