Nemetschek SE recently updated its financial outlook for the year 2024 following the acquisition of GoCanvas. The company confirmed its previous organic growth forecasts and expanded its outlook by considering the positive impacts of the acquisition. The Board of Directors anticipates an organic revenue growth of 10 to 11% in 2024, adjusted for currency effects. Annual Recurring Revenues (ARR) are expected to increase by approximately 25%, with the percentage of recurring revenues compared to total revenue reaching 85%. The EBITDA margin is projected to be between 30 and 31%.
The acquisition of GoCanvas is expected to contribute around 3 percentage points to revenue growth in 2024, even though it may dilute the EBITDA margin by 100 basis points due to decreased profitability and one-time costs associated with GoCanvas. In the second quarter of 2024, Nemetschek’s revenue rose by 9.7% to 227.7 million euros, and EBITDA increased by 9.5% to 61.4 million euros, with an EBITDA margin of 27%. In the first half of 2024, revenue increased by 9.6% to 451.6 million euros, with EBITDA rising by 10.8% to 129.7 million euros, resulting in a margin of 28.7%.
These developments demonstrate the company’s commitment to growth and strategic expansion through acquisitions like GoCanvas. Despite the dilution in EBITDA margin, the overall impact on revenue growth is expected to be positive. The company’s focus on recurring revenues also indicates a stable financial performance and a strong foundation for future growth.
Nemetschek SE continues to position itself as a key player in the industry, leveraging acquisitions to enhance its product offerings and expand its market reach. The company’s updated outlook for 2024 reflects its confidence in achieving sustainable growth and delivering value to its stakeholders. Investors and industry analysts will be closely monitoring Nemetschek’s performance in the coming quarters to assess the impact of the GoCanvas acquisition and the overall financial trajectory of the company.
As Nemetschek SE navigates the evolving business landscape and capitalizes on new opportunities, its ability to execute strategic acquisitions and drive organic growth will be critical in realizing its long-term vision and maximizing shareholder value. The company’s financial updates underscore its proactive approach to managing market dynamics and leveraging acquisitions to fuel innovation and competitiveness in the industry.
