Preliminary and Unaudited 2020 First Quarter non-IFRS Financial Information
(Unaudited, all revenue growth at constant currency and on a non-IFRS basis)
• Q1 2020 preliminary total revenue 2.5% to 5% below the low-end of Q120 objectives, reflecting weaker new licenses revenue and lower services activity
• Preliminary Q1 total revenue growth 14% to 17% at constant currency, reflecting the performance of Medidata as well as our organic recurring revenue growth
• Our initial growth objective, established before the COVID crisis, was 20% on the low-end, at constant currency
• Recurring software revenue representing approximately 84% of total software revenue in Q1, drove year-over-year growth, with solid renewals and good Medidata momentum, aligned with our initial guidance.
VÉLIZY-VILLACOUBLAY, France — April 1, 2020 — Dassault Systèmes (Euronext Paris: #13065, DSY.PA) today announces its preliminary non-IFRS unaudited total revenue outlook for the first quarter ended March 31, 2020. The Company will release its first quarter results on April 23, 2020 as previously disclosed.
The preliminary and unaudited non-IFRS financial information which follows is based upon initial assessment and is subject to further review. This estimate excludes the effect of adjusting the carrying value of acquired companies’ deferred revenue.
Bernard Charlès, Dassault Systèmes’ Vice Chairman and Chief Executive Officer commented, “This unprecedented SARS-CoV-2 crisis will create tremendous challenges for society at multiple levels. In this context of great uncertainty, we believe it is good governance to give a preliminary indication of its impact on our revenue for the first quarter 2020.
“Thanks to the 3DEXPERIENCE platform available on premise with remote connections and on the cloud, we can maintain the service and support that our customers need during these difficult times. We note the agility of some customers to adopt our collaborative innovation environment to pursue their engineering and manufacturing projects and to adapt their supply chain.
“This time of global challenge and profound transformation confirms the validity of the investments made recently to become a major player in the Life Sciences and Healthcare sector. This bold move to acquire Medidata has been made possible thanks to the support of our shareholders. As we move forward, we will continue to focus on helping all our clients to adapt and emerge stronger, in our three strategic sectors, Manufacturing Industries, Life Sciences & Healthcare and Infrastructure & Cities.”
Pascal Daloz, Chief Operating Officer and CFO, “In the first quarter, we note the strength of our business model, with recurring revenue representing 84% of the software revenue. Thanks to the solidity of recurring revenue and Medidata’s dynamic, we delivered double-digits total revenue growth in constant currencies for the quarter.
“In addition, given the current imperatives in all the industries we serve, especially in the Health Sector, we are focusing our efforts in this field and we are working extensively with Medidata to identify enhanced and innovative ways to assist pharmaceutical and medical devices companies in analyzing the impact of the pandemic on the clinical trials and leveraging current and developing technologies to mitigate risk through increased use of virtual capabilities.
“We will publish our financial results on April 23, 2020 and will discuss the full year perspectives.”
Information in Constant Currencies
All information is in constant currencies. The Company’s first quarter financial objectives were prepared based upon a US$1.15 per €1.00 and JPY125.0 to €1.00 exchange rates assumptions.
First Quarter Results Timing and Quiet Period
Dassault Systèmes will release its first quarter 2020 financial results on April 23, 2020, as previously disclosed. Following this preliminary First Quarter 2020 revenue outlook press release, the Company is stepping back into its quiet period.
Dassault Systèmes, the 3DEXPERIENCE Company, is a catalyst for human progress. We provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating 'virtual twin experiences’ of the real world with our 3DEXPERIENCE platform and applications, our customers push the boundaries of innovation, learning and production.
Dassault Systèmes’ 20,000 employees are bringing value to more than 290,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit https://www.3ds.com