Dassault Systèmes raises annual revenue and margin targets
Dassault Systèmes lifted its annual financial objectives after quarterly software growth reached the upper end of its target. The French software company’s revised outlook includes the contribution from ArisGlobal. Its third-quarter operating margin improved on an adjusted basis, while cash generated by operations increased over the first nine months of the year.
Economics & Markets··Morning
Annual objectives move higher
Dassault Systèmes, the French software group, raised its annual financial targets after announcing third-quarter results on October 28. The revised revenue objective includes the contribution of ArisGlobal, the acquired life-sciences software business.[1], [2]
The company now targets revenue growth of 4–5 per cent, against its previous 3–5 per cent range. It also increased the adjusted operating margin objective to 32.5–32.7 per cent and the earnings-per-share growth target to 6–7 per cent. The company presented the quarterly figures as unaudited estimates approved by its board.[1]
Software growth reaches the top of the target
On the company’s adjusted, constant-currency basis, quarterly total revenue and software revenue each increased 5 per cent, reaching the upper end of its objectives. Annual recurring revenue grew 6 per cent and cloud software revenue expanded 14 per cent. The adjusted operating margin rose by 150 basis points to 31.6 per cent; adjusted diluted earnings were 0.32 euros per share.[1]
Operating cash generation increases
Under standard accounting rules, quarterly revenue was 1.55 billion euros against 1.46 billion euros a year earlier. The operating margin increased from 20.7 per cent to 20.9 per cent, while diluted earnings per share rose from 0.20 euros to 0.22 euros. Operating cash flow over the first nine months increased 20 per cent, with cash conversion of 111 per cent against 97 per cent a year earlier.[1]
