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software Software AG delivers consecutive quarters of Group and Digital Business revenue growth Group revenue up 6 percent year - on - year Digital Business shows first back - to - back quarters of double - digit product revenue growth since 2013 Guidance adjusted for Digital Business , Adabas & Natural ( A & N ) and non - IFRS EBITA margin Darmstadt , Germany - October 21 , 2021 : Software AG ( Frankfurt MDAX® : SOW ) today announces financial results for the third quarter of 2021 . AG Sanjay Brahmawar , Software AG CEO , commented : " Another quarter of double - digit product revenue growth in our Digital Business shows our transformation towards higher - quality , more predictable revenue continues to take hold . Our investments in product innovation are helping us compete and win new business in growth areas like loT , iPaaS , API management and process mining , and we're increasing value through subscription migrations and renewals . Overall , we are well - set to reach our revised full - year guidance and I'm confident in our ability to continue growing over the long term . " Dr. Matthias Heiden , Software AG CFO , commented : " The overall picture for Software AG is solid as we enter the fourth quarter of 2021. With the deals holding back our third - quarter Digital Business bookings now closed and a plan in place to increase the pace at which new opportunities move through our pipeline , we are on track for a good finish to the year . By investing prudently in areas like the DACH Mittelstand and in North America , we continue to deliver profitable growth while driving our ongoing transformation . " Financial highlights [ Unless otherwise stated , all figures are IFRS . Increases at constant currency and rounded . ] Product revenue grew 10 percent in the Digital Business reflecting the continued impact of our subscription shift . Total product revenue grew 7 percent year - on - year in the third quarter . ● ● 1 Lead transformation indicators continued to show strength , with 88 percent of third - quarter Digital Business bookings from subscription and Software as a Service ( SaaS ) , annual recurring revenue ( ARR ) growing 9 percent year - on - year and recurring revenue reached 94 percent of our product revenue total . Digital Business bookings grew 6 percent in the third quarter , affected by deal timing as new opportunities took longer to mature than expected . Adabas & Natural ( A & N ) bookings grew 2 percent as customers continued to modernize their A & N landscapes using Software AG's innovative A & N 2050+ program . Operating margin ( EBITA , non - IFRS ) of 16.8 percent for the quarter despite ongoing investment into Helix transformation . Operating EBITA ( non - IRFS ) declined 1 percent year - on - year in the third quarter . © 2021Software AG . All rights reserved .