Dassault Systemes is anticipating continued revenue growth and improved profitability in the upcoming year after successfully meeting its guidance for the final months of 2023.
In the period between October and December, the French software firm reported a non-IFRS operating profit of €589.8 million ($638.1 million), compared to €552.1 million from the same period a year prior.
Dassault Systemes experienced an 8% increase in revenue at constant currency, amounting to €1.64 billion, primarily driven by growth in their core software business. They achieved an operating margin of 35.9%, a one percentage point rise compared to the previous year.
For the entire year, Dassault Systemes achieved an operating profit of €1.93 billion on revenue totalling €5.95 billion, equating to a margin of 32.4%.
In line with other European software companies, Dassault Systemes presents two sets of figures. The International Financial Reporting Standards (IFRS) set adheres to the global reporting standard; however, analysts and investors generally focus on the non-IFRS numbers, which exclude variables such as share-based compensation, restructuring expenses, and acquisition-related charges.
Looking ahead, the company projects a 8%-10% growth in revenue for this year, excluding currency effects, along with a slight improvement in profitability.
Furthermore, Dassault Systemes announced that it will be supplying new software to German automaker BMW, with whom they have a longstanding partnership. The 3DExperience platform aims to assist BMW in the development of their vehicles, as stated by Dassault Systemes.