Atos in Q1 2023: Organic revenue growth of 2.8% (2023)

Atos in Q1 2023: Organic revenue growth of 2.8% (1)

Atos, a global leader in digital transformation, high-performance computing and information technology infrastructure, announces its revenue for the first quarter of 2023.

Atos’ leadership team, Nourdine Bihmane, Diane Galbe and Philippe Oliva, declared: “Atos recorded a robust +2.8% organic revenue growth in Q1 with both businesses delivering on their 2023 priorities. Under its new commercial brand, Eviden reported another solid quarter with high growth, well balanced between its synergetic Digital, Big Data and Cybersecurity activities. Tech Foundations continued to reshape its portfolio, confirming the earlier-than-anticipated stabilization of its core business while further reducing its exposure to non-strategic activities. The Group’s performance keeps improving. We heartedly thank our 110,000 employees for their exceptional commitment.”

Atos in Q1 2023: Organic revenue growth of 2.8% (2)

In € million Q1 2023 Q1 2022 Variation Var. Var.

at cst. curr. organic

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Eviden scope 1,334 1,223 +9.1% +8.9% +9.5%

Atos in Q1 2023: Organic revenue growth of 2.8% (5)

Tech Foundations scope 1,473 1,524 -3.4% -3.1% -2.6%*

Group revenue 2,806 2,747 +2.2% +2.3% +2.8%

Atos in Q1 2023: Organic revenue growth of 2.8% (6)

* core business revenue: +0.1%

Robust organic revenue growth in Q1: +2.8%

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Group revenue was €2,806 million in Q1 2023, up +2.2% year-on-year. Organic growth was robust, at +2.8%, reflecting the continuous improvement in the Group’s operational performance. Scope effects accounted for -0.5% (exit of Russia, divestment of EGSE and Sislog). Foreign exchange contributed -0.1%, mainly reflecting the depreciation of the pound sterling against the Euro over the period, mitigated by the appreciation of the US dollar.

Eviden reported a strong +9.5% organic revenue growth in Q1, well balanced between its synergetic activities in Digital, Big Data and Cybersecurity. Digital further accelerated its growth in Q1, driven by new business in application development and modernization, particularly in European markets. Growth was strong in Advanced Computing as the HPC activity continued to ramp up. Digital Security reported another quarter of double-digit growth, with an increasing emphasis on next-generation cybersecurity services and products focused on identity management, encryption and managed detection and response in hybrid cloud environments.

In Q1, Tech Foundations confirmed the earlier-than-anticipated stabilization of core activities in infrastructure, private cloud & platforms, digital workplace and professional services, at +0.1% organic. Portfolio reshaping actions lead to a further managed reduction in non-strategic activities (BPO, hardware & software resale, UCC), resulting in a -2.6% organic contraction for the whole Tech Foundations perimeter. In March, Atos was positioned as a Leader in the Gartner® Magic Quadrant™ for Outsourced Digital Workplace, based on its completeness of vision and ability to execute, for the seventh year in a row.

Commercial activity

Order entry was € 2.1 billion in Q1 2023, representing a book-to-bill ratio of 73% (72% in Q1 2022).

Eviden’s book-to-bill ratio was 79%, impacted by fluctuations in the HPC deal flow, following a high order intake in Q4 2022 and the slippage of a large HPC contract for an Indian customer into Q2. Digital’s Q1 order entry was reflective of the continued focus on smaller, low-risk contracts and short-term bookings with faster revenue yields (59% of Q1 order entry was made of contracts with durations below 18 months).

Tech Foundations’ book-to-bill was 68%, showing continued quarter-on-quarter progress, as sales capabilities are being gradually enhanced while strict contract selectivity is consistently applied. New logos and new services represented 36% of Q1 2023 order entry compared to 25% in Q1 2022.

At the end of March 2023, the Group’s full backlog was € 19.5 billion, down €-0.9 billion compared to December 2022 excluding the divested Italian operations. It represented 1.8 years of revenue.

The full qualified pipeline amounted to € 6.6 billion at the end of March 2023, up € 0.2 billion compared to December 2022 excluding the divested Italian operations and represented 7.3 months of revenue.

2023 full-year outlook confirmed

Based on its robust Q1 performance, Atos is confirming its 2023 full-year outlook.

In 2023, Group revenue organic growth is expected between -1.0% and +1.0%, as an acceleration of Eviden’s organic growth will be offset by the managed reduction of Tech Foundations’ revenue resulting from portfolio reshaping.

Group operating margin[1] is expected at 4% to 5%. Eviden’s operating margin is expected to increase compared to 2022. Tech Foundations’ operating margin is expected to remain in positive territories, well ahead of plan.

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Annual General Meeting to be held on June 28, 2023

Atos’ Annual General Meeting of shareholders will be convened shortly, to be held on June 28, 2023.

Strategic transformation update

Over the past ten months, the intense work undertaken by Atos teams, particularly with regard to the strategic refocusing and related internal reorganization of the Group, has allowed us to get our activity back on track, generate growth, and achieve gradual margin improvement, while preparing for the future of our two businesses, Eviden and Tech Foundations. Transformation is clearly starting to yield results. Atos teams remain committed to ongoing efforts to sustain this positive momentum and continue to drive value creation for all stakeholders.

Progress in divestment program

On March 31st, Atos completed the sale of its Italian operations (“Atos Italia”)[2] to Lutech S.p.A., an Italian provider of IT services and solutions, with a 100% cash consideration. The completion of this transaction is a new milestone in the successful execution of Atos’ divestment plan. Since June 2022, Atos has closed four transactions and signed another one thus securing c.80% of the plan’s €700 million expected proceeds and demonstrating the Group’s ability to execute efficiently.

Eviden brand launch

The progressive introduction of Eviden as a commercial brand within the Atos Group started on April 3rd. The Atos Group will therefore go to market under two brands: the managed infrastructure services, hybrid cloud, digital workplace, and professional services, commonly labelled “Tech Foundations” will retain the Atos brand, while its digital, cloud, cybersecurity and big data business lines will go to market under the Eviden brand.

Roll-out of new client-centric organization to foster innovation and performance

Atos is entering the final phase of the roll-out of its new organization, a key step of its strategic transformation of the Group. Atos is progressively implementing a new client-centric organization across the Group thus allowing Eviden and Tech Foundations to operate according to two distinct business models, tailored to their respective go-to-market specificities, while maintaining close collaboration with one another. All Atos teams are fully mobilized to ensure a smooth and successful transition, while implementing the Group’s new operating model.

Objective to complete the separation project in H2 2023 confirmed

The Group is on track to decide on its separation project for a completion by the end of 2023. In addition to the Annual General Meeting of shareholders to be held on June 28, 2023, Atos intends to convene in H2 2023 a specific General Meeting, dedicated to the finalization of the contemplated spin-off project.

Human resources

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Total headcount was 110,270 at the end of March 2023, down -0.5% compared to 110,797 at the end of December 2022.

In line with its objectives for the quarter, Atos hired 4,920 new employees (gross) in Q1 2023, compared to 8,234 in Q1 2022.

As of today, Atos has achieved Great Place to Work® certification in 44 countries out of the 69 countries where the Group operates. This achievement is a testament to the high level of employee engagement that the Group’s strategic project has generated, and a recognition of Atos’ ongoing commitment to fostering a positive and inclusive workplace culture. Last-twelve-months attrition rate at the end of March 2023 was 20%, compared to 22% as of December 2022..

Further changes in the composition of the Atos Board of Directors

Atos is committed to continuously improving its governance practices. This effort was recognized in September 2022 when Atos received the highest rating available (AAA) in the MSCI ESG rating.

In 2022, the company appointed five new directors, including four independent directors and one director representing the employee shareholders. The board also reorganized its committees, which now all have independent chairs. After the work performed by the Nomination and Governance Committee, the Atos Board of Directors intends to continue making changes to its membership in 2023 to strengthen its diversity of skills and experiences and is currently finalizing its selection process which will result in announcements in due time.

Investor & Analyst Day focused on Tech Foundations: June 7, 2023

Atos is pleased to invite analysts and investors to its next investor day, focused on Tech Foundations. The event will be held on June 7, 2023 in Paris and remotely and will be an opportunity for management to share an update on Tech Foundations’ business, progress on turnaround plan, as well as its new vision and opportunities ahead, in light of its recent better-than-anticipated performance.

Another event focused on Eviden will be held at a later stage closer to the completion of the separation project.


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Atos in Q1 2023: Organic revenue growth of 2.8%? ›

Group revenue was €2,806 million in Q1 2023, up +2.2% year-on-year. Organic growth was robust, at +2.8%, reflecting the continuous improvement in the Group's operational performance.

What is the Atos strategy 2023? ›

Based on its robust Q1 performance, Atos is confirming its 2023 full-year outlook. In 2023, Group revenue organic growth is expected between -1.0% and +1.0%, as an acceleration of Eviden's organic growth will be offset by the managed reduction of Tech Foundations' revenue resulting from portfolio reshaping.

What is the revenue of Atos? ›

Group revenue was € 11,341 million in 2022, up +4.6% compared to 2021. At constant currency, revenue grew +1.3%, at the high end of the Group's guidance, with an organic stabilization over the full year (+0.1%) and a +1.2% contribution from acquisitions net of disposals.

How do you calculate organic revenue growth? ›

Organic growth represents growth in net new assets (or revenue), independent of changes in market value. Essentially the formula for organic growth is: assets/revenue that come in (inflows) minus assets/revenue that leave (outflows).

What does organic revenue growth mean? ›

What Is Organic Growth? Organic growth is the growth a company achieves by increasing output and enhancing sales internally. This does not include profits or growth attributable to mergers and acquisitions but rather an increase in sales and expansion through the company's own resources.

Why is Atos splitting? ›

An industry insider told HPCwire that the split makes sense, as Atos' long-term, expensive investments in the HPC space and its strong hardware division were being negatively impacted by the financial performance of its services segment. Under the new direction, each side gets renewed focus and attention.

What is the future of Atos? ›

Atos expects revenue growth between -1% and 1% in 2023 | Nasdaq.

Is Atos a Tier 1 company? ›

Atos, as a tier-one company, seeks operational excellence and is committed to minimizing the environmental impact of its activities worldwide.

Who is Atos main competitors? ›

Top Atos Alternatives
  • Tata Consultancy Services (TCS)
  • Capgemini.
  • Accenture.
  • Hewlett Packard Enterprise (HPE)
  • T-Systems.
  • Wipro.
  • Cognizant.
  • DXC Technology.

Is Atos a Level 5 company? ›

Atos Origin India Private Limited(A Cmm Level 5 Company) | LinkedIn.

What is a good organic growth percentage? ›

So, what constitutes a strong organic growth rate? Many entrepreneurs aim to grow their organizations by 10% each year. However, according to the Rule of 72, at that rate, your business will take 7.2 years to double in size. When I come into a company, my goal is always to achieve and maintain 30% growth.

How do you calculate 3 year revenue growth rate? ›

The revenue growth formula

To calculate revenue growth as a percentage, you subtract the previous period's revenue from the current period's revenue, and then divide that number by the previous period's revenue.

What is the difference between M&A and organic growth? ›

In an M&A transaction, the acquirer or investor often brings onboard leaders with significant experience. In an organic growth strategy, founders must often “build versus buy” their leaders, which can be a time-consuming endeavor.

What are the 3 elements of organic growth? ›

A diversified approach to organic growth

But regarding the three strategies of growth we explored (investing, creating, and performing), the responses suggest that there is no one-size-fits-all approach.

What is considered high revenue growth? ›

Growth rate benchmarks vary by company stage but on average, companies fall between 15% and 45% for year-over-year growth. Businesses with less than $2 million in annual revenue generally have much higher growth rates according to a Pacific Crest SaaS Survey.

What is the difference between revenue and organic revenue? ›

Organic sales are revenues generated from within a company. Organic sales encompass those streams of revenues that are a direct result of the firm's existing operations as opposed to revenues that have been acquired through the purchase of another company or business unit in the past year.

Are Atos in trouble? ›

Since the end of 2020, Atos has struggled with a series of problems and profit warnings that has seen its market value tumble from €9.8 billion to €1.5 billion. It was also removed from the benchmark CAC 40 index.

Is Atos a buy or sell? ›

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Atossa Genetics is 'Strong Sell'.

Is Atos better than IBM? ›

Atos is most highly rated for Work/life balance and IBM is most highly rated for Work/life balance. Learn more, read reviews and see open jobs.
Overall Rating.
Overall Rating3.53.9
Compensation and benefits3.23.5
Job security and advancement3.23.5
1 more row

Who will buy Atos? ›

Mitel set to acquire Atos' unified communications and collaboration business Unify. Canadian business communications specialist Mitel has announced it has begun exclusive negotiations with Atos Group to acquire its unified communications and collaboration (UCC) business Unify.

Is Atos in debt? ›

What Is Atos's Debt? As you can see below, at the end of December 2022, Atos had €4.86b of debt, up from €4.60b a year ago. Click the image for more detail. However, it also had €3.33b in cash, and so its net debt is €1.53b.

What is the difference between Tier 1 2 3 companies? ›

Tier 1 Suppliers are your direct suppliers. Tier 2 suppliers are your suppliers' suppliers or companies that subcontract to your direct suppliers. Tier 3 suppliers are the suppliers or subcontractors of your tier 2 suppliers.

What is difference between Tier 1 and 2? ›

Tier 1 accounts have a lock-in period until the investor turns 60. Tier 2 accounts don't have any lock-in period. Section 80C of the Income Tax Act permits deductions for contributions up to Rs. 1,50,000 annually.

What is the Gartner rating for Atos? ›

Atos is present in 19 markets with 1 product. Atos has 472 reviews with an overall average rating of 4.4.

Which is better Atos or Deloitte? ›

Deloitte scored higher in 9 areas: Overall Rating, Culture & Values, Diversity and Inclusion, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook.

Is Atos owned by Siemens? ›

Atos Information Technology Incorporated was formed on 1 October 2007 from the merger of several groups from various countries, including Siemens Business Services (Germany), Program and System Engineering (Austria), Siemens Information Ltd (India), Business Innovation Center (Switzerland) and Development Innovations ...

What makes Atos unique? ›

Our employee lifecycle processes are designed to prevent discrimination against our people regardless of gender identity or expression, sexual orientation, religion, ethnicity, age, neurodiversity, disability status, citizenship, or any other aspect which makes them unique.

What is the highest salary of Atos? ›

The highest-paying job at Atos is a Vice President with a salary of ₹66.0 Lakhs per year. The top 10% of employees earn more than ₹20 lakhs per year.

Is KPMG part of Atos? ›

The company was formed in 1997 through a merger of two French IT companies; and combined with the Dutch-based company Origin B.V. in 2000 to become Atos Origin. It subsequently acquired KPMG Consulting in 2002 and SchlumbergerSema in 2004.

What is the dress code for Atos? ›

Business casual. Can't find your question about Atos?

Is 2% growth rate good? ›

Good economic growth can vary, but typically falls within two to four percent. This means that even if a company is only growing five percent a year, it could still have a good growth rate compared to other businesses. A good growth rate isn't always tied to general economic conditions.

Is 3% growth rate good? ›

The ideal GDP growth rate is between 2% and 3%. The GDP growth rate measures how healthy the economy is. When the number is positive, the economy is growing.

What does 20% growth mean? ›

Naturally, a company with fewer total customers will more easily achieve higher growth rates; 20% growth means only 20 new customers when the origin point was 100, but 200 new customers if that same origin point was 1,000.

What is the KPI for revenue growth? ›

Revenue Growth is a KPI used to measure how sales are increasing or decreasing over time. It is calculated by dividing revenue generated during one time period by the revenue generated during a subsequent time period, subtracting 1, and then multiplying by 100 to obtain a percentage.

What is good 3 year sales growth? ›

Good revenue growth rate has to be above 15% year-over-year.

How do you analyze revenue growth? ›

The formula for revenue growth requires you to subtract the previous period's revenue from the current period's revenue, then divide it by the previous period's revenue. Now, we calculate $180,000 / $820,000 and end up with roughly 0.2195. That means the company's revenue growth from 2020 to 2021 was 21.9%.

What is an example of organic growth? ›

Organic (or internal) growth involves expansion from within a business, for example by expanding the product range, or number of business units and location. Organic growth builds on the business' own capabilities and resources.

What is the organic growth strategy? ›

In an organic growth strategy, a business utilizes all of its resources – without the need to borrow – to expand its operations and grow the company. Organic growth is typically marked by an increase in output, greater efficiency and speed with production, higher revenue, and improved cash flow.

What are the disadvantages of organic growth? ›

  • Growth can be significantly slower. Since there's no infusion of market, product, assets, or resources, a company growing organically must do so at a sustainable pace. ...
  • May decrease your competitive edge. ...
  • There is sometimes a glass ceiling. ...
  • Competition drives the market.
Mar 10, 2021

What are the 4 growth strategies? ›

These are Product, Placement, Promotion and Price.

What are the 4 types of organic? ›

The four main groups of biologically important organic compounds are carbohydrates, lipids, proteins and nucleic acids.

What are two methods of organic growth? ›

Internal growth, or organic growth , is when a business decides to expand on its own. Methods of internal growth include franchising, opening new stores, e-commerce and outsourcing.

What percentage of revenue growth is good? ›

Ideal business growth rates vary by the type of business and industry as well as the stage that the business is at in its development. In general, however, a healthy growth rate should be sustainable for the company. In most cases, an ideal growth rate will be around 15 and 25% annually.

Is a 5% growth rate good? ›

Startup companies, especially those in high-tech industries, are expected to grow quite rapidly. For Y Combinator companies (a well-known tech incubator), a good growth rate is considered to be 5% to 7% per week of revenues, while an exceptional growth rate is 10% per week.

Is 20% revenue growth good? ›

However, generally speaking, a healthy growth rate should exceed the overall growth rate of the economy or gross domestic product (GDP). Further to that, Harvard Business Review suggests that most companies should grow at a rate of between 10% and 25% per year.

Is revenue growth the same as gross profit? ›

Gross revenue is the total revenue generated by a business without deducting any expenses and losses, while gross profit is the difference between gross revenue and the cost of goods sold (or services rendered).

Is revenue growth good or bad? ›

Generally speaking, a good revenue growth rate exceeds the overall growth rate of the economy. For instance, if a country's economy falls within 2% to 4%, your company has a good revenue growth rate if it is growing at 5% or more.

Is revenue better than profit? ›

Can Profit Be Higher Than Revenue? Revenue sits at the top of a company's income statement, making it the top line. Profit, on the other hand, is referred to as the bottom line. Profit is lower than revenue because expenses and liabilities are deducted.

What are Atos main priorities in terms of managing the environment? ›

At Atos, we have an ambitious environmental program in place to reduce our energy consumption, business travel and our greenhouse gas emissions.

Is Atos being acquired? ›

Even amid the business challenges, Atos has remained in acquisition mode in 2021. Key deals have included: July 2021: Acquring Visual BI, Nimblix and Ideal Grp. The companies offer expertise across Snowflake, high-performance computing and manufacturing expertise.

Who is the head of strategy Atos? ›

Miguel Fernandez - Global Head of Strategy & Innovation - Atos | LinkedIn.

What is Atos secret? ›

Security of this information is vital for Atos. Secret information is defined as information of such a damaging nature that unauthorized disclosure could cause extreme financial damage to Atos or could affect significantly the price of the market share and may result in the imprisonment of Atos management or employees.

What are the 5 environmental challenges and objectives for Atos? ›

Atos aims to certify all its main facilities around the world for ISO 14001. The certification requires high standards in a range of environmental issues such as carbon emissions, energy consumption, waste management, recycling, water use and employee awareness and is increasingly requested by prospective clients.

What are the 4 ISO norms in Atos? ›

Quality is the company's mission at all levels.
  • ISO 9001. Quality Management.
  • ISO 14001. Environmental Management.
  • ISO 45001. Health & Safety Management.

Who is the competitor of Atos? ›

Atos's competitors include EY, McKinsey & Company, Deloitte, IBM.

Where is Atos headquarters? ›

Atos is a European multinational information technology (IT) service and consulting company with headquarters in Bezons, France, and offices worldwide.

What is the vision of Atos? ›

We work together to deliver the top-quality, tailored solutions our clients expect, all around the world.

What is the mission statement of Atos? ›

Vision and ambition To help its clients across all sectors prepare for a new era of digital business, Atos applies cutting-edge technologies and extensive industry knowledge.


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