German AEC software vendor Nemetschek Group has posted a robust performance for the first half of 2017 on the back of recurring revenues from maintenance contracts and rental models.
According to Nemetschek’s latest performance results, the company saw 20.1% year-on-year revenue growth in the first half of 2017 to hit EUR 194 million, while organic growth reached the top end of the target range at 14.8%.
Second quarter revenues were EUR 97.1 million, for a year-on-year increase of 16.5% compared to the high base of EUR 83.8 million for the same period in 2016.
According to Nemetschek Group CEO and spokesman Patrik Heider, the modest easing of growth in the second quarter was the result of the high base as well as the deferral of key product releases in the design segment.
Nemetschek also saw a healthy profit growth, with earnings before interest, taxes, depreciation and amortization (EBITDA) rising to EUR 51.7 million, for a year-on-year increase of 18.3%.
The EBITDA margin held steady with the reading of 27% for the first half of 2016, reaching 26.6% for the first six months of 2017.
Net income for the year saw a year-on-year increase of 21.1% to EUR 27.7 million from January to June 2017, while adjusted earnings per share rose from EUR 0.59 to EUR 0.72.
Net income for the year rose by 14.5% (prior to adjustment) for the one-off effect of the previous year.
Heider indicated that the first half performance results puts the company well on the way to hitting full year targets. “After the first half, we are completely within the anticipated ranges for 2017,” Heider stated.
The executive board has confirmed 2017 revenue targets between EUR 395 million to EUR 401 million, for year-on-year growth ranging from 17% to 19%.
Heider anticipates an improved performance in the second half, given that the second quarter saw impeded results due to the deferral of a key product release for the Design segment to later this year.
“The second quarter was certainly challenging for us – not only because we had a very strong quarter in the previous year, but also because one of our largest brands from the Design segment shifted its product release and the corresponding revenue from the second quarter to the second half of the year.”
“This makes us even more positive in our outlook for the second half of this year. Nemetschek is well on the way to another record year in terms of revenue and earnings,” Heider concluded.
The Nemetschek Group is a leading provider of software for the AEC industry and is currently focused on innovation in the field of Open Building Information Modelling.