Quickie: Nemetschek revenue up 17% in Q2

Jul 27, 2018 | Hot Topics

So far we’ve had PLMish earnings; today, Nemetschek chimed in with a report that shows how well AECish companies are doing, too. Total revenue was €114 million, up 17% as reported and up 21% in constant currencies (cc). Since Nemetschek is a serial acquirer, it’s important to note that nearly all of this growth was organic. [The company didn’t specify it for the quarter; for the half-year, revenue was €216 million, up 11.4%, up 10.6% organically.]

The details:

  • License revenue was €56 million, up 17% as reported (up 21% cc)
  • The company lumps together maintenance and subscriptions; this totaled €54 million, up 19% (up 24% cc) as Nemetschek reported that “revenue from subscriptions jumped disproportionately in relation to the Group’s growth, rising by 41% (49% cc) to €4.7 million”. While still a small percentage fo the total, subs are clearly of interest to AEC customers, too
  • By business area, revenue from the Build segment was €37 million, up 28% (37%cc). The company highlighted Bluebeam, which acquired Project Atlas, LLC in mid-June. Project Atlas is a tool that enables construction projects to visually organize and connect documents and data
  • Still in Build, but now in the current quarter, Nevaris acquired 123erfasst.de GmbH on July 2. Nemetschek says 123erfasst is the market leader in mobile building-site management in Germany, offering app-based time recording and building-site documentation
  • The Design segment remains the largest at Nemetschek, with Q2 revenue of €67 million, up 12% (up 15% cc)
  • The Manage segment reported revenue of €2 million, up 7%
  • Finally, the Media & Entertainment grew 8% to €7 million, (up 12% cc)

Given all of the above, Nemetschek reconfirmed its guidance for 2018: total revenue of €447 million to €457 million, which would be growth of 14% at the midpoint, on the way to a 2020 target of €600 million or more.

What does it all mean? The goals of the AEC CADish software companies are being realized. Modernizing the construction site, adopting BIM tools and methodologies –coupled with the realization that subscriptions are a good mechanism for matching IT costs to project execution– in more parts of a project, all played into Q2’s success and are likely to push Nemetschek to its 2020 goals.