Nemetschek Group Reports Strong Q1 2024 Results with Surge in Subscription and SaaS Revenues

Nemetschek Group started 2024 with a robust financial performance, showing double-digit revenue growth and a significant increase in profitability in the first quarter. The Munich-based global provider of software solutions for the building and media industries reported notably strong outcomes in its subscription and Software as a Service (SaaS) segments.

The company achieved a remarkable 68.0% growth in subscription and SaaS revenues which reached EUR 106.3 million. Annual Recurring Revenue (ARR) also saw an impressive 25.4% rise, totaling EUR 743.6 million. Overall, Nemetschek's revenue increased by 10.3% to EUR 223.9 million, with the EBITDA margin improving to 30.5%. Earnings per share rose by 17.4% to EUR 0.37.

The positive Q1 results are largely attributed to the increased digitalization demand within the construction industry, with Nemetschek's strategic emphasis on subscription and SaaS models paying off. CEO Yves Padrines highlighted the adoption of new technologies like digital twins and cloud solutions as key growth drivers. The company's expansion in India and strategic partnerships aimed at enhancing digital workflows in construction further underline its growth-focused trajectory.

The Group confirmed its outlook for 2024, expecting a revenue growth of 10-11% and a further increase in ARR by around 25%. Nemetschek is optimistic about surpassing the industry average with a mid-teens revenue growth in 2025, assuming stable macroeconomic and industry conditions.