Earnings-apalooza! SAP, DS, PTC, AspenTech today

Apr 24, 2019 | Hot Topics

SAP and DS have already reported, PTC and AspenTech report later this afternoon. More on each when time allows, but so far (at 8:45AM ET), we’ve learned:

Dassault Systèmes’ Q1 2019 non-IFRS revenue was up 13% in constant currencies (cc) and up 8% on a cc organic basis to €964 million. That’s ahead of the company’s guidance of revenue between €925 million and 945 million AND 3% above investment analysts’ consensus. A few details: software revenue was up 8% cc on an organic basis while recurring software revenue was up 8% cc. 3DEXPERIENCE software revenue was up up 26% and now makes up 23% of related software revenue (it’s always confusing to figure out what that means, but we’ll dive into that more later). By brand, ENOVIA software revenue was up 19% cc, CATIA was up 6% cc, and Other Software was up 22% cc. DS adjusted its outlook for 2019 revenue to account for currency movements, but didn’t adjust it for the Q1 revenue beat — we’ll try to find out whether Q1’s results are due, at least in part, to deals that were signed early.

SAP is even more complex a business than DS, so here are the highlights I found most interesting after a quick glance: Total non-IFRS revenue was €6.12 billion, up 16% as reported and up 12% in constant currencies. Cloud, SAP’s huge push right now and a bellwether for cloud adoption in general, was €1.58 billion, up 48% (41% cc). Software revenue was up 4% as reported to €650 million and up 1% in cc. SAP reports results in 3 segments; the one we care most about is Applications, Technology & Services (AT&S). That segment saw revenue grow 12% to €4.99 billion (up 9% cc), led by SAP’s S4/HANA ERP — but it also includes the Leonardo IoT platform. SAP says Leonardo continues to build out both in terms of capability and customer adoptions. Much more to come on that.

OK – gotta go. Time to listen to DS’ earnings call and then get the French analyst meeting replay and then get the SAP replay and then … nap … and get ready for PTC and AspenTech.

So far, we’re seeing solid results — let’s hope it’s based on underlying strength and not one-off wins (I don’t think it is) and continues to the rest of our PLMish universe.