DS reports solid Q3, led by direct channel & big accounts

Dassault Systèmes today reported results for Q3 that show its direct sales channel continues to perform well, growing the company’s presence within its largest customers. More analysis to come, but the highlights of the earnings release are:

• Total revenue in Q3 was €562 million, up 14% year/year (y/y) as reported and up 16% in constant currencies (cc). Q2 revenue was €557 million so the traditionally soft summer quarter didn’t fare too badly this year.
• Software revenue was up 11% y/y as reported and up 13% in cc to €498 million — essentially flat with Q2.
• New license revenue was €123 million, down sharply from the Q2 level of €140 million, but still up 22% y/y as reported. On an organic basis, DS says non-IFRS new license revenue was up 14%, with “25% growth for CATIA and 35% for ENOVIA” in cc.

It’s also important to note that DS stuck to its targets for the rest of 2014, with a Q4 non-IFRS forecast of total revenue between €670 million and€680 million and full-year non-IFRS revenue of €2.325 billion to €2.335 billion, or growth of 15% to 16% in constant currencies. Lots more parsing to come. But, for now, back to the Siemens CAE and Test Symposium.