Dassault Systèmes SE (OTC:DASTY) Q4 2022 Earnings Call Transcript

So here, we see a multi-scale too, which, by the way, includes material science in the case of the battery. We have a lot of activities going on with a lot of battery players around the world in this area. So, basically, those are the two dimensions. And I think it differentiates. I think that there still are certain specializations, which are missing in the preprocessor or post-processor, but this is in the €“ as you mentioned, the product , this is being addressed. And some of our competitors have been good at preprocessor or the post-processor, but I think this will not last. And I think we’ll evolve with that because sometimes there are announcement, as you may know, with competitors where they are announcing to be selected, but it’s only because of preprocessing or because of post-processing mainly.

So, it’s really a systematic application for us. On the go-to-market, our teams now are really well trained to approach customer engagement with solutions. Last point I would mention is, we have a very strong win success with simulation cloud for SOLIDWORKS customers. In fact, as you know, it’s only cloud solution available. There are a lot of replacement of existing competitors installation connected to SOLIDWORKS, adopting now our solid €“ our integrated platform approach even with SOLIDWORKS desktop because it’s simpler for them. They can have multi-discipline like electromagnetics on structure. And it works quite well. And I believe we will see more of that coming this year and the years to come. We are pleased with the dynamic, and I don’t know if you want to add something, Pascal, but I think the dynamic there is very good.

And as you know, just to not take too much long time, but we left that plate open for so many years, I mean, the SOLIDWORKS installed base. This is over.

Jay Vleeschhouwer: Well, that leads to my next question, which is about SOLIDWORKS. A couple of things there for you, Pascal. Would it be fair to say that the new unit volume in 2022 was perhaps only about flat at best with 2021 and was not yet back at the record you’ve set back in 2018? And then relatedly, on a couple of prior calls, you recall, we spoke about 3DEXPERIENCE WORKS and the contribution from that. Would it be correct to say that the contribution from the various components of 3DEX WORKS amounts to perhaps a single-digit percent of SOLIDWORKS total revenue? Maybe you could comment on that.

Pascal Daloz: Okay. So, the first point is, you’re right. I mean, it’s a little bit, in terms of units, it’s slightly better compared to last year, but it’s flattish, let’s say this way. And the reason is, the gap is coming from China for us in terms of number of units. You know it’s a market where we have a lot of momentum and the consignment hurt us. And over that, we quantify almost the amount and it’s in the range of 25 million, 30 million new license missing, right, coming specifically from China. It does not mean we are losing the market against the competitors. Just say it’s a mis-opportunity for 2022, and we do expect to recover progressively in 2023 and 2024. Related to the WORKS family, I think we are happy with what is happening.