Core Insights - Dassault Systèmes reported strong Q4 results for 2024, with total revenue increasing by 7% to €1.75 billion, driven by a 13% growth in new business and a 22% increase in 3DEXPERIENCE software revenue [9][13][14] - The company anticipates total revenue growth for FY25 to be between 6% and 8%, with an operating margin expansion of 70-100 basis points and diluted EPS expected to rise to €1.36-€1.39 [10][16] Financial Performance - Q4 2024 total revenue reached €1.75 billion, up 7% from Q4 2023, while software revenue increased by 9% to €1.60 billion [9][13] - For the full year 2024, total revenue grew to €6.21 billion, a 4% increase year-over-year, with software revenue up 6% to €5.61 billion [9][14] - Operating margin for Q4 2024 was 36.3%, an increase of 70 basis points compared to the previous year, and diluted EPS rose by 11% to €0.40 [8][9] Revenue Breakdown - Software revenue by product line showed Industrial Innovation up 8% to €902 million, Life Sciences flat at €298 million, and Mainstream Innovation up 17% to €402 million [13][14] - Geographically, revenue in the Americas increased by 5%, Europe by 14%, and Asia by 7%, with Europe representing 43% of software revenue [13][14] Strategic Initiatives - The expansion of the 3DEXPERIENCE platform across various industries and strategic partnerships with companies like Volkswagen and Airbus were highlighted as key drivers of success [4][5] - The introduction of UNIV+RSES, integrating multiple virtual twins and AI, is expected to unlock new opportunities for clients [6][10] Future Outlook - The company is optimistic about its growth outlook, projecting total revenue growth of 6% to 8% for 2025, with an operating margin between 32.6% and 32.9% [10][16] - The upcoming Capital Markets Day in June 2025 will provide further insights into the company's vision and strategic direction [10]
Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint