Strong first quarter: GFT Group upgrades guidance

Global growth momentum unbroken

• Group EBT up by 91 percent compared to first quarter of 2021, revenue up by 40 percent 
• Group revenue guidance for 2022 upgraded from EUR 680 million to around EUR 720 million and EBT guidance from EUR 54.5 million to around EUR 58 million
• Sustained dynamic growth thanks to complex, long-term projects
• Successful diversification continues: Insurance sector grows year on year by 67 percent, Industry & Others by 59 percent
• GFT US grew revenue by 34% compared to the first quarter of 2021.

NEW YORK, May 19, 2022 /PRNewswire/ -- Digital transformation has been a dominant topic across almost all industries for several years now – however this wave is still far from peaking. In 2025, global spending on digital transformation will be more than double the amount it was in 2020¹.

GFT Technologies SE (GFT) is exploiting this digitalization wave and continuing its dynamic growth. After its record results in 2021, the global company achieved further strong growth in the first quarter of 2022: Group revenue rose by 40 percent and earnings before taxes (EBT) by as much as 91 percent.

Extensive and complex projects

This very positive development is being driven by consistently strong demand for extensive and complex digitalization projects. The high level of new orders means strong growth is also expected for the rest of the financial year. The Group has therefore upgraded its revenue guidance for 2022 to around EUR 720 million (previously: EUR 680 million). This corresponds to revenue growth of around 27 percent compared to 2021. Pre-tax earnings for the full year are likely to reach around EUR 58 million at Group level (previously: EUR 54.5 million), corresponding to expected year-on-year growth of around 45 percent. The Group expects adjusted EBITDA to grow to around EUR 79 million, around 22 percent more than in 2021. The war in Ukraine has had no negative impact on GFT's business so far.

"We see particularly strong growth in the Americas region and in Asia. Our clients there are pioneers in the use of cutting-edge technologies," explains Jochen Ruetz, CFO of GFT. "There are also numerous European companies planning to launch major projects over the coming years in order to leverage these innovative technologies."

Marco Santos, President GFT U.S. and Latin America, added: "We have been delivering a strong growth in the U.S. market by gaining new logos and expanding Digital Transformation Projects to our current clients. Initiatives related to Cloud Migration, development of Digital Platforms and Next Generation Core Banking have been instrumental to accelerate our growth of 34% in Q1 2022 compared to the same period of 2021."

¹⁾ https://www.idc.com/getdoc.jsp?containerId=prUS48372321

Further information on the definition of alternative performance measures is provided here on the GFT website.

SOURCE GFT Technologies AG