Heading out to day 2 of the Siemens Oil and Gas Innovations Conference but wanted to take a quick peek at Dassault Systèmes Q1 results, reported early this morning.
On the surface, DS knocked Q1 out of the park, soundly beating its total revenue target €615 million or so. It looks like roughly half of the growth is due to a currency tailwind — but the constant currency growth is still impressive.
The main points:
- Total IFRS revenue was €652 million, up 30% year/year as reported and up 17% in constant currencies (cc)
- In that total, new license revenue was €157 million, up 32%
- Maintenance and other recurring software revenue was €422 million, up 27%
- Of total software, CATIA revenue was up 12% as reported (up 4% in cc); ENOVIA was up 7% (down 4% in cc) – probably because of a huge deal closed a year ago, so don’t read too much into this; SOLIDWORKS revenue was up 38% (up 17% in cc). Other Software, the composite of SIMULIA, GEOVIA and other brands, was up 63% (and up 47% in cc).
- By geo, revenue from the Americas was up 43% (up 18% in cc); from Europe, up 22% (up 16% in cc) and from Asia, up 30% as reported and up 17% in cc.
OK. Those are the numbers. There’s clearly a strong effect from currency fluctuations but, aside from that, what can we learn? DS says that organic revenue has been strengthening over the last year; in constant currencies, non-IFRS organic revenue was up 8%, software revenue was up 9% and new license revenue rose 14%. This growth is undoubtedly due to its industry and geo diversification, and the maturation of its targeted Experience solutions. More on this after I’ve had time to go over the company’s materials in more detail.
One other bit: DS announced that it has acquired Modelon, which makes a multi-physics solution based on Modelica, for product subsystem interaction and performance prediction. It’s interesting: DS has now acquired 3 companies that base their offerings on the Modelica open standard: Geensoft for embedded systems development in 2010 and Dynasim’s modeling and simulation solutions in 2006. Financial terms weren’t disclosed.
DS also confirmed its 2015 goals: Q2 non-IFRS total revenue between €665 million and€675 million, on the way to a full-year total of €2.76 billion to €2.78 billion — that’s up a bit because of the changes in exchange rates since the company’s last estimates.