Software firm Dassault Systemes sees higher sales, earnings in 2025
FILE PHOTO: A logo of Dassault Systemes SE is seen on a company building in Paris, France, January 27, 2023. REUTERS/Sarah Meyssonnier/File Photo
:Software developer Dassault Systemes on Tuesday forecast revenue growth of between 6 per cent and 8 per cent for 2025, up from 5 per cent last year, counting on its competitive positioning after its software revenue improved in the final quarter of 2024.
The French group, which sells its software to automakers, plane makers and industrial companies, said it expected diluted earnings per share of between 1.36 euros and 1.39 euros in 2025, up from 1.20 euros last year.
It also sees an operating margin of between 32.6 per cent and 32.9 per cent, compared with the 2024 margin of 31.9 per cent.
Dassault's German peer SAP, Europe's largest software maker, raised its 2025 operating profit outlook last week, as it anticipates accelerating cloud revenue growth.
Hit by a prolonged slowdown in the global automotive industry, Dassault had to cut its 2024 outlook twice in the second half of the year.
But its software revenue, which includes licence and subscription revenues, grew 9 per cent to 1.60 billion euros ($1.65 billion) in the fourth quarter, buoyed by the aerospace and defence industry.
Sales growth of Dassault's flagship software platform 3DEXPERIENCE, which offers 3D modelling, data management and project management tools, rose to 22 per cent in the quarter, compared with a 21 per cent increase in the same period in 2023 and a 10 per cent decline in the third quarter.
In a separate statement, Dassault said Volkswagen had chosen the platform to optimise its engineering and manufacturing processes under a long-term partnership, without specifying financial details of the deal.
Revenue at the Medidata unit, which analyses patient data for clinical trials and scrutinized by investors, grew 1 per cent in the fourth quarter.
Stifel analysts said in a note that the quarterly results were solid, especially against the tough macroeconomic backdrop, while the 2025 guidance was "understandably conservative".
Dassault's shares rose as much as 2.5 per cent at market open, before paring gains to trade broadly flat by 0840 GMT.
($1 = 0.9713 euros)
