Second Quarter 2018 versus 2017 Financial Comparisons on an IAS 18
(“IAS 18 IFRS and IAS 18 non-IFRS”)
- On an IAS 18 basis, total revenue increased 8% (IFRS and non-IFRS). Second quarter financial results include EXA Corporation, an acquisition completed on November 17, 2017. Excluding acquisitions, IAS 18 non-IFRS total revenue and software revenue increased 6%. (All growth rates are in constant currencies.)
- On an IAS 18 basis and in constant currencies: Software revenue increased 9% (IFRS and non-IFRS). Licenses and other software revenue grew 8% (IFRS and non-IFRS), with double-digit growth for CATIA, SOLIDWORKS, ENOVIA, DELMIA and GEOVIA. Non-IFRS Recurring revenue, comprised of Subscription and Support revenue, increased 9% reflecting double-digit growth in Subscription revenue with the acquisition of EXA, and continued high Support renewal rates.
- On a regional and IAS 18 basis: Asia non-IFRS software revenue increased 14% on strong growth in China, South Asia and India. In Europe non-IFRS software revenue increased 6% led by Southern Europe and Russia. In the Americas, non-IFRS software revenue increased 7%, led by Latin America and well supported by North America. High Growth Countries non-IFRS software revenue increased 25% on broad-based growth. (All growth rates are in constant currencies.)
- On an IAS 18 basis, 3DEXPERIENCE software revenue was up 18% in the second quarter of 2018 in constant currencies, with the largest transactions recorded in Aerospace & Defense, High Tech, Transportation & Mobility, Energy, Process & Utilities, Marine & Offshore and Consumer Packaged Goods.
- Services revenue increased 4% in constant currencies (IAS 18 IFRS and non-IFRS) with strong growth in 3DEXPERIENCE services activity.
- IAS 18 IFRS operating income increased 5.2%. IAS 18 non-IFRS operating income totaled €253.6 million, representing an increase of 4.0% as reported and 10% in constant currencies. The IAS 18 non-IFRS operating margin was 30.2%, compared to 30.1% in the year-ago quarter, reflecting underlying organic improvement of 100 basis points, off-setting negative currency effects of 40 basis points and acquisition dilution of about 50 basis points.
- Principally reflecting the U.S. Tax Reform Act of 2017, the Company’s IAS 18 IFRS and non-IFRS effective tax rates decreased to 25.6% and 27.8%, respectively, in the 2018 second quarter compared to 33.5% and 34.5%, respectively, in the 2017 second quarter. The second quarter effective tax rates also benefited from reversal of reserves following completion of a tax audit.
- IAS 18 non-IFRS financial revenue totaled €5.0 million, compared to € (0.7) million in the year-ago period on higher net interest income and lower currency exchange losses.
- IAS 18 IFRS diluted net income per share increased 8% or 14% in constant currencies. IAS 18 non-IFRS diluted net income per share totaled €0.72, increasing 16% or 22% at constant currency.
2018 First Half Financial Summary
In millions of Euros,
except per share data
|IFRS under IFRS15||IFRS under IAS18||Non-IFRS under IFRS15||Non-IFRS under IAS18|
|YTD 2018||Change||Change in cc*||YTD 2018||Change||Change in cc*|
|YTD 2018 Total Revenue||1,646.4||1,606.6||3%||9%||1,651.3||1,611.4||2%||9%|
|YTD 2018 Software Revenue||1,475.2||1,435.4||3%||10%||1,480.0||1,440.2||3%||9%|
|YTD 2018 Services Revenue||171.2||171.2||-4%||2%||171.2||171.2||-4%||2%|
|YTD 2018 Operating Margin||21.1%||19.1%||+0.7pts||30.4%||28.7%||+0.5pts|
|YTD 2018 EPS||1.02||0.91||12%||22%||1.41||1.30||13%||23%|
|Total Software Revenue in millions of Euros||IFRS under IFRS15||IFRS under IAS18||Non-IFRS under IFRS15||Non-IFRS under IAS18|
|YTD 2018||YTD 2017||Change in cc*||YTD 2018||YTD 2017||Change in cc*|