74Software Board Member Makes Major Insider Purchase – A Bullish Signal?

74Software SA (AXW:FP), formed through the merger of Axway and SBS, traces its roots to the 1968 founding of Sopra in France’s Haute-Savoie region. Despite being publicly traded, its founder’s family remains a key investor. With a €951.88M market cap, 74Software supports Axway and SBS in driving growth, innovation, and long-term value.

Insider Buying Signals Confidence

On March 20, 2025, 74Software’s Board Member, Yann Metz-Pasquier, made a significant insider purchase, acquiring 119,411 shares at €31 each, totaling €3.7 million ($4.01 million). This transaction increased his total holdings to 184,960 shares. Metz-Pasquier’s decision to invest heavily in the company underscores his confidence in 74Software’s future growth and its ability to reclaim a stronger market position. 

Notably, this is not his first major investment in the company. In August 2024, he purchased 27,308 shares at an average price of €20.9, investing €572,376 ($626,801). With the stock price surging to €32, his earlier investment has already yielded a substantial gain of 53.11%, reflecting strong confidence in the company's trajectory.

Financial Performance in 2024

74Software delivered a strong financial performance in 2024. The group reported total revenue of €461.9 million, reflecting an organic growth rate of 4.0%. On a pro forma basis, including the impact of acquisitions, total revenue stood at €690.0 million, with organic growth reaching 5.6%.

Axway, one of the core entities, generated €329.8 million in revenue, achieving 3.4% organic growth, which was at the top end of its guidance. Meanwhile, SBS recorded a pro forma revenue of €362.0 million, experiencing an impressive organic growth rate of 7.8%. The combined group's profitability improved significantly, with operating profit margins increasing by 57 basis points to 13.6% of revenue (€94.0 million). Axway alone reached an all-time high operating profit margin of 20.9%.

Additionally, Annual Recurring Revenue (ARR) saw steady growth, increasing by 7.4% for Axway and 11.8% for SBS, strengthening the group’s foundation for long-term success.

A Strategic Vision for Growth

Patrick Donovan, CEO of 74Software, highlighted the company’s strategic achievements in 2024. The acquisition of most SBS activities effectively doubled the group’s size and expanded its expertise into banking applications. This major acquisition was funded through a successful capital increase and new bank loans, signaling strong confidence from shareholders and financial partners.

Despite potential disruptions from the transaction, both Axway and SBS delivered strong performances. Axway ended 2024 with record-high customer Net Promoter Scores (NPS), exceptional employee engagement, and its most profitable year to date. SBS also demonstrated strong growth, advancing its transition to a software operating model and securing its first customers for a new modular SaaS banking platform. Customer NPS and profitability both improved as planned.

Looking ahead, 74Software is focused on dynamic expansion through both organic growth and strategic acquisitions. The company’s disciplined management and software-first mindset will be critical to its success. The recent insider buying, coupled with the stock’s strong upward movement, signals growing confidence in the company’s future, reinforcing a bullish outlook for investors.