Nemetschek Q1 2025: Subscription Surge Drives Record Growth

2025-05-02 06:13:45 ET

Summary

• Recurring Revenue Surge: Q1 2025 revenue rose 26.3% YoY, with SaaS and subscription sales up 83.6% and ARR topping €1 billion.
• Build Segment Drives Growth: Strong momentum in Build and North America boosted results, supported by GoCanvas and Bluebeam.
• Outlook Remains Strong: Continued investment in AI, Digital Twins, and global expansion positions Nemetschek for sustained double-digit growth.
• Premium Valuation Backed by Quality: Nemetschek trades at a premium, supported by high margins, recurring revenue, and solid long-term guidance.

Nemetschek (US Ticker: NEMTF); (German Ticker: NEM) delivered a robust performance in the first quarter of 2025, reinforcing its position as a leading global provider of AEC/O (Architecture, Engineering, Construction, and Operations) software. Total revenue rose 26.3% YoY to €282.8 million, driven by strong subscription and SaaS momentum. ARR surged 39.6% to €1.04 billion, underscoring the company's successful pivot to a recurring revenue model. Despite a non-operating loss from the insolvency of a payment service provider, underlying profitability remained strong with a 31.4% EBITDA margin....

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