In This Article:
-
Revenue Growth: 4% in Q3 2024, driven by an 8% increase in subscriptions.
-
EPS Growth: Increased by 8% year-to-date.
-
Operating Margin: 29.6% in Q3 2024.
-
Subscription Revenue Growth: 9% year-to-date.
-
Software Revenue Growth: 3% in Q3 2024.
-
Cloud Revenue Growth: 7% year-to-date, excluding Medidata, 52% growth.
-
Cash and Cash Equivalents: EUR3.658 billion at the end of Q3 2024.
-
Operating Cash Flow: EUR1.353 billion year-to-date, a 6% increase from the previous year.
-
Full-Year Revenue Guidance: Adjusted to EUR6.155 billion to EUR6.275 billion.
-
Full-Year EPS Guidance: EUR1.27 to EUR1.30, unchanged.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Dassault Systemes SE (DASTF) reported a 4% revenue growth in Q3 2024, driven by an 8% increase in subscriptions.
-
The company saw strong performance in life sciences, consumer industries, and aerospace and defense sectors.
-
The 3DEXPERIENCE platform continues to gain market share, with a robust pipeline in industrial sectors.
-
Medidata showed a broad-based improvement, with a recovery in global clinical trial starts and new product launches.
-
The company secured almost 100 significant competitive deals across key markets, demonstrating the value of its solutions.
Negative Points
-
The automotive sector in Europe and the US faced volume contractions, impacting short-term decision-making and revenue.
-
Q3 software revenue growth was at the lower end of guidance, with upfront license revenue down by 7%.
-
The company faced headwinds from a mega deal anniversary, impacting software revenue growth.
-
The automotive sector's slowdown led to a EUR40 million shift in deals, affecting Q3 revenue.
-
The company adjusted its full-year revenue growth guidance to 5% to 7%, down from 6% to 8% previously, due to market volatility.
Q & A Highlights
Q: How is Dassault Systemes planning to leverage the more consolidated US channel for cross-sell opportunities, and what is the strategy regarding the structure of your channel? A: Pascal Daloz, CEO, explained that the separation between CPE and CRE will remain due to different customer engagement needs. The consolidation in North America is seen as beneficial, providing stronger partners with the capacity to expand into new verticals. The strategy is to maintain an ecosystem approach rather than acquiring partners, allowing specialization and expansion into new markets.
Q: Can you provide an update on SOLIDWORKS' performance and the objectives for large transactions and new packages for smaller accounts? A: Pascal Daloz noted that SOLIDWORKS saw an 8% growth in units this quarter, with a focus on re-energizing the core market of smaller companies. The strategy involves balancing volume and footprint growth while addressing the needs of larger accounts without compromising the volume approach.