Schnitger Corporation

Quickie: MuM’s results show climb up hockey stick

Quickie: MuM’s results show climb up hockey stick

Jul 23, 2018 | Hot Topics

We’ve seen all sorts of analogies for what happens with top line revenue during the transition from perpetual to subscriptions–bottoming out and climbing back up the other side, a hockey stick with a curved decline then a sharp upwards trend, and so on–but it does seem to be true: there is an upside to this painful process, and we’re starting to see it in public companies’ earnings. Last week, PTC. today, Mensch und Maschine (MuM). MuM is an Autodesk reseller and markets its own software brands, which cushioned MuM during the bottom of the Autodesk subs transition.

MuM’s Q2 results were driven by the “many Autodesk maintenance contracts converted to subscription, as expected” as well as strong sales of its own software, including Open Mind CAM software. We’ll see what the first means for Autodesk, which announces results in a couple of weeks.

For the half-year, MuM’s total revenue was up 13% to €95 million. In that total, M+M Software revenue was €28 million, up 11%, while the Autodesk VAR business contributed €67 million, up 14%. Both segments are accelerating; M+M software revenue was up 9% year/year in Q1 but up 12% in Q2; VAR was up 6% in Q1 and 24% in Q2.

Some of this growth is math, as last year’s Q2 was relatively weak, but the directional signs are right — and CEO Adi Drotleff expects this trend to continue: “in Q3 we once more expect strong VAR Business sales from conversions of Autodesk maintenance to subscription contracts.”

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