Nemetschek SE lays decisive foundations for future dynamic growth after successful 2022 financial year
Corporate News
- Revenue and profitability targets were achieved in the 2022 financial year with 17.7% revenue growth (currency adjusted: 12.1%) and an EBITDA margin of 32.0%
- +27.4% ARR growth to EUR 581.7million
- +54.7% growth in Subscriptions& SaaS to EUR 204.2million
- +20.3% growth in earnings per share to EUR 1.40
- Outlook for 2023: Attractive growth while transitioning to Subscriptions/SaaS
- Ambition for 2024 & 2025: Strong acceleration of growth
Munich, March 23, 2023 – Following the successful 2022 financial year, in 2023 the Nemetschek Group, a globally leading software provider for digital transformation in the construction and media industries, is laying decisive foundations in order to continue to achieve dynamic double-digit revenue growth rates and high profitability in the future. The ongoing transition of the business model from selling perpetual Licenses to Subscriptions & SaaS will be accelerated in 2023 – particularly through the transition initiated at the Bluebeam brand. Despite the associated short-term dampening effect on revenue development and profitability and the currently changed economic environment, the Nemetschek Group expects attractive growth in 2023. Strong acceleration of growth momentum is expected again from 2024 onwards.
“By driving the transition to Subscription-based and SaaS models this year, we are making it possible to generate significantly higher revenues per user and create a higher customer lifetime value in the medium and long term,” said Yves Padrines, CEO of the Nemetschek Group. “In addition, these revenues are not only more predictable but also less volatile across economic cycles. This creates the conditions to benefit in the best possible way from the enormous potential of our growing markets, both in the construction and in the media business. This is because the structural growth drivers for the Nemetschek Group – such as the low level of digitalization or the need for more efficiency and sustainability in the construction industry – aren’t just intact but are becoming increasingly important in the current environment.”
Outlook for 2023 to 2025
For 2023, the Executive Board expects further attractive growth despite the deterioration in general economic conditions and the Bluebeam brand’s simultaneous transition to Subscription and SaaS. To present the growth momentum and success of the ongoing transition of the business to Subscription-based and SaaS models more transparently, Nemetschek added the new KPI annualrecurring revenue (ARR) in 2022. As well as Subscription and SaaS, this indicator also covers revenue from service contracts. ARR growth of more than 25% is expected for 2023, with the result that the share of recurring revenue in total revenue should already reach more than 75% in the current year (previous year: 66%). Currency-adjusted revenue growth should be between 4% and 6%. At 28% to 30%, the Executive Board expects the EBITDA margin for 2023 to remain at a high level.
For 2024 we already expect a continuation of double-digit percentage revenue growth. At the same time, the EBITDA margin is expected to be above 30%. Due to the significantly over proportional increase in Subscription and SaaS revenue, Nemetschek expects in 2024 recurring revenues to represent around 85% of total revenues.
After a successful transition of the majority of the business to Subscription/SaaS, growth momentum is expected to increase again for 2025 with a revenue growth of at least mid-teens, which is well above the market average.
"With our strategic focus topics such as further internationalization, new technologies such as digital twins, AI and cloud solutions, and our initiatives for greater customer proximity and internal efficiency, we are excellently positioned to continue driving digitization in the construction industry. At the same time, we will also benefit from our excellent positioning in the media sector in the future,“ said CEO Yves Padrines. “After a successful transition to Subscriptions & SaaS, we also see the opportunity for structurally higher growth rates for Nemetschek that are significantly above the market average.”
Overview of the key indicators for the 2022 financial year
- With an increase of 27.4% to EUR 581.7 million, ARR growth was significantly above the Group’s growth, which continues to indicate high, stable growth potential for the next 12 months. In line with the strategy, the share of recurring revenues further increased to more than 66% of the Group’s revenue (previous year: 61%). This increase was again fueled by revenues from Subscriptions and SaaS, which grew strongly and over proportionately by around 54.7% (adjusted for currency effects: 46.8%) to EUR 204.2 million.
- Group revenues increased by 17.7% (adjusted for currency effects: 12.1%) compared with the previous year to EUR 801.8 million. The currency-adjusted revenue growth was therefore in the forecast range of 12% to 14%.
- Group earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 15.8% to EUR 257.0 million. At 32.0%, the EBITDA margin reached the forecast range of 32% to 33%.
- Net income showed strong growth of 20.3% to EUR 161.9 million, which equates to earnings per share of EUR 1.40 (2021: EUR 1.17).
- The Executive Board and Supervisory Board propose an increase in the dividend by 15.4% to EUR 0.45 per share based on the good business development for the 2022 financial year (previous year: EUR 0.39 per share).
Strategic highlights
- Foreign revenues further increased from 76% in 2021 to 79% of the Group’s revenues in the year under review as part of the strategy. In the future, Nemetschek will continue to drive internationalization and create the structures for further international growth, in particular with a focus on the regions of the Americas and Asia/Pacific.
- Nemetschek further strengthened its go-to-market approach in 2022. This is aimed at connecting the Group brands’ products and solutions to an even greater extent, expanding the e-commerce offering, and advancing regional growth initiatives. As a result, Nemetschek will be able to serve existing customers and secure new customer groups even better at the same time.
- In addition, Nemetschek has set innovation focus areas in cloud solutions, digital twins, and artificial intelligence (AI). They include, for example, the new Bluebeam cloud product offering and the development of an open, cloud-based digital twin platform.
- Nemetschek has also further strengthened its power to innovate through targeted investments instart-ups. In addition to taking a stake in the start-up SymTerra, which offers a digital platform for construction site communication, Nemetschek has also invested in the young robotics company Kewazo, whose innovative solutions optimize processes and the flow of materials on construction sites with the aid of robotics and data analytics.
- Moreover, the structures within the Group will be further streamlined. In addition to further integrating brands, internal processes and IT structures are also being optimized. All these measures serve to even further improve operational excellence with the aim of increasing customer satisfaction and successfully mastering further growth.
Segment developments in 2022 (see table)
- In the Design segment, revenue grew by 9.6% (adjusted for currency effects: 6.0%) to EUR 391.6 million, despite a changing market environment, particularly in Europe, and longer sales cycles at customers. At the same time, the segment recorded strong growth in Subscription revenue by 51% (adjusted for currency effects: 43%), confirming the segment strategy of also increasingly offering Subscription models in addition to licenses. The EBITDA margin was 32.4% (previous year: 33.7%).
- The Build segment achieved very strong revenue growth again despite the transition to Subscription and SaaS models by the US brand Bluebeam, which started in Q3 2022. Segment revenues increased by 24.1% (adjusted for currency effects: 14.6%) to EUR 268.3 million. The EBITDA margin was 38.5% (previous year: 41.3%).
- The revenue in the Media segment increased significantly by 48.5% (adjusted for currency effects: 41.2%) to EUR 104.7 million. As well as strong organic growth momentum, the Media segment also benefited from the acquisition of the business operations of Pixologic, Inc. at the end of 2021. The EBITDA margin increased strongly from 36.2% in the previous year to 43.8%.
- In the Manage segment, revenue increased by 6.8% (adjusted for currency effects: 7.1%) to EUR 46.7 million. The EBITDA margin was 8.2% (previous year: 9.3%) partly due to increased investments.
The aforementioned forecasts are subject to the express proviso that global economic and industry-specific conditions do not significantly deteriorate, especially with a view to the growing global economic risks resulting from the war in Ukraine, increased interest rates, and high general inflation.
Quarterly overview of Group key figures (Q4)
In EUR million | Q4 2022 | Q4 2021 | Δ in % | Δ in % FX-adj |
ARR | 581.7 | 456.5 | +27.4% | +22.0% |
Revenues | 203.0 | 187.9 | +8.0% | +3.9% |
- thereof software licenses | 47.9 | 65.9 | -27.3% | -29.8% |
- thereof recurring revenues | 145.4 | 114.1 | +27.4% | +22.0% |
- Subscription & SaaS (part of recurring revenue) | 57.3 | 38.9 | +47.2% | +40.3% |
EBITDA | 55.7 | 61.7 | -9.8% | -8.6% |
Margin | 27.4% | 32.9% |
|
|
EBIT | 40.5 | 49.0 | -17.2% | -14.5% |
Margin | 20.0% | 26.1% |
|
|
Net income (Group shares) | 34.0 | 37.8 | -10.1% |
|
Earnings per share in EUR | 0.29 | 0.33 | -10.1% |
|
Net income (Group shares) before amortization of purchase price allocation (PPA) | 41.4 | 42.1 | -1.7% |
|
Earnings per share before PPA in EUR | 0.36 | 0.36 | -1.7% |
|
Quarterly overview of the segments’ key figures (Q4)
In EUR million | Q4 2022 | Q4 2021 | Δ in % | Δ in % FX-adj. |
Design |
|
|
|
|
Revenues | 104.2 | 99.5 | +4.7% | +1.8% |
EBITDA | 32.1 | 36.5 | -12.0% | -7.8% |
EBITDA margin | 30.8% | 36.7% |
|
|
Build |
|
|
|
|
Revenues | 59.5 | 59.0 | +0.8% | -5.4% |
EBITDA | 15.2 | 22.4 | -31.9% | -34.6% |
EBITDA margin | 25.6% | 37.9% |
|
|
Manage |
|
|
|
|
Revenues | 12.8 | 10.8 | +18.9% | +19.5% |
EBITDA | 1.6 | 0.8 | +83.7% | >100% |
EBITDA margin | 12.2% | 7.9% |
|
|
Media |
|
|
|
|
Revenues | 29.0 | 20.5 | +41.7% | +35.6% |
EBITDA | 13.5 | 6.8 | +99.8% | +95.2% |
EBITDA margin | 46.6% | 33.0% |
|
|
12-month overview of Group key figures
In EUR million | FY 2022 | FY 2021 | Δ in % | Δ in % FX-adj |
ARR | 581.7 | 456.5 | +27.4% | +22.0% |
Revenues | 801.8 | 681.5 | +17.7% | +12.1% |
- thereof software licenses | 235.0 | 234.8 | +0.1% | -5.3% |
- thereof recurring revenues | 532.6 | 416.7 | +27.8% | +21.7% |
- Subscription & SaaS (part of recurring revenue) | 204.2 | 132.0 | +54.7% | +46.8% |
EBITDA | 257.0 | 222.0 | +15.8% | +9.3% |
Margin | 32.0% | 32.6% |
|
|
EBIT | 198.1 | 172.0 | +15.2% | +8.5% |
Margin | 24.7% | 25.2% |
|
|
Net income (Group shares) | 161.9 | 134.6 | +20.3% |
|
Earnings per share in EUR | 1.40 | 1.17 | +20.3% |
|
Net income (Group shares) before amortization of purchase price allocation (PPA) | 188.9 | 153.9 | +22.7% |
|
Earnings per share before PPA in EUR | 1.64 | 1.33 | +22.7% |
|
12-month overview of the segments’ key figures
In EUR million | FY 2022 | FY 2021 | Δ in % | Δ in % FX-adj. |
Design |
|
|
|
|
Revenues | 391.6 | 357.3 | +9.6% | +6.0% |
EBITDA | 126.9 | 120.5 | +5.3% | +1.9% |
EBITDA margin | 32.4% | 33.7% |
|
|
Build |
|
|
|
|
Revenues | 268.3 | 216.2 | +24.1% | +14.6% |
EBITDA | 103.2 | 89.3 | +15.6% | +6.1% |
EBITDA margin | 38.5% | 41.3% |
|
|
Manage |
|
|
|
|
Revenues | 46.7 | 43.7 | +6.8% | +7.1% |
EBITDA | 3.8 | 4.1 | -5.6% | +6.3% |
EBITDA margin | 8.2% | 9.3% |
|
|
Media |
|
|
|
|
Revenues | 104.7 | 70.5 | +48.5% | +41.2% |
EBITDA | 45.9 | 25.5 | +79.9% | +72.0% |
EBITDA margin | 43.8% | 36.2% |
|
|
For further information about the company, please contact:
Nemetschek Group
Stefanie Zimmermann
Investor Relations
+49 89 540459 250
szimmermann@nemetschek.com
