PLMish earnings start strong, with good news from MuM and Sandvik

Apr 21, 2023 | Hot Topics

Two reports start us off this earnings season: Mensch und Maschine, the Autodesk reseller, and Sandvik, the Swedish company buying its way into CAM. First, MuM.

Mensch und Maschine Software reported “another best quarter ever in M+M’s history” yesterday, with revenue up 21% for the period ended March 31, to €103 million. Of that, €29 million was from M+M Software (up 18%), and the remaining €74 million (up 22%) was from the company’s VAR Business. MuM noted in its materials that “the end of Autodesk 3YR contract discounting in January created a final sales peak” — as expected, as many buyers opted to lock in 3-year price contracts. (If you haven’t been keeping track, Autodesk now only offers one-year contracts.)

MuM doesn’t offer outlook, as such, but did say that it expects to meet its profit targets for the year, which implies also meeting revenue targets — or somewhere around €320 million.

Sandvik reported total revenue of SEK 30,968 million, up 24% as reported and up 18% in constant currencies (cc), with 13% growth on an organic cc basis. The division that’s most PLMish, Sandvik Manufacturing and Machining Solutions, reported revenue of SEK 12,662 million (or about $1.2 billion), up 16% in SEK and up 6% on an organic cc basis. This part of the business “noted solid development in all customer segments, driven by good momentum in Europe. The strongest growth was recorded in aerospace and energy. General engineering and automotive demand held up well. Daily order intake levels in North America were slightly down, however, due to the movement of orders between quarters. Recovery in China was noted at the end of the quarter.” By geo, revenue was up 9% in Europe, up 4% in North America, and down 1% in Asia (all cc). Looking into Q2, the company noted that “daily order intake in the first two weeks of April was slightly up compared to the first quarter.” Sandvik didn’t say much about its MMS software acquisitions — I’m taking that to mean that integrations are proceeding, as is the roll-out of the various solutions into new geographies.

What does week 1 of PLMish earnings tell us? That demand is good — Europe is more robust than expected, North America is strong in aerospace, and China is recovering. By end-industry, things are more or less stable sequentially. And SMB buyers, like those served by both companies, are buying technology. TBH, after last year’s wild ride (remember all of the businesses exiting Russia right about now?), stability is very good.

Finally, for those celebrating, Eid Mubarak!