(News Bulletin 247) – 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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Rebound of SMEs in China

But, on the positive side, license sales, an indicator scrutinized by financial analysts, came out above forecasts, and are starting to grow again.

“Licenses and other software sales” revenue thus recorded growth of 6% at constant exchange rates in the second quarter, after 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.

“Specifically, China saw a rebound in activity in Innovation for SMEs, the Americas zone benefited from good commercial momentum with the return of large transactions, while Europe remained resilient, thanks to the successes achieved in the FMCG and distribution industries as well as Transport and mobility, mainly in Germany and France”, he continued.

Margin higher than forecast

The operating margin was 31% against 32% a year earlier, while Dassault Systèmes was aiming for a margin of between 30% and 30.5%. Net earnings per share (EPS) stood at 28 cents (euro cents) against 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 whole of the 2023 financial year, namely growth in its turnover excluding currency effects of between 8% and 9%, an operating margin of between 32.3% and 32.6% and EPS ranging from 1.18 euros to 1.20 euros.

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.