High demand for digital solutions boosts Nemetschek’s 2021 forecast

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AEC software specialist, the Nemetschek Group has increased its forecast for the current financial year 2021, following a strong second quarter with record figures for revenues and earnings

The currency-adjusted revenue growth is now expected to be in the range of 12% to 14% for the AEC software specialists, while the EBITDA margin is targeted to be between 30% and 32%.

The successful business development is attributed to Nemetschek’s AEC software solutions, the consistent implementation of strategic priorities as well as the high level of commitment of the organisation and management.

“We are currently profiting from our very strong positioning with our customers and the high demand for our digital solutions.

“We were consequently able to continue with our strong and highly profitable growth in the second quarter.

“The first half year’s development, therefore, confirms our strategy to further internationalise our business, to reduce complexities within the group and to acquire new customers,” said Dr Axel Kaufmann, spokesman of the executive board and CFOO of Nemetschek Group.

“This outstanding business development has led to the increase of our targets for the financial year 2021.”

Key figures for Nemetschek in Q2 and the first half of 2021 include:

  • In Q2, group revenue rose by 17.2% (currency-adjusted: 21.5%) to EUR 165.9m (Q2 2020: EUR 141.6m). The cumulative group revenue for the first six months increased to EUR 324.3m, a growth of 12.5% (currency-adjusted: 16.7%) compared to the previous year’s revenue of EUR 288.2m.
  • In addition to the stronger license business, which grew by 24.7% in Q2 (currency-adjusted: 30.0%) to EUR 58.2m, recurring revenues from subscriptions and SaaS continued to be main growth drivers.
  • In Q2, the consolidated operating earnings before interest, tax and depreciation and amortisation (EBITDA) rose over-proportionally by 38.3% (currency-adjusted: 43.3%) to EUR 56.3m (previous year’s quarter: EUR 40.7m).
  • The net income for the quarter grew by 56.9% to EUR 33.1m (previous year: EUR 21.1 million).
  • Consequently, the Q2 earnings per share increased to EUR 0.29 (previous year: EUR 0.18).
  • The net income for the first half of the year rose by 47.1% to EUR 62.6m, corresponding to earnings per share of EUR 0.54 (previous year: EUR 0.37).

Strategic focus points and segment overview

In the second quarter, the Nemetschek Group successfully implemented its start-up strategy, with investments in two young and innovative companies.

In addition to the fast-growing German company Sablono – a digital solution provider for increasing efficiency in the construction process – Nemetschek invested in the US start-up Reconstruct – an expert in the quality control of construction sites with its artificial intelligence-based solutions.

The design segment, which focuses mainly on Europe, was able to continue its double-digit revenue growth from the first quarter in Q2 as well, which was attributable to the increase in revenue from licenses as well as from subscriptions.

The build segment, which primarily targets construction companies in the USA and the German-speaking region, also continued to profit strongly from the very favourable environment in the construction sector. Revenues in Q2 rose by 13.5% (currency-adjusted: 20.4%) to EUR 54.7m.

In the second quarter, the Bluebeam brand achieved the highest increase in new users in the company’s history. Based on the current record growth in new users, Bluebeam will choose a more conservative approach for the planned transition of its business to subscription models in order to take advantage of these additional opportunities.

In the manage segment, which focuses on the European commercial building sector, the market has continued its recovery, even though the investment volume of building operators has not yet reached pre-crisis levels.

The media & entertainment segment continued on its growth course and profited from the conversion to subscription models.

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