Bluebeam, new product releases lift Nemetschek

Oct 30, 2015 | Hot Topics

Nemetschek continues to rack up impressive growth, reporting that revenue was up 38% in Q3 to €71 million (33% in constant currencies), with the Bluebeam acquisition contributing €11 million. Organic growth, therefore, was 17% (12% to 13% in constant currencies). Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group said in prepared remarks that Nemetschek “picked up even more speed in the third quarter. It’s becoming clearer and clearer that our strategic investment in new brands, solutions and markets is paying off and that we are thus laying the foundations for future growth.” The details:

  • Software license revenue was €36 million, up 55%
  • Recurring revenue was €32 million, up 24%
  • Nemetschek is still selling primarily in Europe, but is making progress with its internationalization efforts. US revenue more than tripled and made up 25% of total revenue for the first 9 months of 2015 for the first time.
  • Design segment revenue was up 18% to €49 million due to new releases of Graphisoft and Vectorworks, and an increased international sales presence. Vectorworks acquired ESP Vision (a “lighting pre-visualization software”) and, perhaps of interest to people who follow who uses what solids modeling kernel, Allplan 2016 integrates Parasolid. Mr. Heider said that all brands and all regions contributed to growth in Q3, even the smaller brands, and believes that Nemetschek’s brands are grabbing marketshare. He also said that this isn’t a one-time effect; a growth rate of 10% or slightly higher is sustainable for the foreseeable future.
  • Revenue from the Build segment, which includes Bluebeam, was €15 million, triple the total of a year ago. During the quarter, Bluebeam acquired its Swedish distributor (Bluebeam AB).  During the earning call, Mr. Heider said that Bluebeam Studio Prime, a cloud-based subscription solution, has over 225,000 users who have generated over 2 billion posts in 131,000 projects since 2010.
  • Revenue from the Manage segment increased 11% to €4 million
  • Media & Entertainment revenue grew 18% to €15 million

Given the strong results for the year so far, Nemetschek stuck to its revised revenue forecast of  €278 million to €282 million, which would be growth of 27% to 29%.