The Nemetschek Group had another record year in 2017, setting both revenue records and operating results records. The world’s second largest provider of software for the AEC industry has also announced its first medium-term growth target for the year 2020—the group is estimating sales volume to more than EUR 600 million.
Booming Revenue and Margins
For the year 2017, the Nemetschek Group revenue rose 17.3% to EUR 395.6 million. This double-digit revenue growth also consisted of strong organic growth, up to 13.8% (or 15% currency-adjusted).
In terms of margins, EBITDA (earnings before interest, tax, depreciation, and amortization) were 22.7% despite future-oriented investments in the amount of EUR 10 million. On a forward-looking basis, the Group said EBITDA margins should “remain as planned in the already achieved corridor of 25% – 27% in the future.”
Major Growth Drivers
The Nemetschek Group divides up their performance into software segment sectors, as Build, Design, Manage and Media & Entertainment (M&E).
The Build segment experienced the strongest revenue growth with 31.0% (currency-adjusted 33.1%). Their Bluebeam Software holding is their largest Build segment performer, but the press release also acknowledged Solibri, a BIM software used across all AEC players and most segments of the design-build process.
Internationalization was also credited as a growth engine for the Munich, Germany-based AEC software giant. The most important international market is the United States which now produces 30% of all revenues, up from 10% in 2012.
While the Build segment growth rate is above 30%, all other segments had double-digit revenue growth segments, except Media & Entertainment. Germany’s Maxon is the only subsidiary in this segment, and thus there are no counter-measures within M&E to elevate revenues with a single company in this space. M&E segment revenue rose 8.9% to EUR 23.8 million
Graphisoft—Singled Out Performer
This was the first time (to our knowledge) a company in its Design segment has been singled out at a performance level. Graphisoft was singled out as the brand with the strongest growth in the Design segment, where segment EBITDA rose 11.1% to EUR 70.3 million.
This was the first time the Nemetschek Group provided mid-term growth targets. For 2020, the Group plans for revenue of more than EUR 600 million.
For more information visit Nemetschek online here.
Editor’s note. Earlier we miscommunicated Graphisoft’s annual revenue as 70.3 million. That was the Nemetschek Group’s design segment EBITDA. – 2 April 2018. 6:56 pm EDT.