Nemetschek starts strong, Q1 revenue up 12%cc

May 10, 2021 | Hot Topics

The Nemetschek Group recently reported Q1 results that point to a recovery in AEC — and bodes well for Bentley tomorrow and Autodesk later in the month. The details:

  • Total Q1 revenue was up 8% (up 12% in constant currencies, cc) to €158 million
  • Software revenue €55 million, up 3% (up 7% cc), driven by strength in the Design segment
  • Recurring revenue (which includes maintenance and subscriptions) was €96 million, up 12% (up 16%)
  • Subscription and SaaS revenue was €28 million, up 44% (up 50% cc), driven by demand from the Media & Entertainment segment and by a strategic shift in the overall group to offer rental models
  • By segment, Design revenue was up 9% (up 12%) to €84 million due to a 13% growth in organic license revenue. The Group says that the Graphisoft brand was the largest contributor to revenue growth
  • The Build segment “felt the effects of the recovery in the construction sector” in the US and the German-speaking countries of Europe. Revenue was up 5% (up 11% cc) to €51 million and organic recurring revenue growth was 16%. The Group said that it still plans to begin to transition Bluebeam to a subscription model in the second half of 2021, as planned
  • The Manage segment saw a “slight recovery” with revenue up 9% (also up 9% cc) to €11 million
  • Finally, the Media & Entertainment segment reported revenue up 6% (up 22% cc) to €15 million

CFOO Axel Kaufmann said this was “an excellent start to 2021 [that] goes hand in hand with the consistent implementation of the further developed Group strategy. The focal points of the strategy include further internationalization, expansion of recurring revenues driven by subscription and SaaS, reduction of the Group’s complexity, and continuous development of software solutions combined with acquisition of new customers.”

This all leads the Group to believe total revenue will grow “least in the high single-digit percentage range in constant currencies–in part, this is tamped down because of the expected transition of the Bluebeam business to a subscription and cloud business model in the second half of 2021.