DS announced Q1 will be 2.5-5% below guidance

Apr 1, 2020 | Hot Topics

And so it starts (continues, depending on your perspective);

After the stock market in Paris closed, Dassault Systèmes announced that it expects Q1 revenue to be 2.5% to 5% below the low end of its previous guidance, which was for 20% revenue growth. Not all of that growth was ever going to be from PLM; remember that Medidata would have given DS a massive bump since it was acquired in 2019.

The company said that recurring software revenue, about 84% of total software revenue in Q1, “drove year-over-year growth, with solid renewals”.

CEO Bernard Charlès says in the press release that COVID-19 “will create tremendous challenges for society at multiple levels … Thanks to the 3DEXPERIENCE platform [which is] available on-premise with remote connections and on the cloud, we can maintain the service and support that our customers need during these difficult times. We note the agility of some customers to adopt our collaborative innovation environment to pursue their engineering and manufacturing projects and to adapt their supply chain.”

What does it mean for Altair, ANSYS, Autodesk, Hexagon, PTC, Siemens and the rest, when they report for the March-ending quarter? Probably a similar slowdown, though different accounting rules and different levels of recurring vs. upfront licensing make it hard to predict how much of a slowdown each will report. Everyone I’ve talked to said January and February were OK; March … not so much.

DS will publish full Q1 results on April 23, 2020.

Please check out the links I put up here and here to get involved in projects to build personal protective equipment and ventilators, use data science to map the pandemic and find a vaccine, and more. Our skills can make a huge difference! And check out your software vendors’ websites; many are offering free or heavily discounted licenses to help you work from home, get more training or otherwise use this time to upskill.

I hope you’re well, washing those hands and know that this, too, shall pass.