Dassault creates the $3 billion PLM club with strong Q4 and full year results

Even when taking currency fluctuations out of the equation, it was a good year.

Dassault Systemès (OTCMKTS: DASTY) has reported strong growth in revenue for the fourth quarter of 2015, and for the full year. Recurring software revenue now accounts for 70% of Dassault revenue.

Revenue in 4Q15 (ending December 31, 2015) was €796.5 million ($887.3 million), up 18% from a year ago and up 11% when calculated in constant currencies. For all of 2015 revenue was €2.83 billion ($3.16 billion), up 24% year-over-year and up 13% in constant currencies. Dassault Systemès becomes the first member of the $3 billion club among its peers in PLM/CAD and related technical software. Net income in the quarter was €127.4 million ($141.9 million), up 27%.

Dassault Systemès's impressive growth rate is fueled largely by the Euro's decline compared with the US Dollar. — **Dassault Systemès’s impressive growth rate is fueled largely by the Euro’s decline compared with the US Dollar.**

Dassault had help crossing the $3 billion line. Compare the annual Euros and annual US Dollars graphs below; most of torrid yearly growth is due to the fall of the Euro vs. the US Dollar. When compared in dollars, DS sales grew 3% year over year.

Dassault continues to gain from its many recent acquisitions that are helping it to redefine PLM as “3D Experience.” The portion of revenue from Other Software is now 24% of total revenue, replacing SolidWorks as the second largest line of business after Catia.

Expressed in US Dollar equivalents, Dassault Systemès's 3.3% growth is okay, but not dazzling for a high-priced stock. — **Expressed in US Dollar equivalents, Dassault Systemès’s 3.3% growth is okay, but not dazzling for a high-priced stock.**

Breaking down fourth quarter revenue:

New license revenue: €236.8 million ($x million), up 18.8%
Periodic license revenue: €466.5 million ($x million), up 18.7%
Services revenue: €93.2 million ($x million), up 15%.

Revenue by product line (c.c. means constant currencies):

Catia: €262.1 million, up 14% (7% c.c.)
Enovia: €95.2 million, up 22% (14% c.c.)
SolidWorks: €151.4 million, up 22% (14% in c.c.)
Other software: €194.6 million, up 23% (15% in c.c.).

**The Other Software category grew from 21% to 24% in 2015.**

**Revenue in all software divisions set quarterly records in 4Q15.**

Revenue by region:

Americas: €256.8 million, up 28% (12% in c.c.)
Europe: €348.5 million, up 9% (7% in c.c.)
Asia: €196.8 million up 25% (15% in c.c.).

**Sales in the Americas grew from 29% to 31% of the total in 2015.**

Dassault is building up its cash pile. Year-over-year, cash, cash equivalents and short-term investments are up by more than €1 billion, and long-term debt is up by €650 million from a year ago. This could foretell a major acquisition is coming.