Quickie: Nemetschek’s cautious optimism, RIB roars ahead
A quick update on Nemetschek and RIB’s AEC-ish earnings — and on the progress of Schneider Electric’s acquisition of a majority of RIB’s shares, since you’ve been asking.
Starting with Nemetschek, total Q2 revenue was €141.6 million , up 3% as reported, up 2% in constant currencies, cc, and down 1% on an organic cc basis– the recent Red Giant acquisition in the Media & Entertainment segment contributed the net growth. As we’ve seen across the PLMish universe, recurring revenue saved the quarter, up 22% (up 21% cc, up 17% organic cc) to €88.9 million while initial perpetual license sales were down 19% as reported and cc, to €46.7 million. Within the recurring revenue bucket, subscription revenue was up 76% (75% cc) to €20.5 million while maintenance was €68.4 million.
You may recall that Nemetschek operates in 4 segments; revenue from the Design segment was €72.6 million, down 5% (down 6% cc). The company said that this part of the business was the first to feel the effects of the Covid-related shutdowns in March, with “reduced customer demand and a decline in revenues”.
Revenue from the Build segment was €48.2 million, up 8% (up 6% cc) on what the company said was strong demand for its Bluebeam collaboration solutions. Manage reported revenue of €9.6 million, up 3% (up 3%cc) and from the Media and Entertainment group was €12.9 million, up 48% as reported and up 2% on an organic basis (up 1% cc).
Looking at geos, Nemetschek said that the US (34% of revenue in H1) deteriorated in June/July, following the slowdown seen in Europe during the earlier months of Q2, and that this may last into Q3, especially in the US. That said, the deceleration in Q2 wasn’t as bad as originally modeled, and Nemetschekleft is guidance for the year unchanged, expecting revenue to be flat to up slightly.
I haven’t heard of similar slowdowns specific to the US in June and July — but Autodesk has yet to report.
On to RIB Software. Yes, it is now part of Schneider Electric, with the share offer completed on July 10, after the last regulatory approvals were received on July 2.
RIB reported revenue in Q2 of €67 million, up 45% and for the half-year, €132 million, up 43%. MTWO (which now includes the legacy iTWO for accounting purposes), reported total revenue up 46% for the half-year, to €127 million. Other offerings made up the rest of revenue.
The big news is, of course, the Schneider Electric + RIB joint go-to-market. The logic behind the combination was that RIB would complement what Schneider Electric: to plan, schedule, and orchestrate construction in buildings, data centers, and other infrastructure that likely already has some Schneider Electric gear. Schneider Electric makes energy management and building automation systems and believes that the building sector is behind the curve on digitization — together, Schneider believes, they can move the architect, design company, consultants, contractor, owner, and other stakeholders onto the MTWO platform to better collaborate around the project’s details.
Schneider Electric CEO Jean-Pascal Tricoire told investors on his earning call last week that
“What we’re going to do at Schneider is very simple. It’s opening doors. We’ve got relationships with all the major players in construction in the world. We’re going to make sure that people know the [RIB] suite of cloud-based [solutions]. We see a lot of potential, especially because RIB so far is still a medium-sized company, having barely started its globalization. And really, the big expectation is that the global coverage of Schneider, the knowledge of the main deciders in this sphere on the capacity to bring this offer to new customers … The planning, scheduling, and articulating and orchestrating all the trades on the construction site is something that has barely started. And RIB is offering the best solution on the market.”
The companies have already identified over 150 global joint opportunities and created 9 joint regional sales teams to take MTWO into buildings, data centers.
Back to RIB. The company issued guidance that said it now plans to achieve revenue of between €240 million and €270 million, up 10% to 24%.