Company Announcements

FY 2022 Q3 Trading Statement and Board Update

Source: RNS
RNS Number : 9239B
17 February 2022



FY 2022 Q3 Trading Statement and Board Update


Solid ARR growth continues, and full year outlook confirmed


AVEVA Group plc ('AVEVA' or 'the Group') announces the following trading update for the period to 31 December 2021(1).


AVEVA increased Annualised Recurring Revenue (ARR)(2)  by 9.6% year-on-year in the 12 months to 31 December 2021, driven by growth in the annualised value of the Group's subscription contracts. ARR growth in Q3 FY 2022 was broad based, with increases from key industries, including Food, Manufacturing, Energy, Pharmaceuticals and Mining.


AVEVA intends to accelerate ARR growth during the next financial year, driven by a focus on growth in SaaS, new business wins, the launch of integrated AVEVA / OSIsoft products and pricing uplifts that reflect the global inflationary environment.


As expected, given a very strong comparator in the prior year that included the benefit of several large contract renewals with point-in-time revenue recognition, AVEVA's revenue declined by a low single digit rate year-on-year in Q3 FY 2022 on a constant currency basis. This included a large contract renewal and expansion with Schneider Electric.


The Group's sales pipeline for the remainder of the financial year is solid, supporting management plans for good revenue growth in the final quarter, giving a revenue outlook for the full year that is in line with expectations.


The integration of OSIsoft continues to progress very well and AVEVA is on-track to achieve at least the previously announced cost synergies and is making strong progress towards achieving the targeted revenue synergies.


For example, excellent progress has been made with product integration, which is key to achieving revenue synergies. AVEVA Data Hub, a product that allows customers to access and share a variety of significant operations and engineering data streams, including PI System data, on the Cloud, will be fully available early in the next quarter.


Board and management update

AVEVA announces that, after careful consideration, the Directors have requested that Philip Aiken remains as Chairman for a further year beyond AVEVA's 2022 AGM. Philip continues to provide exceptional leadership, which is particularly valuable as we complete the successful integration of OSIsoft and embed the foundations to support the next phase of subscription-led growth.


In addition, from 1 March 2022, James Kidd, AVEVA's Deputy CEO and CFO, will become AVEVA's Chief Strategy and Transformation Officer. James will remain on the Board as one of the two Executive Directors. This role will focus on driving both organic and inorganic growth initiatives.


The role of Chief Financial Officer will be assumed by Brian DiBenedetto, also starting on 1 March. Brian has made a valued contribution to AVEVA's finance function during James' recent period of compassionate leave, having transferred from Schneider Electric.


(1) All commentary on growth includes both AVEVA and OSIsoft in the prior year comparator and is adjusted for foreign exchange translation movements, disposals and the impact of the deferred revenue haircut under IFRS 3 (Business Combinations).


(2) ARR makes it easier to track recurring revenue progression by annualising revenue associated with Subscription, Cloud and Maintenance contracts. It removes distortions caused by revenue recognition standards by annualising the revenue associated with contracts at a point in time. It is calculated on a constant currency basis.





AVEVA Group plc

Matthew Springett, Head of Investor Relations: +44 (0) 7789 818 684

Kira Popper, Investor Relations Manager: +44 (0) 7787 220 464


FTI Consulting LLP

Edward Bridges / Dwight Burden: +44 (0) 203 727 1000


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