Quickies: MuM & GRAITEC earnings surprising
A lot of PLMish companies release earnings news and (as you no doubt know) I fall behind in writing longer posts about each. So, a compromise where I do quick summaries of a few companies while working on longer-form versions for others. This week, Mensch und Maschine and Graitec go short-form:
Mensch und Maschine Software (MuM) says Q4 continued the strength seen in 2015, leading to double-digit top line revenue growth in fiscal 2015. In what MuM terms a “surprise”, 2015 revenue was €160 million, up 14%, with the Software group contributing €41 million, up 7%, and the VAR business contributing €119 million, up 17%. We’ll get more details when the company issues final results on March 14. Recall that MuM is both an Autodesk reseller and commercial software developer, as is …
GRAITEC, a European developer of BIM and AEC CAD and an Autodesk reseller, reported final results. Revenue for 2015 was €69 million, up 46% over 2014. The strong performance is due to organic growth of existing products, revenue from new products as well as acquisitions (and, likely, was helped by foreign currency movement though the company did not say so). GRAITEC product revenue was up 21%, including revenue from its Advance Steel and Advance Concrete products, which was up 16%. Revenue from its Autodesk VAR operation was up by 70%, likely a combo of organic growth and acquired business from resellers in the US, Slovakia and Italy. GRAITEC CEO Francis Guillemard said that this is the highest recorded revenue in the company’s history: “We have more than doubled our revenue in 2 years. This is a clear sign that customers support our strategy and value the unique services we provide … GRAITEC is now the only international Autodesk Platinum VAR operating in the US and across Europe. This is a first for any Autodesk partner and clearly sets GRAITEC apart and places us on the path to achieving our strategy to deliver Autodesk and GRAITEC technologies worldwide. From a financial perspective, we expect to grow again in 2016, despite the business model transformation recently introduced by Autodesk which sees customers switch from a perpetual license model to a rental model via Desktop Subscription. GRAITEC has a robust and well-established plan that has already resulted in us leading the market in DTS sales, but of course we will also continue to grow the GRAITEC Group through additional acquisitions worldwide.”
Note that “despite” — clearly, Autodesk isn’t the only company affected by its switch to subs. But you knew that.