PLMish earnings are off to a good start with MuM and Cadence reporting strong performance
We’re deep into earnings this week, as Cadence, Dassault Systèmes, Hexagon, Nemetschek, and PTC all report about what happened during the quarter that ended in June.
Before that all kicks off, Mensch und Maschine last week gave us a preview of what to expect. And in typical MuM style, their headline said it all: “Continued record chasing after strong Q2 … Double-digit sales and profit increase to pre-crisis level … Good H2 and new records for 2021 estimated”. A few of the details: a new record for half-year sales, with revenue up 4% to €136 million. The company’s own software brands contributed €42.5 million (up 12%) while the reseller business (mostly Autodesk) was up 1% to €93.6 million.
It’s interesting that the company chose to highlight increases from 2019 (total revenue up 13%, “equally contributed to by both segments”) because “comparison to 2020 is distorted by the pre-Corona record in Q1”. In other words, companies trying to very quickly move work to home-office situations changed the normal buying dynamic during 2020 — comparison to 2019, MuM feels, is a more reliable indicator of the company’s actual prospects.
For the rest of 2021, as its headline said, MuM is “chasing a record”. CEO Adi Drotleff said the company “expect[s] to stay on the growth path in the second half of the year, creating new records both on sales and earnings level. We now expect a +6-10% full year 2021 growth corridor to EUR 259-268 mln for sales”.
Switching to a different part of the PLMish universe, Cadence reported results last night. I’m still no EDA expert; I was listening to hear what the company said about its CAE intentions — and how the Numeca and Pointwise businesses did within the overall company performance.
Total revenue in Q2 was $728 million, up 14% — nicely ahead of expectations. No details were given about the acquired CAE companies, but it all seems to be going to plan. CEO Lip-Bu Tan said that “the integration of our recent NUMECA and Pointwise acquisitions is progressing well … Strong momentum continued for our System Design & Analysis segment, with 20% year-over-year revenue growth”. Of course, we can’t attribute that 20% growth to just Numeca+Pointwise, but they’re in there somewhere.
Mr. Tan added that “[g]rowing system complexity for high-frequency applications is driving the need for an integrated platform solution across system design, simulation, and analysis. As we continue building out our systems portfolio, we are pleased to see early indications of customers increasingly choosing a broader set of our solutions across these domains.”
On Monday, Cadence announced a CEO transition for later this year. On December 15, Dr. Anirudh Devgan, president of the company since 2017 and the gentleman who was so enthusiastic about Cadence’s CAE acquisitions at the recent online user meeting, will be become CEO while Mr. Tan will assume the role of the Executive Chairman of the Board. There’s no way to know, of course, but it seems possible that Dr. Devgan’s interest in simulation could lead to further expansion in this area.
So, PLMish earnings are off to a solid start. Let’s hope it keeps going! Next up, DS and Hexagon.