SUSE records disappointing financial results in second quarter

SUSE records disappointing financial results in second quarter

SUSE recorded only slight growth in sales in the second quarter of 2023. The open source and Linux giant attributes this disappointing result to ongoing poor economic conditions.

In the second quarter of this year, SUSE managed to achieve a small sales growth of one percent to a total of $162 million (149 million euros). In the first quarter, the figure was $160 million (147 million euros).

Revenue from the core products, the various Linux distributions, fell slightly by one percent, but this was offset by an 11 percent increase in revenue from new technology. Recurring revenue showed a positive result. This increased by six percent.

SUSE blames the ongoing economic conditions for the lackluster results. These, they say, prevent customers from making decisions and delay signing contracts in the short term. In addition, a reorganization of SUSE’s sales organization in the first quarter of this year also failed to produce the desired results.

Management changes

Also, according to analysts, the arrival of new management has had an impact on the results. Since May, Dirk-Peter van Leeuwen has been CEO and Werner Knoblich has been appointed Chief Revenue Officer (CRO). As of June 30, Andy Myers left SUSE as CFO.

Also read: SUSE emphasizes open-source support after closing off of RHEL