Exa’s Q2 shows good progress

Sep 9, 2015 | Hot Topics

Exa reported results last week that show good progress, if not stellar growth. Total revenue in Q2 was $15.5 million, up 4% as reported and up 15% in constant currencies — more or less in line with prior guidance and Wall Street’s expectations. The details:

  • License revenue was $13 million, up 5% as reported and up 16% in cc. The company says that the growth was driven by both new customers and by increased simulation by existing customers
  • Project revenue was $2.3 million, essentially flat as reported and up 10% in cc. As a reminder, Exa uses projects to demonstrate the value of its solutions to prospects; the company says that it has started to be more successful in converting project-based activity into license revenue
  • By geography, revenue from the US was $4.3 million, up 26%; revenue from Europe was $6.6 million, down 7% as reported and from Asia, $3.5 million, essentially flat as reported. By country, the picture is much more mixed: flatish in Japan and Korea, up 10% in UK but down 20% in France (all as reported) … These are all relatively small numbers in the absolute, so it’s hard to see any particular trend.

CEO Steve Remondi gave investors an update on the success of the company’s cloud offering, ExaCLOUD. ExaCLOUD has been commercially available for about 6 months, and, he said, it “continues to gain momentum. Customers are taking advantage of this on-demand capacity — it’s easy to adopt since it doesn’t require a major purchasing decision. We are seeing considerable increase in customer usage.” To support this growth, Exa is investing in additional high performance computing capacity but did not specify how much this would cost, or how this factors into Exa’s long-term relationship with IBM. As we’ve heard from many customers and software vendors, Mr. Remondi believes that many of his customers will see ExaCLOUD as added capacity to their on-premise installations, and build a hybrid strategy using both sources of compute power. For the current quarter (ending in November), Exa expects total revenue in the range of $16.4 million to $17.2 million (up 3% to 12% as reported). For the full year, the company expects revenue between $65 million and $67 million, which would be growth of 5% to 9% as reported and 14% to 18% in cc.

Print Friendly, PDF & Email