Dassault Systèmes reported total revenue of €386 million on an IFRS basis (think GAAP, but in Europe), up 24% from a year ago on strong software revenue growth of 28%. Favorable exchange rates contributed roughly 6% of growth across the board. IBM’s contributions are included for the quarter but DS did not disclose the amount, saying only that the group had revenue of €53 million in Q2 a year ago, roughly 20% of which was new license and 80% maintenance.
• DS reports that there are about 400 companies using V6 for new processes — so either new customers to DS or new areas of a business using V6. But how many V5 customers are using it in production — and how many are piloting V6? How many V4 customers skipped V5 and are moving straight to V6? When DS brought out V5, it offered metrics to enable us to gauge adoption – I wish that were the case now.
• New license revenue was up 24% to €85 million, led by CATIA.
• Perhaps most interesting, DS reports that it is back to historical levels of maintenance and that many customers who had dropped maintenance paid the back-charges to resume it. I’m not sure if the back-charge revenue is included in the maintenance line, but DS says it was about €5 million. Total maintenance revenue in Q2 was €261 million.
• SolidWorks is doing well, with unit sales up 20% in Q2 (and accelerating, since YTD is up 14%). The ASP appears to be holding, up 9% in Euros in Q2. Mainstream 3D software revenue was up 20% for the quarter.
• CATIA software revenue was up 38%, ENOVIA was up 19% and “Other PLM” (SIMULIA and other brands) were up 20%.
• In his presentation, CEO Bernard Charlès, spent a lot of time explaining DS’ recent acquisitions, Exalead and Geensoft. We learned that Exalead’s revenue was €14 million in 2009 — so DS paid a whopping 10x revenue for it. DS expects that its reach can grow this revenue eventually, as DS expects its contribution to be only €10 million for the second half of 2010. Geensoft was a more modest acquisition, €5.5 million, whose 60 employees are working on solutions for embedded systems.
By geography, revenue in Europe was up 12%, up 7% in the Americas and up 21% as reported in Asia. CFO Thibault de Tersant pointed out that Europe was “relatively less bad” for DS in 2009, so it is important to note that the company continues to perform well in this region, especially south Europe and in Germany.
DS also updated guidance for the rest of 2010 to include the Exalead acquisition and the company’s “overperformance in Q2”. It now sees non-IFRS revenue growth of between 21% and 26% (up from 18% to 23% announced in April). This means Q3 non-IFRS of €365 million to €375 million and €1495 million to €1515 million for the year. Mr. de Tersant addressed concerns some analysts have expressed that this is conservative — he feels that being conservative is the correct approach and that an acceleration of license revenue is built into this guidance. He pointed out, too, that analysts’ consensus is built using different exchange rates — so coming in “ahead” or “behind” this consensus may not be meaningful.
There’s a lot of good stuff going on at DS — but the European analyst meeting was very subdued. Let’s see if there’s more energy in the US call. I’ll update if there’s anything new to add.