The first half of 2021 looks strong for Dassault, with 11 percent growth in total revenues to just over 2.3 billion euros (approx. $2.7 billion).
Dassault Systèmes’ recently released figures for the second quarter of 2021 make it clear that things have gone very well for the French PLM developer so far this year. It’s no surprise that these revenues were significantly better than during the corresponding period last year, in the light of the effects of the pandemic. However, Dassault in fact managed to grow significantly more than the PLM market in general in 2020, which was plus 3.8 percent according to analyst CIMdata’s latest report, compared to Dassault’s 12 percent.
More striking is that the revenues during the second quarter of 2021 grew at an even higher rate. In Dassault’s Q2 2021 report, the company points to an organic growth in terms of software of as much as 15 percent. This is where, among other things, revenues for their PLM suite 3DEXPERIENCE rose by 26 percent, and total revenues increased after currency adjustments by 14 percent, to just under 1.2 billion euros (corresponding to approximately $1.4 billion).
Also, the first half of 2021 looks strong for Dassault, with an 11 percent growth in total revenues to just over 2.3 billion euros (approximately $2.7 billion).
“As we grow in a post-pandemic world, companies and individuals redefine the parameters of future leadership. First, they look for virtualization solutions—which go beyond digitalization and open up a new world for opportunities for innovation—of industries and economies, as mission-critical. Secondly, there is a significant focus on sustainability in innovation—both for Dassault Systèmes and our customers—in all sectors of the economy. Third, inclusion in innovation is an essential element of new technology,” Dassault Systèmes CEO Bernard Charles said in a comment.
Notable for Dassault Systèmes’ pandemic year through 2020, as mentioned above, is that growth was surprisingly strong. The company increased its revenues during this challenging year by about 12 percent in total, to just under 4.5 billion euros ($5.3 billion). In itself, it should be noted that in particular it was the medical and life science areas that were strong, which is not surprising in the light of the coronavirus’ effects.
Above all, the company’s purchase of MEDIDATA a few years ago appears to be a foresighted move, as this company—which, among other things, works with digital solutions for clinical trials—saw a record year in 2020.
An Unexpectedly Strong 2020
So far in 2021, the pace of Dassault’s revenue growth has become even stronger.
However, the effects of the pandemic have generally meant that, for example, the total market for PLM in 2020 grew slightly by 3.8 percent, according to CIMdata’s latest report. This weak growth—which was still significantly better than the minus 1.7 percent that CIMdata forecasted for 2020—combined with boomerang effects when the market picked up again in the first half of 2021, is an important reason why several players in the PLM arena can show strong growth figures.
That in this situation Dassault still manages to get growth figures on the revenue side, which is in the range of 10 to 15 percent during the first half of 2021, is unexpectedly good.
Dassault’s Bernard Charles says this has several important explanations:
“Dassault Systèmes Virtual Twin Experience, which is powered by our 3DEXPERIENCE platform, is an important game changer to deal with the new post-pandemic times. By bringing together unmatched capabilities in terms of modulation and simulation and AI computer technology, we give our customers real evidence and experiences that concretize and visualize the ideas they have about new solutions, and which also promote scientific breakthroughs in all sectors of the economy. Furthermore, and also the most important: the cloud is a powerful environment that democratizes accessibility and mobility, so that everyone can use the experience infrastructure to deliver effective innovation.”
He further states that the idea of ​​sustainability has been the core of what he describes as the company’s mission to harmonize products, nature and life.
“We started preparing for these new imperatives decades ago; therefore, today we are uniquely well positioned to help our customers deliver sustainable innovation and change that will contribute to a more sustainable economy,” Charles says.
Powerful Growth For SOLIDWORKS
That being said, during the second quarter, Dassault was able to turn the growing cloud interest among the world’s manufacturing companies into strong growth of plus 26 percent—the same number as the 3DEXPERIENCE suite.
In the case of old classics in the PLM industry, such as the CAD solution CATIA typically reported under the umbrella term “Industrial Innovation,” revenues increased at a more moderate rate during Q2—by plus 9 percent, but it is unclear to what total amount.
In total for the products that are sorted under Industrial Innovation, revenues increased by 8 percent to 571 million euros (around $674 million).
Dassault further writes in its report that, “CIMdata’s PLM Market Report recognizes Dassault Systèmes as a market leader in several sub-PLM categories, such as PLM, cPDm and CAD.”
A few words should also be said about SOLIDWORKS, Dassault’s famous “cash cow” in mainstream 3D CAD. Exactly how much revenue SOLIDWORKS pulled in is not entirely easy to sort out, but it is responsible for most of the revenue on what Dassault calls the “Mainstream Innovation” side, which pulled in a total of 262 million euros in the second quarter, up just over 27 percent.
Precisely how Dassault’s customers are investing in SOLIDWORKS on the 3DEXPERIENCE cloud is not explained in detail, other than what is written in the report, that “SOLIDWORKS’ 3DEXPERIENCE WORKS cloud-based solution revenue was also up sharply during the period.”
On the Life Sciences side, Dassault withdrew a total of 218 million euros ($257 million), an increase of 20 percent. MEDIDATA is the “star company” in this sector, whose success seems to continue even into the post-pandemic time.
