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Gofore Q2: Profitability below estimates as salary inflation weighs - SEB

Gofore's Q2 profitability missed our estimate as the June sales were some 3% below and the salary inflation during the quarter rose to 5.4% (SEB est. 3.8%). The June headcount was in line with our estimate, but organic growth declined to 21% (SEB est). We have forecasted 20% organic growth for Q3 and our first read is that there should not be material top line estimate pressure. However, the salary inflation forecast needs to be reassessed.

Gofore's Q2 profitability missed our estimate as the June sales were some 3% below and the salary inflation during the quarter rose to 5.4% (SEB est. 3.8%). The June headcount was in line with our estimate, but organic growth declined to 21% (SEB est). We have forecasted 20% organic growth for Q3 and our first read is that there should not be material top line estimate pressure. However, the salary inflation forecast needs to be reassessed.
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