By Anna Peverieri and Johan BODINIER
(Reuters) – Dassault Systemes, a renowned software developer, has revealed its optimistic forecast for 2025, projecting a revenue growth ranging between 6% and 8%, surpassing the previous year’s 5%. The company is banking on its competitive edge following a notable improvement in its software revenue during the final quarter of 2024. Catering to automakers, plane manufacturers, and industrial firms, the French-based group envisions diluted earnings per share to be within the range of 1.36 euros to 1.39 euros for 2025, a significant increase from the 1.20 euros reported in the previous year. Furthermore, Dassault Systemes anticipates an operating margin between 32.6% and 32.9% for 2025, showing growth from the 31.9% margin recorded in 2024.
The company’s German counterpart, SAP, which is Europe’s largest software producer, recently revised its 2025 operating profit projections upwards, reflecting expectations of accelerated cloud revenue growth. Facing challenges due to a prolonged slowdown in the global automotive sector, Dassault Systemes had to adjust its 2024 outlook twice in the latter part of the year. However, the company saw a notable 9% growth in software revenue, including license and subscription revenues, amounting to 1.60 billion euros ($1.65 billion) in the fourth quarter, primarily driven by the aerospace and defense industry.
The sales growth of Dassault’s flagship software platform, 3DEXPERIENCE, which offers advanced 3D modeling, data management, and project management tools, increased by 22% in the quarter. This growth outpaced the 21% rise seen in the same period in 2023 and a 10% decline in the third quarter. In a separate announcement, Dassault disclosed that Volkswagen had selected the platform for enhancing its engineering and manufacturing processes under a long-term collaboration, although the financial specifics of the deal were not disclosed.
Revenue from the Medidata unit, responsible for analyzing patient data for clinical trials and closely scrutinized by investors, experienced a 1% growth in the fourth quarter. Stifel analysts lauded the solid quarterly results, particularly considering the challenging macroeconomic environment, while acknowledging the “understandably conservative” 2025 guidance provided by Dassault.
Following the positive announcements, Dassault Systemes’ shares surged up to 2.5% at the market opening, before stabilizing to trade relatively flat by 0840 GMT.
($1 = 0.9713 euros)
(Reporting by Anna Peverieri and Johan Bodinier in Gdansk; Editing by Sonali Paul and Milla Nissi)
