EarningsExa Corp. reported Q3 results just now that show solid growth as customers continue to convert from consulting engagements (where Exa carries out projects) to software license buyers. Total revenue was up 13% to $16 million, at the low end of the guidance issued at the end of Q2.

The details:

  • Total revenue was $16.0 million, up 16% in constant currencies (cc) and up 13% as reported
  • License revenue was $12.9 million, up 16% as reported and up 19% in cc
  • Project revenue was $3.1 million, up 4% as reported and up 7% in cc.
  • Exa breaks out revenue by country in its filing with the US Securities and Exchange Commission. Revenue from the US was $4.3 million, up 40%; from Germany, $3.0 million, up 16%; other markets were up, too, but not some were down year/yaer. Revenue from Japan was $2.4 million, down 6%; revenue from France was $2.4 million, 5%.

CEO Steve Remondi told investors that Exa will be introducing “several new technologies including our recently launched Exa Cloud offering that we expect to benefit customers across our target markets … We are optimistic that the upcoming introduction of several new technologies will reinforce our increasing momentum beyond the fourth quarter and into fiscal 2016.”

Exa now expects Q4 revenue to be between $16.3 million and $17.4 million, up 11% or so over last year and for fiscal 2015 (ending January 31), total revenue is expected to be $60.9 million to $62.0 million. That’s a slight tightening of the total given in Q2 and would amount to growth of just under 15%, slightly below its five year target.

I’ll update once I’ve had a chance to listen to the earnings call replay. I want to understand why project revenue isn’t growing more quickly (since it lead to future license revenue, it’s a critical component) and what happened in Japan, one of Exa’s top 4 geo markets.