MuM says 2021 is pleasing so far, expects a strong Q4

Autodesk reseller and software developer Mensch und Maschine Software (MUM) just reported results that basically shout, we’re back! Says the company’s press release, “Compared to the pre-crisis year 2019, 9M sales already gained +11%, while EBIT showed a disproportionate +32% increase.” MuM, like most European companies, reports a cumulative year (so 3 months for March, 6 months for June, 9 months for September) because they feel it removes seasonality from the mix — true, but this also makes it hard to see acceleration or other effects within a year-long period. More on that below.

MuM says that sales for the first 9 months of 2021 were €194 million, up 7% as reported over 2020 and up 11% over 2019. M+M SOftware, its own brands, reported revenue of €61 million, up 11% from 2020, while the Autodesk reseller business had revenue of €133 million, up 6% from 2020. For Q3, total revenue is up 15% to €58 million, with software up 6% and the VAR business up 18%.

MuM Chairman Adi Drotleff “remains optimistic for 2021: „After the pleasing 9M business, we are also expecting a strong closing quarter, resulting in new full year 2021 records both on sales and earnings level. We continue to expect for 2021 a +6-10% growth corridor to EUR 259-268 mln for sales.“

What does all that mean? That the year started slow, with an 8% year/year decline in total revenue because Covid started to close business in the first quarter of 2020, and that the first quarter of 2019 was a record for MuM (Autodesk move-people-to-subs programs were still in effect then). Q2 saw revenue rebound a strong 23% (over a low Q2 2020, it must be said) and, now, Q3 is up 9%. It’s hard to read much into this because Covid opened/closed/opened/closed businesses in 2020, and the summer is always a slow time for sales in Europe — but the general trend is upwards.

I think this also bodes well for Autodesk, with MuM-related sales up 18% in Q3. Autodesk reports next month, when we’ll learn if this pattern was repeated on a global level.

So far, so good for PLMish earnings. Lots more next week.