Ladies and gentlemen, welcome to the ATOSS Software SE earnings call H1 2026. I'm Moritz, the Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Carla Leicher. Please go ahead. Thank you, operator. Hello, everyone. Welcome to our Q2 earnings call, where we will be discussing our results for Q2 and the first half of 2026. We are pleased to have you here with us today. I am joined by our Chief Financial Officer, Christof Leiber, and we are glad to have the opportunity to walk you through our performance and outlook. We will be referring to the earnings call Q2 2026 presentation, which was published earlier this morning and is available for download on our investor relations website, as well as via the link provided in the webcast. The detailed investor relations presentation was also published this morning, which we encourage you to review for further insights. We will not discuss during this call. Please note that today's call is being recorded. The recording will be made available on our investor relations website after the call. Before we begin, I would like to start with a disclaimer. Please note that the presentation contains forward-looking statements based on the beliefs of ATOSS Software SE. These statements reflect the current views of ATOSS Software SE with respect to future events and results and are subject to risks and uncertainties. Actual results may differ materially from those projected here due to factors including, but not limited to, changes in general economic and business conditions, the introduction of competing products, lack of market acceptance of new products, services, or technologies and changes in business strategy. ATOSS Software SE does not intend or assume any obligation to update these forward-looking statements. With that, I will now hand over to Christof Leiber, who will walk you through the key developments of the second quarter of 2026, including our business and financial performance, an update on artificial intelligence and our outlook for the year ahead. We will then conclude with the Q&A session. Christof, over to you. Thank you, Carla, and very warm welcome to everyone out there. I'm happy to walk you through our Q2 and H1 2026 results, current developments, and our outlook. Let's get started on slide four with key takeaways. Following a particularly strong second quarter, we closed H1 2026 with solid double-digit revenue growth, continued strong profitability, and positive order momentum. Revenues grew by 12% year-on-year in H1 and by 13% in Q2 year-on-year, both driven by Cloud and Subscriptions business growth of 26%. EBIT margin reached 35% above our full year guidance. Order development was very positive despite geopolitical and macroeconomic headwinds, with strong ARR growth overall driven by our continued impressive momentum on the Cloud and Subscriptions side. Overall, new ACV development significantly above our prior year level, supported by a resilient demand, strong sales execution, new customers, existing customer expansion, and cloud migrations. Importantly, Q2 was so strong that it lifted the entire H1 order development significantly above H1 year-on-year. Momentum was broad-based across SMB, enterprise, and international, with particular strength in enterprise in the German-speaking countries, healthcare, manufacturing, within manufacturing, some semiconductor companies, and retail migration and expansion projects. International business improved versus the prior year, driven also by a new logo coming from the semiconductor sector and expansion with existing customers. Crewmeister continued in its strong trajectory. More than 2,000 net new customers were added, taking the base of customers now over and above 20,000 as of July 1st. ARR increased to EUR 10 million and above at the end of June, up around 30% year-on-year, and Crewmeister was profitable in H1 and every month since March, while maintaining its strong growth momentum. Cloud migrations remain encouraging with large customers such as Rossmann, Bartels-Langness, and the Menarini Group, with Berlin-Chemie progressing their cloud transitions as well as their international expansion. This success was driven by ATOSS' unparalleled moat with customers in workforce management and confidence of our customers into our innovation capabilities, including our AI roadmap. Let me highlight the ATOSS moat with a customer example. HHLA, one of Europe's leading port logistics providers at the Hamburg Port. HHLA has deployed ATOSS workforce management across all their container terminals, replacing SAP HCM PT while remaining fully integrated into its broader SAP landscape. The project demonstrates ATOSS' ability to support highly complex operational and regulatory environments, including hundreds of collective agreements with highly specialized workforce planning requirements. This combination, all this is based on one standard software solution in the cloud, the ATOSS Staff Efficiency Suite. This moat in workforce management is combined with our outstanding track record for innovation, and this creates confidence with customers, including in our AI roadmap, which we are successfully executing on track with the milestones we have communicated. Finally, let me briefly turn to our outlook for 2026. For 2026, we continue to expect double-digit revenue growth in line with our guidance, leading ATOSS revenue for 2026 between EUR 210 million and EUR 215 million. The revenue guidance for 2026 is built on very predictable and high-quality recurring revenue streams, and the bandwidth is only reflecting the lesser visibility for one-off perpetual licenses. Given the development in perpetual licenses, we currently see ourselves in the middle of the given bandwidth, as already mentioned during the previous earnings calls, no change on this end. Importantly, our profitability outlook remains unchanged after the uplift that we have given there in April. We continue to expect an EBIT margin of at least 34% for the full year. I have to say this, it would not surprise me if we continue to see the current level at H1 to continue or even improve by the end of this year. For 2027, we already gave a bandwidth for revenues of EUR 245 million, and the possibility to come in 3% lower, again, based on effects on perpetual licenses. This we put now in numbers, meaning a bandwidth of EUR 235 million-EUR 245 million, reflecting the continued macroeconomic uncertainty, geopolitical risks, et cetera. As well as our current positive development of the order momentum. If you ask me today, I see ATOSS revenue for 2027 right in the middle of this bandwidth. Now let's move on to the income statement on slide five, comparing H1 2026 with H1 2025. As I mentioned, our total revenue increased in H1 by 12% year-on-year. This growth continues to be driven by our software business, which grew by 14% year-on-year and accounted for 75% of total revenue. Within software, Cloud and Subscriptions revenue remained a key growth driver. This line of revenue increased by 26% year-on-year and now represents 54% of total revenue, compared to 48% in the prior year quarter. Maintenance revenue declined by around 3%, which is fully in line with our expectation given our ongoing shift towards cloud. Cloud and Subscriptions is the key driver of our growth. It's supported by the strong demand visible in existing customer expansion, new logo ARR, and the migration movement. Against this background, the reduction for perpetual licenses needs to be reflected. With the top line growing, we achieved an EBIT margin of 35%, up one full percentage point compared to the prior year quarter. Now let's take a closer look at the development of our recurring revenue and how strong order development of Cloud and Subscriptions has been on slide six. Total ARR, which includes Cloud and Subscriptions and maintenance, increased by 17% year-on-year to EUR 152.2 million at the end of the first half in 2026. Looking specifically at Cloud and Subscriptions ARR, we once again saw a very strong growth. Cloud and Subscriptions ARR increased by 25% year-on-year to EUR 113.8 million. Turning to our order backlog, which provides extremely good visibility into the future of our recurring revenues, total ARR backlog increased by 17% year-on-year to EUR 157.9 million. Finally, I think actually most importantly, Cloud and Subscriptions backlog growth year-on-year as the key indicator for order development in the last period. Here we recorded an increase of 14% year-on-year to EUR 23.8 million. This strong growth in Cloud and Subscriptions backlog, driven in particular by the development in Q2 2026, highlights the ongoing shift towards cloud. Confidence in our product innovation, including the AI roadmap and excellent execution of our sales motion. Now, let me briefly walk you through the development of our Cloud and Subscriptions recurring revenue base over the last 12 months. Net retention rate of 111% in the first half of 2026. Overall, very strong with ASES, with an NRR at an even higher level at 115%, demonstrating continued strong growth with existing customers. In addition to this, additional ARR was generated through both new customer acquisitions and cloud migrations. The breakdown illustrates that of the total of cloud ARR, the increase of roughly EUR 23 million year-on-year, about 45% came from expansion of the installment. Just above 40% from new logo ARR and nearly 15% from migrations. Given the current order development for migrations, we expect the migration part to slightly increase in the next quarter. Together, these drivers contributed to the continued expansion of our recurring revenue base. Let me now turn to our cash flow and liquidity on slide eight. Operational cash flow in H1 with EUR 37.1 million came in significantly above last year. Overall cash flow amounted to EUR -1.5 million at the end of H1 2026. This was primarily driven by the dividend payment of approximately EUR 36 million during this period. Looking ahead, however, we anticipate a strong positive operational cash flow for the full year of 2026, increasing thereby our liquidity at the end of this year. Turning to liquidity at H1, our overall liquidity position remained very solid. At the end of the first half in 2026, liquidity stood approximately at EUR 121 million, broadly in line with the level of last year's end at the end of 2025, and significantly above what we have recorded as liquidity at the end of H1 2025. That despite the dividend payment of around EUR 36 million, as I mentioned. Overall, this highlights the strength of our cash generation and balance sheet and leaves us with a very solid liquidity position. With that, let me now turn to AI and share a few observations on the role of AI already playing in our business on slide nine. First, AI roadmap execution. We continue to execute consistently our AI roadmap and remain on track with the initiatives we have outlined. Our first ATOSS agent is already live with selected customers, and we plan a broader rollout during the third quarter. In parallel, development of additional agentic use cases is progressing according to plan, including both our ASES expert center agents as well as our staff center agents that we will bring out by the end of this year in Q4. Second, ATOSS innovation credibility, including execution on the AI roadmap, is proven by the strong order intake in the first half, in particular in Q2 of this year. Customers trust ATOSS to continue creating value in the age of AI and to remain the relevant long-term partner for workforce management. Last earnings call, I mentioned the excitement with prospects and customers on the Workforce Management Day. This has translated into action, as we see by the order development in Q2. Thirdly, monetization of agentic AI. As you recall, our first AI features in forecasting have been embedded in our existing modules, i.e. no separate pricing for token usage, et cetera. However, only limited token usage is necessary for these functionalities. Our agentic AI services start with the freemium packages in order to create excitement and adoption, which lead then to subscription plans with an included usage volume per month. Customers with higher usage requirements will then, going forward, be able to purchase additional user packages on a monthly basis. The concept, if you will, is comparable to well-known mobile data plans. It offers customers a transparent and predictable pricing model. To sum up, based on our strong ATOSS moat in workforce management, we are executing our AI and innovation roadmap. This already positively impacts our order development, and we will stay with a transparent and fair subscription model to underpin customer centricity. Beyond customer-facing innovation, we are also leveraging AI increasingly across ATOSS itself. That is shown on slide 10. As shown on this slide, we've started our internal AI transformation across four key value creation areas. Build in our software development, attract in marketing, convert in sales, and serve in our customer service and support area. Importantly, our focus is not on isolated use cases, but on transforming end-to-end value change across the organization. In the end, we will enhance efficiency, productivity, and velocity. Ultimately, this will show in improved customer centricity, growth opportunities, and higher margins. As for margins, already in 2026, we increased our initial guidance by 2 full percentage points to at least 34%. For the next year, 2027, we now increase the former projection equally by 2 full percentage points to at least 35%. There is more room either for investment opportunities, investments in customer centricity, or and actual margin expansion. Before we move to Q&A, let me briefly summarize the key messages from today, from my perspective. We delivered a strong first half in 2026, supported particularly by a strong second quarter. Double-digit revenue growth and profitability above our guidance. Strong sales execution across new customer wins, expansion with the existing customer base, and cloud migrations drove a significant increase in new ACV, and this is clearly visible in our Cloud and Subscriptions growth year-on-year of 14%. This puts us in an excellent spot to keep the momentum despite the higher comparables in Q3. As last year's Q3 was particularly strong, we believe that new ACV year to date at the end of Q3 should be in the range of slightly above or above. In the end, we are aiming for Cloud and Subscriptions growth year-on-year to be at the end of 2026 at a similar growth level as shown in the end of H1, i.e., above 10%, as this builds the case for recurring revenue growth in 2027. For the full year, we have the pipeline and the capacity to close the year successful. Of course, as in Q2, execution must be on its highest level, and the macro and geopolitics, et cetera, are having an impact. Overall, we believe ATOSS is well-positioned to continue benefiting from the structural shift towards cloud, recurring revenues, and the AI transformation. That concludes the presentation part of today's call. We'd now like to open the floor for questions and are happy to dive deeper into any topics you would like to discuss. Thank you. Ladies and gentlemen, we will now begin the Q&A session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. Anyone who has a question may press star and one at this time. One moment for the first question, please. The first question comes from Nicolas Herms from Deutsche Bank. Please go ahead. Hi, good morning, Christof and Carla. Congrats on the quarter, thank you for taking my question. I've got two, actually. My first one would be on the strong order momentum in Q2. Appreciate the color you gave. I was just wondering, in the press release, you also mentioned that order intake for license products was particularly strong in Q2. Is there any reason for that? Maybe related to that, could you give us an update on where you are in the cloud migration and if you are seeing any acceleration there? Good morning, Nicolas, thanks for the question. Well, maybe some additional color on the strong order momentum. If you read out of the license sentence that we put in there, I think in the German version in particular of the press release, that this would relate to perpetual licenses. That is actually not the case. The strong momentum that we've seen, we've seen it entirely, really absolutely entirely, on the Cloud and Subscriptions side. I think 90%-95% of all new ACV that we generated was on the Cloud and Subscriptions side, on the customer expansion side, as well as on the new logo side. Of course, with some additional ACV generated on the migration side as well. If that was a misinterpretation, hopefully I'm glad that I was able to clarify this. The second question, maybe you're going to repeat it again because I forgot it The cloud migration. The cloud migration. Here, we actually have seen some momentum. Momentum, how should I put it? Not necessarily in number of customers moving, but in substantial customers moving. I named a few, like Rossmann, for example, like Bartels-Langness. The famila supermarket chain in the northern part of Germany is run by them. By Berlin-Chemie, part of the Menarini Group. That's an Italian group. All three of those have in common that they're quite substantial. Secondly, they are not just moving to the cloud from on-prem, they also make a point of expanding international. In some cases, it's Switzerland plus Spain. In other cases, it's Poland, et cetera. Well, famila is not expanding international because they are only active in Germany, that I have to add. Okay, there's good momentum. For all three that I just named, it is a momentum that was driven by, on the one hand, a move to the cloud, and secondly, a move or adding functionalities with AI capabilities. Partly, those that we have already in the store, like forecasting, like Workforce Intelligence. Obviously with a view as well on getting access to the AI agents that we are about to deliver for the ATOSS Staff Efficiency Suite in Q4. Hopefully, that added some color. Yeah. That's very helpful. I have another question on the strong cash position you also see by year-end, but also as of the first half. What are you planning to do with the cash? In case you're planning capital returns, would that be a special dividend again, or are you maybe considering share buybacks this time? Yeah. Obviously, we do have a history of a high liquidity position, and a high cash-generating business model. That, to start off with, is not the worst position to be in. We like this positioning, actually. We will continue to keep our dividend policy with a payout ratio of 75% on EPS on the group level. As we are looking at 2027, which is the 40th anniversary of ATOSS as well, there may be an option for a special dividend, but nothing has been decided yet. On share buybacks, we're a bit reluctant in this respect because we feel that instead of share buybacks, we would rather pay special or higher dividends, because this is actually a contribution to the shareholders who are sticking with the share from our perspective. On top of that, obviously, we are still following our buy, build, and partner strategy, which we certainly see as one part for our strategy going into 2030, to make our ambition of the nearly or roughly EUR 400 million in revenue possible. That would include also some M&A activities. Thank you. The next question comes from Gustav Froberg from Berenberg. Please go ahead. Good morning, everyone. Thank you for taking my questions as well. A couple on my side also. I noted the net new ACV development, which trended very positively in Q2. I just wanted to ask with reference to Q1, when we said that some deals had slipped into the second quarter. Is the strong Q2 a reflection of closing those slipped deals, or was there genuine extra underlying demand as well that came out of that new ACV development? First question. Second, could you remind me again the amount of migrated customers you had, or migrated revenues rather, that you had in the second quarter? Lastly, just on business climate, like you've referenced, macro has not been entirely favorable. Could you give us an update on what your clients are saying and what you're hearing, boots on the ground, in terms of macro, people's willingness and ability to invest in software solutions, et cetera? That would be great. Thank you. Okay. Thank you, Gustav. Well, let's start with the first question on Q1 and whether some deals from Q1 had slipped into Q2. I think there were two minor deals. Some two deals, not necessarily minor, but not substantial as well, that have slipped from our perspective into Q2. Fundamentally, it really changed in terms of our ability to execute, our ability to win customers on the new logo side. I think that was particularly strong. As I mentioned in the call, we have won customers on the healthcare side, I think two larger hospitals. We have one in manufacturing semiconductors in Germany, opening up branches or production facilities. We have one on the international side, one semiconductor in the Netherlands. A smaller, not the largest one maybe, but a good one. We have a good portion of customers in the healthcare, as I said. This is very much broad-based, and I would like to stress as well, it's not just in one particular segment like SMB or international. It is really the main driver was enterprise, I have to say. SMB and international, however, were equally, in our terminology, above or significantly above, and enterprise was very strong in Q2. This so far has been, really a mixture of a bit of maybe easing of the highest uncertainty that customers felt in our markets after the beginning of the Middle East conflict, like at the end of February or in March. Then maybe in some point in May, it kind of eased a bit, and there was confidence coming back, that's my interpretation to some extent, and that on the notion of still a good value proposition that we are holding for our customers. On the migration side, we do have in total nearly, a bit below 40 migrations, and in the enterprise that we have signed. As I said, the number is slightly above the last year's number in enterprise. However, the size of the migrations is substantially above, meaning the larger ones have been shifting to the cloud this year. This is visible as well in this Cloud and Subscriptions growth year-on-year, which we formerly called incremental Cloud and Subscriptions order backlog added. We changed this terminology somehow. Color on the boots for the sentiment in the market. I would still say yes, it has loosened or as I said, a bit lighter and for a better investment climate in the course of Q2, and I think everybody can kind of relate to this. The oil price went down, energy costs went down. This is changing right now, and we have to see how this pans out in the next quarters, obviously, or in this quarter and the next quarter. All I can say here really is three things maybe. One is that we do have the pipeline, and we do have the capacity for sales personnel in order to execute on this. Execution in Q2 has been super good. This has to do with our customers, but it also has to do with our own performance. The second thing that from my point of view comes to mind is that obviously we have to sell on value. We are very much investing in education of our people, that in times like this, you do have to make the point that we actually can provide value. You have to be very clear and very knowledgeable about processes of examples like this Hamburg Port or HHLA example that I gave, and the same you can do with medical, with hospitals. There is tremendous regulatory complexity out there, and at the same time, there is structural demand for optimization of workforce scheduling in line with demand levels that are vastly changing. This to be really explained in the details and value being created, that is, I would say, an art that is coming back and makes the decision between winning or losing a project or not winning it yet, let's say, in one particular quarter. Making ourselves knowledgeable is important. Thirdly, I want to stress that our AI roadmap, the track record of innovation that we have shown to customers has been very positive. Our customers, they see technology, they see this as a long-term topic and not something they are hopping on this product and that product, because it simply doesn't work for a large hospital, for any hospital or for a retail chain, et cetera. They want to be partnering with a company who has a track record of delivering what they're promising, and that is what ATOSS stands for and stood for a long time, and we have to make this clear and visible for our customers. Okay. Hopefully this answered the question. Maybe some additional questions if you want. Perfect. Great. Thank you very much. Ladies and gentlemen, as a reminder, anyone who wishes to ask a question may press star and one at this time. We do have another question coming from Oliver Frey from Bankhaus Metzler. Please go ahead. Hi, everybody. Thank you for taking my question. Maybe just a breakdown on ARR growth. I think you explained how existing customers and new customers are playing into it. How is pricing playing into this formula? Yeah, excellent question. Obviously, pricing is part of the NRR, of course. The NRR expansion for others, let's say of the 115% that we have seen there, 2.5%-3% would relate to pricing. The rest is really pure expansion and obviously with a churn starting this bridge in the ballpark of 5%. We start with a 5% churn and reduction, then there's a price increase of 2.5%-3%, let's make it 3%. We are -2, and we have then an expansion, a real expansion of 17% for the ATOSS Staff Efficiency Suite. That would be the bridge and the pricing effect in this bridge. On the new logo side, we do have limited pricing expansion, really, and mostly made up in this macro environment by discounts, et cetera. There's no really price increase effect on the new logo side this year. Thank you. Maybe on EBIT, just want to make sure that I understood correctly. You said that it could be possible that you continue to see your margin levels as of H1 also in H2, so approximately 35% as a maybe optimistic scenario? Yeah. Excellent question. Lucky to point this out. This is actually what I said. We are just really in the process of transforming into, first, a bionic company, meaning AI and humans really working together on all processes, and then ultimately into an AI-first company eventually. This will bring with it lots of opportunities on the margin side, on the velocity side, on the growth opportunities, et cetera. This already puts us in the position to uplift this year the margins by 2 full percentage points in our always conservative projection, which we did. For next year, we did the same thing. We moved it up to at least 35% EBIT margin for next year. As I said, for this year, we are more likely to operate in the ballpark of 35%, but we are not yet uplifting our guidance for this full year. For next year, we still have to find out the fine print of our planning. Perfect. Thank you. Thank you. Ladies and gentlemen, this was already the last question. I would now like to turn the conference back over to Christof Leiber for any closing remarks. Thanks a lot for your continued interest in ATOSS. Finally, let me just again point out how confident and how happy we are really with this second quarter. It was an extremely positive momentum, in particular on the order side. We have seen impeccable sales execution across all areas, and it makes me quite proud that we don't only show this in the Enterprise Germany or DACH region, but also on the SMB and on the international side. If you drill down in our presentation that has been published this morning, you will find a nice slide as well illustrating the international revenue growth there, which we have not really focused on this time. That is showing nicely as well. Our international revenue share is now standing at 8%, which is at least 2 full percentage points up from the 6% that we had at the end of year 2025. Lots of things are going in the right direction. Our product roadmap is gearing up to hopefully a big or bigger bang for AI agents being released at the end of Q4. Then we are moving into a very interesting and promising 2027 going forward. Okay. With this, I'll conclude and thanks again for your attention and your contributions to ATOSS. Thank you. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.