The Nemetschek Group achieved 17.7 percent revenue growth (currency-adjusted: +12.1 percent) to EUR 801.8 million (USD 848 million at today’s rate). The German AEC/O industry software giant is closing in on USD 1 billion, and Architosh previously anticipated the company possibly crossing the USD 900 million mark in 2022.
2022 Annual Results
Earnings (EBITDA) growth for the full year landed at 15.8 percent to EUR 257.0 million, with gross margins remaining high at 32 percent.
The fourth quarter was highly impacted by the accelerated transition to the SaaS business model at Bluebeam and other daughter brands making a similar transition.
EBITDA margins remained high at 32%.
“In this volatile economic environment, we maintained our profitable growth path also in 2022 while simultaneously driving forward the transformation of our business model,” said Yves Padrines, CEO of the Nemetschek Group. “Our strategic focus areas, such as further internationalization, an intensified go-to-market strategy, innovation, as well as the transition to subscription and SaaS models, will make us even more agile and resilient in the future. We also continue to see great potential in our markets in the long term. Structural growth drivers such as the low level of digitalization in the construction industry, increasing requirements on quality, efficiency, and sustainability, as well as the ever-rising demand for 3D animations in the media sector, let us continue to look into the future very optimistically.”
The Group states that details and audited financial statements for the fiscal year 2022 will be published in the upcoming 2022 Annual Report, slated for Thursday, 23 March 2023.
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Architosh Analysis and Commentary
Back in 2018, we wrote, “averaging 17% or better since 2014, the Nemetschek Group could reasonably reach EUR 900 million by 2022. Today they only feel confident to project out to 2020.” Given the disruption of the first wave impacts of the global pandemic, missing that estimated projection is understandable. As noted back in 2018, the company was averaging 17 percent annual revenue growth. Their preliminary figures for 2022 show 17.7 percent annual revenue growth with earnings (EBITDA) in the mid-teens.
The company has achieved this steady growth through a combination of organic growth and acquisitions, common to its largest rivals in the AEC/O space. Moreover, the Nemetsheck companies have largely taken a more patient approach with the transition to subscription-based licensing models. This has given the company time to watch its competitors stumble over licensing mistakes as well as time to learn from rivals’ best practices. As the Group unveils daughter company offerings via subscription, it will be interesting to see how topline and bottom line growth mature differently than in the past ten years, for example.
