Nemetschek’s Q2 strong, slows slightly from Q1
Nemetschek announced today that Q2 revenue was up 15% on an organic basis and 21% overall to €138 million. That’s very, very good but investors will likely focus on the fact that Q1 growth was 27% as reported (23% cc) and 21% on an organic basis.
- Total revenue was €138 million, up 21% as reported and up 18% in constant currencies (cc)
- Software license revenue was €57 million, up 2% as reported but down 1% cc
- Recurring software revenue (mainly maintenance) was €73 million, up 37% (up 24% cc), with subscription revenue of €12 million, up more than 140%
- Nemetschek has been working hard to expand outside of Germany and Europe, and says that it saw growth across all regions. Germany continues to be its largest market, at 25% of revenue; the rest of Europe makes up 22% of revenue, the Americas, 33% and Asia, 9%. But that’s changing, as revenue from Germany grew only 3%, Europe, 12-14%, the Americas, 33% and Asia, 13%.
- By segment, Build continues to expanding the Bluebeam, brand outside the US. Build reported revenue of €44 million, up 25% (up 19% cc).
- Design remains by far the biggest segment, with revenue of €76 million up 9% (up 7% cc) — that’s a bit slower than in Q1, but still within the expected range
- Manage added the Spacewell brand during Q1, leading to revenue of €9 million in Q2.
- Finally, Media & Entertainment reported revenue of €9 million, up 23% as reported and up 10% on a purely organic basis.
Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group, said of the results, “The first half year met our expectations utterly and completely. We are recording ongoing fast growth and high demand on the part of our customers. We therefore remain the fastest-growing listed software company in Germany with global reach. In addition, in the first half year, we have been able to considerably and strategically develop our Manage segment further and expand it. We are, therefore, in an excellent position to achieve our targets for the year 2019 as a whole.”
Not surprising, the year-to-date leads Nemetschek to remain optimistic for the rest of the year. Nemetschek anticipates Group revenue in the range of €540 million to €550 million, which would be growth of 17% to 19%.
The bottom line? Scale matters. Nemetschek has been adding brands and creating sales channels and offices that allow it to see opportunities across the brands and segments –sell Graphisoft already? Let’s add Solibri. Or Bluebeam. Or …– and to ride the wave of investment in BIM technologies both within the traditional design workflows and outwards, into building construction and operations.