Nemetschek (NEM) Q3 2024 earnings summary

Executive summary

• Achieved robust growth and high profitability in Q3 and the first nine months of 2024, driven by organic expansion and the GoCanvas acquisition, despite challenging market conditions, especially in Europe.

• Continued successful transition to a subscription and SaaS-centric business model, with recurring revenues reaching record levels and Bluebeam migration nearly complete by year-end.

• Integration of GoCanvas, the largest acquisition in company history, is progressing as planned and contributing positively to operational and financial results.

• Net income increased 8.5% to €123.8M in the first nine months; EPS reached €1.07, adjusted EPS €1.26.

Financial highlights

• Q3 2024 revenue rose 15.1% year-over-year to €253 million; 9M revenue up 11.5% to €704.7 million; organic Q3 growth at 8.9%.

• Q3 EBITDA grew 6.7% to €76.2 million (margin 30.1%); 9M EBITDA up 9.2% to €205.9 million (margin 29.2%); organic EBITDA margin at 32.2%.

• Annual Recurring Revenue (ARR) rose 33% to €883.3 million; organic ARR growth at 25.2%.

• Subscription and SaaS revenues grew 82.1% year-over-year to €381 million; recurring revenues now 86% of total.

• Free cash flow before M&A was nearly €200 million in the first nine months.

Outlook and guidance

• Full-year 2024 organic revenue growth expected at 10–11% at constant currencies; ARR growth expected to exceed 30%.

• Organic EBITDA margin forecasted at 30–31%; recurring revenues projected to reach 85–86% of total by year-end.

• GoCanvas consolidation to add ~3 percentage points to revenue growth, but dilute EBITDA margin by ~100 basis points.

• 2025 guidance remains mid-teens organic growth, with Build segment expected to grow ~20%.

• Guidance assumes no significant deterioration in macroeconomic or sector-specific conditions.