ESI Group: Third Quarter and 9-Month Revenues 2023
November 10 2023 - 12:00PM
Business Wire
All information below concerns ‘constant
perimeter’1, unless stated otherwise.
- 9-month Revenues: +6.8% at constant exchange rate (cer)2
+4.0% YoY (year-over-year)
- 9-month Licenses: +10.0% cer, +7.2% YoY
- 9-month Recurring Revenues3 increased by +14.0% cer (+11.3%
YoY) representing 90.0% of total revenues compared to 84.0% in
2022
Regulatory News:
ESI Group, Rungis, France, (ISIN Code: FR0004110310, Symbol:
ESI) (Paris:ESI), today reveals its revenue for the first nine
months of 2023 (period from January 1 to September 30) and the
third quarter of 2023 (period from July 1 to September 30).
Recent Key Events
On November 3, ESI Group and Keysight Technologies announced the
completion of the acquisition of a controlling block of shares in
ESI Group by Keysight Technologies. More info HERE.
On November 6, ESI Group’s board of directors issued a favorable
opinion on the tender offer to be initiated by Keysight
Technologies. Consequently, a draft mandatory tender offer (« Offre
publique d’achat ») has been filed by Keysight with the French
Autorité des marchés financiers (the “AMF”) on 7 November 2023 to
acquire all the outstanding shares issued by ESI Group not already
held by Keysight (the "Offer"), at a price of 155 euros per share
in cash.
On the same day, ESI Group also announced changes to its board
of directors and its CEO. The new chairman is Hamish Gray (SVP
Corporate Services Keysight) et Olfa Zorgati was announced as the
new CEO. More info HERE.
Revenues at Constant Perimeter
(€m)
2023
2022
Change
Change Constant
exchange rate (cer)
Q3 - Licenses
17.4
17.3
+0.5%
+6.9%
Q3 - Services
3.4
3.5
-3.6%
+0.8%
Q3 - Total
20.7
20.8
-0.2%
+5.9%
9m - Licenses
94.4
88.0
+7.2%
+10.0%
9m - Services
9.7
12.1
-19.8%
-17.2%
9m - Total
104.1
100.1
+4.0%
+6.8%
(€m)
30/09/2023 9m
30/09/2022 9m
Change
Change Constant
exchange rate (cer)
Total Revenue
104.1
100.1
+4.0%
+6.8%
Licenses
94.4
88.0
+7.2%
+10.0%
ARR (Annual Recurring Revenue)
93.5
84.0
+11.3%
+14.0%
PUL (Paid-up License)
3.6
6.2
-42.9%
-40.4%
Deferred Revenue
-2.6
-2.2
+21.2%
+19.9%
Services
9.7
12.1
-19.8%
-17.2%
Third-quarter, year-to-year, and constant perimeter
comparison
In Q3 2023, ESI Group generated sales of €20.7m (+5.9% cer, and
-0.2% YoY) driven by licenses at €17.4m (+6.9% cer, +0.5% YoY). The
impact of the forex rates intensified in Q3, primarily driven by
the Japanese Yen variation against Euro.
9-month, year-to-year, and constant perimeter
comparison
ESI Group’s sales for the first 9 months of 2023 amounted to
€104.1m (+6.8% cer, +4.0% YoY) compared to €100.1m for the same
period last year, driven by licenses +10.0% cer. The ongoing growth
of the ARR (Annual Recurring Revenue) is bolstering the Group's
expansion, with a +14.0% cer increase, reaching €93.5 million
compared to €84.0 million in the same period of 2022.
The business grew across all geographies at cer, led by EMEA
with +10.0% growth. The 9-month 2023 sales geographical breakdown
by region at current exchange rates is as follows: EMEA represents
48% (vs 45% in 2022), Asia represents 36% (vs 39% in 2022) and the
Americas represent 16% (stable against 2022). The variations of the
Japanese Yen continued to impact the Asian performance when looking
at the numbers at current exchange rates.
Over the past 9 months, the Automotive industry has remained the
primary driver of growth for ESI Group.
Revenues at Current Perimeter
(€m)
2023
2022
Change
Change Constant
exchange rate (cer)
Q3 - Licenses
17.0
17.8
-4.1%
+2.1%
Q3 - Services
3.4
4.6
-26.4%
-23.0%
Q3 - Total
20.4
22.3
-8.7%
-3.1%
9m - Licenses
95.2
91.7
+3.9%
+6.6%
9m - Services
10.7
15.0
-28.2%
-26.1%
9m - Total
106.0
106.7
-0.6%
+2.0%
About ESI Group
Founded in 1973, ESI Group envisions a world where Industry
commits to bold outcomes, addressing high stakes concerns -
environmental impact, safety & comfort for consumers and
workers, and adaptable and sustainable business models. ESI
provides reliable and customized solutions anchored on predictive
physics modeling and virtual prototyping expertise to allow
industries to make the right decisions at the right time while
managing their complexity. Acting principally in automotive &
land transportation, aerospace, defense & naval, and heavy
industry, ESI is present in more than 18 countries, employs 1000
people around the world, and reported 2022 sales of €130 million.
ESI is headquartered in France and is listed in compartment B of
Euronext Paris.
For further information, go to www.esi-group.com.
https://www.esi-group.com/company/who-we-are
------------
1 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, and the sale of
its SYSTUS software and its related consulting activities in April
2023, corresponding revenue have been excluded from “constant
perimeter” indicators. 2 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).. 3 Annual Recurring Revenue -
Total ESI Group Licenses revenue excluding PUL (Paid-up License)
& deferred revenue.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231110985614/en/
ESI - Shareholder Relations Florence Barré investors@esi-group.com +33 1 49 78 28 28
orson. - Press & Shareholder Relations Gaël
Durand-Perdriel gael.durand-perdriel@orson.ai +33 7 85 63 63 19
Element Solutions (NYSE:ESI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Element Solutions (NYSE:ESI)
Historical Stock Chart
From Jul 2023 to Jul 2024