• AWS partnership agreement: Sonata Software has signed a five-year agreement with AWS to set up a dedicated sales and delivery team, aiming to double related business in two to three years.
• Cloud revenue share: Cloud platforms account for 80% to 85% of total company revenue, with the AWS-specific portion projected to grow two to three times over the next three to five years.
• AI modernization strategy: Enterprise clients are migrating critical legacy applications to cloud platforms to build the foundation required for successful AI production and deployment.
• Financial growth outlook: Following flat sequential Q1 IITS revenue of $82 million and a 480-basis-point drop in EBITDA margin, management expects top-line and EBITDA margin growth over the next few quarters.