I think this German-based company also deserves its own thread. My own first memories of it date back to 2015 when the Finnish company Solibri was sold to Nemetschek in Germany.
The company’s history goes back quite a bit further, however. Professor Georg Nemetschek founded a company called Ingenieurbüro für das Bauwesen (engineering firm for the construction industry). The company focused on structural engineering and was one of the first companies to utilize computers and software in design. In the 1980s, the company released its first software that enabled computer-aided design on computers.
In 1989, the name was changed to Nemetschek Programmsystem GmbH, and internationalization began in the 1980s. By 1996, Nemetschek had subsidiaries in eight European countries. The first acquisitions were made in the late 1990s, and the stock market listing took place in 1999. Numerous acquisitions have been made in the 2000s: Diehl Graphsoft (now Vectorworks), Maxon Computer, Graphisoft, SCIA International, Data Design Systems, Bluebeam Software, Solibri, SDS/2, dRofus, RISA, MCS Solutions, and many others. Just reading through this list is quite a mouthful.
After a brief introduction, it is good to go through the company’s own presentation.
The problems in the construction industry are very well known and these will hardly come as a surprise. Digitalization has taken leaps forward in recent decades, but there is still a long way to go. In addition, a new challenge is the carbon footprint of construction and its reduction.
Nostellaampas tätäkin kun on jäänyt vähän unholaan
"emetschek Group increases revenue guidance for the financial year 2023
Munich, October 23, 2023 - The Nemetschek Group (ISIN DE 0006452907) is raising its revenue guidance for the current 2023 financial year following a strong third quarter. Currency-adjusted revenue growth for the financial year 2023 is now expected to be in a range between 6% and 8% (previously: between 4% and 6%). Nemetschek expects the EBITDA margin for the full year to be at the upper end of the previously communicated guidance of 28% to 30%.
In addition to the better-than-planned operating performance in Q3, catch-up effects from Q2 2023 and one-off effects in the Design and Build segments also contributed to the higher growth. Group revenues in Q3 increased by 8.4% (currency-adjusted: 12.6%) to EUR 219.8 million (Q3 2022: EUR 202.8 million). Group revenues in the first nine months of 2023 were EUR 632.0 million, a growth of 5.5% (currency-adjusted: 7.1%) compared to the same period of the previous year.
Group operating earnings before interest, taxes, depreciation and amortization (EBITDA) increased over-proportionally compared to revenues in Q3 by 13.6% (currency-adjusted: 20.2%) to EUR 71.4 million (prior-year quarter: EUR 62.9 million). The EBITDA margin in Q3 improved accordingly to 32.5% (Q3 2022: 31.0%). On a 9-month basis, EBITDA reached EUR 188.5 million, resulting in an EBITDA margin of 29.8%.
The Nemetschek Group will provide detailed information on the Q3 /9-month figures 2023 as well as further details on the expected business development for the rest of 2023 with the 9-month report 2023 and in a virtual conference as planned on October 26, 2023.
The guidance is based on the assumption that global macroeconomic or sector-specific conditions will not deteriorate significantly in 2023. Furthermore, no additional negative effects from the current developments in the Middle East conflict and the ongoing war in Ukraine are reflected in the outlook."
Successful finish to the year: Nemetschek Group clearly achieves its already raised targets for the financial year 2023
+8.0% revenue growth (constant currency) to a new record high of EUR 851.6 million
EBITDA margin at a high 30.3%
+26.7% growth in Annual Recurring Revenue (ARR) to EUR 718.6 million
Share of recurring revenues reaches 76.6%
“The financial year 2023 clearly shows that the Nemetschek Group remains on its successful growth path, despite a partly challenging market environment and economic climate”, says Yves Padrines, CEO of the Nemetschek Group . "The ongoing successful transition of our business model from license sales to subscription and SaaS models is reflected in the continued very strong development of our annual recurring revenues (ARR). The now very high share of this revenue category strengthens our visibility and ability to plan for the future. At the same time, our profitability also remained at a high and attractive level, despite the temporary accounting related impacts of the transition to a subscription and SaaS-model. "
Following a successful Financial Year 2023, Nemetschek Group targets continued highly profitable double-digit growth for FY 2024
All financial targets for 2023 fully achieved or exceeded
Revenue growth of 8.0% (currency-adjusted) and EBITDA margin of 30.3% at the upper end of the increased guidance range
+26.7% ARR growth to EUR 718.6 million
+51.1% growth in Subscription & SaaS to EUR 301.8 million
Outlook 2024: Currency-adjusted revenue growth of 10% to 11% despite continued sub-scription/SaaS transition; attractive EBITDA margin targeted in the range of 30% to 31%
Ambition 2025: Further acceleration of growth
