Dassault Systèmes Provides Preliminary Second Quarter 2024 Results and Full Year Outlook

Rhea-AI Summary

Dassault Systèmes has announced its preliminary non-IFRS unaudited financial results for Q2 2024, revealing a total revenue of approximately €1.495 billion, marking a 4% year-over-year increase but falling short of the company's €1.525-1.555 billion target. The revenue shortfall is mainly attributed to €30 million in transaction delays. Despite this, diluted EPS is estimated at €0.30, aligning with the company's guidance range of €0.30-0.31. In light of these results and ongoing customer decision-making volatility, Dassault Systèmes has updated its full-year 2024 guidance, forecasting total revenue growth of 6-8% and diluted EPS growth of 8-11%, down from previous projections of 8-10% and 10-12%, respectively. The company will hold a conference call to discuss these results and its financial outlook in detail.

Positive

• Diluted EPS estimated at €0.30, meeting the company's guidance range of €0.30 to €0.31.
• Q2 2024 revenue shows 4% year-over-year growth.

Negative

• Total revenue for Q2 2024 estimated at €1.495 billion, falling short by €30 million against guidance.
• Reduced FY 2024 revenue growth guidance from 8-10% to 6-8%.
• Lowered FY 2024 diluted EPS growth guidance from 10-12% to 8-11%.

                

Press Release

VELIZY-VILLACOUBLAY, France — July 9^th, 2024

Dassault Systèmes Provides Preliminary

Second Quarter 2024 Results and Full Year Outlook

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) announces today preliminary non-IFRS unaudited financial results for the second quarter ended June 30^th, 2024 with total revenue below the Company’s financial objectives while earnings per share (EPS) are in line with second quarter objectives. The Company will release its second quarter results on July 25^th, 2024 as previously disclosed. In addition, Dassault Systèmes will hold a conference call today to discuss preliminary results at 1:00 PM London time/ 2:00 PM Paris time/ 8:00 AM New York time as stated below.

Preliminary financial results for the second quarter are presented on a non-IFRS basis to facilitate comparison to the Company’s financial objectives which are given on a non-IFRS basis. The preliminary and unaudited non-IFRS financial information which follows is based upon initial closing information and is subject to further review. Non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-off items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects.

Preliminary 2024 Second Quarter Versus 2023 Financial Comparisons¹

(unaudited, non-IFRS and all growth rates in constant currencies unless otherwise noted)

• Total revenue estimated at €1.495 billion in the second quarter, or y/y growth of approximatively 4%, versus Company guidance in the range of €1.525 to €1.555 billion;
• Revenue shortfall estimated at €30 million, mainly due to large transaction delays;
• Diluted EPS estimated at €0.30, in line with objective of €0.30 to €0.31;
• Updating FY 2024 objectives to integrate volatility factors with total revenue growth now expected in the range of 6% to 8% and diluted EPS growth now expected in the range of 8% to 11% y/y.
  

Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

“Our preliminary second quarter revenue came in below the guidance by about €30 million, or 2%, due to large transaction delays. While we apologize for this shortfall, I want to confirm my commitment to Dassault Systèmes’ long track record of delivering results in accordance with our guidance.

Although second quarter pipeline permitted to deliver on our initial guide and the need for our solutions remains strong, we have observed cautiousness in customer signings in a complex geopolitical environment.

Importantly, all deals that have been delayed are still in our roadmap for future quarters. However, we anticipate that a certain volatility in customers’ decision-making will continue and consequently believe it is prudent to reflect this in our full year outlook.”

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“As we want to continue our long-lasting track record of delivering results according to plan, we have decided to reduce the risk of our back-end loaded year by adjusting our 2024 total revenue guidance growth to now 6% to 8%, versus 8% to 10% previously, and diluted EPS in the range of 8% to 11%, versus 10% to 12% prior.

We will be taking the necessary actions to balance between operating efficiency and investments in long term growth, while preserving EPS.

We will conduct a conference call today at 2 PM CEST / 8 AM EST to discuss this update. At the same time, we confirm our Earnings Call on July 25^th, 2024, as planned, where we will present and discuss the financial results of second quarter in more detail.”

Today’s Conference Call Information

Today, July 9^th, 2024, Dassault Systèmes will host a conference call at 1:00 PM London time / 2:00 PM Paris time / 8:00 AM New York time. The conference call will be available online by accessing http://www.3ds.com/investors/.

The Company will return to its pre-release quiet period beginning this evening, July 9^th, 2024 and will have no further comments on its financial results until it releases its second quarter and year-to-date 2024 financial results on July 25^th, 2024.

FOR MORE INFORMATION

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: https://www.3ds.com

ABOUT DASSAULT SYSTÈMES

Dassault Systèmes is a catalyst for human progress. We provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 350,000 customers of all sizes, in all industries, in more than 150 countries. For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team                FTI Consulting

Beatrix Martinez: +33 1 61 62 40 73                        Arnaud de Cheffontaines: +33 1 47 03 69 48

                                                        Jamie Ricketts : +44 20 3727 1600

investors@3ds.com

Dassault Systèmes Press Contacts

Corporate / France        Arnaud MALHERBE        arnaud.malherbe@3ds.com        +33 (0)1 61 62 87 73

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its approval.

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1 IFRS Total revenue estimated at €1.495 billion; IFRS EPS estimated at €0.21.

Attachment

• Dassault Systèmes Provides Preliminary Second Quarter 2024 Results and Full Year Outlook

FAQ

What are the preliminary Q2 2024 revenue results for Dassault Systèmes (DASTY)?

Dassault Systèmes reported preliminary Q2 2024 revenue of approximately €1.495 billion, a 4% year-over-year increase.

Did Dassault Systèmes (DASTY) meet its Q2 2024 earnings per share (EPS) objectives?

Yes, Dassault Systèmes' preliminary diluted EPS is estimated at €0.30, which is within the company's guidance range of €0.30 to €0.31.

Why did Dassault Systèmes (DASTY) revise its FY 2024 revenue guidance?

Dassault Systèmes revised its FY 2024 revenue growth guidance due to customer decision-making volatility and transaction delays impacting Q2 2024 results.

What is the new FY 2024 revenue growth guidance for Dassault Systèmes (DASTY)?

The new FY 2024 revenue growth guidance for Dassault Systèmes is in the range of 6% to 8%.

How has Dassault Systèmes (DASTY) updated its FY 2024 diluted EPS growth guidance?

Dassault Systèmes has adjusted its FY 2024 diluted EPS growth guidance to 8% to 11%, down from the previous 10% to 12%.