Enterprise Software Market Remained Robust in Q1 2018

Summary

The worldwide enterprise software market continued to grow in the first quarter of 2018.  This market expanded on the back of relentless innovation and available capital.  Once again, exchange rates played a role, with the strengthening of the euro relative to the US dollar.  This 15.3 percent exchange rate fluctuation provided a healthy lift to revenues reported in euros that ARC subsequently translated to US dollars for this report.

Suppliers included in this report recorded combined quarterly revenue of over $24 billion, representing 8.8 percent year-over-year (YoY) growth.

Enterprise Software Supplier Revenues

This ARC Advisory Group report discusses the most recent quarterly revenue results of the major publicly traded enterprise software companies.  The financial results reported in foreign currencies were translated to US dollars using an average exchange rate for the given reporting period.  The suppliers’ reporting period for this analysis was the quarter ending in March 2018, unless stated otherwise.

While this report focuses on the enterprise software portion for the respective companies mentioned, the R&D expenses shown are a factor of total company revenues.

American Software (Logility) reported total revenue of $29.4 million for the quarter that ended in April 2018.  This represents an increase of 11.8 percent from the same period last year.  License revenues declined by 24.2 percent to $2.9 million.  Services and other revenues increased by 30 percent to $15.5 million and maintenance revenues increased by 4.4 percent to $10.9 million.  Cloud Services Annual Contract Value (ACV) increased approximately 108 percent to $12.7 million for the quarter compared with $6.1 million in the same quarter of the previous year.  

Autodesk reported total revenue of $559.9 million for the quarter that ended in April 2018.  This represents an increase of 15.2 percent from the same period the previous year.  Revenue from the architecture, engineering, and construction (AEC) segment increased by 19 percent to $222 million.  Revenue from the AutoCAD product family and AutoCAD LT was $156 million, an increase of 21 percent compared with the first quarter last year. Revenue from the manufacturing product family was $135 million, an increase of 6 percent compared with the first quarter last year.  Finally, the revenue from media and entertainment (M&E) product family was $42 million, an increase of 15 percent compared with the first quarter last year.  EMEA revenue was $221 million, Americas $234 million, and APAC $106 million.  Subscription plan annualized recurring revenue (ARR) was $1.4 billion, an increase of 103 percent compared with the same period last year.  Total ARR was $2.13 billion, an increase of 22 percent compared with the first quarter last year as reported on a constant currency basis.

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Keywords: Enterprise Software, Quarterly Supplier Revenues, Asia Pacific, Europe, Middle East & Africa, Latin America, North America, ARC Advisory Group.