Nemetschek Group: Q3 2023 shows strong, profitable growth –increased revenue guidance for financial year 2023
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Nemetschek Group: Q3 2023 shows strong, profitable growth –increased revenue guidance for financial year 2023

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Munich, October 26, 2023 - The Nemetschek Group, a leading global software provider for digital transformation in the construction and media industries, reported strong, profitable growth in the third quarter of 2023. Based on the successful operational development so far, the Executive Board has increased the revenue guidance for the financial year 2023 and specified the guidance for the EBITDA margin. The currency-adjusted revenue growth compared to the previous year is now expected in a range between 6% and 8% (previously: between 4% and 6%). In addition, Nemetschek expects that the EBITDA margin for the financial year 2023 will be at the upper end of the previously communicated guidance range of 28% to 30%.

In addition to the favorable operational development, the high growth in the third quarter was partly attributable to catch-up effects from the second quarter as well as one-off effects in the Design and Build segments.

"Our strong third quarter shows that the Nemetschek Group remains clearly on a growth path while simultaneously transitioning to a subscription and SaaS business model and despite the challenging economic environment," said Yves Padrines, CEO of the Nemetschek Group. "We continue to consistently implement our strategy of generating value-added growth and accelerating the digital transformation and the shift to a more sustainable future for our customers. With our new and strong executive leadership team, I look very positively into the future. We will continue to leverage the great potential in our markets and consistently drive our strategic focus topics such as the ongoing subscription and SaaS transformation, the further internationalization, the increase of our internal efficiency, and new technologies. We recently introduced our new horizontal, open and data-driven cloud-based digital twin platform dTwin to the market. Additional innovations and features in the area of artificial intelligence and sustainability will follow."

Group Key Performance Indicators in Q3 and the First Nine Months 2023

Strategic Highlights

Segment Developments in Q3 and First Nine Months 2023 (see Table)

Increase in revenue guidance for 2023, ambition for 2024 and 2025 confirmed

Based on the very positive business development, the Executive Board has increased the revenue guidance for fiscal year 2023 as already announced in the ad hoc release of October 23, 2023. The currency-adjusted revenue growth is now expected to be in a range between 6% and 8% (previously: 4% and 6%). The Executive Board expects the EBITDA margin to be at the upper end of the previously communicated range of 28% to 30%. Furthermore, it is still expected that the ARR growth will exceed 25% compared to the previous year, resulting in a share of recurring revenues in total revenues of more than 75% in 2023 (previous year: 66%). Furthermore, the Executive Board confirms the revenue and profitability ambitions for the financial years 2024 and 2025 communicated in March 2023.

The guidance is based on the assumption that the global macroeconomic or sector-specific conditions will not deteriorate significantly in 2023. Furthermore, no additional potential negative effects from the current developments in the Middle East conflict and the ongoing war in Ukraine are reflected in the outlook.

Overview of quarterly key figures (Q3-23)

In EUR million Q3 2023 Q3 2022 Δ in % Δ in %
FX-adj
ARR 664.0 550.6 +20.6% +25.4%
Revenues 219.8 202.8 +8.4% +12.6%
- thereof software licenses 44.0 56.6 -22.2% -19.1%
- thereof recurring revenues 166.0 137.7 +20.6% +25.4%
- Subscription + SaaS (part of recurring revenue) 77.4 54.4 +42.3% +48.6%
EBITDA 71.4 62.9 +13.6% +20.2%
Margin 32.5% 31.0%    
EBIT 56.6 48.0 +17.9%  
Margin 25.7% 23.7%    
Net income (Group shares) 45.0 38.8 +16.1%  
Earnings per share in EUR 0.39 0.34 +16.1%  
Net income (Group shares) before amortization of purchase price allocation (PPA) 50.9 45.5 +11.9%  
Earnings per share before PPA in EUR 0.44 0.39 +11.9%  

Overview of quarterly key figures per segment* (Q3-23)

In EUR million Q3 2023 Q3 2022 Δ in % Δ in %
FX-adj.
Design        
Revenues 107.8 96.5 +11.8% +14.5%
EBITDA 34.9 27.8 +25.4% +30.2%
EBITDA margin 32.4% 28.9%    
Build        
Revenues 72.1 68.9 +4.5% +10.9%
EBITDA 25.2 24.9 +1.2% +10.1%
EBITDA margin 35.0% 36.2%    
Manage        
Revenues 13.7 13.3 +3.5% +6.0%
EBITDA 0.0 0.5 -  
EBITDA margin -0.1% 3.5%    
Media        
Revenues 28.1 25.8 +9.0% +13.6%
EBITDA 11.3 9.7 +17.0% +21.7%
EBITDA margin 40.2% 37.5%    


Overview of 9-month key figures (9M-23)

In EUR million 9M 2023 9M 2022 Δ in % Δ in %
FX-adj
ARR 664.0 550.6 +20.6% +25.4%
Revenues 632.0 598.9 +5.5% +7.1%
- thereof software licenses 132.0 186.7 -29.3% -28.3%
- thereof recurring revenues 473.0 387.2 +22.2% +24.0%
- Subscription + SaaS (part of recurring revenue) 209.3 146.8 +42.6% +45.2%
EBITDA 188.5 201.3 -6.4% -2.2%
Margin 29.8% 33.6%    
EBIT 143.9 157.6 -8.7%  
Margin 22.8% 26.3%    
Net income (Group shares) 114.1 127.9 -10.8%  
Earnings per share in EUR 0.99 1.11 -10.8%  
Net income (Group shares) before amortization of purchase price allocation (PPA) 131.8 146.1 -9.8%  
Earnings per share before PPA in EUR 1.14 1.26 -9.8%  


Overview of 9-month key figures per segment* (9M-23)

In EUR million 9M 2023 9M 2022 Δ in % Δ in %
FX-adj.
Design        
Revenues 311.9 286.1 +9.0% +9.9%
EBITDA 85.8 86.8 -1.2% +4.0%
EBITDA margin 27.5% 30.3%    
Build        
Revenues 201.5 202.5 -0.5% +1.7%
EBITDA 72.3 82.2 -12.1% -8.4%
EBITDA margin 35.9% 40.6%    
Manage        
Revenues 42.1 39.9 +5.6% +7.4%
EBITDA 0.0 2.8 -  
EBITDA margin -0.1% 7.0%    
Media        
Revenues 82.2 75.8 +8.5% +10.4%
EBITDA 30.5 29.6 +3.1% +7.0%
EBITDA margin 37.1% 39.0%    

*As a result of the strategic reorganization of brands between the Build and Manage segments, prior year figures were
adjusted for comparable reasons. In addition, the consolidation column has been allocated directly to the segments since January 1, 2023 (incl. prior-year adjustment).

About the Nemetschek Group

The Nemetschek Group is a globally leading software provider for digital transformation in the AEC/O and media industries. Its intelligent software solutions cover the entire lifecycle of building and infrastructure projects and enable creatives to optimize their workflows. Customers can design, build, and manage buildings and infrastructures more efficiently and sustainably and develop digital content such as visualizations, films and computer games more creatively. The software provider is driving innovations such as digital twins as well as open standards (OPEN BIM), and sustainability in the AEC/O industry, constantly expanding its portfolio by also investing in deep-tech startups. Currently more than seven million users worldwide are shaping the world with the customer-focused solutions of our four divisions. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek Group today employs around 3,600 experts globally.

Publicly listed since 1999 and quoted on the MDAX and TecDAX, the company generated revenues amounting to EUR 801.8 million and an EBITDA of EUR 257.0 million in 2022.