Nemetschek Group is forecasting strong revenue growth and continued high profitability for the financial year 2025 after meeting or exceeding all of its financial targets in FY2024
The construction software provider said group revenue for the financial year 2024 grew by 16.9% to €995.6m.
This was achieved despite a continued challenging market environment in Europe, as well as the ongoing transition of the business model to subscription and SaaS offerings, the group said.
2024 financial year highlights
Annual recurring revenue increased by 41.9% (currency-adjusted: 41.6%) to €1,019.9m, with organic growth amounting to 34.6% (currency-adjusted: 34.2%).
The main driver was the revenue from subscription and SaaS models with an increase of 88.1% (organic: 79.5%). In line with the group strategy, the share of recurring revenue as a percentage of total revenue grew to 86.5% (previous year: 76.6%) and was therefore above the target share of around 85%.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA), including all transformation and acquisition-related effects, increased by 16.8% to €301m.
Net income for the year grew by 8.8% to €175.4m due to acquisition-related effects, which corresponds to earnings per share of €1.52.
Transition to construction software-as-a-service model
A group-wide transition of the business model to subscription and SaaS progressed successfully and according to plan in 2024. In addition to the Build segment, in which the Bluebeam brand successfully completed its transition to a subscription-based business model, the Design segment as well as the purely SaaS-based revenue from the acquisition of GoCanvas were main drivers.
In addition, Nemetschek continued its internationalisation drive, as well as the group-wide go-to-market approach. The revenue growth abroad increased over-proportionally by around 21% in 2024. Nemetschek further expanded its presence in high-growth regions such as India – including the opening of a go-to-market office in Mumbai.
Digital innovation drives success
Innovation remains a key success factor. With the AI & Data Innovation Hub, the Nemetschek Group is strengthening synergies, increasing efficiency and driving forward the development of ethical and trustworthy AI-supported solutions.
Sustainability is also playing an even greater role in the group strategy. Through innovative solutions, Nemetschek is setting new standards for a resource-efficient construction industry.
Acquisitions and investments in start-ups are key components of Nemetschek’s growth strategy. The acquisition of the US-based company GoCanvas expanded the portfolio to include SaaS solutions in the area of field management for greater safety and efficiency on construction sites.
The Nemetschek Group also continued to invest in innovative start-ups. In the last three years, it has acquired stakes in more than a dozen companies that further optimise the building process through the use of new technologies such as AI.
Optimistic outlook for 2025
Nemetschek is optimistic for the current financial year: the group expects to continue its profitable growth course in 2025 with a strong double-digit revenue growth of 17% to 19% and a sustained high EBITDA margin of around 31%. This includes a revenue contribution of around 350 basis points from GoCanvas, which was acquired in 2024.
“2024 was another very successful year for the Nemetschek Group thanks to our resilient business model with a high share of recurring revenues, our broad global presence and our innovative solutions,” said Yves Padrines, CEO of the Nemetschek Group.
“We have also made significant progress with our strategic initiatives, including the well-advanced transition of our business model to subscription and SaaS, new features in the area of artificial intelligence and the acquisition of GoCanvas – the largest acquisition in the company’s history.
“These milestones strengthen our foundation for the next phase of growth. Together with the structural growth drivers in our industries, which are becoming even more relevant due to the increasing cost pressure in the construction industry, all signs are once again pointing to continued substantial growth and the continuation of our success story in 2025.”
