News out of Munich, Germany this week, heralds The Nemetschek Group’s latest financial reporting, noting a record year in 2014 for both revenues and earnings, including a 31.1 percent gain year over year on earnings per share (at EUR 3.27).
The Group revenue increased by 17.5 percent to EUR 218.5 million (which as of today is 236.42.USD million). The company reports these numbers exceeded a forecast corridor of EUR 211 to 216 million. In Qtr. 4, 2014, revenues rose to EUR 65.0 million, a growth of 25.7 percent compared to the same quarter in the previous year (YoY).
To provide some comparison basis for these numbers, to put some scale against its biggest chief rival, US-based Autodesk, back in mid-year 2013, Autodesk posted AEC quarterly revenue of 177.USD million plus another 43.USD million for its Media and Entertainment division, for a total of 220.USD million. The Nemetschek Group essentially is a pure AEC software company plus its M&E division in Maxon Computer. The present revenues of the Group at this point is roughly just over one quarter of its biggest rival’s AEC + M&E revenues at a year and a half time delta.
Even if we look at the latest data, Autodesk’s average quarterly revenue for AEC last year was 218.USD million. It’s M&E is still stuck at 43.USD million. In general, on a division to division basis, The Nemetschek Group earns roughly one quarter of what its largest rival earns for AEC + M&E.
- Revenue rises by 17.5% to EUR 218.5 million in 2014
- EBITDA grows over-proportionally to revenue by 22.8% to EUR 56.8 million
- Earnings per share significantly above previous year at EUR 3.27 (+31.1%)
- Proposed dividend rises to EUR 1.60 per share (+23%)
- Positive 2015 prospects: Bluebeam acquisition will accelerate growth
The Nemetschek Group’s operating margins grew to 26 percent versus 24.9 percent last year, despite a very large acquisition of US-based Bluebeam Software in 2014.
Growth in all major regions
The Nemetschek Group further advanced its international growth strategy and extended its market presence, especially in the USA, with the acquisition of Bluebeam. The company reported significant growth in Asia, Japan, the US, Latin America and Germany. Non-domestic revenues now account for 60.2 percent of its total revenues (revenues outside of Germany where a lot of its holdings companies have dominant market share).
Software service contracts are a key driver in the ongoing group’s growth, says the company.
“The achieved results of operations prove the sustainable success of the Nemetschek Group,” summarizes Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group, regarding the 2014 fiscal year. “We exceeded our targets in terms of revenue and earnings, attained record figures and made important moves towards a successful future. The ongoing expansion of our solution portfolio, our innovative strength, consistent internationalization and the emphasis on growth – organic and as a result of acquisitions – are key drivers of this successful development. In keeping with our newly defined acquisition strategy, with the acquisition of Bluebeam we have thus invested in the megatrend of collaboration for the improved cooperation between all those involved in the building process. At the same time, the acquisition allows us to considerably extend our presence in the important US market.”
The Design segment of its portfolio of AEC holdings were major drivers of growth, in particular the Vectorworks and Graphisoft brands. Its M&E division which largely just consists of Maxon rose by 12.4 percent to EUR 18.0 million.
Proposed dividend of EUR 1.60 per share
As in previous years, the Nemetschek Group would also like to involve its shareholders in the positive development. At the annual general meeting on May 20, 2015, the Executive Board and Supervisory Board will propose to increase the dividend to EUR 1.60 per share; a plus of 23% over the previous year (EUR 1.30 per share). The Nemetschek Group would thus pay out about 35% of the operative cash flow..
Positive prospects for 2015
In 2015, too, the Nemetschek Group plans to continue to grow profitably and sustainably and to gain market share. Growth will be accompanied by strategic investments, e.g. in extending BIM 5D expertise, targeting new customer segments in the area of Media & Entertainment and further internationalization of the brands. For the 2015 fiscal year, the Nemetschek Group anticipates an increase in revenue ranging from EUR 262 million to EUR 269 million (+20% to +23% compared to 2014). The Nemetschek Group estimates purely organic growth in the corridor of 6% to 9%. An increase in EBITDA in the target range of EUR 62 million to EUR 65 million is expected.
About the Nemetschek Group
The Nemetschek Group, Munich, is a globally leading software provider for the AEC (Architecture, Engineering, Construction) industry. With its 13 brands, the Nemetschek Group now serves more than 1.8 million users in 142 countries from more than 50 locations worldwide. Founded in 1963 by Professor Georg Nemetschek, the company focuses on innovations such as Open Building Information Modeling (Open BIM) for the AEC market of tomorrow. Publicly listed since 1999 and quoted on the TecDAX, the company achieved revenues of EUR 218.5 million and an EBITDA of EUR 56.8 million in 2014.