Dassault Systèmes (DSY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 4% year-over-year to €1.46 billion, driven by 8% subscription revenue growth and strong performance in life sciences, consumer, and aerospace/defense, while automotive volumes contracted in Europe and the US but showed strength in China.

• EPS grew 8% in Q3, with non-IFRS EPS at €0.29, at the high end of guidance; YTD non-IFRS EPS up 8% to €0.89.

• The 3DEXPERIENCE platform and cloud adoption continued to drive growth, competitive wins, and digital transformation across industries.

• Centric PLM and SOLIDWORKS delivered standout results, with Centric PLM achieving 90% growth in Q3 and strong expansion across consumer verticals.

• Medidata returned to sequential growth, launching new products to address the clinical trial market.

Financial highlights

• Q3 2024 non-IFRS total revenue: €1.464 billion (+4% YoY); YTD: €4.46 billion (+4% YoY).

• Q3 2024 non-IFRS operating margin: 29.6%; YTD: 30.2%.

• Q3 2024 non-IFRS EPS: €0.29 (+3–4% YoY); YTD: €0.89 (+6–8% YoY).

• Cash and cash equivalents at €3.66–3.7 billion; net cash position €1.066–1.07 billion as of September 30, 2024.

• Operating cash flow YTD: €1.348–1.353 billion, up 6% year-over-year.

Outlook and guidance

• Full-year 2024 non-IFRS EPS guidance reaffirmed at €1.27–€1.30.

• FY 2024 revenue growth guidance adjusted to 5–7%, reflecting automotive delays and large deal timing.

• Q4 2024 revenue expected at €1.696–1.816 billion, with midpoint growth of 8%.

• FY 2024 non-IFRS operating margin expected at 31.8–32.2%.

• Subscription revenue for 2024 anticipated at 10–12% growth.