(Reuters) – Dassault Systèmes announced on Thursday that it was aiming for an increase in its turnover in 2024 of between 8% and 10%, at constant exchange rates, a target lower than analysts’ expectations, which caused the stock to fall on the stock market from Paris.
The French software manufacturer expects annual turnover of between 6.35 billion euros and 6.43 billion euros in 2024, below analysts’ estimates of 6.48 billion euros, according to an LSEG survey.
At 10:06 a.m., Dassault Systèmes shares fell 6.48% to 45.105 euros, its biggest drop during the session since April 2023.
The group’s operating margin for the fourth quarter stood at 35.9% on sales of 1.64 billion euros, just below the respective forecasts of 36.1% and 1. 66 billion euros.
Dassault Systèmes expects an operating margin of between 32.5% and 32.8% this year, compared to 32.4% in 2023.
Software revenue amounted to 1.48 billion euros in the fourth quarter, an increase of 8% due to strong growth in subscriptions throughout the year.
Subscription and support turnover reached 1.12 billion euros in the fourth quarter.
For the first quarter of 2024, Dassault Systèmes forecasts revenue growth of between 7% and 8% at constant exchange rates, with an operating margin of 30.6% to 30.7%.
“We are confident, even if we are cautious (…) We expect the situation to improve compared to 2023,” financial director Rouven Bergmann said at a press conference.
(Reporting Lina Golovnya and Dagmarah Mackos; Stéphanie Hamel, edited by Blandine Hénault)
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