Dassault Systèmes (DSY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 4% year-over-year to €1.464 billion, driven by 8% subscription revenue growth and resilience in key sectors, despite automotive contraction in Europe and the US; strong momentum in Asia, especially China, and robust performance in Medidata, Centric PLM, and SOLIDWORKS.

• EPS grew 8% year-over-year in Q3, with full-year EPS guidance reaffirmed at €1.27–€1.30.

• The 3DEXPERIENCE platform continues to differentiate, supporting digital transformation and sustainability, and driving a strong Q4 pipeline.

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 at €1.07 billion as of September 30, 2024.

• Operating cash flow YTD: €1.35 billion (+6% YoY).

Outlook and guidance

• Full-year 2024 non-IFRS EPS guidance reaffirmed at €1.27–€1.30; revenue growth guidance adjusted to 5–7%.

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

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

• Subscription revenue for 2024 anticipated at 10–12% growth; recurring revenue up 6–7%.

• Q4 EPS expected at €0.38–0.41, up 5–13% FX.