Software maker Nemetscheck hits two-year high after 2023 beat

Bentley Systems

08/02/2024 10:13

** Shares in Nemetscheck  NEKG.DE  rise 4%, its highest in
roughly two years, after the German software maker's 2023
preliminary earnings beat estimates
    ** Its annual revenue rose to 851.6 million euros ($918.37
million), and above the LSEG mean estimate of 849.8 million
euros
    ** Earnings before interest, taxes, depreciation, and
amortization (EBITDA) margin hit 30.3% in the year - above the
firm's own guidance of 30% 
        ** Berenberg notes implied Q4 revenue and EBITDA are
ahead of company-compiled consensus, with the beat being most
notable on profitability 
  
        ** "Based on strong profitbility levels, we suspect that
licence revenues were robust in Q4 – and that there was a strong
Q4 performance in the Design segment," the broker adds
  
        ** According to the broker, Nemetschek's positive
results offer positive readacross to Procore  PCOR.N , Bentley
Systems  BSY.O  and Autodesk  ADSK.O 
  
    ** Baader Helvea analysts are optimistic on Nemetschek
delivering EBITDA margin over 30% and a double-digit revenue
growth in 2024, noting the company's successful transition
execution 

($1 = 0.9273 euros)

 (Reporting by Andrey Sychev)
 ((andrey.sychev@thomsonreuters.com))