15th Jan 2021 08:00
(Alliance News) - Aveva Group PLC on Friday said its third quarter revenue was boosted by contract renewals and the industrial software company backed its full-year outlook as its OSIsoft LLC acquisition has one final US hurdle to clear.
In the three months to December 31, organic constant currency revenue grew by over 26%, AVEVA said.
"This was driven by a significant number of scheduled subscription renewals, including a large three-year contract renewal in the food sector," the company added.
Quarterly revenue was also boosted by a large three-year EPC contract being renewed earlier than expected. This renewal was initially penned to occur in the final quarter of its financial year.
Following the "strong quarter of renewals", Aveva's revenue in the nine months ended December grew 1.5% annually, on an organic constant currency basis.
"On the same basis, recurring revenue grew by 10%, taking it to 68% of overall group revenue in the period," Aveva added.
Its order pipeline for the remainder of the financial year is also "solid" and the company now has its largest digital meet to date, the World Digital customer event, to look forward to before the end of January.
"The board remains confident in the full year outlook for Aveva. Notwithstanding the disruption seen to the trading environment in 2020, the trend towards the digitalisation of the industrial world is strong and the board remains excited about the significant growth opportunities ahead," the company added.
By early February, it expects to complete its USD5.0 billion acquisition of data management software firm OSIsoft.
OSIsoft saw achieved billings grow 8.5% in 2020, in line with expectations.
The deal only needs the approval of the US Committee on Foreign Investments now and this is expected by early February.
By Eric Cunha; [email protected]
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