- IFRS and non-IFRS software revenue increased 8% and represented 89% of total revenue. IFRS and non-IFRS new licenses and other software related revenue increased 12% benefiting from a strong growth dynamic across a majority of geos. Recurring revenue grew 6% on a non-IFRS basis and represented 74% of total software revenue. (All growth rates are in constant currencies.)
- Services revenue, representing 11% of total revenue, decreased 3% in constant currencies (IFRS and non-IFRS), with growth in manufacturing and 3DEXPERIENCE service engagements offset by the expansion of the role of system integrators in service engagements and by mixed results for select brands.
- Total revenue increased 6% (IFRS and non-IFRS). Third quarter financial results include CST, an acquisition completed on September 30, 2016. Excluding acquisitions, non-IFRS software revenue increased 5% and non-IFRS total revenue increased 4% on lower services revenue. (All growth rates are in constant currencies.)
- Core Industries represented 68% of non-IFRS software revenue for the third quarter 2017. Diversification Industries represented 32% of total non-IFRS software compared to 31% in the 2016 third quarter. The largest 3DEXPERIENCE transactions recorded in the quarter included companies in High Tech, Transportation & Mobility, Aerospace & Defense, and Marine & Offshore, most notably.
- Non-IFRS software revenue increased 9% in the Americas, with strong growth in both North America and Latin America. In Europe, non-IFRS software revenue increased 8% with strong results in multiple geos. In Asia, non-IFRS software revenue increased 6% with growth across the region except China with mixed channel performance. (All growth figures in constant currencies.)
- By product line and on a non-IFRS basis, SOLIDWORKS software revenue increased 16% led by strong growth in new licenses revenue on a global basis. Other Software increased 13% and excluding acquisitions was led by SIMULIA and GEOVIA in the quarter. CATIA software revenue decreased 1% on mixed results by certain sales channel and in China. ENOVIA software revenue increased 5%. (All growth comparisons are in constant currencies.)
- IFRS operating income was essentially unchanged as reported. Non-IFRS operating income of €240.7 million increased 2%, with a negative currency impact of 5 percentage points. The non-IFRS operating margin was 32%, stable with the year-ago quarter, thanks to operational improvements offsetting the negative impact from currency of 30 basis points.
- The IFRS effective tax rate increased to 32.9% from 28.2% in the prior year quarter. On a non-IFRS basis, the effective tax rate increased 120 basis points to 31.4% in the 2017 third quarter compared to 30.2% in the year-ago period.
- Currency had six points of growth negative influence on earnings per share results on both an IFRS and non-IFRS basis. IFRS diluted net income per share decreased 7% to €0.41. Non-IFRS diluted net income per share increased 2% to €0.64 and increased an estimated 8% in constant currencies.
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2017 Nine Months Financial Summary
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||||||||||||
| In millions of Euros, except per share data | IFRS | Non-IFRS | ||||||||||
| Change | Change in cc* | Change | Change in cc* | |||||||||
| YTD 2017 Total Revenue | 2,317.6 | 6% | 6% | 2,329.2 | 7% | 7% | ||||||
| YTD 2017 Software Revenue | 2,057.8 | 7% | 7% | 2,069.4 | 7% | 7% | ||||||
| YTD 2017 Services Revenue | 259.8 | 3% | 3% | 259.8 | 3% | 3% | ||||||
| YTD 2017 Operating Margin | 19.4% | 29.4% | ||||||||||
| YTD 2017 EPS | 1.22 | 3% | 1.79 | 5% | ||||||||
| Total Software Revenue in millions of Euros | IFRS | Non-IFRS | ||||||||||
| YTD 2017 | YTD 2016 | Change in cc* | YTD 2017 | YTD 2016 | Change in cc* | |||||||
| Americas | 626.1 | 582.2 | 7% | 629.7 | 583.2 | 8% | ||||||
| Europe | 855.9 | 803.5 | 8% | 863.2 | 804.2 | 8% | ||||||
| Asia | 575.8 | 542.7 | 5% | 576.5 | 543.0 | 5% | ||||||
