Industry Summary Articles

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

Yves Bernaert, Chief Executive Officer of Atos, said: “In Q3 we continued to focus on our operations and the delivery of our separation and transformation plans.

Eviden growth has been driven by its activities in Digital Security, Big Data including Generative AI. In High-Performance Computing, we signed the very first exascale supercomputer contract in Europe.

Tech Foundations continues to execute on its transformation plan including reducing its activities in non-core areas.

I would like to thank our talented employees for their commitment and dedication to serving our clients and for delivering innovative solutions that address their business needs.”

Organic revenue -3.0% in Q3

1: Core business revenue: -4.9%

Group revenue was €2,590 million in Q3 2023, down -5.3% on a constant currency basis. On an organic basis, revenue was down -3.0% as positive performance at Eviden was offset by Tech Foundations. Scope effects, mainly related to the divestment of Atos Italia completed in Q2 2023, accounted for -2.3% of the reported revenue decrease. Foreign exchange was a headwind of -2.8%, mainly reflecting the weakening of US dollar.

Eviden reported +2.3% organic revenue growth in Q3, primarily driven by strong results in Big Data and Digital Security. Digital Security continued its trend of high organic revenue growth, driven by next-generation products and services. High single-digit growth in digital in Europe, driven by demand for application development and modernization, was offset by a decrease in the US as clients are taking longer to decide on new business awards.

Tech Foundations recorded a -4.9% decrease in revenues for its core activities, which includes infrastructure, private cloud & platforms, digital workplace, and professional services. The business continues to reduce its activities in non-core areas including hardware and software resale and BPO. The company recently sold its UCC business which had been a declining non-core asset. 

Commercial activity
In Q3 2023, order entry was €2.2 billion, up 10% YoY, with a book-to-bill ratio of 84%, compared with 71% in Q3 2022.

Eviden reported a book-to-bill ratio of 80%, in line with the prior year. Order entry reflects ongoing digital activities from smaller, low-risk contracts and short-term bookings with faster revenue yields. During the quarter, Eviden signed Generative AI contracts with large clients in the retail and technology sectors. In addition, Eviden signed the very first exascale supercomputer contract in Europe, a key milestone that will extend Europe’s scientific excellence and industrial leadership. The company recorded an initial tranche of that contract in the quarter.

Tech Foundations recorded a book-to-bill ratio of 88%, up compared with 58% in Q3 2022. The business signed a new logo in the quarter with a major US telecom company and gained a significant new contract with a leading utility company in Europe. The business continues to maintain its strong retention rate track record with existing customers.

The Group’s full backlog was € 18.6 billion at the end of September 2023 compared with 19.0 billion at end of H1 adjusted for disposals.

The full qualified pipeline amounted to € 6.0 billion compared with 6.8 billion at end of H1 adjusted for disposals. 

9-month organic revenue growth of 0.6%

* core business revenue: -1.9%

Group revenue was €8,138 million over 9-month 2023 up 0.6% organically, reflecting growth in Eviden of +5.5% compared with the prior year, offsetting the decline in Tech Foundations of -3.5%. Scope effects accounted for -2.0% from the divestiture of non-core assets. Foreign exchange was negative -1.5%, reflecting the weakening of the US dollar.

2023 full-year outlook

Atos confirms its 2023 full-year outlook.

Update on contemplated sale of Tech Foundations to EPEI group

On October 16, 2023, Atos provided an update on the contemplated sale of Tech Foundation to EPEI Group. This press release can be accessed at the following link.

In this press release, the Group indicated that the Shareholders’ Meeting to approve the contemplated transaction and capital raise is now anticipated to take place in early Q2 2024. 

Human resources

Total headcount was 104,856 at the end of September 2023, down -2.0%. On a trailing twelve-month basis, attrition rate was at 16% versus 18% at the end of June. During the quarter the company hired 3,630 employees. 5,800 employees have left the company as a result of attrition or restructuring. 

Analyst and investor conference call

Atos Management invites analysts and investors to a conference call on the Group 2023 third quarter revenue, on Thursday, October 26, 2023, at 08:00 am (CET – Paris).

You can join the webcast of the conference:

• via the following link: https://edge.media-server.com/mmc/p/n9ev3qtg
• by telephone with the dial-in, 10 minutes prior the starting time. Please note that if you want to join the webcast by telephone, you must register in advance of the conference using the following link: https://register.vevent.com/register/BIaccf86590a5e4affaef96a503af2cefb

Upon registration, you will be provided with Participant Dial-In Numbers, a Direct Event Passcode and a unique Registrant ID.

During the 10 minutes prior to the beginning of the call, you will need to use the conference access information provided in the email received upon registration.

After the conference, a replay of the webcast will be available on atos.net, in the Investors section. 

Forthcoming event
February 29, 2024 (Before Market Opening) Full-year 2023 results

To view the original press release, please click here.

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