The Nemetschek Group is tracking towards a critical milestone of sorts as its group revenues rise with ARR growth at plus 26.5 percent and SaaS subscription growth at +82.9 percent.
The German AEC software holding company also completed its largest acquisition in its history with the purchase of GoCanvas, a globally leading Field Management software company with a strong presence in the construction sector.
Fiscal 1H 2024 Results
The Group confirms its previous guidance for the operational year of 2024 based on the completed success of 2024. Performance was noted to be inline with plans for the second quarter (Q2-2024) and the Group completed its acquisition of GoCanvas (consolidated as of July 1).
The Nemetschek Group confirms the outlook for the remainder of 2024 based on solid Q2 financial performance.
The results for Q2 revenues were up 9.7 percent (YoY) and reached EUR 227.7 million (which converts today to over USD 250.7 million—tracking, therefore, to over USD 1 billion annually if this quarterly revenue continues).
Other Financial Details
Other details include:
- 82.9% growth in subscription and SaaS to EUR 124.6 million in Q2
- 26.5% AAR growth to EUR 797.9 million in Q2
- EBITDA margin in Q2 at 27% (29.4% for one-off adjusted acquisition costs)
- 27.7% growth in quarterly earnings per share (EPS) to EUR 0.36
- Outlook for 2024 confirmed and expanded following GoCanvas acquisition
“We are very pleased with the development of the first half of the year. In addition, the very high growth momentum in Subscription and SaaS in the second quarter shows that the transition of our business model continues to be very successful,” says Yves Padrines, CEO of the Nemetschek Group, adding:
We are also focusing on our strategic focus areas, such as increased internationalization and new technologies, as well as the acquisition of GoCanvas, which will contribute to our future growth. With GoCanvas, the largest acquisition in the over 60-year history of our company, we are expanding our portfolio with unique SaaS solutions in Field Management to increase the safety and efficiency on the construction site while simultaneously accelerating our transition to recurring revenues. We expect that the acquisition will generate significant synergies for the Group and especially for our Build segment.
The Group’s performance driving revenue share based on subscriptions is one of the company’s financial highlights, with the share of recuring revenues now exceeding 85 percent in the first half of the year.
Group KPIs
The main driver in Q2 is reportedly revenues from subscriptions and SaaS offerings, increasing 82.9 percent (YoY).
Net income for the quarter grew significantly by 27.7 percent to EUR 41.9 million, translating to the EPS values reported above. On a first-half basis (H1), net income translates to 22.3 percent and EUR 84.5 million and an EPS of EUR 0.73.
The Design Segment (with leading brands by Archicad, ALLPLAN, and Vectorworks) reported a growth rate of over 10.4 percent, essentially matching the Build Segment’s (with anchor brand Bluebeam) growth reported at 10.7 percent.
Revenue-wise, Design contributed EUR 112.4 million in Q2, while the Build segment contributed EUR 74.7 million.
In the future, GoCanvas should contribute its revenue to the Build Segment. Bluebeam continues to transition its business model to subscription and SaaS, and this should lead to a significant acceleration in growth, reports the Group.