SUSE has announced its results for the first quarter of financial year 2022, which ended January 31, 2022. The company continued to deliver on its strategy in the first quarter of FY 2022, reporting strong growth in the Cloud route to market, and growth levers continuing to deliver as SUSE benefits from the global trend toward cloud transformation.
The company registered 16% growth in adjusted revenue (17% at constant FX), a 34% Adj EBITDA Margin, and Group ARR of $574 million, a 17% increase on the prior year (19% at constant FX). ACV grew 5% in Q1, reflecting the impact of several multi-year deals signed in the prior period. Core ACV grew by 8% to $119.9 million. Emerging ACV declined by 9% to $23.9 million as a legacy SUSE contract was not renewed; excluding this, growth was 14%.
Adjusted Cash EBITDA was $93.1 million for Q1, as long-term contracts delivered over $40 million change in deferred revenue. Adj unlevered Free Cash Flow was $44.6 million, a cash conversion rate of 85%
The company also said that integration of NeuVector is proceeding well; previews of the source code have been published faster than anticipated. Headcount grew by almost 200 in Q1, with approximately 140 new staff in sales and customer service.
“In the first quarter, SUSE once again delivered strong revenue growth and high profitability as we continue to implement our proven business strategy,” said Melissa Di Donato, CEO of SUSE. “Customers depend upon our innovative, interoperable solutions and ability to help them adapt to evolving market conditions while reaping the benefits of developments in technology. We continue to expand our workforce and are well positioned to drive value for all our stakeholders in the months and years ahead.”