Nemetschek has just reported a very strong start to its 2022 financial year. The first quarter showed double-digit percentage growth in revenue, combined with a substantial increase in EBITDA (earnings before interest, taxes, depreciation, and amortization).
The good start for Nemetschek is mostly due to the expansion of its recurring revenue streams, generated by its subscription and SaaS (Software as a Service) business models. Other factors include its innovative software developments, ongoing internationalization efforts, and continued improvements in its internal efficiency.
Main points
- Positive outlook for 2022
- Revenue grows 21.3 percent
- Subscription and SaaS revenues increase by 59.8 percent
- EBITDA grows by 40.9 percent
- EBITDA profit margin up 36.3 percent
- Earnings per share increased by 44.7 percent
Positive outlook for 2022
Nemetschek Group CEO, Yves Padrines
Following the good start for Nemetschek this year, its Executive Board reaffirmed its current targets for the 2022 financial year. It anticipates revenue growth of between 12 and 14 percent for the Group. The outlook is based on the assumption that there will be no significant deterioration in the global economy in 2022. It also assumes no further economic risk due to the Ukrainian war.
Nemetschek Group CEO, Yves Padrines tells us:
“We are on a mission to digitalize the entire lifecycle of buildings in the construction industry, from the design to the manage phase. Simultaneously, we want to play an important role in the media industry. Our very strong first quarter results prove once again that there is a huge global appetite for our solutions. In addition, with our great start to the year, we have also laid a very good foundation for the remainder of 2022, which will be influenced by the subscription transition of our brand Bluebeam in the second half of the year”
Revenue grows 21.3 percent to EUR 192.2 million
Following on from a very successful 2021, Nemetschek Group revenues increased in the first quarter of 2022 by 21.3 percent (or 17.5 percent when adjusted for currency fluctuations) to EUR 192.2 million.
Subscription and SaaS revenues increase by 59.8 percent
Much of Nemetschek Group’s growth was due to revenue generated by its subscription and SaaS business models. With a first-quarter increase of 59.8 percent (currency-adjusted: 54.4 percent) revenues grew by EUR 5.2 million to reach a new record high of EUR 45.2 million. This was the main driver of the Group’s continued positive recurring revenue development. Consequently, the share of recurring revenues increased to 62.8 percent of all the Group’s revenues.
EBITDA grows by 40.9 percent as EBITDA profit margin expands to 36.3 percent
Consolidated operating earnings before interest, taxes, depreciation, and amortization grew over-proportionally compared to revenues by 40.9 percent to EUR 69.8 million. As a result, the EBITDA margin expanded by 5.0 percentage points to 36.3 percent.
First quarter segment-by-segment results within the Nemetschek Group
Build
The “Build” segment ensured the year starts well for Nemetschek. Revenues increased by 30.3 percent (currency-adjusted: 23.9 percent) to EUR 64.7 million. The primary contributor to this increase was its Bluebeam software. In March 2022, Bluebeam recorded the highest number of new users in the company’s history. At the same time, Bluebeam continued its preparation for its transition to a subscription and cloud-based business model in the second half of 2022. The EBITDA increased over-proportionally by 42.8 percent to EUR 29.8 million. This corresponded to an EBITDA margin of 46.0 percent.
Design
This segment recorded revenue growth of 10.4 percent (currency-adjusted: 7.9 percent) to EUR 93.3 million. This was in line with expectations. Higher growth is expected in the forthcoming quarters. The strong increase in subscription revenues (+61 percent) confirms the success of the segment’s hybrid strategy of offering both subscriptions and licenses to its customers. The EBITDA increased by 11.8 percent to EUR 31.7 million, corresponding to an EBITDA margin of 34.0 percent.
Manage
The “Manage” segment recorded a slight growth of 1.0 percent (currency-adjusted: 1.0%) and revenue of EUR 11 million. As in the previous year, the segment was negatively impacted by the continued cautious investment activities of facility managers, due to the global Covid-19 pandemic. The EBITDA margin was just 6.6 percent.
Media
This segment achieved a revenue increase of 73.6 percent (currency-adjusted: 67.5 percent) to EUR 25.5 million. With the acquisition and subsequent integration of Pixologic at the beginning of the year, Maxon expanded its customer base, whilst upgrading its flagship product Maxon ONE. The acquisition also enabled Maxon to develop its 3D-Animation and Metaverse markets. The segment’s EBITDA more than doubled to EUR 12.1 million, resulting in a record margin of 47.2 percent.
About Nemetschek
Nemetschek is a global software provider for the construction and media industries. Its various software applications cover the entire lifecycle of building and infrastructure projects. It owns 13 software brands, in four customer-oriented market segments. Its products are used by an estimated 6.5 million users worldwide.
Founded by Prof. Georg Nemetschek in 1963, Nemetschek Group currently employs around 3,400 people around the world. Publicly listed since 1999 and quoted on the MDAX (Mid Cap German Stock Index) and TecDAX (Technology Company German Stock Index), Nemetschek Group achieved revenue of EUR 681.5 million and an EBITDA of EUR 222.0 million in 2021.