First Quarter Revenues 2023
All information below concerns ‘constant perimeter'2, unless stated otherwise
ARR – reaching €62.0m, double-digit growth at +10.9% YoY, +11.8% at constant exchange rate (cer) adding €6.1m in ARR.
- Total revenue over guidance at €60.8m, +6.0% YoY, + 7.2% cer.
- Continued focus on the core business with the divestiture of SYSTUS and its related services activity – no impact on Q1
ESI Group, Rungis, France, (ISIN Code: FR0004110310, Symbol: ESI), today releases its sales for the first quarter of 2023 (period from January 1st to March 31st).
Thanks to our dedicated team and steadfast commitment to customers, we are thrilled to report that our Q1 revenue has exceeded our guidance. Our focus on Annual Recurring Revenue, combined with the strategic actions we put in place since the inception of our plan, have resulted in significant growth on our top line. We remain committed to driving growth and delivering exceptional value to our customers, and we look forward to building on this momentum in the quarters ahead."Cristel de RouvrayChief Executive Officer of ESI Group
In the first quarter of its fiscal year (January 1, 2023 - March 31, 2023), ESI recorded revenues of €60.8m, up 6,0% (+7.2% cer), above the guidance (5% to 7%). At current perimeter and exchange rates, quarterly revenue increases by +4.4%. The first quarter is the biggest quarter of the Group in terms of license business. The Group has been focusing on its core business to sustain such growth and saw an 8.9% increase in licensing revenues (+10.1% cer) in Q1. Conversely, the Group continues to focus on services that drive software usage thus shifting away from other types of services, experiencing a reduction of 22.0% in Q1 (-20.9% cer).
Significant development in Annual Recurring Revenue (ARR) supporting the Group's long-term growth
In continuity with the FY22 results, the Group is pursuing growth in its ARR revenues. Q1-23 saw a significant jump in ARR at +10.9% (+11.8% cer). This increase, which adds €6.1 million in ARR revenues, illustrates the results of ESI’s strategic focus and global sales transformation.
Continued focus on the core business
On April 17, ESI Group announced the sale of SYSTUS software and related engineering servicesThe sale of SYSTUS software and related activities to Framatome, an international player in the nuclear energy sector, illustrates the Group's continued execution of its strategic plan to focus on its core business. This activity represented €1.2 million in license revenues, €3.2 million in associated services revenues in 2022, and employed 27 people. The main customers are EDF and Framatome. This divestiture doesn’t impact the Group’s Q1 revenue.
More info HERE.
Group’s new corporate documents available for shareholders
2022 Universal Registration Document – HERE
H1 – FY23 Revenue perspectives
Long-term perspective, as shared during the Group’s investor day on September 27, 2022
These statements are subject to a number of risks and uncertainties, including those related to the COVID-19 virus and associated further economic and market disruptions; further adverse changes or fluctuations in the global economy; further adverse fluctuations in our industry, foreign exchange fluctuations, changes in the current global trade regulatory environment; fluctuations in customer demands and markets; fluctuations in demand for our products including orders from our large customers; cyber-attacks; expense overruns; and adverse effects of price changes or effective tax rates. The company directs readers to its Universal Registration Document – Chapter 3 presents the risks associated with the company’s future performance.
- Annual General meeting – June 29th, 2023
- Half-year results – September 14th, 2023
- The Group will organize an investor’s conference in early Fall 2023 and will give an update on the plan
1 ARR: Annual Recurring Revenue – All revenues from license sales (including maintenance services) excluding revenues from perpetual licenses and before changes in deferred revenues.
2 Constant perimeter: In order to factor for end of Russian activity (discontinued in 2022) as well
as sale of assets in the field of fluid simulation ('CFD'), in July 2022, corresponding revenue have been excluded from “constant perimeter” indicators.
3 “Constant Exchange Rate” (“cer”): Restatement of the currency effect consists of calculating aggregates for the current year at the exchange rate of the prior year. Starting from January 2023, following to the upgrade of consolidation software, turnover of foreign subsidiaries is converted at the monthly average rate (formerly, turnover was converted at quarterly average rate). This change in modality has no material impact in quarterly consolidated revenue.
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