Earnings Release • Feb 3, 2022
Earnings Release
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VELIZY-VILLACOUBLAY, France — February 3, 2022
Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA), today announced IFRS unaudited financial results for the fourth quarter and year ended December 31, 2021. The Group's Board of Directors approved these results on February 2, 2022. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix to this communication.
(unaudited, in constant currencies, diluted EPS)
"Ten years ago, in February 2012, we unveiled our new brand identity to the world – "The 3DEXPERIENCE Company" – and our corporate purpose – "harmonize product, nature and life". Today, the significance of our strategy is clear: our clients and partners have embraced the experience economy. They are transforming all sectors and industries with sustainability and human centricity as central pillars of a new era. We see this reflected in our great 2021 achievements.
The experience economy, accelerated by the pandemic, triggers new categories of expectations from citizens, patients, learners and consumers. This is apparent in our everyday life. Tomorrow's mobility is no longer a matter of vehicles. It's a matter of desirable, sustainable mobility experiences. Tomorrow's healthcare is much more than therapeutics. It's about the patient journey and precision medicine. Tomorrow's cities are not only a collection of buildings, streets and facilities. It's about quality of life and quality of service. To support these transformations, we need to take a more holistic approach. I believe the innovators of today and tomorrow have to think in terms of "universes", that is to say in terms of organic systems of systems that create, produce and play an experience in a circular economy. With the 3DEXPERIENCE IFWE Loop, we can provide this holistic view combining value creation and value experienced, design and usage, to cover the full experience lifecycle. We can make this a reality through virtual twin experiences based on modeling and simulation, real world evidence and immersive virtual reality.
I truly believe the ongoing transformation toward a sustainable economy will mark this century.
We recently celebrated the 40th anniversary of Dassault Systèmes: two generations of innovators have revealed the power of virtual worlds to imagine and create disruptive innovations. We are now focused on our next horizon: 2040. Our objective is to be the leader in sustainable innovation and to continue to position our clients at the vanguard of progress across Manufacturing Industries, Life Sciences & Healthcare and Infrastructure & Cities.
To support our long-term initiatives, we have established the next generation of leaders. With Pascal Daloz as Chief Operating Officer and Rouven Bergmann as Chief Financial Officer, we are very well positioned to execute successfully against the tremendous opportunities ahead of us for many years to come.
Ultimately, all progress is human and Dassault Systèmes' purpose has never been more important. IFWE imagine the next twenty years, together we can make it a reality. "
| In millions of Euros, | IFRS | IFRS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| except per share data and percentages |
Q4 2021 | Q4 2020 | Change | Change in constant currencies |
YTD 2021 | YTD 2020 | Change | Change in constant currencies |
||||
| Total Revenue | 1,367.8 | 1,219.3 | 12% | 10% | 4,860.1 | 4,452.2 | 9% | 11% | ||||
| Software Revenue | 1,239.5 | 1,105.3 | 12% | 10% | 4,402.6 | 4,012.6 | 10% | 12% | ||||
| Operating Margin | 23.3% | 23.2% | +0.0pt | 21.0% | 15.0% | +5.9pts | ||||||
| Diluted EPS * | 0.18 | 0.15 | 15% | 0.58 | 0.37 | 56% |
| In millions of Euros, | Non-IFRS | Non-IFRS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| except per share data and percentages |
Q4 2021 | Q4 2020 | Change | Change in constant currencies |
YTD 2021 YTD 2020 |
Change | Change in constant currencies |
|||||
| Total Revenue | 1,367.9 | 1,219.6 | 12% | 10% | 4,861.7 | 4,464.8 | 9% | 11% | ||||
| Software Revenue | 1,239.6 | 1,105.7 | 12% | 10% | 4,404.0 | 4,024.0 | 9% | 11% | ||||
| Operating Margin | 36.8% | 36.0% | +0.8pt | 34.3% | 30.2% | +4.0pts | ||||||
| Diluted EPS * | 0.29 | 0.24 | 17% | 0.95 | 0.75 | 26% |
* 2020 figures have been restated in order to reflect the five-for-one share split on Dassault Systèmes' share effected on July 7, 2021
(unaudited, all revenue growth rates in constant currencies)
Key Growth Drivers: Non-IFRS 3DEXPERIENCE software revenue increased 8% to 33% of software revenue. The strong value proposition of the 3DEXPERIENCE platform continues to be a key factor in driving large client wins. Non-IFRS cloud software revenue grew 20%, and represents 19% of non-IFRS software revenue. Cloud has been the preferred option for new entrants across all industries from EV mobility providers to high-tech and biotech companies. There is an acceleration of legacy clients – both at the enterprise and mainstream levels – recognizing the benefits of the cloud.
Operating Income and Margin: IFRS operating income increased 12.3%, as reported. Non-IFRS operating income rose 14.7% to €502.9 million, as reported. Non-IFRS operating margin increased 80 basis points to 36.8%.
(revenue growth rates in constant currencies, data on a non-IFRS basis, cash flow IFRS)
"The strong business momentum we experienced throughout the year continued into the fourth quarter, resulting in performance well aligned with our objectives. Total revenue grew 10% with licenses and other software revenue increasing 15% and support and subscription rising 8%. Services revenue was up 10%. Diluted EPS grew 17%. Operating margin expanded 80 basis points year-over-year to 36.8%, versus the high-end of our guidance of 36.4%. We continued to invest in expanding our team during the quarter.
Overall, for 2021, we achieved excellent performance. Our three product lines delivered with Industrial Innovation growing 7%, Life Sciences increasing 16% and Mainstream Innovation up 18% on the back of broad based demand across regions and industries. In terms of strategic objectives, 3DEXPERIENCE software revenue increased 15% with cloud software revenue rising 23%. Our 3DEXPERIENCE platform has been a competitive advantage and key factor in driving new client wins. The cloud has been the preferred option for new entrants while we believe we're seeing an inflection point in incumbents recognizing the value of cloud deployment.
It's clear the strategic initiatives we undertook a decade ago – creating our 3DEXPERIENCE platform, cloud infrastructure and introducing our purpose – are being validated. We are very well positioned to capitalize on the expansion of our total addressable market, expanding our footprint and leveraging our large, installed base with industry solutions.
We are thrilled to have Rouven Bergmann in the role of Chief Financial Officer. Since our acquisition of Medidata in 2019, Rouven has played a critical role in integrating our businesses and unlocking the potential for the Life Sciences' sector. It's been a pleasure working together and, as we extend our successful partnership, Rouven's significant experience will be indispensable in ensuring continuity in financial operations as we continue to deliver and scale game changing innovation for our clients."
(revenue growth rates in constant currencies, data on a non-IFRS basis, cash flow IFRS)
"I am delighted to take on the position of Chief Financial Officer and build on the incredible effective partnership that Pascal and I have created since the acquisition of Medidata in late 2019. My primary focus, as CFO, will be to support the company's momentum as we continue to grow and to scale the business efficiently while accelerating the share of recurring revenue with subscriptions and cloud. For 2022, we are confident to continue our expansion, building on our strong track record and our success in 2021.
For 2022, we expect the broad-based demand dynamics we experienced in the fourth quarter to continue into next year. We are targeting non-IFRS total revenue growth of 9% to 10% in constant currencies and software revenue growth in the same range. Our diluted earnings per share objective is 3% to 6% growth, reaching €0.98 to €1.00."
(unaudited, all revenue growth rates in constant currencies)
€1.613 billion. Cash from operations was used principally for loan repayments of €341 million, treasury stock repurchases of €283 million as well as dividends payment of €147 million.
• Balance Sheet (IFRS): Dassault Systèmes' net financial debt at December 31, 2021 decreased by €1.152 billion to € (0.889) billion, compared to € (2.041) billion at December 31, 2020, reflecting cash, cash equivalents and short-term investments of €2.980 billion and debt related to borrowings of €3.870 billion at December 31, 2021. Dassault Systèmes' adjusted net debt /IFRS EBITDAO ratio stood at 0.8x at December 31, 2021, compared to 1.8x at December 31, 2020, based on an adjusted net debt including the lease liabilities as reported under IFRS 16 of €1.491 billion and an IFRS EBITDAO of €1.768 billion.
Dassault Systèmes' first quarter and full year 2022 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2022 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:
| Q1 2022 | FY 2022 | |
|---|---|---|
| Total Revenue | €1.275 to €1.300 | €5.300 to €5.350 |
| billion | billion | |
| Growth | +9-11% | +9-10% |
| Growth ex FX | +7-9% | +9-10% |
| Software revenue growth * | +7-9% | +9-10% |
| Of which licenses and other software revenue growth * | +9-12% | +10-12% |
| Of which recurring revenue growth * | +7-9% | +9-9.5% |
| Services revenue growth * | +5-7% | +8-9% |
| Operating Margin | 32.3% – 33.0% | 32.7% – 33.1% |
| EPS Diluted | €0.23 - €0.24 | €0.98 - €1.00 |
| Growth | +3-7% | +3%-6% |
| US dollar | \$1.17 per Euro | \$1.17 per Euro |
| Japanese yen (before hedging) | JPY 130.0 per Euro | JPY 130.0 per Euro |
| * Growth in Constant Currencies |
These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.
The 2022 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2022 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €151 million (these estimates do not include any new stock option or share grants issued after December 31, 2021); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €361 million, largely impacted by the acquisition of Medidata; and lease incentives of acquired companies at approximately €3 million. The above objectives also do not include any impact from other operating income and expenses, net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from onetime items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after December 31, 2021.
December 9, 2021 Atos and Dassault Systèmes to Deliver Trusted Sovereign Cloud Platform Experience for Critical Industries: This highly secure deployment enables collaborative cloud experiences while providing full control of data, processes, and intellectual property. The platform can be set up in any country, with respect to industry and local regulations. Clients – notably in the critical and sensitive defense and healthcare sectors - will benefit from the combination of Dassault Systèmes' 3DEXPERIENCE platform on the cloud and Atos' OneCloud Sovereign Shield.
December 2, 2021 NAAREA Chooses the 3DEXPERIENCE Platform to Develop the Virtual Twin of Its Extra Small Modular Reactor: NAAREA, a newly created Francebased company, will use Dassault Systèmes' 3DEXPERIENCE platform on the cloud to virtually design its solution, the XSMR extra small sustainable modular nuclear reactor. The XSMR is an ultra-compact clean energy source that uses fuel from existing reserves of industrial waste without consuming natural resources.
Today, Thursday, February 3, 2022, Dassault Systèmes will host a webcasted presentation at 9:00 AM London Time/ 10:00 AM Paris time and will then host a conference call at 9:00 AM New York time / 2:00 PM London time / 3:00 PM Paris time. The webcasted presentation and conference call will be available online by accessing investor.3ds.com.
Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes' Investor Relations at +33.1.61.62.69.24.
First Quarter 2022 Earnings Release: April 27, 2022 Capital Markets Day: June 16, 2022
Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group's non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.
The Group's actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the "Risk Factors" section 1.9 of the 2020 Universal Registration Document ('Document d'enregistrement universel') filed with the AMF (French Financial Markets Authority) on March 19, 2021, as updated in the 2021 Half-Year Financial Report ('Rapport Financier Semestriel' as of June 30, 2021) filed with the AMF on July 27, 2021, both available on the Group's website www.3ds.com.
In particular, please refer to the risk factor "Uncertain Global Economic Environment" in section 1.9.1.1 of the 2020 Universal Registration Document set out below for ease of reference:
"In light of the uncertainties regarding economic, business, social, health, climate and geopolitical conditions at the global level, Dassault Systèmes' revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:
Dassault Systèmes makes every effort to take into consideration this uncertain macroeconomic outlook. Dassault Systèmes' business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes' products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Group's business results.
The economic context (as notably caused by the COVID-19 pandemic crisis) may also adversely
impact the financial situation or financing capabilities of Dassault Systèmes' existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or cease operations due to cash flow and profitability issues. Dassault Systèmes' ability to collect outstanding receivables may be affected. In addition, the economic environment could generate increased price pressure, as customers seek lower prices from various competitors, which could negatively impact Dassault Systèmes' revenue, financial performance and market position.
In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US\$1.17 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY130.0 to €1.00 before hedging for the first quarter and the full year 2022. However, currency values fluctuate, and the Group's results may be significantly affected by changes in exchange rates.
Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group's supplemental non-IFRS financial information may not be comparable to similarly titled "non-IFRS" measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company's 2020 Universal Registration Document filed with the AMF on March 19, 2021.
In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies' deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.
Dassault Systèmes' 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com
Connect with Dassault Systèmes on
Dassault Systèmes, the 3DEXPERIENCE Company, is a catalyst for human progress. We provide business and people with collaborative 3D 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 brings value to more than 300,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit www.3ds.com
+33 1 61 62 69 24/70 21 Jamie Ricketts : +44 20 3727 1600 [email protected] Elena Kalinskaya: +44 20 3727 1600 USA & Canada: [email protected]
Dassault Systèmes Press Contact Arnaud Malherbe +33 1 61 62 87 73 [email protected]
François-José Bordonado /Béatrix Martinez: Arnaud de Cheffontaines: +33 1 47 03 69 48
© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the Compass icon, the 3DS logo, CATIA, BIOVIA, GEOVIA, SOLIDWORKS, 3DVIA, ENOVIA, NETVIBES, MEDIDATA, CENTRIC PLM, 3DEXCITE, SIMULIA, DELMIA, and IFWE are commercial trademarks or registered trademarks of Dassault Systèmes, a French "société européenne" (Versailles Commercial Register # B 322 306 440), or its subsidiaries in the United States and/or other countries.
(Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures).
Glossary of Definitions
Non-IFRS Financial Information
Acquisitions and Foreign Exchange Impact
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
We have followed a long-standing policy of measuring our revenue performance and setting our revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in our total revenue and software revenue by activity, industry, geography and product line. We believe it is helpful to evaluate our growth exclusive of currency impacts, particularly to help understand revenue trends in our business. Therefore, we provide percentage increases or decreases in our revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. Variations in constant currencies are obtained by comparing the performances of the current period with the ones of the comparable period recalculated using the average exchange rates of the current period.
While constant currency calculations are not considered to be an IFRS measure, we do believe these measures are critical to understanding our global revenue results and to compare with many of our competitors who report their financial results in U.S. dollars. Therefore, we are including this calculation for comparing IFRS revenue figures for comparable periods as well as for comparing non-IFRS revenue figures for comparable periods. All constant currency information is provided on an approximate basis.
In addition to financial indicators on the entire Group's scope, Dassault Systèmes provides growth excluding the impact of acquisitions, also named organic growth. The related growth rate is determined by restating the scope of activity as follows: for entities entering the consolidation scope in the current year, subtracting the contribution of the acquisition from the aggregates of the current year and, for entities entering the consolidation scope in the previous year, subtracting the contribution of the acquisition from January 1st of the current year, until the last day of the month of the current year when the acquisition was made the previous year.
Dassault Systèmes' Industries develop Solution Experiences, industry-focused offerings that deliver specific value to companies and users in a particular industry. We serve eleven industries structured into three sectors:
Our product lines financial reporting include: 1) Industrial Innovation software revenue, comprised of our CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands; 2) Life Sciences software revenue, comprised of our MEDIDATA and BIOVIA brands; and 3) Mainstream Innovation software revenue, comprised of CENTRIC PLM and 3DVIA brands as well as our 3DEXPERIENCE WORKS family which includes our SOLIDWORKS brand.
To measure the progressive penetration of 3DEXPERIENCE software, we use the following ratios: a) for Licenses revenue, we calculate the percentage contribution by comparing total 3DEXPERIENCE Licenses revenue to Licenses revenue for all product lines except SOLIDWORKS and acquisitions ("related Licenses revenue"); and, b) for software revenue, the Group calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS and acquisitions ("related software revenue").
Cloud revenue corresponds to revenue generated through a catalog of online services delivered by Dassault Systèmes via a cloud infrastructure hosted by Dassault Systèmes, or by third party providers of cloud computing infrastructure services. This offering is available through different deployment methods: public cloud, private cloud, dedicated cloud. All cloud applications can be offered through perpetual licenses and maintenance or subscriptions models.
The Adjusted Net Debt corresponds to the net financial debt position (borrowings net of cash, cash equivalent and short-term investments) adjusted of IFRS 16 lease liabilities.
The IFRS EBITDAO corresponds to the IFRS operating income adjusted of amortization, depreciation and impairment expense of intangible and tangible assets and of non-cash sharebased payment expense (excluding related social charges).
(unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)
Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies' contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.
Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.
| Non-IFRS reported | ||||||||
|---|---|---|---|---|---|---|---|---|
| In millions of Euros, except per share data, | Three months ended | Twelve months ended | ||||||
| percentages, headcount and exchange rates |
December 31, 2021 |
December 31, 2020 |
Change | Change in constant currencies |
December 31, 2021 |
December 31, 2020 |
Change | Change in constant currencies |
| Total Revenue | € 1,367.9 | € 1,219.6 | 12% | 10% | € 4,861.7 | € 4,464.8 | 9% | 11% |
| Revenue breakdown by activity | ||||||||
| Software revenue | 1,239.6 | 1,105.7 | 12% | 10% | 4,404.0 | 4,024.0 | 9% | 11% |
| Of which licenses and other software revenue |
347.6 | 298.9 | 16% | 15% | 982.9 | 807.5 | 22% | 23% |
| Of which subscription and support revenue |
891.9 | 806.7 | 11% | 8% | 3,421.1 | 3,216.5 | 6% | 8% |
| Services revenue | 128.3 | 114.0 | 13% | 10% | 457.8 | 440.8 | 4% | 6% |
| Software revenue breakdown by product line |
||||||||
| Industrial Innovation (1) | 682.3 | 623.8 | 9% | 8% | 2,417.9 | 2,288.5 | 6% | 7% |
| Life Sciences (2) | 245.1 | 218.4 | 12% | 9% | 899.8 | 797.3 | 13% | 16% |
| Mainstream Innovation | 312.2 | 263.5 | 18% | 14% | 1,086.3 | 938.3 | 16% | 18% |
| Revenue breakdown by geography | ||||||||
| Americas | 506.4 | 438.3 | 16% | 11% | 1,867.7 | 1,700.4 | 10% | 13% |
| Europe | 553.6 | 495.8 | 12% | 10% | 1,830.7 | 1,675.6 | 9% | 9% |
| Asia | 307.8 | 285.5 | 8% | 7% | 1,163.4 | 1,088.8 | 7% | 9% |
| Operating income | € 502.9 | € 438.5 | 15% | € 1,666.2 | € 1,349.8 | 23% | ||
| Operating margin | 36.8% | 36.0% | 34.3% | 30.2% | ||||
| Net income attributable to shareholders | € 380.2 | € 323.0 | 18% | € 1,265.3 | € 994.7 | 27% | ||
| Diluted earnings per share (3) | € 0.29 | € 0.24 | 17% | € 0.95 | € 0.75 | 26% | ||
| Closing headcount | 22,306 | 21,497 | 4% | 22,306 | 21,497 | 4% | ||
| Average Rate USD per Euro | 1.14 | 1.19 | (4)% | 1.18 | 1.14 | 4% | ||
| Average Rate JPY per Euro | 130.01 | 124.61 | 4% | 129.88 | 121.85 | 7% |
(1) Excluding ENOVIA Life Sciences Compliance and Quality Management
(2) Including ENOVIA Life Sciences Compliance and Quality Management
(3) 2020 figures have been restated in order to reflect the five-for-one share split on Dassault Systèmes' share effected on July 7, 2021
In millions of Euros Non-IFRS reported o/w growth at constant rate and scope o/w change of scope impact at current year rate o/w FX impact on previous year figures December 31, 2021 December 31, 2020 Change Revenue QTD 1,367.9 1,219.6 148.2 116.7 2.1 29.4 Revenue YTD 4,861.7 4,464.8 396.9 468.6 4.5 (76.2)
(unaudited; in millions of Euros, except per share data and percentages)
| IFRS reported | |||||
|---|---|---|---|---|---|
| Three months ended | Twelve months ended | ||||
| In millions of Euros, except per share data and percentages | December 31, | December 31, | December 31, | December 31, | |
| 2021 | 2020 | 2021 | 2020 | ||
| Licenses and other software revenue | 347.6 | 298.9 | 982.9 | 807.5 | |
| Subscription and Support revenue | 891.8 | 806.4 | 3,419.7 | 3,205.2 | |
| Software revenue | 1,239.5 | 1,105.3 | 4,402.6 | 4,012.6 | |
| Services revenue | 128.3 | 113.9 | 457.5 | 439.6 | |
| Total Revenue | € 1,367.8 | € 1,219.3 | € 4,860.1 | € 4,452.2 | |
| Cost of software revenue (1) | (109.5) | (92.5) | (407.3) | (341.5) | |
| Cost of services revenue | (97.4) | (91.5) | (383.0) | (408.1) | |
| Research and development expenses | (249.0) | (231.7) | (949.3) | (935.4) | |
| Marketing and sales expenses | (377.0) | (314.9) | (1,299.9) | (1,256.3) | |
| General and administrative expenses | (117.3) | (106.4) | (400.8) | (390.7) | |
| Amortization of acquired intangible assets and of tangible assets revaluation |
(95.1) | (91.8) | (369.0) | (394.5) | |
| Other operating income and expense, net | (4.0) | (7.1) | (31.3) | (56.0) | |
| Total Operating Expenses | (1,049.5) | (936.0) | (3,840.7) | (3,782.5) | |
| Operating Income | € 318.3 | € 283.3 | € 1,019.4 | € 669.7 | |
| Financial loss, net | (2.5) | (4.4) | (15.1) | (23.4) | |
| Income before income taxes | € 315.8 | € 278.9 | € 1,004.3 | € 646.3 | |
| Income tax expense | (78.5) | (73.7) | (230.4) | (160.8) | |
| Net Income | € 237.3 | € 205.1 | € 773.8 | € 485.5 | |
| Non-controlling interest | (0.2) | (1.4) | (0.2) | 5.5 | |
| Net Income attributable to equity holders of the parent | € 237.1 | € 203.7 | € 773.7 | € 491.0 | |
| Basic earnings per share (2) | 0.18 | 0.16 | 0.59 | 0.38 | |
| Diluted earnings per share (2) | € 0.18 | € 0.15 | € 0.58 | € 0.37 | |
| Basic weighted average shares outstanding (in millions) | 1,311.5 | 1,305.8 | 1,309.8 | 1,302.2 | |
| Diluted weighted average shares outstanding (in millions) | 1,333.3 | 1,322.1 | 1,332.1 | 1,320.9 |
(1) Excluding amortization of acquired intangible assets and of tangible assets revaluation
(2) 2020 figures have been restated in order to reflect the five-for-one share split on Dassault Systèmes' share effected on July 7, 2021
| Three months ended December 31, 2021 | Twelve months ended December 31, 2021 | |||||
|---|---|---|---|---|---|---|
| IFRS reported | Change (5) | Change in constant currencies |
Change (5) | Change in constant currencies |
||
| Revenue | 12% | 10% | 9% | 11% | ||
| Revenue by activity | ||||||
| Software revenue | 12% | 10% | 10% | 12% | ||
| Services revenue | 13% | 10% | 4% | 6% | ||
| Software Revenue by product line | ||||||
| Industrial Innovation (3) | 9% | 8% | 6% | 7% | ||
| Life Sciences (4) | 12% | 9% | 14% | 18% | ||
| Mainstream Innovation | 18% | 14% | 16% | 18% | ||
| Revenue by geography | ||||||
| Americas | 16% | 11% | 11% | 14% | ||
| Europe | 12% | 10% | 9% | 9% | ||
| Asia | 8% | 7% | 7% | 9% |
(3) Excluding ENOVIA Life Sciences Compliance and Quality Management
(4) Including ENOVIA Life Sciences Compliance and Quality Management
(5) Variation compared to the same period in the prior year
(unaudited; in millions of Euros)
| IFRS reported | ||
|---|---|---|
| In millions of Euros | December 31, | December 31, |
| 2021 | 2020 | |
| ASSETS | ||
| Cash and cash equivalents | 2,979.5 | 2,148.9 |
| Trade accounts receivable, net | 1,366.3 | 1,229.1 |
| Contract assets | 12.7 | 27.0 |
| Other current assets | 360.5 | 355.4 |
| Total current assets | 4,719.0 | 3,760.3 |
| Property and equipment, net | 817.0 | 861.1 |
| Goodwill and Intangible assets, net | 8,175.0 | 7,937.2 |
| Other non-current assets | 507.7 | 405.6 |
| Total non-current assets | 9,499.7 | 9,203.9 |
| Total Assets | € 14,218.7 | € 12,964.2 |
| LIABILITIES AND EQUITY | ||
| Trade accounts payable | 192.4 | 171.7 |
| Contract liabilities | 1,304.4 | 1,169.1 |
| Borrowings, current | 903.3 | 16.0 |
| Other current liabilities | 1,070.3 | 730.1 |
| Total current liabilities | 3,470.3 | 2,086.9 |
| Borrowings, non-current | 2,966.4 | 4,174.3 |
| Other non-current liabilities | 1,571.0 | 1,596.9 |
| Total non-current liabilities | 4,537.4 | 5,771.2 |
| Non-controlling interests | 13.7 | 44.8 |
| Parent shareholders' equity | 6,197.3 | 5,061.3 |
| Total Liabilities and equity | € 14,218.7 | € 12,964.2 |
(unaudited; in millions of Euros)
| IFRS reported | ||||||
|---|---|---|---|---|---|---|
| In millions of Euros | Three months ended | Twelve months ended | ||||
| December 31, | December 31, | Change | December 31, | December 31, | Change | |
| 2021 | 2020 | 2021 | 2020 | |||
| Net income attributable to equity holders of the parent | 237.1 | 203.7 | 33.4 | 773.7 | 491.0 | 282.7 |
| Non-controlling interest | 0.2 | 1.4 | (1.2) | 0.2 | (5.5) | 5.7 |
| Net income | 237.3 | 205.1 | 32.2 | 773.8 | 485.5 | 288.3 |
| Depreciation of property and equipment | 49.0 | 43.6 | 5.4 | 179.4 | 179.1 | 0.3 |
| Amortization of intangible assets | 98.0 | 95.2 | 2.8 | 381.1 | 407.6 | (26.5) |
| Adjustments for other non-cash items | 40.1 | 52.4 | (12.3) | 144.6 | 155.8 | (11.2) |
| Changes in working capital | (60.6) | (158.5) | 97.9 | 134.3 | 13.3 | 121.0 |
| Net Cash Provided by (Used in) Operating Activities | € 363.8 | € 237.9 | € 125.9 | € 1,613.1 | € 1,241.3 | € 371.8 |
| Additions to property, equipment and intangibles | ||||||
| (29.9) | (22.3) | (7.6) | (103.7) | (127.0) | 23.3 | |
| Payment for acquisition of businesses, net of cash acquired | (14.0) | (69.5) | 55.5 | (21.4) | (89.5) | 68.1 |
| Other | ||||||
| (23.6) | 6.0 | (29.6) | (35.3) | 8.5 | (43.8) | |
| Net Cash Provided by (Used in) Investing Activities | € (67.5) | € (85.8) | € 18.3 | € (160.4) | € (208.0) | € 47.6 |
| Proceeds from exercise of stock options | 33.2 | 11.7 | 21.5 | 156.0 | 87.7 | 68.3 |
| Cash dividends paid | ||||||
| - | - | - | (147.1) | (182.5) | 35.4 | |
| Repurchase and sale of treasury stock | ||||||
| (26.9) | (62.6) | 35.7 | (283.2) | (166.2) | (117.0) | |
| Acquisition of non-controlling interests | - | (5.2) | 5.2 | (0.1) | (5.2) | 5.1 |
| Proceeds from borrowings | ||||||
| (0.1) | 6.3 | (6.4) | 1.3 | 18.5 | (17.2) | |
| Repayment of borrowings | ||||||
| (0.6) | (400.8) | 400.2 | (341.2) | (400.9) | 59.7 | |
| Repayment of lease liabilities | (24.4) | (23.9) | (0.5) | (97.6) | (93.3) | (4.3) |
| Net Cash Provided by (Used in) Financing Activities | € (18.8) | € (474.5) | € 455.7 | € (711.9) | € (741.9) | € 30.0 |
| Effect of exchange rate changes on cash and cash | 31.6 | (34.9) | 66.5 | 89.8 | (87.4) | 177.2 |
| equivalents | ||||||
| Increase (decrease) in cash and cash equivalents | € 309.1 | € (357.2) | € 666.3 | € 830.6 | € 204.0 | € 626.6 |
| Cash and cash equivalents at beginning of period | € 2,670.4 | € 2,506.1 | € 2,148.9 | € 1,944.9 | ||
| Cash and cash equivalents at end of period | € 2,979.5 | € 2,148.9 | € 2,979.5 | € 2,148.9 |
Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group's supplemental non-IFRS financial information may not be comparable to similarly titled "non-IFRS" measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group's Document d'Enregistrement Universel for the year ended December 31, 2020 filed with the AMF on March 19, 2021. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group's consolidated financial statements prepared in accordance with IFRS.
| Three months ended December 31, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| In millions of Euros, except per share data and percentages | 2021 IFRS |
Adjustment(1) | 2021 Non IFRS |
2020 IFRS |
Adjustment(1) | 2020 Non IFRS |
IFRS | Non IFRS(4) |
|
| Total Revenue | € 1,367.8 | € 0.1 | € 1,367.9 | € 1,219.3 | € 0.4 | € 1,219.6 | 12% | 12% | |
| Revenue breakdown by activity | |||||||||
| Software revenue | 1,239.5 | 0.1 | 1,239.6 | 1,105.3 | 0.3 | 1,105.7 | 12% | 12% | |
| Licenses and other software revenue | 347.6 | - | 347.6 | 298.9 | - | 298.9 | 16% | 16% | |
| Subscription and Support revenue | 891.8 | 0.1 | 891.9 | 806.4 | 0.3 | 806.7 | 11% | 11% | |
| Recurring portion of Software revenue | 72% | 72% | 73% | 73% | |||||
| Services revenue | 128.3 | - | 128.3 | 113.9 | 0.0 | 114.0 | 13% | 13% | |
| Software Revenue breakdown by product line | |||||||||
| Industrial Innovation (2) | 682.3 | - | 682.3 | 623.8 | - | 623.8 | 9% | 9% | |
| Life Sciences (3) | 245.1 | - | 245.1 | 218.1 | 0.2 | 218.4 | 12% | 12% | |
| Mainstream Innovation | 312.1 | 0.1 | 312.2 | 263.4 | 0.1 | 263.5 | 18% | 18% | |
| Revenue breakdown by geography | |||||||||
| Americas | 506.4 | 0.1 | 506.4 | 438.0 | 0.3 | 438.3 | 16% | 16% | |
| Europe | 553.5 | 0.0 | 553.6 | 495.8 | 0.1 | 495.8 | 12% | 12% | |
| Asia | 307.8 | - | 307.8 | 285.5 | - | 285.5 | 8% | 8% | |
| Total Operating Expenses | € (1,049.5) | € 184.5 | € (864.9) | € (936.0) | € 154.9 | € (781.1) | 12% | 11% | |
| Share-based compensation expense and related social charges | (84.7) | 84.7 | - | (55.2) | 55.2 | - | |||
| Amortization of acquired intangible assets and of tangible assets revaluation |
(95.1) | 95.1 | - | (91.8) | 91.8 | - | |||
| Lease incentives of acquired companies | (0.7) | 0.7 | - | (0.7) | 0.7 | - | |||
| Other operating income and expense, net | (4.0) | 4.0 | - | (7.1) | 7.1 | - | |||
| Operating Income | € 318.3 | € 184.6 | € 502.9 | € 283.3 | € 155.2 | € 438.5 | 12% | 15% | |
| Operating Margin | 23.3% | 36.8% | 23.2% | 36.0% | |||||
| Financial loss, net | (2.5) | 0.2 | (2.3) | (4.4) | 0.4 | (4.1) | (43)% | (44)% | |
| Income tax expense | (78.5) | (41.6) | (120.1) | (73.7) | (34.7) | (108.4) | 6% | 11% | |
| Non-controlling interest | (0.2) | (0.2) | (0.4) | (1.4) | (1.6) | (3.0) | (88)% | (88)% | |
| Net Income attributable to shareholders | € 237.1 | € 143.1 | € 380.2 | € 203.7 | € 119.3 | € 323.0 | 16% | 18% | |
| Diluted Earnings Per Share (5) | € 0.18 | € 0.11 | € 0.29 | € 0.15 | € 0.09 | € 0.24 | 15% | 17% |
(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies' contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.
| Three months ended December 31, | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In millions of Euros, except percentages |
2021 IFRS |
Share-based compensation expense and related social charges |
Lease incentives of acquired companies |
2021 Non IFRS |
2020 IFRS |
Share-based compensation expense and related social charges |
Lease incentives of acquired companies |
2020 Non IFRS |
IFRS | Non IFRS |
| Cost of revenue | (206.9) | 7.5 | 0.2 | (199.2) | (184.0) | 3.5 | 0.2 | (180.3) | 12% | 10% |
| Research and development expenses |
(249.0) | 29.3 | 0.3 | (219.4) | (231.7) | 19.0 | 0.3 | (212.4) | 7% | 3% |
| Marketing and sales expenses |
(377.0) | 25.3 | 0.1 | (351.6) | (314.9) | 15.6 | 0.1 | (299.2) | 20% | 18% |
| General and administrative expenses |
(117.3) | 22.6 | 0.1 | (94.7) | (106.4) | 17.1 | 0.1 | (89.2) | 10% | 6% |
| Total | € 84.7 | € 0.7 | € 55.2 | € 0.7 |
(2) Excluding ENOVIA Life Sciences Compliance and Quality Management. (3) Including ENOVIA Life Sciences Compliance and Quality Management. (4) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure. (5) Based on a weighted average 1,333.3 million diluted shares for Q4 2021 and 1,322.1 million diluted shares for Q4 2020. 2020 figures have been restated in order to reflect the five-for-one share split on Dassault Systèmes' share effected on July 7, 2021.
(unaudited; in millions of Euros, except per share data and percentages)
Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group's supplemental non-IFRS financial information may not be comparable to similarly titled "non-IFRS" measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group's Document d'Enregistrement Universel for the year ended December 31, 2020 filed with the AMF on March 19, 2021. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group's consolidated financial statements prepared in accordance with IFRS.
| Twelve months ended December 31, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| In millions of Euros, except per share data and percentages | 2021 IFRS |
Adjustment(1) | 2021 Non-IFRS |
2020 IFRS |
Adjustment(1) | 2020 Non-IFRS |
IFRS | Non IFRS(4) |
|
| Total Revenue | € 4,860.1 | € 1.6 | € 4,861.7 | € 4,452.2 | € 12.6 | € 4,464.8 | 9% | 9% | |
| Revenue breakdown by activity | |||||||||
| Software revenue | 4,402.6 | 1.4 | 4,404.0 | 4,012.6 | 11.4 | 4,024.0 | 10% | 9% | |
| Licenses and other software revenue | 982.9 | - | 982.9 | 807.5 | - | 807.5 | 22% | 22% | |
| Subscription and Support revenue | 3,419.7 | 1.4 | 3,421.1 | 3,205.2 | 11.4 | 3,216.5 | 7% | 6% | |
| Recurring portion of Software revenue | 78% | 78% | 80% | 80% | |||||
| Services revenue | 457.5 | 0.2 | 457.8 | 439.6 | 1.2 | 440.8 | 4% | 4% | |
| Software Revenue breakdown by product line | |||||||||
| Industrial Innovation (2) | 2,417.9 | - | 2,417.9 | 2,287.6 | 0.8 | 2,288.5 | 6% | 6% | |
| Life Sciences (3) | 898.8 | 1.0 | 899.8 | 787.3 | 9.9 | 797.3 | 14% | 13% | |
| Mainstream Innovation | 1,085.9 | 0.4 | 1,086.3 | 937.6 | 0.6 | 938.3 | 16% | 16% | |
| Revenue breakdown by geography | |||||||||
| Americas | 1,866.3 | 1.4 | 1,867.7 | 1,688.6 | 11.8 | 1,700.4 | 11% | 10% | |
| Europe | 1,830.5 | 0.2 | 1,830.7 | 1,675.2 | 0.4 | 1,675.6 | 9% | 9% | |
| Asia | 1,163.3 | 0.0 | 1,163.4 | 1,088.4 | 0.4 | 1,088.8 | 7% | 7% | |
| Total Operating Expenses | € (3,840.7) | € 645.2 | € (3,195.5) | € (3,782.5) | € 667.5 | € (3,115.0) | 2% | 3% | |
| Share-based compensation expense and related social charges | (242.1) | 242.1 | - | (214.1) | 214.1 | - | |||
| Amortization of acquired intangible assets and of tangible assets revaluation |
(369.0) | 369.0 | - | (394.5) | 394.5 | - | |||
| Lease incentives of acquired companies | (2.8) | 2.8 | - | (2.9) | 2.9 | - | |||
| Other operating income and expense, net | (31.3) | 31.3 | - | (56.0) | 56.0 | - | |||
| Operating Income | € 1,019.4 | € 646.8 | € 1,666.2 | € 669.7 | € 680.1 | € 1,349.8 | 52% | 23% | |
| Operating Margin | 21.0% | 34.3% | 15.0% | 30.2% | |||||
| Financial loss, net | (15.1) | 1.4 | (13.7) | (23.4) | 1.1 | (22.3) | (35)% | (39)% | |
| Income tax expense | (230.4) | (152.9) | (383.3) | (160.8) | (172.0) | (332.8) | 43% | 15% | |
| Non-controlling interest | (0.2) | (3.8) | (4.0) | 5.5 | (5.5) | - | (103)% | N/A | |
| Net Income attributable to shareholders | € 773.7 | € 491.6 | € 1,265.3 | € 491.0 | € 503.7 | € 994.7 | 58% | 27% | |
| Diluted Earnings Per Share (5) | € 0.58 | € 0.37 | € 0.95 | € 0.37 | € 0.38 | € 0.75 | 56% | 26% |
(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies' contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.
| Twelve months ended December 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In millions of Euros, except percentages |
2021 IFRS |
Share-based compensation expense and related social charges |
Lease incentives of acquired companies |
2021 Non IFRS |
2020 IFRS |
Share-based compensation expense and related social charges |
Lease incentives of acquired companies |
2020 Non IFRS |
IFRS | Non IFRS |
| Cost of revenue | (790.3) | 17.6 | 0.8 | (771.9) | (749.7) | 13.1 | 0.8 | (735.8) | 5% | 5% |
| Research and development expenses |
(949.3) | 84.6 | 1.3 | (863.4) | (935.4) | 75.7 | 1.3 | (858.4) | 1% | 1% |
| Marketing and sales expenses |
(1,299.9) | 70.3 | 0.4 | (1,229.2) | (1,256.3) | 62.3 | 0.4 | (1,193.6) | 3% | 3% |
| General and administrative expenses |
(400.8) | 69.6 | 0.3 | (331.0) | (390.7) | 63.1 | 0.4 | (327.2) | 3% | 1% |
| Total | € 242.1 | € 2.8 | € 214.1 | € 2.9 |
(2) Excluding ENOVIA Life Sciences Compliance and Quality Management. (3) Including ENOVIA Life Sciences Compliance and Quality Management. (4) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure. (5) Based on a weighted average 1,332.1 million diluted shares for YTD 2021 and 1,320.9 million diluted shares for YTD 2020. 2020 figures have been restated in order to reflect the five-for-one share split on Dassault Systèmes' share effected on July 7, 2021.
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