Dassault Systemes (DAST.PA), a French software company, increased its profit projection for 2023 on Wednesday. This came after the company’s shares saw a 6% increase in subscription sales during the third quarter.
At the upper end of its quarterly expectation of 1.40–1.42 billion euros, total sales climbed by 11% in constant currency to 1.42 billion euros ($1.51 billion).
The corporation claims this was due to the widespread adoption of its subscription model and an 18% increase in subscription income from a larger proportion of significant 3DEXPERIENCE contracts.
The 3DEXPERIENCE platform’s sales growth surged to 46% in the third quarter, up from just 2% in the second quarter to 15% in the previous year. The platform includes project management, data management, and 3D modeling tools.
While it is true that some significant 3DEXPERIENCE deals were what drove the outperformance, brokerage ODDO BHF stated in a client note that “this is still a very solid publication from Dassault Systemes.”
The quarter saw a 12% rise in software revenue overall, with a 21% increase in Europe. Sales increased by 5% in Asia and 9% in the Americas during the quarter.
China managed to maintain resilience despite challenging economic conditions, with mid-single-digit percentage growth in software revenues, according to the business.
Compared to 31% in the third quarter, Dassault Systemes anticipates fourth-quarter sales of 1.64 billion to 1.68 billion euros and an operating margin between 35.8% and 36.6%.
It reaffirmed its annual sales expectation of 8–9% growth and increased its full-year aim for diluted profits per share from 1.18–1.20 euros to 1.19–1.21 euros.