Earnings Call Q1-24
Nemetschek Group
April 30, 2024
01
Highlights Q1-24
02 Nemetschek Group | Earnings Call Q1-24
Key Messages
03 Nemetschek Group | Earnings Call Q1-24
- Successful start to the year 2024 driven by a strong growth in recurring revenues.
- Demand environment in AEC/O markets in Europe and North America unchanged.
- Highly successful subscription/SaaS transition in the Design and Build segments continues to develop as planned.
- Well on track to reach outlook FY-24. Strong foundation to achieve above-market growth and shareholder returns in the medium- to long-term by leveraging our leading positions in structurally growing industries.
Strategic Update Q1-24:
Driving Internationalization
India - A Huge Opportunity:
- Population: 1.3bn
- Indian economy: 5th largest in the world
- Indian construction market: 3rd largest in the world
Nemetschek in India:
- Opening of a new local Go-to-Market office in Mumbai
- Products and product packages will be jointly sold under the Nemetschek Group brand
- Already established location in Hyderabad acting as a shared services, development and research excellence center
04 Nemetschek Group | Earnings Call Q1-24
Strategic Update Q1-24: New Partnerships to Advance AEC/O & M&E Industries
Nemetschek & Autodesk
- Interoperability agreement between Nemetschek Group & Autodesk
- Improve open collaboration and efficiencies in AEC/O and M&E industries
- Enhance existing interoperability between Nemetschek Group and Autodesk solutions
- Both companies will provide mutual access to their APIs and industry clouds
Nemetschek & Hexagon:
- Partnership of Nemetschek with Hexagon's Geosystems Division focused on digital twins
- Increasing the efficiency in building operations
- Nemetschek to provide its new horizontal, open, and cloud-based dTwin platform
- Hexagon to provide its end-to-end reality capture solutions
05 Nemetschek Group | Earnings Call Q1-24
Key Financial Highlights Q1-24: Successful Start to the Year 2024
Revenues:EBITDA:
+9.4% (FX adj.: +10.3%) to | +11.9% (FX adj.: +8.5%) to |
EUR 223.9m | EUR 68.3m |
ARR Growth: | EBITDA Margin: | |
+24.5% (FX adj.: +25.4%) to | 30.5% | |
EUR 743.6m | ||
Subscription/SaaS Revenues: | Earnings per Share: | |
+66.5% (FX adj.: +68.0%) to | EUR 0.37 (+17.4%) | |
EUR 106.3m | ||
Cash Conversion: 123.8%
Net Cash Position:
EUR 339.5m
Equity Ratio: 60.2%
06 Nemetschek Group | Earnings Call Q1-24
03
Overview Financial Results
Q1-24
07 Nemetschek Group | Earnings Call Q1-24
Segments Q1-24: All Segments According to Plan
BUILD* | MEDIA | MANAGE* | |
DESIGN | |||
Revenues EURm | +8.7% | |
+9.3% cc1 | ||
115.6 | ||
106.3 | ||
Margin | Q1-23 | Q1-24 |
28.3% | 30.7% |
+9.0% | |
+10.0% cc1 | |
62.0 | 67.5 |
Q1-23 | Q1-24 |
35.2% | 31.1% |
+9.7%
+10.9% cc1
26.8 | 29.4 |
Q1-23 | Q1-24 |
35.2% | 37.4% |
+9.9%
+9.9% cc1
11.412.5
Q1-23Q1-24
-2.7% | 6.6% | |
- Subscription/SaaS transition according to plan
- Subscription/SaaS continues to be main growth driver (> 60% y/y)
- Unchanged market environment in European Design markets
- Very successful transition to Subscription/SaaS of Bluebeam continues as planned
- Continued resilient customer demand
- Strong acceleration Bluebeam growth expected in Q4-24
- Re-accelerationof growth with 10.9% cc1 in Q1-24 vs. 3.8% cc1 in Q4-23
- Market still partly impacted by aftermaths of Hollywood strikes
- Continued investments into future growth weighting on profitability
- Good demand for AI-powered energy management solutions
- Long-termgrowth potential due to green buildings, energy efficiency regulation
08 Nemetschek Group | Earnings Call Q1-24 | 1 Constant currency | * As a result of the strategic reclassification of the Digital Twin Business Unit from the Manage to the Design |
segment prior year figures were restated for comparability reasons. |
Recurring Revenues: Successful Transition Leads to New Record High of 83%
Revenue Share | Recurring & Subscription/SaaS 2020-2024 |
by type in % |
200 | 186 | |||||||
(+25%) | ||||||||
149 | ||||||||
150 | (+22%) | |||||||
83% | 121 | |||||||
106 | ||||||||
(73%) | EURm | 96 | (+22%) | |||||
86 | (+68%) | |||||||
Q1-24 | 100 | (+16%) | ||||||
(+22%) | 64 | |||||||
13% | 45 | (+39%) | ||||||
(23%) | 50 | 20 | 28 | (+54%) | ||||
4% | ||||||||
(+50%) | ||||||||
(4%) | (+75%) | |||||||
0 | Q1-20 | Q1-21 | Q1-22 | Q1-23 | Q1-24 | |||
Overview Q1-24:
ARR2 y/y | • | +24.5% | |
• | +25.4% cc1 | ||
Recurring | • | +24.5% | |
revenues y/y | • | +25.4% cc1 |
Subscription/ | • | +66.5% | |
SaaS y/y | • | +68.0% cc1 |
Subscription/SaaS Revenue (Growth cc) | Recurring Revenue (Growth cc) | • | -37.5% | ||||||||||
Licenses y/y | |||||||||||||
• | -36.9% cc1 | ||||||||||||
Recurring revenues (Software services (36%); Subscription/SaaS (47%)) | Licenses | Consulting & Hardware | |||||||||||
1 Constant currency 2 Annual Recurring Revenue (ARR): Average of all recurring revenues (Sub./SaaS and maintenance contracts) over the last | |||||||||||||
09 Nemetschek Group | Earnings Call Q1-24 | three months x 4. |
At a Glance: Income Statement and Important KPIs
Key Figures mEUR | Q1-24 | In % of revenue | Q1-23 | Growth y/y | ||||
Revenues | 223.9 | 100% | 204.6 | +9.4% | ||||
Cost of goods and services | -9.1 | 4.1% | -7.8 | +16.9% | ||||
Personnel expenses | -94.2 | 42.1% | -88.8 | +6.1% | ||||
Other operating income/expenses | -52.3 | 23.4% | -47.1 | +11.2% | ||||
EBITDA | 68.3 | 30.5% | 61.0 | +11.9% | ||||
EBITDA margin | 30.5% | - | 29.8% | +70bps | ||||
D&A (incl. PPA) | -13.6 | 6.1% | -14.4 | -5.6% | ||||
EBIT | 54.7 | 24.4% | 46.6 | +17.3% | ||||
EBIT margin | 24.4% | - | 22.8% | +160bps | ||||
Net income (group shares) | 42.5 | 19.0% | 36.3 | +17.4% | ||||
EPS | 0.37 | - | 0.31 | +17.4% | ||||
FCF (before M&A) | 82.1 | - | 72.5 | +13.3% | ||||
Equity ratio in % | 60.2% | - | 58.0% | +220bps | ||||
Net Cash | 339.5 | - | 189.1 | +79.5% | ||||
10 Nemetschek Group | Earnings Call Q1-24
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Nemetschek SE published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:14:07 UTC.