Announcement • May 18
GK Software SE, Annual General Meeting, Jun 24, 2024 GK Software SE, Annual General Meeting, Jun 24, 2024, at 12:00 W. Europe Standard Time. Announcement • Jan 10
GK Software SE Debuts New Point-Of-Sale Installations in North America GK Software reported a very successful year, with growth in North America reaching new heights. The company also announces its focal points for NRF 2024: Retail's Big Show, including debuting its new loyalty solution, GK Engage, and showcasing the collaboration and benefits of the strategic partnership between GK and Fujitsu. In 2023, the company's customers were able to put over 25,000 new point-of-sale (POS) installations into production in more than 2,000 stores worldwide. These included large department stores and convenience stores in North America and Europe. According to RBR Data Service's "Global POS Software 2023" report, growth was particularly strong in the U.S. GK realized around 5% of all new installations in the world's largest retail market. In the grocery sector, one in four new point-of-sale installations came from GK (26%). It is expected that GK's growth will continue to accelerate, particularly in North America, as six new customers were signed in this region in 2023, which together operate over 20,000 stores. The new AI-supported customer loyalty solution GK Engage, which is designed to deepen the customer relationship at all levels through relevant recommendations, targeted promotions and other offers tailored directly to the individual customer, will be presented for the first time at NRF 2024: Retail’s Big Show. The solution’s personalized campaigns take into account customer preferences as well as the retailer's current inventory and goals. GK Engage is fully integrated into GK's CLOUD4RETAIL platform, allowing the solution to be accessible to consumers wherever they interact with the retailer – from mobile apps to self-checkout kiosks and traditional POS systems. At the NRF 2024: Retail’s Big Show retailers can learn about the new opportunities arising from the recently concluded global partnership with Fujitsu. Fujitsu is the majority shareholder, with over 72% of GK, and now distributes the company's solutions worldwide alongside SAP. At the neighboring Fujitsu and GK booths, NRF attendees will hear about the diverse retail and customer experience opportunities made possible by the portfolios of both companies. Last year, GK's work was recognized in numerous analyst reports as well as through several awards programs. Highlights include: In the RBR Data Service's report "Global POS Software 2023", GK was once again listed as one of the leading providers. The company is now ranked fourth for all installations worldwide, after ranking fifth in 2022. GK was featured as a relevant provider in Forrester's Merchant Payment Providers Landscape for fourth quarter of 2023. In the IDC MarketScape: Worldwide Point-of-Sale Software for Large Apparel and Softlines Retail 2023 Vendor Assessment, the company was rated as a leader. GK was honored as a finalist in the "Best Unified Customer Experience" category at the 2024 VIP Awards. In the RIS Leaderboard 2024, GK was ranked number one in customer satisfaction for large providers and in overall retailer performance in Tier 1 and Tier 2. GK was honored by the EHI Retail Institute as Top Supplier 2023 in the Best Customer Experience category together with the RETA Award (Retail Technology Award Europe) winner, Coop. To see GK Engage in action and learn more about the company's growth trajectory, visit GK at the NRF 2024: Retail’s Big Show. Announcement • Sep 26
GK Announces GK Engage, a Highly Personalized Loyalty Solution for Any Retail Touch Point Including Mobile Devices and Point-Of-Sale GK announced its latest solution, GK Engage, a modern, comprehensive and AI-powered loyalty program for every omnichannel retail touch point. This solution empowers retailers to create highly contextualized and personalized outreach including messaging, discounts and rewards that improve customer lifetime value and enrich a retailer's competitive differentiation. GK Engage was announced at GK's first-ever Retail Innovation Summit for the Americas, which is taking place Sept. 25-26 in Raleigh, North Carolina. Attendees can view GK Engage, alongside other GK solutions, at the newly unveiled GK Customer Experience Center. GK is a world leader in point-of-sale (POS) technology and, as a result, its product team has talked with retailers who wanted more out of their loyalty systems. To fill this gap, GK developed GK Engage, an modern take on loyalty. The solution draws inspiration from two successful GK solutions, MCA, GK's mobile loyalty program, and T+ Loyalty. These predecessor technologies have serviced more than one billion transactions per year for over six million registered users. Now, GK Engage customers will reap these benefits at scale using one comprehensive platform that works across a diverse range of online and in-store retail touch points. GK Engage provides retailers with real-time, AI-driven, personalized loyalty offers that surprise and delight customers. The complete solution creates loyalty tiers that automatically track all customer interactions and generate relevant campaigns to safeguard long-term retailer relationships and customer lifetime value. GK Engage can be integrated with merchandise master data and customer data to ensure all recommendations, promotions, coupons and more are beneficial to the individual customer, as well as the retailer's current inventory availability and financial goals. What's more, GK Engage is already integrated into GK's OmniPOS solution across all touch points including traditional POS, self-checkout kiosks, mobile, and frictionless store technology like GK GO. Announcement • May 26
GK Software SE(XTRA:GKS) dropped from S&P Global BMI Index GK Software SE(XTRA:GKS) dropped from S&P Global BMI Index Announcement • May 20
Gk Software Se Announces Appointment of A New Supervisory Board GK Software SE announced that new three-member Supervisory Board was appointed by court until the next Annual General Meeting on 28 June 2023, comprising Dr Anke Nestler (Senior Managing Director of FTI Consulting Deutschland GmbH), Nicholas Fraser (Corporate Executive Officer of Fujitsu Limited) and John Pink (Vice President and Global Head of Consumer Experience of Fujitsu Uvance). The new Supervisory Board will stand for election at the company's Annual General Meeting. . Announcement • May 18
Fujitsu ND Solutions AG cancelled the acquisition of a 68.03% stake in GK Software SE (XTRA:GKS) for approximately €290 million. Fujitsu ND Solutions AG agreed to acquire GK Software SE (XTRA:GKS) for approximately €440 million on March 1, 2023. The offer price is €190 cash per share. GK’s founders and major shareholders, Rainer Gläß and Stephan Kronmüller, support the transaction and have entered into irrevocable undertakings with ND Solutions regarding their GK shares. Fujitsu intends funding the takeover offer with existing cash. CEO Rainer Gläß will leave the Company’s Executive Board in the event of a successful takeover, but will remain with the Company in an advisory capacity as Honorary Chairman of the Supervisory Board. Fujitsu has announced that the takeover offer is subject to a minimum acceptance threshold of 55 % of the Company's share capital. As of April 5, 2023, the Management Board and the Supervisory Board of GK Software support the Offer and recommend the GK Software shareholders to accept it. In addition, it is subject to the granting of regulatory approvals and other customary market conditions. As of May 12, 2023, all closing conditions have been fulfilled and the offer has been accepted for a total of 1,536,915 GK shares, representing approximately 67.62% stake in it. The acceptance period of Takeover Offer starts from March 23, 2023 and will run until April 20, 2023. As of May 2, 2023, The additional acceptance period for the voluntary public takeover offer will run until May 9, 2023. Closing of the takeover offer is currently expected to occur by July 2023.BofA Securities is acting as the exclusive financial advisor, and Dirk Besse and Sebastian Schwalme of Morrison & Foerster as legal advisor to Fujitsu. Arma Partners LLP is acting as exclusive financial adviser to GK Software SE regarding the offer and has been mandated to provide a fairness opinion. The international law firm Freshfields Bruckhaus Deringer is acting as legal advisor to GK Software SE.Fujitsu ND Solutions AG cancelled the acquisition of a 68.03% stake in GK Software SE (XTRA:GKS) for approximately €290 million on May 16, 2023. Announcement • May 05
GK Software to be Delist On May 3, 2023, GK Software SE announced that it has entered into an agreement to be delisted by Fujitsu ND Solutions AG, a wholly owned subsidiary of Japan’s Fujitsu Limited (TSE:6702), following a successful takeover offer. Fujitsu ND Solutions declared in April its EUR 432 million (USD 473.7 million) takeover offer for GK Software successful as the minimum acceptance threshold of 55% has been reached. As of April 25, the bidder has secured 1.49 million shares, corresponding to about 65.57 % of GK Software’s voting rights. An additional acceptance period will run until May 9. In accordance with the latest agreement, Fujitsu ND Solutions will also make a public delisting offer to buy the remaining shares for EUR 190 apiece, the same as the consideration of the takeover offer. GK Software’s executive and supervisory boards have approved the delisting agreement and support the related delisting offer. Reported Earnings • May 02
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: €4.99 (down from €5.98 in FY 2021). Revenue: €158.2m (up 23% from FY 2021). Net income: €11.3m (down 14% from FY 2021). Profit margin: 7.1% (down from 10% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.1%. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Software industry in Germany. Over the last 3 years on average, earnings per share has increased by 55% per year whereas the company’s share price has increased by 53% per year. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to €188, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 23x in the Software industry in Germany. Total returns to shareholders of 238% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €156 per share. Announcement • Jan 13
GK Software SE to Report Nine Months, 2023 Results on Nov 28, 2023 GK Software SE announced that they will report nine months, 2023 results on Nov 28, 2023 Reported Earnings • Nov 30
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: €42.9m (up 37% from 3Q 2021). Net income: €4.45m (up 181% from 3Q 2021). Profit margin: 10% (up from 5.0% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Software industry in Germany. Reported Earnings • Sep 01
Second quarter 2022 earnings released Second quarter 2022 results: Net income: (down €7.06m from profit in 2Q 2021). Over the next year, revenue is forecast to grow 9.9%, compared to a 7.8% growth forecast for the Software industry in Germany. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Announcement • Jun 18
GK Software SE to Report Nine Months, 2022 Results on Nov 24, 2022 GK Software SE announced that they will report nine months, 2022 results on Nov 24, 2022 Announcement • May 25
GK Software SE to Report Q1, 2022 Results on May 25, 2022 GK Software SE announced that they will report Q1, 2022 results on May 25, 2022 Reported Earnings • May 03
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: €5.98 (up from €3.04 in FY 2020). Revenue: €128.8m (up 8.3% from FY 2020). Net income: €13.2m (up 112% from FY 2020). Profit margin: 10% (up from 5.2% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.4%. Over the next year, revenue is forecast to grow 13%, compared to a 14% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 27
Third quarter 2021 earnings: Revenues in line with analyst expectations Third quarter 2021 results: Revenue: €37.0m (up 26% from 3Q 2020). Net income: €1.58m (down 48% from 3Q 2020). Profit margin: 4.3% (down from 10% in 3Q 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 11%, compared to a 29% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 109% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Price Target Changed • Sep 07
Price target increased to €196 Up from €182, the current price target is an average from 4 analysts. New target price is 15% above last closing price of €171. Stock is up 106% over the past year. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS €3.06 (vs €0.20 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €39.0m (up 43% from 2Q 2020). Net income: €7.06m (up €6.66m from 2Q 2020). Profit margin: 18% (up from 1.5% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 19
Price target increased to €182 Up from €167, the current price target is an average from 4 analysts. New target price is 20% above last closing price of €151. Stock is up 101% over the past year. Price Target Changed • Aug 11
Price target increased to €177 Up from €159, the current price target is an average from 4 analysts. New target price is 23% above last closing price of €144. Stock is up 93% over the past year. Major Estimate Revision • Jun 03
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from €4.16 to €4.58. Revenue forecast steady at €132.3m. Net income forecast to grow 29% next year vs 8.6% growth forecast for Software industry in Germany. Consensus price target up from €159 to €163. Share price was steady at €135 over the past week. Reported Earnings • May 29
First quarter 2021 earnings released: EPS €1.10 (vs €0.27 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: €30.5m (up 4.9% from 1Q 2020). Net income: €2.11m (up €2.67m from 1Q 2020). Profit margin: 6.9% (up from net loss in 1Q 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • May 22
Zucchetti s.p.a. agreed to acquire AWEK microdata GmbH from GK Software SE (XTRA:GKS). Zucchetti s.p.a. agreed to acquire AWEK microdata GmbH from GK Software SE (XTRA:GKS) on May 20, 2021. The transfer of business will take place on May 21, 2021. Major Estimate Revision • May 05
Consensus EPS estimates fall to €4.05 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from €138.9m to €133.2m. EPS estimate also fell from €4.59 to €4.05. Net income forecast to grow 43% next year vs 5.2% growth forecast for Software industry in Germany. Consensus price target up from €134 to €146. Share price rose 4.2% to €125 over the past week. Reported Earnings • May 03
Full year 2020 earnings released: EPS €3.04 (vs €1.60 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: €118.7m (up 2.3% from FY 2019). Net income: €6.21m (up €9.35m from FY 2019). Profit margin: 5.2% (up from net loss in FY 2019). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 02
Price target increased to €146 Up from €134, the current price target is an average from 4 analysts. New target price is 16% above last closing price of €126. Stock is up 118% over the past year. Announcement • Mar 17
GK Software SE Announces Development of GK SPOT, the First Native, Cloud-Based Big Data Solution for the Retail Sector GK Software SE announced that it is launching an innovation offensive and has started to develop a new, ground-breaking range of solutions for the retail trade. Using the heading A new deal for the retail industry, the development of GK SPOT, a completely new cloud-based big data service, will be the special major focus here.GK SPOT is currently being developed as a big data solution that is tailored to the needs of the retail sector on the tried and tested CLOUD4RETAIL platform; it aims to eliminate existing restrictions and tap into new possibilities. The Fiskal Cloud solution was also developed on the CLOUD4RETAIL platform using the latest technologies and it is now handling more than ten million transactions in real time every day. In addition to GK SPOT, GK's innovation offensive also includes the Omnibasket.com open platform, which opens up a unique type of retail enterprise solution for extensions for customers and innovators as well as new omni-channel solutions, for example, for managing orders. The Management Board at GK Software assumes that GK SPOT will enable the company to further extend the competitive edge that the CLOUD4RETAIL platform already enjoys and create the basis for ongoing, high-value cloud solution services for the retail sector. The company is planning to launch the new solution in the market place in 2021. Major Estimate Revision • Feb 19
Analysts update estimates The 2020 consensus revenue estimate was lowered from €122.3m to €121.0m. Earnings per share (EPS) increased from €2.56 to €2.88 for the same period. Net income is expected to grow by 27% next year compared to 9.1% growth forecast for the Software industry in Germany. The consensus price target increased from €122 to €130. Share price is up 5.2% to €122 over the past week. Price Target Changed • Feb 03
Price target raised to €122 Up from €112, the current price target is an average from 4 analysts. The new target price is 6.6% above the current share price of €114. As of last close, the stock is up 59% over the past year. Is New 90 Day High Low • Feb 03
New 90-day high: €114 The company is up 65% from its price of €69.00 on 04 November 2020. The German market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €178 per share. Is New 90 Day High Low • Jan 14
New 90-day high: €102 The company is up 40% from its price of €72.60 on 15 October 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is down 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €169 per share. Announcement • Jan 13
GK Software Launches Omnibasket, Allowing Solution Providers to Easily Integrate Their Applications with GK's Cloud4retail GK Software announced new Omnibasket Developers Portal and Innovator Partners Program. Now third-party solution providers can easily integrate their applications with GK’s cloud4retail commerce platform, used by leading retailers worldwide. With the Omnibasket Developers Portal, GK’s platform now becomes the hub of a growing ecosystem made up of applications that can extend GK’s core cloud4retail capabilities. This gives retailers unprecedented flexibility by enabling them to choose from a growing number of solutions that complement GK. Third-party developers can use the platform’s web services through APIs to utilize basket capabilities, promotions, transaction handling, and more, even in nontraditional touchpoints such as cars, IoT devices and various mobile apps. Developers can also use simple JavaScript to plug-in web apps such as clienteling, time and attendance, and rich item content to the POS, assistants' mobile POS, or a kiosk. The portal provides documentation and other developer resources, with simple registration access to a sandbox environment. In addition to Omnibasket, GK also introduced an Innovator Partners Program, which allows a swift transition from discovery to commercial availability, helping partners to control their own success and all parties to benefit from the outcomes. Reported Earnings • Nov 27
Third quarter 2020 earnings released: EPS €1.48 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: €31.6m (up 7.3% from 3Q 2019). Net income: €3.06m (up €3.30m from 3Q 2019). Profit margin: 9.7% (up from net loss in 3Q 2019). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Price Target Changed • Nov 11
Price target raised to €110 Up from €99.25, the current price target is an average from 4 analysts. The new target price is 34% above the current share price of €82.00. As of last close, the stock is up 37% over the past year. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 19% share price gain to €77.00, the stock is trading at a trailing P/E ratio of 48.2x, up from the previous P/E ratio of 40.5x. This compares to an average P/E of 29x in the Software industry in Germany. Total return to shareholders over the past three years is a loss of 34%. Price Target Changed • Nov 06
Price target raised to €103 Up from €94.63, the current price target is an average from 4 analysts. The new target price is 34% above the current share price of €77.00. As of last close, the stock is up 28% over the past year. Announcement • Nov 06
GK Software SE Announces the Availability of its Leading Enterprise Retail Solution on Microsoft Azure, Opening New Doors to Retailers Global Microsoft Partner GK Software announced the availability of its leading Enterprise Retail Solution on Microsoft Azure, opening new doors to Retailers. GK's expertise in retail, combined with Microsoft Azure, will provide added value to retailers and enable them to run their retail applications more efficiently. The leading cloud4retail platform of GK Software is now available globally on Microsoft Azure. This enables retail companies to use one of the leading enterprise omni-channel solutions with even more flexibility and additional potential in many areas by using the services and infrastructure of Azure. GK Software also announced that it has reached Microsoft Co-sell ready status. cloud4retail is GK Software's flexible, open, commerce platform providing various services for the operation of integrated unified commerce environments. Furthermore, the platform is enriched by innovative services such as AI-based dynamic pricing, personalization and fraud detection as well as mobile customer apps or fiscalization solutions. The cloud4retail platform is optimized for use with Azure and uses its diverse storage, server and scaling capabilities, which offer significant advantages over conventional on-premises installations. Whilst retaining its comprehensive extension and customization options of the various cloud4retail services, e.g. configuration, enhancement, customization, flow design and AppEnablement. With cloud4retail running on Azure, retailers now have another choice of various deployment models and can easily scale up their operations as required. Is New 90 Day High Low • Oct 29
New 90-day low: €63.40 The company is down 6.0% from its price of €67.80 on 30 July 2020. The German market is down 4.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is down 27% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €121 per share.