Munich, October 30, 2015 – The Nemetschek Group (ISIN 0006452907) continued to demonstrate dynamic business development in the third quarter of 2015. The strong growth of 38.2% in the period from July to September – a record value for a third quarter – was driven organically and as a consequence of the acquisition of US company Bluebeam Software, Inc. in the previous year. The greatest growth impulses came from abroad and from the revenue from software licenses. Parallel to this, the company continued to invest in extending its international market presence, its sales and its marketing, and in expanding its BIM 5D expertise. Nemetschek had only recently adjusted its revenue forecast significantly upwards for 2015 when the executive board also raised the target range for the Group EBITDA.
“We picked up even more speed in the third quarter. It’s becoming clearer and clearer that our strategic investment in new brands, solutions and markets is paying off and that we are thus laying the foundations for future growth,” says Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group.
Major indicators of the Group’s success
- Group revenue in the third quarter rose to EUR 70.7 million, a growth of 38.2% compared to the same quarter in the previous year (EUR 51.2 million). In the first nine months of 2015, revenue increased by 34.2% to EUR 205.9 million (previous year’s period: EUR 153.5 million). Adjusted for currency effects, revenue from January to September rose by 28.5%. Bluebeam Software contributed EUR 11.1 million to Q3 revenue and EUR 32.1 million to nine-month revenue. The Group’s organic growth thus remained at a high 16.5% in Q3; 13.3% from a nine-month perspective.
- Likewise, earnings before interest, taxes, depreciation and amortization (EBITDA) rose considerably by 27.0% in Q3 to EUR 16.8 million (Q3 2014: EUR 13.2 million). In the first nine months, it was possible to raise EBITDA to EUR 49.4 million, an increase of 27.2% (previous year’s period: EUR 38.8 million). The earnings figure accounts for future-oriented investments, e.g. for increasing personnel in the areas of sales and marketing.
- The EBITDA margin for Group revenue was 24.0% after nine months, and thus completely within the company’s expectations (9M 2014: 25.3%).
- The tax rate after three quarters rose to 31.0% (previous year’s period: 26.9%). The increase is caused in particular by deferred tax expenses on unrealized intra-Group foreign exchange gains.
- In the first nine months, net income for the year (Group shares) rose by 8.3% to EUR 24.2 million (previous year’s period: EUR 22.3 million). Accordingly, the earnings per share increased from EUR 0.58 in the previous year’s period to EUR 0.63.
- Adjusted for depreciation and amortization from purchase price allocation (PPA), which increased as a result of the Bluebeam acquisition, net income for the year rose even more strongly by 19.0% to EUR 29.6 million (previous year’s period: EUR 24.8 million). This corresponds to an adjusted earnings per share figure of EUR 0.77 (previous year’s period: EUR 0.65 per share).
Global growth course advances
The Nemetschek Group has continued to advance its global market alignment. In total, non-domestic revenue in the first nine months of 2015 climbed by 50.8% to EUR 137.7 million (9M 2014: EUR 91.3 million). In the USA, the home market of Bluebeam Software (acquired in 2014), it was possible to more than triple revenues. Domestic revenue also developed positively and rose by 9.8% to EUR 68.3 million (9M 2014: EUR 62.2 million).
With a plus of 48.7% to EUR 106.7 million (previous year’s period: EUR 71.8 million), revenue from software licenses constituted a further growth driver. Recurring revenue from software service contracts increased by 21.7% to EUR 89.9 million (previous year’s period EUR 73.8 million).
Balance sheet ratios show financial strengths and soundness of the Group
The Group’s net asset structure and financial position remain extremely sound. As of September 30, 2015, the equity ratio rose to 48.9% (December 31, 2014: 46.8%). Moreover, the Nemetschek Group demonstrates very good cash generation with simultaneously high-quality growth. As of September 30, 2015, cash and cash equivalents increased to EUR 71.5 million (December 31, 2014: EUR 57.0 million) and net liquidity improved to EUR 20.5 million (December 31, 2014: EUR -3.0 million).
Development of the segments
In the Design segment, revenue in Q3 rose by 18.1% to EUR 49.4 million. Accumulated, revenue from the first nine months increased to EUR 143.4 million, a plus of 13.4% over the previous year’s period (EUR 126.4 million). From January to September, EBITDA rose to EUR 34.7 million (9M 2014: EUR 31.0 million), which corresponds to an EBITDA margin of 24.2% (previous year’s period: 24.5%). The strong growth is caused, among other things, by the new releases of the Graphisoft and Vectorworks brands and their further internationalization.
As a result of the Bluebeam acquisition, the Build segment underwent great expansion. Bluebeam itself reinforced its international presence, e.g. through the acquisition of Swedish distributor Bluebeam AB and through new reseller and technology partnerships. In the first three quarters, segment revenue increased to EUR 43.5 million, which is more than quadruple the previous year’s value of EUR 10.7 million. Organic nine-month revenue of EUR 11.4 million was thus 6.5% more than that of the previous year. EBITDA jumped to EUR 8.0 million (previous year: EUR 2.0 million) with an almost unchanged EBITDA margin of 18.5% (9M 2014: 18.7%).
Revenue in the Manage segment increased by 11.4% to EUR 4.2 million (9M 2014: EUR 3.7 million). EBITDA remained at the previous year’s level at EUR 0.6 million, which corresponds to an EBITDA margin of 15.4% (previous year’s period: 16.9%).
In the first nine months, the Media & Entertainment segment showed a favorable growth in revenue of 18.0% to EUR 14.9 million following EUR 12.6 million in the previous year’s period. EBITDA increased to EUR 6.0 million (previous year’s period: EUR 5.2 million), and thus the EBITDA margin remained at a high 40.6% (previous year’s period: 41.0%).
Outlook for fiscal year 2015: EBITDA forecast increased
Following dynamic development in the first nine months, and in the third quarter not least of all, the executive board anticipates that in 2015 the Nemetschek Group will considerably improve Group revenue and consolidated earnings compared to the previous year and will post new record highs. The EBITDA forecast was adjusted upwards: EBITDA in the range of EUR 65 million to 67 million is now expected (previously: EUR 62 to 65 million). The Nemetschek Group had already increased its revenue forecast at the beginning of October to a range of EUR 278 million to 282 million (previously: EUR 262 million to 269 million). Compared to the previous year’s value, this results in a planned growth in revenue (EUR 218.5 million) of 27% to 29% (previously: 20% to 23%).
Overview of key figures
|In EUR million||Q3 2015||Q3 2014||Δ in %||9M 2015||9M 2014||Δ in %|
|- Software licenses revenues||36.4||23.5||+55.0%||106.7||71.8||+48.7%|
|- Recurring revenues||31.5||25.3||+24.4%||89.9||73.8||+21.7%|
|EBITA (normalized EBIT)||15.1||11.9||+27.4%||44.5||35.2||+26.6%|
|Net income (Group shares)||8.7||7.9||+9.6%||24.2||22.3||+8.3%|
|Earnings per share in EUR||0.23||0.21*||+9.6%||0.63||0.58*||+8.3%|
|Net income (Group shares) before depreciation and amortization from purchase price allocation||10.5||8.8||+19.4%||29.6||24.8||+19.0%|
|Earnings per share before depreciation and amortization from purchase price allocation*||0.27||0.23*||+19.4%||0.77||0.65*||+19.0%|
* For reasons of better comparability, the earnings per share after the stock split are shown
Key figures by segment
|In EUR million||Q3 2015||Q3 2014||Δ in %||9M 2015||9M 2014||Δ in %|
|Media & Entertainment|
The complete nine-month report for 2015 is available for download in the Investor Relations section of the company website.