Positive

From GlobeNewswire: 2025-04-24 01:00:00

Dassault Systèmes reports a solid start to the year with a 5% increase in software revenue, driven by a 14% growth in subscriptions. Diluted EPS is up 5% to €0.32, and cash flow from operations grew by 21% to €813 million for the first quarter of 2025. Full-year objectives remain unchanged, with total revenue growth expected to be between 6-8% and diluted EPS of €1.36-€1.39.

The company’s CEO, Pascal Daloz, highlights the successful launch of Gen 7, a new platform called 3D UNIV+RSES. This platform leverages AI and spatial computing to enhance the 3DEXPERIENCE platform, providing customers with a competitive edge. The Manufacturing Industries sector, particularly Aerospace & Defense and High Tech, performed well in the first quarter. Dassault Systèmes is also focusing on Sovereign Infrastructure, emphasizing energy, security, and AI capabilities.

In the first quarter, Dassault Systèmes saw strong subscription growth of 14%, with recurring revenue representing 86% of software revenue. Operating efficiency led to the company reaching the upper end of its EPS guidance. Despite a more volatile market environment due to new tariffs, the company maintains its full-year outlook of 6-8% total revenue growth and 7-10% EPS growth. Adjustments in operating margin target are made to support long-term growth and investment in Gen 7.

Financially, Dassault Systèmes’ total revenue for the first quarter of 2025 was €1.57 billion, representing a 5% increase from the same period in 2024. Software revenue increased by 6% to €1.43 billion, with strong growth in subscription and support revenue. The company’s operating income reached €486.1 million, with an operating margin of 30.9%. Diluted EPS grew to €0.32, up 6% from the previous year.

The company’s financial objectives for 2025 include a total revenue growth of 6-8%, with software revenue growth expected to be between 6-8%. Diluted EPS is projected to be between €1.36-€1.39, with an operating margin target of 29.8% – 29.9%. These objectives are prepared on a non-IFRS basis and are subject to certain accounting elements and currency exchange rate assumptions.



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