Nemetschek Group, a global provider of construction software, reported 15% year-on-year growth in revenue during Q3 2024 to €253m
Growth was driven revenue from construction software subscriptions and SaaS, which increased by 94.3% compared with Q3 2023, significantly outpacing total revenue and reaching a new record high of €150.3m.
Annual recurring revenue (ARR) increased by 33% to €883.3m, with organic growth amounting to 25.2%.
ARR growth was therefore significantly higher than revenue growth, which indicates significant growth potential in the next 12 months, the company said.
Strategic highlights
In line with the group’s strategy, the share of recurring revenues as a percentage of total revenues increased by more than 10 percentage points to 86% in the first nine months (prior-year period: 74.8%) and thus already reached the target for the full year 2024.
Group-wide transition of the business model to subscription and SaaS continues to progress successfully and according to plan, primarily driven by the Build segment with the transition of the Bluebeam brand and the SaaS solutions of the newly acquired GoCanvas business (since Q3) as well as the Design segment.
Continued internationalization and the intensified group-wide go-to-market approach are progressing according to plan. At 18.7% in North America and 19.4% in Asia-Pacific, growth abroad in the first nine months was significantly higher than in the German domestic market (+2.6%), which continues to be affected by the weak construction industry.
The group’s development activities continue to focus on new technologies such as artificial intelligence and cloud features. In order to increase the operational excellence and ensure future growth, Nemetschek continues to work on further enhancing its business structures and processes.
GoCanvas Holdings, Inc, the largest acquisition in the company’s history, was successfully completed by the Nemetschek Group on 1 July.
The US-based SaaS-company is a leading software provider for construction site collaboration. The complementary technologies, customer bases and regional sales structures of GoCanvas and the Nemetschek Group open up considerable synergy potential and growth opportunities.
The acquisition also strengthens the Nemetschek Group’s market position in North America, while providing GoCanvas with an attractive base for expansion in Europe and in the Asia-Pacific region.
Continued growth in challenging conditions
“Our third quarter clearly shows that the Nemetschek Group continues its profitable growth course – while transitioning to a subscription and SaaS-centric business model. Even though the general economic conditions remain challenging, especially in Europe, the strategic advantage of our globally operating brands is clearly evident,” said Yves Padrines, CEO of the Nemetschek Group.
“We continue to consistently implement our strategy of generating value-added growth and accelerating the digital transformation as well as the shift towards greater efficiency and sustainability for our customers in the construction industry.
“In addition to our continued internationalization and our focus on new technologies such as AI and cloud, the acquisition of GoCanvas will also contribute to future growth. With our performance in the first nine months of the year, we have created a strong basis to fully achieve our targets for 2024.”
