MuM says things are looking up in Autodesk-land
Germany’s Mensch und Maschine kicked off the PLMish Q3 earnings this morning. Total revenue was €32 million, down 20% as reported, as the company works through the shift from perpetuals to subscriptions in its Autodesk-related business.
For the year to date, MuM’s total sales dropped 10% to €115 million. The proprietary Software segment reported revenue up 8% (and up 9% in constant currencies) to €36 million which means that the VAR Business had revenue of €79 million, which is down around 16% from the €94 million reported a year ago. Note that there are all sorts of promotions run by Autodesk and MuM to get customers to sign up for subs that confuse this picture — but MuM highlights that even through Autodesk-related revenue is down, after factoring out some of the pull promotions, the “gross margin from subscription and maintenance increased by approx. 14%. This indicates that the transition from sale to subscription should lead to strong Autodesk gross margin growth from Q4 onwards.” That’s good — Autodesk needs its VARs to be profitable businesses.
CEO Adi Drotleff is characterized in the earnings press release as “very optimistic for the final quarter: ‘Our EBITDA target range of EUR 17.5 to 18.5 million … should be still achievable, particularly as from Q4 the Autodesk rental model should deliver its full positive impact and help the VAR segment back to double digit growth.”
We’ll see what Autodesk itself has to say — their quarter won’t end for another week, so expect their results to be out in a month or so — but so far, so good.