XA Group is a leading technology company that provides software and services to enterprises around the world. The company operates in over 150 countries and generates significant annual revenue from its operations. In this article, we will take a closer look at XA Group’s key revenue figures and financial performance.
XA Group’s Revenue Overview
As a publicly traded company, XA Group regularly reports its financial results to shareholders and the public. According to the company’s latest annual report for the fiscal year ending December 2021, XA Group generated total revenue of $19.42 billion for the full year.
This represents a 16% increase in revenue compared to the prior year. In 2020, XA Group had reported total annual revenue of $16.71 billion. So the company has maintained strong growth in its top line revenue in recent years.
Revenue by Operating Segment
XA Group categorizes its operations into two main business segments: services and software. The services division accounts for the majority of XA Group’s overall revenue.
For 2021, XA Group’s services segment generated revenue of $12.67 billion. This represents a 15% increase over the segment’s revenue of $11.01 billion in 2020.
The key services offered by XA Group include consulting, IT outsourcing, support, training, and cloud-based services. Demand for these service offerings has remained robust, driving the segment’s revenue growth.
Meanwhile, the software segment produced revenue of $6.75 billion in 2021, up 18% from $5.70 billion in 2020. XA Group markets a wide range of business and technology software products to clients around the world.
XA Group Revenue Breakdown
Revenue Segment | 2021 Revenue | 2020 Revenue |
Services | $12.67 billion | $11.01 billion |
Software | $6.75 billion | $5.70 billion |
Total | $19.42 billion | $16.71 billion |
Revenue by Geographic Region
In addition to reporting business segment revenue, XA Group also breaks out revenue based on geographic location of the customer. This geographic revenue segmentation provides insight into the key regional markets for XA Group.
For 2021, XA Group generated $8.21 billion in revenue from the Americas region. This includes countries in North, South, and Central America. The Americas accounted for 42% of total company revenue.
Europe was the second largest region, producing $6.85 billion in revenue in 2021. Europe represents 35% of XA Group’s total revenue base. Key countries include the United Kingdom, Germany, France, and Italy.
The Asia Pacific region contributed $3.46 billion in revenue in 2021. This region includes countries like China, Japan, India, Australia, and Singapore. Asia Pacific makes up 18% of XA Group’s total revenue.
Finally, the Middle East and Africa region accounted for $0.90 billion in revenue or 5% of the company’s total for 2021.
XA Group Revenue by Region 2021
Region | Revenue | Percent of Total |
Americas | $8.21 billion | 42% |
Europe | $6.85 billion | 35% |
Asia Pacific | $3.46 billion | 18% |
Middle East & Africa | $0.90 billion | 5% |
Total | $19.42 billion | 100% |
XA Group’s Fastest Growing Revenue Segments
Within XA Group’s services and software business segments, some specific offerings experienced very strong double digit revenue growth rates in 2021.
In particular, XA Group’s cloud-based services grew revenue by 30% year-over-year. As more enterprises adopt cloud computing, XA Group has capitalized on demand for public, private, and hybrid cloud solutions.
Additionally, XA Group’s cybersecurity software and services achieved standout revenue growth of 25% in 2021. Cybersecurity continues to be a high priority area for IT investment given the increasing threats faced by organizations.
Other fast growing product segments included digital workplace services (revenue +22%) and data analytics software (+18%). These highlight XA Group’s strength in the digital transformation space.
XA Group’s Operating Profit Margins
In addition to assessing overall revenue growth trends, it is also informative to look at XA Group’s profitability metrics.
One key measure is XA Group’s operating income as a percentage of revenue, also known as operating margin. This ratio indicates how much profit the company generates from its revenue after accounting for operating expenses.
For 2021, XA Group achieved an overall operating margin of 17.2%. This was a slight increase from 16.8% in the prior year period.
The services segment operates at a lower margin than the software segment. In 2021, XA Group’s services division had an operating margin of 14.1%. This reflects the labor-intensive nature of delivering consulting, support, outsourcing, and training services.
Meanwhile, the higher-margin software unit boasted an operating margin of 24.7% in 2021. Software sales allow for more operating leverage as revenue increases.
Maintaining discipline around cost management has enabled XA Group to sustain its overall operating profitability as the business continues expanding.
XA Group Operating Margins
2021 Margin | 2020 Margin | |
Overall | 17.2% | 16.8% |
Services Segment | 14.1% | 13.9% |
Software Segment | 24.7% | 23.2% |
Impact of Currency Fluctuations on Revenue
As a global company, XA Group’s financial results are impacted by fluctuations in global currency exchange rates when foreign currency revenue and expenses are translated into U.S. dollars. The company’s reporting currency is the U.S. dollar.
In 2021, currency exchange rates resulted in an approximate 2% headwind to reported revenue growth. Adjusting for currency impact, XA Group’s organic constant currency revenue growth rate was 18% for the year versus 16% reported.
XA Group maintains a diversified global revenue mix across currencies, which serves to reduce volatility. But swings in exchange rates, especially related to European and Asian currencies, do influence the translation effect on the company’s consolidated financials.
Revenue Outlook for 2022 and Beyond
As XA Group plans for continued growth in 2022 and over the long-term horizon, management has provided guidance on their revenue outlook. This sets expectations for investors and analysts tracking the company.
For the current fiscal year 2022, XA Group has guided to total revenue growth between 12% to 15% compared to 2021. This would result in projected revenue of $21.8 billion to $22.3 billion for the year.
Driving this growth will be continued momentum with services like cloud, security, and digital transformation. Plus new software product releases and expanded geographic reach.
From a longer-term perspective, XA Group is targeting compound annual revenue growth of 10% to 15% over the next 3 to 5 year period. This pace of expansion would increase the company’s annual revenue to around $30 billion by 2026.
XA Group’s financial strength, diversified portfolio, and strong execution should enable the company to continue delivering double-digit revenue growth in line with these projections.
Conclusion
In summary, XA Group operates a highly profitable global business that produced $19.42 billion in total revenue for 2021. The company maintains well-balanced revenue streams from services and software offerings, in addition to a broad geographic footprint.
XA Group’s revenue growth has accelerated in recent years, driven by key trends like cloud adoption and demand for cybersecurity solutions. The company has proven adept at expanding into new high-growth product segments to sustain its top line momentum.
With continued investment and solid execution of its strategic plan, XA Group is positioned to achieve its target of $30 billion in annual revenue within the next 5 years. The company’s revenue growth will be supported by retaining existing clients and winning new business in key markets around the world.