The Group has oriented some of its investment strategy towards longer horizon targets in areas such as artificial intelligence. US schools and airports are some areas where growth in building projects will emerge. The US infrastructure bill will be a long-term booster shot into the US AEC market placing a stable supply of funds for expansion over a decade. Brands with positive upsides of the passage of such a bill include ALLPLAN, RISA, SCIA, and SDS2. Recent acquisitions have been in the latter category, and unlike Autodesk’s past buying spree in M&E software firms, the Nemetschek Group’s buys are additive without cannibalization of existing competitive products.Īt the beginning of this year, we noted the positive exposure of a US President Biden Administration infrastructure bill. With a growing war chest of funds, the Group has more money to further acquire additional AEC and M&E industry software companies. The Nemetschek Group has also begun strategic investments in several interesting companies, including German contech champion Sablono and US-based construction AI company Reconstruct. Thus far it has merged DDS with Graphisoft and merged Precast and SDS2 with ALLPLAN. In terms of strategy, the Group says it further intends to reduce complexity in its portfolio of software. EBITDA margin also expanded significantly to 42 percent from 32.7 percent a year ago. The M&E segment grew the largest of all the segments at 37 percent year over year. The Manage and Media & Entertainment third-quarter revenues were EUR 11.0 and 18.9 million, respectively. In terms of segment revenues, the Design segment still has the largest revenue at EUR 85.6 million for the quarter, while the Build revenue was EUR 55.4 million. The Group has been pushing Bluebeam in the German and UK construction markets but did not release notes about its growth momentum there or its competitiveness in the US against key rivals in Procore and Autodesk. The Build segment is largely propelled by its Bluebeam Software brand which has a dominant position in the US construction market, across all scales of general construction firms. This contrasts sharply with its Build segment which increased quarterly revenues by 16.8 percent. The company notes that its Design segment is focused mainly in Europe where it managed to organically grow 7.6 percent year over year for the quarter. International revenue growth as a proportion of the overall revenue and growth was up 17.1 percent. The US AEC market is the largest in the world for software and technology sales and is a foreign market for the German software holding company. The company released statements that in addition to subscription/SaaS financial goals a strategic focus on the ongoing internationalization of the business is central to their business strategy. “With the very good operational development in Q3, we have laid the foundation to achieve the upper end of our previously raised target ranges for both our revenue growth and EBITDA margin for the financial year 2021.” Strategy and Segments Axel Kaufmann, Spokesman of the Executive Board and CFOO. This also includes our subscription and SaaS offerings,” says Dr. Innovations and a strong customer focus are the key drivers for our sales success. “Our customers rely on the solutions of the Nemetschek Group for their digital transformation. This is a record high that the Nemetschek Group now looks forward to exceeding in future quarters. This is reflected in the current increase in the company’s stock price (NEMTF) now trading at over USD 100 as of this writing, up from under USD 65 back in April of this year.Ī large driver of revenue growth has been its 48 percent revenue growth in subscription/SaaS models to EUR 34.5 million in Q3. Nemetschek Group Third Quarter Financial Report (2021).Įarnings per share increased to EUR 0.30 from 0.22 the previous year.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |