Dassault Systemes Shares Jump After Revenue Growth Beat Forecasts

   By Mauro Orru 
 

Shares of Dassault Systemes climbed Wednesday after the French software maker posted revenue and operating profit ahead of analysts' expectations for the third quarter.

At 0900 GMT, Dassault Systemes shares traded 6.1% higher at EUR37.13.

Reporting on a non-IFRS basis, the group said overall revenue grew 11% on year at constant currencies to 1.42 billion euros ($1.50 billion), with software revenue up 12% to EUR1.29 billion and services revenue up 2% to EUR138 million.

Operating profit increased to EUR442 million from EUR433.5 million, generating a 31% operating margin.

Dassault's results beat consensus of EUR1.41 billion on revenue, EUR430.5 million on operating profit and 30.4% on operating margin, Jefferies analysts wrote in a note to clients.

Dassault Systemes had projected third-quarter revenue of EUR1.40 billion to EUR1.42 billion, and an operating margin of 30.2% to 30.5%.

For the fourth quarter, it expects revenue between EUR1.64 billion and EUR1.68 billion, with an operating margin of 35.8% to 36.6%.

For the year, revenue should come in between EUR5.95 billion and EUR5.99 billion, with an operating margin of 32.3% to 32.6%.

Dassault Systemes, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards--an international accounting method that seeks to provide a global reporting standard--though analysts and investors tend to follow non-IFRS numbers. Those figures exclude share-based compensation, restructuring expenses and acquisition-related charges.

Write to Mauro Orru at [e-mail]

(END) Dow Jones Newswires

October 25, 2023 05:18 ET (09:18 GMT)

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