2023-07-25 07:30:00
(BFM Bourse) – The professional software publisher exceeded its profitability and license sales target for the period from April to the end of June. All of its objectives for 2023 are confirmed.
Dassault Systèmes keeps its promises in the second quarter. The computer-aided design and manufacturing software specialist published results for the period from April to the end of June in line with its expectations or even slightly above, according to the indicators.
In the second quarter, revenue
of the company amounted to 1.449 billion euros, up 8%, excluding currency effects.
The amount of turnover is approaching the bottom of the forecast range that the company had given to the market (between 1.44 and 1.46 billion euros).
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But, on the positive side, license sales, an indicator scrutinized by financial analysts, came out above forecasts, and are starting to grow once more.
“Licenses and other software sales” revenue thus recorded growth of 6% at constant exchange rates in the second quarter, following falling 10% in the first. Dassault Systèmes was betting on more modest growth, between 0% and 5%.
“During the second quarter, we saw a renewed interest from customers for investments in innovation. This positive market development translated into our results in a very good performance, with an overall dynamic that benefited both large and medium-sized companies, in many geographies”, explained Pascal Daloz, the Group’s Deputy Chief Executive Officer and future Chief Executive Officer.
These commercial performances are marked by “a very good return dynamic in China, India, and above all double-digit growth in the United States and excellent resilience in Europe, with growth of almost 10%”, developed for his part Bernard Charlès, CEO of the group on BFM Business.
By sector, he underlined the good performance of “major industrial sectors” namely “aerospace (aerospace, editor’s note), defence, automotive”, as well as the sustained momentum of life sciences”.
Margin higher than forecastThe operating margin was 31% once morest 32% a year earlier, while Dassault Systèmes was aiming for a margin of between 30% and 30.5%. Net earnings per share (EPS) was 28 cents (US cents).euro
) once morest 26 cents a year earlier. The group expected an EPS of between 27 cents and 28 cents.
For the first half as a whole, sales amounted to 2.88 billion euros, up 8% excluding currency effects with an operating margin of 31% compared to 33.5% a year earlier. Net earnings per share reached 56 cents compared to 54 cents in the first half of 2022.
Regarding its outlook, Dassault Systèmes expects third quarter revenues of between 1.402 and 1.424 billion euros, an increase of 8% to 10% excluding currency effects, an operating margin of between 30.2% and 30.5% and earnings per share of 26 cents to 27 cents. The company also confirmed its objectives for the full year 2023, namely revenue growth excluding currency effects of between 8% and 9%, an operating margin of between 32.3% and 32.6% and EPS ranging from 1.18 euro at 1.20euro
.
“We confirm our annual objectives” despite “the headwind” in terms of exchange rates” thanks to the good performance of the first half, explained Bernard Charlès.
On the Paris Stock Exchange, the Dassault Systèmes share dropped 4.7% around 9:30 a.m., posting the largest drop in the CAC 40. “The Life Sciences division posted growth of less than 10% (9% editor’s note in the second quarter), which is a bit weak and they hadn’t gotten us used to this for three years”, underlines a financial analyst.
Moreover “it is complicated to satisfy the market at the moment with results in line or even just above expectations, given the fears regarding the macroeconomics, as we have seen with the German SAP”, he adds.
Last month, Dassault Systèmes presented its medium-term ambitions and objectives, announcing that it was aiming for earnings per share of 2.20 euros to 2.40 euros by 2028. The group then formalized the appointment, from next January 1, of Pascal Daloz as CEO of the company, thus succeeding Bernard Charlès who will also remain chairman of the board of directors.
For reasons of simplification, all figures in our article are on a non-IFRS basis.
Julien Marion – ©2023 BFM Bourse
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