Dassault Systemes cuts full-year outlook due to customer delays

9th Jul 2024 10:11

(Sharecast News) - Shares in Dassault Systemes were in the red on Tuesday after the French software group reduced its profit outlook for 2024 on the back of customer order delays.

The Vélizy-Villacoublay-based company, which provides 3D design, digital mock-up and product lifecycle management solutions, said it now expects to grow full-year revenues by just 6-8% after second-quarter sales came up €30m short of estimates.

The reduction in guidance, from earlier projections for 8-10% growth, was a result of "large transaction delays", according to chief executive Pascal Daloz.

Full-year diluted earnings per share growth is now being targeted at 8-11% year-on-year, compared with earlier guidance of 10-12% growth.

The company reported a revenue of €1.495bn for the second quarter ended 30 June, up 4% on last year but shy of the €1.525-1.555bn projection, though diluted EPS was in line with guidance at 30 cents.

"While we apologise for this shortfall, I want to confirm my commitment to Dassault Systèmes' long track record of delivering results in accordance with our guidance," Daloz said.

"Although second-quarter pipeline permitted to deliver on our initial guide and the need for our solutions remains strong, we have observed cautiousness in customer signings in a complex geopolitical environment."

Daloz said the company expects that "volatility in customers' decision-making" will likely continue.

The stock was down 4% at €34.08 by 1223 BST.