Exa’s Q3 up 6% as reported on strong US performance
CFD company Exa reported results today that show how well recent investments in R&D are paying off: The company had solid, 16% constant currency (cc) growth in license revenue that lead to overall 14% cc revenue growth. The details:
- Total revenue for Q3 was $17 million, up 6% as reported and up 14 % cc
- License revenue was $14 million for the quarter, up 9% as reported and or 16% cc
- More worrisome was project revenue of $3 million, down 3% as reported, but up 5% cc. Exa usually begins engaging with new clients by doing projects; if all goes well, this often translates into license revenue as clients begin to do the simulations themselves.
- By geo, revenue in the US was up 23% to $5.3 million. Revenue from Japan was up 24% to $2.9 million but revenue from European countries was clearly hit by exchange rate fluctuations, with revenue from Germany falling 20% to $2.4 million and France, down 25% to $1.8 million. Revenue in the UK, denominated in British Pounds and not Euros, was $1.7 million, up 39%.
- We’ll get more color on verticals, how the various ground vehicle markets are doing, during the earnings call. I’ll update if there’s something unusual.
In his prepared remarks, CEO Steve Remondi said, “We delivered a solid third quarter with revenue at the upper end of expectations … License revenue again grew 16% from the prior year on a constant currency basis, as we continue to realize value from prior technology investments and project activities … [W]e believe that our continued shifting of resources to focus on supporting and enhancing license growth, combined with the additional leverage we can achieve from new products as a result of our expanded R&D efforts, will enable us to continue to produce improvements in profitability as we look ahead.”