VÉLIZY-VILLACOUBLAY, France, July 29, 2024 – Dassault Systèmes announced IFRS unaudited estimated financial results for the second quarter and first half ended June 30, 2024. This quarter’s revenue stood at €1.49B, flat compared to €1.49B of first quarter of 2024, with a profit of €261.5M.
Pascal Daloz, Dassault Systèmes’ chief executive officer, commented: “Despite near-term volatility in customers’ decision-making, the demand for 3DEXPERIENCE solutions remains strong. Our customers – like Mahindra & Mahindra this quarter, selecting 3DEXPERIENCE on the cloud – are looking for innovative ways to differentiate in the market and strengthen their client relationships. To achieve this, our platform is more relevant than ever creating unique experiences, and accelerating the transformation of the industries we serve. This underpins the wins we have achieved this quarter, including both extensions and significant win-backs.
Our fundamentals are solid: we have a robust pipeline ahead, which is structurally stronger in the second half compared to the first. Additionally, we remain on track to close this year the majority of the deals that have been delayed, and the maturity of opportunities is improving as we advance through the year.
Looking toward our long-term objectives, we are well-positioned to deliver sustainable double-digit EPS growth.”
Rouven Bergmann, Dassault Systèmes’ chief financial officer, commented: “As indicated during our pre-announcement, we saw an increased cautiousness in customer signings in the last weeks of June. This reflects a complex geopolitical environment. Consequently, over the first six months of 2024, total revenue and software revenue increased by 5%, with subscription up 9%. The operating margin for this period was strong, contributing to a 10% growth in EPS. At the same time, we delivered improved operating cash flow at €1.13 billion, up 10% year over year, thanks to working capital improvements.
We have adjusted our revenue objectives by 2 percentage points for the full year. This new guidance still reflects an acceleration of revenue growth in the second half over the first, supported by a robust pipeline of 3DEXPERIENCE ahead.
In this environment, we are increasing our focus to preserve the operational efficiency while creating room to continue to invest.
For 2024, we therefore anticipate total revenue growth in the range of 6% to 8%, an operating margin between 32.0% and 32.4%, and diluted EPS growth between 8% and 11%.”
A complete chart of the financial results is available here.
About Dassault Systèmes
Dassault Systèmes is a catalyst for human progress. They provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with their 3DEXPERIENCE platform and applications, customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 350,000 customers of all sizes, in all industries, in more than 150 countries.
For more information, visit www.3ds.com.
