In This Article:
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Revenue: Increased by 9.7% to EUR 228 million in Q2 2024.
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Annual Recurring Revenue (ARR): Grew by over 26% with strong growth of around 83% in subscription and SaaS revenue.
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EBITDA: Increased by 9.5% to EUR 61.4 million, with a margin of 27% in Q2 2024.
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Net Income: Grew by 27.7% to EUR 40.5 million, resulting in earnings per share of $0.36.
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Subscription and SaaS Revenue: Increased by 74.9% to EUR 230.9 million in the first half of 2024.
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Cash Conversion: Maintained a strong cash conversion rate of 109%.
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Net Cash Position: Grew to EUR 307 million, an increase of 82%.
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Equity Ratio: Improved by more than 150 basis points year over year.
Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nemetschek SE (NEMTF) successfully closed the acquisition of GoCanvas, marking the largest acquisition in its history, which is expected to create substantial value for customers and shareholders.
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The company reported a strong growth in subscription and SaaS revenues, with an increase of around 83%, driving overall recurring revenue growth.
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Nemetschek SE (NEMTF) achieved a high annual recurring revenue (ARR) growth of over 26%, indicating strong revenue and cash flow potential for the next 12 months.
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The company maintained a strong cash conversion rate of 109% and improved its net cash position by 82% to EUR307 million.
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Nemetschek SE (NEMTF) is making substantial progress in its transition to a subscription and SaaS-centric business model, with subscription and SaaS revenues now accounting for 51% of total revenues.
Negative Points
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Reported profitability was impacted by one-off costs related to M&A activities, affecting the EBITDA margin.
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The design segment is expected to experience slower growth in Q3 due to the ongoing subscription transition and a high comparison base from the previous year.
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The build segment's profitability declined year over year, partly due to M&A-related one-off costs.
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The media segment faced a softer market, particularly in the US, impacting its growth potential.
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The manage segment reported the lowest growth within the group, with a revenue increase of only 3.4%.
Q & A Highlights
Q: What revenue do you expect to consolidate this year from GoCanvas, considering its previous ARR? A: We expect a revenue haircut due to IFRS-related effects, which will impact the revenue consolidation. We are consolidating from July 1, so only half of the revenues for this year will be included, with the haircut affecting this year and the first half of next year. - Louise Oefverstroem, CFO