DS’ Q3 blew past expectations
Dassault Systèmes just announced Q3 results that nicely exceeded July’s guidance of total, non-IFRS revenue of about €665 million; Q3 came in at non-IFRS revenue of €686 million, up 9% in constant currencies. I think that’s also a bit above market expectations. DS’ prepared remarks say that growth was led by Europe and the Americas on “broad-based” demand that helped offset offset volatility in Asia — we’ll know more after the earnings calls and presentations. Briefly, since I’m at AVEVA World Summit in Dubai:
- Total revenue in Q3 was €676 million, up 20% as reported and up 11% in constant currencies (cc)
- Software revenue was €594 million, up 19% (10% cc), with new license revenue of €146 million, up 19% as reported and 9% on an organic basis (non-IFRS)
- Revenue from the Americas was €219 million, up 32% (12% cc); from Europe, €292 million, up 20% (17% cc); and from Asia, €166 million, up 8% (1% cc)
- On a non-IFRS basis, CATIA software revenue was €222 million, up 9% (up 3% cc); ENOVIA, €70 million, up 16% (8% cc); SOLIDWORKS, €136 million, up 23% (up 9%cc) and Other, €176 million, up 28% (18% cc)
DS tweaked its objectives for the rest of the year to take this overage into account and to reflect slightly different currency assumptions for the current quarter. The company forecasts non-IFRS Q4 revenue of €750 million or so, and full year revenue of €2.82 billion to €2.83 billion. More after I’ve had a chance to listen to the replays.
Monica-
It’s good to see that DS is doing well. I am curious if the large jump in SOLIDWORKS was due to their changes in their maintenance policy- removing the $500 past maintenance charge and going with full back maintenance starting in 2016. Your thoughts on that?
The user forums have been on fire about this policy change. Granted the change conforms with the rest of the industry but was a key selling point for most of the existing customers. This change has upset more than a few vocal users on the forums.
Thanks for the comment, Ryan. DS’ earnings info said that growth in SolidWorks revenue was due to “strong recurring revenue”, some of which is likely a result of the change in maintenance policy. On the other hand, DS sold 2% more units year/year in Q3 2015 and and at a slightly higher ASP, so there’s a bump from new revenue, too. Stay tuned; I’ll post again when I have a chance to dig deeper and listen to the earnings calls.