LONDON (ShareCast) - (Sharecast News) - Shares of Dassault Systèmes jumped nearly 8% in Paris on Wednesday after the French software giant outperformed its own expectations in the third quarter, as growth in subscription sales accelerated.
The company, which provides product lifecycle management, virtual twins and 3D design, said total revenues were €1.42bn in the three months to 30 September, up 11% year-on-year with software sales coming in above the high-end of its target range.

Recurring revenues were up 10 percentage points to 81% of software revenues, as subscription sales growth rose to 18%, from 13% in the second quarter.

The company said it saw strong demand for its 3DEXPERIENCE platform, which connects an entire organisation's business into one online ecosystem, with revenues up 46% year-on-year.

"In the third quarter, we saw a significant number of large commercial agreements for our 3DEXPERIENCE platform," said deputy chief executive and chief operating officer Pascal Daloz.

"This is driven by the imperative for our customers to gain a competitive edge while staying profitable, meeting regulatory sustainability deadlines, and decoupling economic growth from resource consumption."

Group operating income rose 14% year-on-year to €302.5m, while the operating margin improved to 21.2%, from 19.3% a year earlier.

Dassault Systèmes reiterated its full-year guidance of 8-9% revenue growth but increased its forecast for diluted earnings per share by 1 cent to €1.19-1.21.

The stock was up 7.6 at €37.65 by 1201 CEST.

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