The $310 million Bernard Charles paid to acquire the American startup SOLIDWORKS in 1999 continues to pay big dividends for the French CAD giant, Dassault Systemes. In the last quarter, the company disclosed that SOLIDWORKS revenue grew 16 percent, making it the top performing brand in DS portfolio (measured in constant currencies). Licenses for SOLIDWORKS grew by double digits in Q3, with over 15,000 new customers so far in 2017. Many new customers are “3D to 3D win,” said Charles, referring to users migrating to SOLIDWORKS from other MCAD products.
Overall revenue for Dassault Systemes declined 7 percent to EUR€751 million for the quarter.(Chart from TenLinks.)
SOLIDWORKS has proved to be the best investment for Dassault Systemes, and with SOLIDWORKS 2018, the division continues its strong growth.
Meanwhile, CATIA, Dassault’s flagship enterprise CAD system, suffered a small decline with revenue down 1 percent. The company blames disappointing sales in China. South Korea and India sales were up, for a 6 percent increase in Asia-Pacific for the quarter.
GEOVIA, the division with mining software, was the next cited for highest growth with 12 percent, coming off a “deep and difficult” period in the mining industry. Dassault Systemes bought Gemcon in 2012 for $360 million.
Big Aero and Auto
A deal at Boeing was Dassault Systemes’ biggest ever, according to Charles. The company seems to be losing ground in the automotive sector with a couple of big auto account defections—Daimler Mercedes in 2014 and Yamaha earlier this year—but counted among its wins Scania, a maker of heavy trucks and buses, and a subsidiary of Volkswagen Scania had cast a roving eye at PTC’s PLM but ended up staying with ENOVIA. There also have been stumbles at Jaguar Land Rover.
Both Boeing and Scania were previous customers, so Dassault Systemes appears to be locking down big customers with long-term commitments as well as expanding the scope of its product use at these companies.
The company hopes to complete the $400 million Exa acquisition. The fluid simulation company Exa lists a $73 million revenue for 2016.