Dassault Systemes cuts full-year outlook due to customer delays

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.