Digital Workforce

Digital Workforce announced yesterday that it had, as expected, completed the acquisition of e18 Consulting Ltd. The company had already announced the transaction in connection with its Q2 results, and we had consolidated it into Digital Workforce starting in Q4. In our view, the acquisition clearly expands Digital Workforce’s international growth opportunities and market potential.

In the rest of the Nordic countries, organic revenue development turned downward and profitability weakened in Q2. Thus, even applying the Rule of 20, the situation in the IT services market remains distinctly challenging, with only one company achieving good performance and two achieving satisfactory performance.

The IT service sector entered the Q2 earnings season in a cautious mood, albeit with expectations of a turnaround. In reality, however, the situation deteriorated even further, with revenue falling more than before and beyond our expectations and profitability remaining at a very low level.

Digital Workforce's Q2 was better than expected and a good step up after a weak Q1. Sales were strong in Q2, and the sales pipeline remains good, providing a good foundation for the remainder of the year.

Digital Workforce, the software robotics automation pioneer, published a stronger-than-expected Q2 report this morning. Revenue grew but was slightly below our expectations. The earnings, however, clearly exceeded our estimates, supported by cost savings. The company's order book and sales pipeline appear strong, which supports the continuation of the positive revenue and profitability trend in H2. Thus, achieving the guidance also appears clearly more likely again.

Digital Workforce, the software robotics automation expert, will publish its half-year report on Friday morning. In the big picture, we expect Q2 to be subdued relative to the company’s level, and performance to improve in H2.