Nemetschek Group: Solid start to 2020 in an uncertain market environment, outlook confirmed
- Q1 revenue growth of 12.8% to EUR 146.6 million
- +27.1% growth in recurring revenue, driven by subscriptions
- +14.0% rise in EBITDA to EUR 41.8 million leads to EBITDA margin of 28.5%
- Earnings per share at EUR 0.19 (+9.3%)
Optimistic yet cautious planning for 2020 confirmed given the global Covid-19 pandemic
Munich, April 30, 2020 – The Nemetschek Group (ISIN DE 0006452907), one of the world’s leading software providers for the building industry, posts a solid first quarter of 2020 with profitability levels remaining high. Following a favorable start of the new year, general conditions worsened in March as a result of the worldwide Covid-19 pandemic. The company responded fast and, in keeping with changed conditions, adapted support and training measures in particular to maintain customer contact, which is critical in this situation. In this regard, for instance, virtual support and distribution options as well as online tutorials were put in place. Moreover, the executives were involved in adapting cost management in the Group at an early stage.
Major indicators of the Group’s success in the first quarter of 2020
- Group revenue rose 12.8% to EUR 146.6 million (currency-adjusted: 11.4%) compared to the previous year’s figure of EUR 129.9 million. The increase in revenue is a result of organic growth amounting to 9.9% (currency-adjusted: 8.5%) and the revenue contributed by the newly acquired Red Giant, which has been integrated in the Maxon brand in the Media & Entertainment segment since January 1, 2020.
- Recurring revenue from software service contracts and subscriptions were growth drivers yet again, the revenues from which rose by 27.1% (currency-adjusted: 25.5%) to EUR 86.1 million compared to the previous year’s quarter. Thus, its proportion of Group revenue increased to 58.7% (previous year’s period: 52.1%). This more predictable revenue is of great importance to the robustness of the Nemetschek business model especially in today’s uncertain market environment.
- Continued advances in the Group’s global alignment are another growth driver. In the first quarter, revenues generated abroad rose by 14.7% to EUR 109.0 million (Q1 2019: EUR 95.0 million. North America in particular contributed to this increase.
