Quickie: MuM announces most profitable quarter ever

Apr 23, 2018 | Hot Topics

What trough? As a reminder, we look at Mensch und Maschine to gauge how resellers are faring as Autodesk transitions to subscriptions — and MuM is on the upswing with its Q1 2018 report. Per its announcement, “While the [proprietary MuM] Software segment continued to contribute a larger share [of earnings], the VAR Business [aka Autodesk reselling] grew at a much higher percentage. So the gap begins to shrink, as expected.”

A few of the details:

  • Total revenue in Q1 was €49 million, up 7%
  • MuM’s Software business reported revenue of €14 million up 9%;  the VAR Business reported revenue of €35 million, up 6%
  • The “most profitable” headline comes from highest-ever gross margins and earnings before interest, taxes, depreciation and amortization (EBITDA). EBITDA was €6.62 million, up 22% from a year ago

CEO Adi Drotleff commented in the press release that MuM’s “EBITDA target range of EUR 22-23 million is solidly underlined by the start of 2018, particularly as in Q2 the VAR Business sales are expected to speed up due to the renewal of many multi-year Autodesk maintenance contracts.”

Parse that quote and we start to see the value of subscriptions, from the vendor’s and reseller’s perspective: In Q2, MuM will see renewals of maintenance contracts — now a subscription — and customers have signaled to MuM that they intend to do so. Clearly good for MuM, but also good for Autodesk. We’ll see Autodesk’s side of the story in about a month, when they report on their fiscal first quarter.