In This Article:
-
Revenue Growth: Organic currency-adjusted revenue growth of 9.8% for the first nine months of 2024.
-
EBITDA Margin: Organic EBITDA margin of 30.2%, excluding Go Canvas effects.
-
Annual Recurring Revenue (ARR): Increased by 33% to EUR 883 million, with organic growth of 25.2%.
-
Subscription and SaaS Revenue Growth: Grew organically by almost 78%, reaching 94% including Go Canvas.
-
Reported Revenue: Increased by 15.1% to EUR 253 million for Q3 2024.
-
EPS Impact: Earnings per share fell by 12.8% in Q3 due to Go Canvas acquisition effects.
-
Build Segment Growth: Organic growth of 15% in Q3, with expectations of over 30% growth in Q4.
-
Design Segment Revenue: Increased by 8.1% on a reported basis for the first nine months.
-
Cash Flow: Strong cash conversion over 100% in the first nine months.
-
Net Debt: EUR 370 million with a net debt to EBITDA ratio of 1.8 times.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Nemetschek SE (NEMTF) achieved robust growth with a 6.3% increase on an FX-adjusted basis in the design segment, despite a challenging market environment.
-
The build segment experienced accelerated organic growth of 15% on an FX-adjusted basis, driven by strong demand, particularly in the US market.
-
The transition of Bluebeam to a subscription model is progressing well, with expected growth of over 30% in the fourth quarter.
-
Nemetschek SE (NEMTF) recorded an organic currency-adjusted revenue growth of 9.8% and an organic EBITDA margin of around 29.9%, aligning with internal plans.
-
The acquisition of Go Canvas is on track, showing good underlying operating performance and expected to create significant value for the company.
Negative Points
-
The design segment faced a temporary impact on revenue growth due to a high comparison base from the previous year.
-
Earnings per share fell by 12.8% in the third quarter, impacted by the Go Canvas acquisition and higher interest expenses.
-
The media segment experienced slower growth, particularly in the US market, due to weaker demand and industry challenges.
-
The ongoing transition to a subscription model presents short-term accounting burdens on financial results.
-
The German market remains weak, impacting overall growth, particularly in the design segment.
Q & A Highlights
Q: How do you expect the build segment's growth to continue into 2025, given the expected acceleration to over 30% in Q4 2024? A: Yves Padrines, CEO, explained that the Q4 growth is primarily due to accounting effects and a low comparison base from Q4 2023. For 2025, the build segment is expected to normalize to around 20% revenue growth, as previously indicated. The exceptional Q4 growth is not expected to continue at the same rate into 2025.