Nemetschek says 2016 growth to be WAY ahead of targets

Oct 13, 2016 | Hot Topics

Another preannouncement — this time, an unambiguously good one from Nemetschek. The company said that it expects fiscal 2016 revenue to be right around €340 million, with would be growth of 18% to 20%.

Why? Nemetschek doesn’t give details other than to say that it is seeing “strong growth dynamics and better than anticipated business development” in its organic businesses, coupled with “increased internationalization”.

Nemetschek has a lot of levers that it can pull at this point: Solibri, acquired late last year, is based in Scandinavia and didn’t have a big international presence. Bringing it to a wider market can only accelerate growth both in that business and in other parts of the Nemetschek family, which now has a reason to call on new and existing accounts. We could say the same thing about US-based Design Data, acquired over the summer for its steel detailing. Not a natural audience for Nemetschek, but a new avenue to sell a workflow that starts with architectural design using Gaphisoft, Allplan or VectorWorks, then steel design and analysis using Scia, then detailing and fabrication with Design Data and perhaps review and markup with Bluebeam.

At the same time, BIM adoption continues its uneven growth across the globe, which should benefit the Graphisoft and Allplan brands, even if no cross-selling is involved. The internationalization mentioned by Nemetschek is a core part of the current strategy; Allplan, for example is largely unknown in North America, and newly opened sales offices aim to change that. Vectorworks is expanding in Europe … and so on.

We should learn a lot more on October 28, 2016, when the company formally releases results.