The Nemetschek Group (ISIN 0006452907) has kept up its dynamic development from the first quarter of 2015 and accelerated revenue growth further in the second quarter of this year. First half 2015 high growth is manifested due to non-domestic (outside Germany) revenues in software licenses due to key strategic measures such as further internationalization of its brands, extension of BIM 5D expertise and increased sales, distribution and marketing activities.
Massive Year-over-Year Growth
Group revenue for the second quarter grew at a massive 33.8 percent compared to the year-ago quarter, rising to quarter 2, 2015, revenues of EUR 68.6 million. The first half of 2015 revenues increased by 32.2 percent to a record EUR 135.2 million.
Bluebeam Software, Inc., acquired last October, contributed to EUR 21.0 million in revenue in the first half of the year. The Group’s purely organic growth was thus at a high 11.6 percent and consequently exceeded the target range of 6 to 9 percent.
Likewise, earnings before interest, taxes, depreciation and amortization (EBITDA) rose considerably by 27.4% to EUR 32.6 million after six months (previous year’s period: EUR 25.6 million). The EBITDA margin was 24.1% in the half year, following 25.0% in the previous year. Forward-looking investments, e.g. in personnel for sales/distribution and marketing for the brands, had an impact on the margin.
“In the second quarter of 2015, we strengthened the high growth dynamics from the first quarter. The growth drivers were our existing brands as well as the Bluebeam brand acquired last year, whose development we are very satisfied with. Parallel to this, we are investing in the extension of our international market presence, in an effective sales/distribution system, in innovations across the life cycle of the AEC industry and in strengthening our 5D expertise. This is the prerequisite for securing future growth and making optimum use of our great opportunities in the markets,” says Patrik Heider, Spokesman and CFOO of the Nemetschek Group.
A Focus on the US Market & Internationalization
The Nemetschek Group was able to reinforce its growth and considerably extend its market presence on international markets. In total, non-domestic revenue in the first half of 2015 climbed by 47.2% to EUR 90.0 million (H1 2014: EUR 61.2 million). In the USA, Bluebeam’s home market, it was possible to more than triple revenues. Domestic revenue also developed positively and rose by 9.8% to EUR 45.2 million (previous year’s period: EUR 41.1 million).
Strong growth with software licenses of 45.6%
Revenues from software licenses rose in the first six months of 2015 with a clear plus of 45.6% to a record high of EUR 70.4 million (previous year’s period: EUR 48.3 million). Revenues from software service contracts increased to EUR 58.3 million, a rise of 20.3% compared to the previous year’s figure of EUR 48.5 million.
“Our first half of the year is marked by two positive developments: On the one hand, our non-domestic growth was considerably faster, especially in the USA. On the other hand, the high level of business in software licenses indicates that we have an excellent position in the AEC market and consequently with our customers. We have thus established a good basis for future growth since licenses mean higher service revenues,” continues Heider.
Healthy balance sheet and high liquid reserves
As of the end of the first half of 2015, the Nemetschek Group maintained an extremely sound net asset structure and financial position. As of June 30, 2015, the equity ratio rose to 47.2% (December 31, 2014: 46.8%). The Group had cash and cash equivalents amounting to EUR 65.0 million and a net liquidity of EUR 11.0 million (December 31, 2014: EUR -3.0 million).
Development of the segments
The Design segment continued to develop positively. Revenue rose by 11.1% in the half year to EUR 94.0 million (previous year’s period: EUR 84.6 million). EBITDA rose to EUR 21.7 million (previous year’s period: EUR 20.3 million), which corresponds to an EBITDA margin of 23.1% (previous year: 24.0%).
As a result of the Bluebeam acquisition, the Build segment was able to grow very strongly. Revenue increased to EUR 28.6 million, which is more than four times the previous year’s figure of EUR 7.1 million. Organic revenue for the half year of EUR 7.6 million was thus 6.2% more than that of the previous year. On a quarterly basis, it was even possible to increase organic revenue by 14%. EBITDA rose to EUR 6.3 million (previous year’s period: EUR 1.6 million), which corresponds to an EBITDA margin of 22.1% (H1 2014: 22.6%).
Revenue in the Manage segment rose by 11.3% to EUR 2.7 million (H1 2014: EUR 2.4 million). EBITDA remained at the previous year’s level at EUR 0.3 million, which corresponds to an EBITDA margin of 11.0% (previous year’s period: 14.4%).
The Media & Entertainment segment showed favorable revenue growth in the first six months, rising by 21.9% to EUR 10.0 million, following EUR 8.2 million in the previous year’s period. EBITDA increased to EUR 4.3 million (previous year’s period: EUR 3.4 million), which caused the EBITDA margin to reach a high 43.1% (previous year’s period: 41.0%).
Outlook for the financial year 2015 affirmed
The Nemetschek Group affirms its forecast for the 2015 financial year on the basis of the strong development in the first half of 2015 and the anticipated revenue and earnings development in the remaining course of the financial year. Revenue in a target range of EUR 262 million to EUR 269 million is expected (corresponding to an increase of 20% to 23%; of this 6% to 9% organic). EBITDA is forecast at between EUR 62 million and EUR 65 million.
01 – Overview of key figures
02 – Key figures by segment
The complete 6-month report for 2015 is available for download in the Investor Relations section of the Nemetschek Group website.
About 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 40 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 according to preliminary figures, revenues of EUR 218.5 million and an EBITDA of EUR 56.8 million in 2014.