Quickie: DS Q3 beat expectations on EXPERIENCE momentum

Oct 25, 2016 | Hot Topics

I’m on my way to the airport (Solid Edge University in Indianapolis, anyone?) but just saw this come into the inbox:

Dassault Systèmes beat its own revenue guidance and analyst consensus in Q3, reported IFRS revenue of €735 million (up 9% as reported and up 9% in constant currencies, (cc). Why? We’ll know more after I listen to the earnings call and analyst meeting webcast, but DS’ printed material says that its 3DEXPERIENCE platform and industry solutions continue to gain traction, with EXPERIENCE-related software revenue up 40% in Q3 and up 38% for the first 9 months of the year — meaning it’s accelerating.

Likely related, DS says that ENOVIA new license revenue was up 27% in Q3 and 30% for the year-to-date, contributing to overall ENOVIA software revenue growth of 9% to €77 million. It always strikes me, when I type the ENOVIA revenue number, how much DS has staked on so small a part of its business. ENOVIA is the underpinning for much of DS’ EXPERIENCE strategy, yet still only accounts for 12% of total software revenue for this quarter and for the year to date. Interesting.

For Q3, CATIA software revenue was up 7% to €238 million and SOLIDWORKS software revenue was 14% to €152 million.

By region, Asia led growth, with total software revenue of €189 million, up 23% (up 18% cc). Americas software revenue was up 6% as reported and in cc, to €195 million, and software revenue from Europe was up 3% (up 5% cc) to €263 million.

DS also announced that it has completed the CST acquisition and upped its full-year guidance to include it. Full year 2016 non-IFRS revenue is now expected to be €3.015 billion to €3.030 billion, up 6% to 7% cc from 2015. This means that Q4 non-IFRS total revenue will be somewhere in the range of €832 million to €847 million.

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