Dassault Systemes Upbeat on Fresh Growth After Matching 2023 Hopes

By Joshua Kirby

Dassault Systemes expects continued revenue growth and increased profitability in the coming year after reaching its guidance for the last months of 2023.

The French software firm's posted a non-IFRS operating profit of 589.8 million euros ($638.1 million) between October and December, rising from EUR552.1 million in the same period a year earlier, it said Thursday.

Revenue increased 8% at constant currency to EUR1.64 billion, led by growth in the mainstay software business, with an operating margin of 35.9%, a percentage point higher than in the same period of 2022.

For the year as a whole, Dassault Systemes made operating profit of EUR1.93 billion on revenue of EUR5.95 billion, representing a margin of 32.4%.

Dassault Systemes, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards--an international accounting method that seeks to provide a global reporting standard--but analysts and investors tend to follow non-IFRS numbers. Those figures exclude share-based compensation, restructuring expenses and acquisition-related charges.

Looking ahead, the company said it expects revenue growth of 8%-10% this year, excluding currency effects, and a slight increase in profitability.

Separately, Dassault Systemes said Thursday that it will provide new software to German auto maker BMW, a long-term partner. The 3DExperience platform will help BMW develop its vehicles, Dassault Systemes said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

February 01, 2024 01:46 ET (06:46 GMT)

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