Dassault Systemes, the French software firm, saw its shares surge by 6.1% today, following the release of its non-IFRS Q3 results that exceeded market expectations. The reported figures excluded share-based compensation, restructuring expenses, and acquisition-related charges.
The company reported an overall revenue growth of 11% year on year at constant currencies, reaching €1.42 billion ($1.50 billion). This was driven by a 12% increase in software revenue to €1.29 billion and a modest 2% rise in services revenue to €138 million.
Operating profit for the quarter rose to €442 million from €433.5 million. This increase pushed the operating margin to 31%, outperforming Jefferies' consensus of a 30.4% margin on revenue of €1.41 billion and operating profit of €430.5 million.
In terms of forward-looking statements, Dassault Systemes had projected Q3 revenue between €1.40 billion and €1.42 billion. The company now anticipates Q4 revenue to fall between €1.64 billion and €1.68 billion, with an operating margin ranging from 35.8% to 36.6%. Additionally, the annual revenue is forecasted to be between €5.95 billion and €5.99 billion, with an operating margin of 32.3% to 32.6%.
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