A strikingly satisfied Pascal Daloz, Dassault Systèmes’ Chief Operating Officer, presented the PLM developer's figures for the second quarter of 2022, as well as the figures for the first half of the year.
A strikingly satisfied Pascal Daloz, Dassault Systèmes’ Chief Operating Officer, presented the PLM developer’s figures for the second quarter of 2022, as well as the figures for the first half of the year.
In the conference call, Daloz claimed that overall, the figures look good across the board for Dassault.
“Absolutely,” he said. “We are delivering strong results for both the second quarter (Q2) and the half year, which puts us in an excellent position to achieve all of our 2022 targets. Results were driven by broad growth across geographies, product lines and industries. In short, we have once again demonstrated the resilience of our strategy against a challenging macroeconomic and geopolitical background, with the impact of Russia and China.”
Among other things, Daloz pointed out the following highlights from Q2 2022:
- Total revenue increased by 11 percent, currency-adjusted, with both subscriptions, support and licenses increasing by double digits. From 1.16 billion euros to 1.38 billion—the latter figure corresponds to $1.4 billion.
- The software revenues, including the 3DEXPERIENCE suite with apps such as CATIA (CAD), SOLIDWORKS (mainstream CAD), ENOVIA (PLM/cPDm) and DELMIA (digital manufacturing management) as well as several PLM-related solutions, accounts for 1.25 billion euros—equivalent $1.3 billion.
- Even for the first half of 2022, the numbers look very strong: Currency-adjusted total revenues increased by 10 percent to just over 2.7 billion euros ($2.8 billion), to be compared with last year’s equivalent of just over 2.3 billion (about $2.35 billion).
Double Digit Growth For CATIA
Dassault has also published some interesting comments on how the figures looked during the second quarter for software revenue per product line. Here are a few observations:
The Industrial Innovation line’s software revenue increased by 11 percent to €662.2 million euro ($675 billion), representing 53 percent of software revenue.
- CATIA grew double digits again this quarter, with continued strength in cyber systems which “reflects the strong offering of its differentiated technology.”
- ENOVIA, Dassault’s cPDm solution and DELMIA, for digital manufacturing management, also showed strength in the second quarter, with double-digit increases. According to Dassault, “DELMIA benefited from increased demand from customers looking to improve manufacturing efficiency and resilience.”
Life Sciences Software Grows in Importance
Life Sciences software revenue amounted to €275.2 million ($281 million), an increase of 13 percent, representing 22 percent of software revenue.
- MEDIDATA continues to perform strongly across its entire product portfolio, as well as across end markets. Contract research organizations (CROs) showed an uptick in activity this quarter. “Our sales engagement in Life Sciences—with our broader technology portfolio—continued to achieve key benchmark gains,” notes Dassault’s COO.
Mainstream Innovation Software revenue amounted to €312.7 million ($319 million), an increase of 8 percent and representing 25 percent of software revenue.
- SOLIDWORKS–the world’s leading desktop grew mid-single digits this quarter, compared to a strong comparable base of 25 percent last year. Daloz asserted that during the quarter, SOLIDWORKS was negatively impacted by China’s COVID-19-related restrictions, which have lasted longer than expected. Combined with strong revenue growth in the first quarter, we are still well in line with our goals for the first half of the year.
- CENTRIC PLM continued to experience strong momentum and increased diversification in food and beverage.
- Otherwise, the company notes that 3DEXPERIENCE software revenue increased by 30 percent (non-IFRS) during Q2.
- Cloud software revenue up 23 percent (non-IFRS).
“The Circular Economy Is Converging”
Though he didn’t attend the conference call following the report, Bernard Charles had his typical visionary comments inserted in the formal press release. He was more visionary than concretely relating to the numbers, and his comments aimed to illustrate the bigger development picture.
“The experience economy and the circular economy are converging: this will mark the coming decades. As we look to our next horizon, 2040, industries will no longer develop products but sustainable and personalized experiences centered around the consumer, the patient and the citizen,” he said in the press release.
“The experience economy goes hand in hand with circularity as it requires the design of the entire experience lifecycle upstream, integrating use with end of life. Circularity is about thrift—using only what is necessary—and appreciating everything created by humanity will come to an end: the raw materials that make them up can be reused, reused and recycled. This will revolutionize design and open up significant new possibilities that we cannot yet imagine.”
“Science-based virtual twin experiences, powered by 3DEXPERIENCE, are unparalleled catalysts and enablers for this global transformation. Based on a multi-scale, multi-physics approach and incorporating real-world evidence, our virtual twin experiences empower customers to imagine new methods, new materials and test new solutions. By providing continuity in WHAT, HOW and USE, innovators can anticipate product recycling from their design and manufacturing to quantify environmental impact and optimize circularity.
If we use the power of the virtual world to enhance the real world, we can further our purpose—to harmonize product, nature and life.”
