Quickie: DS blows by Q2 forecast

Dassault Systèmes reported today that Q2 revenue was €716 million, up 29% as reported (and up 16% in constant currency) year/year. The company had forecast non-IFRS total revenue of around €675 million and just reported non-IFRS Q2 revenue of €723 million. Some of this is clearly exchange-rate related, but a lot is actual growth. We’ll learn a lot more after the conference call (and after I listen to the more detailed company briefing held in Europe earlier), but here are the details so far:

• Q2 total revenue was €716 million, up 29% as reported on an IFRS basis and up 16% in constant currencies (cc), year/year (y/y)
• Total software revenue was €628 million, up 27% as reported and up 14% in cc
• On an IFRS basis, new licenses revenue was €177 million, up 27% as reported. DS says on an organic, non-IFRS basis, cc new license growth was 11%
• IFRS periodic licenses, maintenance and other software-related
  revenue was €450.4, up 27%; non-IFRS cc growth was 11%
• Service and other revenue in Q2 was €88 million, up 44% as reported and up 30% in cc
• By geo, revenue from the Americas was €220.0, up 40% as reported and up 15%  in cc
• Revenue from Europe was €305 million, up 18% as reported and up 13% in cc
• Finally, revenue from Asia was €190 million, up 35% as reported and up 22% in cc
• By product category, CATIA reported software revenue of €244 million, up 13% as reported and up 4% in non-IFRS cc
• Revenue from ENOVIA software was €73 million, up 12% as reported and up 1% in non-IFRS cc, “reflecting the transition underway with good 3DEXPERIENCE platform prospects” according to DS
• “Other software” continues to be the bucket with the best performance, with software revenue of €170 million, up 61% as reported and up 35% in non-IFRS cc due to the addition of Quintiq and Accelrys in 2014. DS does cite “improvement across brands, including DELMIA, GEOVIA and EXALEAD” but doesn’t offer more detail.
• SOLIDWORKS software was €140 million, up 30% as reported and up 11% in non-IFRS cc.

So, what happened to get to this result? Per the press release, the new direct sales model, economic improvement across Asia, increased revenue from large customers, new business activity across its established and new industries — we’ll hope to learn more from the conference calls.

The company also raising guidance for the full year: Q3 non-IFRS revenue of €660 million to €670 million, or IFRS growth of about 7% to 9% in cc. For the year, the company now sees  non-IFRS revenue growth of about 12% in cc to €2.80 billion to €2.82 billion.

These are really good results, yet the share price is up less than 1% on the news (at 8AM ET). Clearly, there’s a lot more to learn. Check back later for an update.