Shares drop 9.3% as company reports below-expectation Q4 results and provides lower-than-expected 2024 guidance

  • Dassault Systemes shares slump after disappointing results and guidance
  • Shares down 9.3% at EUR43.74
  • Overall revenue for Q4 2022 increased to EUR1.64 billion
  • Operating profit increased to EUR589.8 million
  • Net cash from operating activities below consensus for Q4 and 2023
  • 2024 guidance expects 8% to 10% revenue growth and 32.5% to 32.8% operating margin

Dassault Systemes shares took a hit after the French software maker reported fourth-quarter results and laid out its 2024 guidance, both of which fell short of analysts’ expectations. The company’s shares were down 9.3% at EUR43.74, although they are still higher than a year ago. In the fourth quarter of 2022, Dassault Systemes saw an increase in overall revenue to EUR1.64 billion, with operating profit also rising to EUR589.8 million. However, net cash from operating activities for the quarter and for 2023 came in below consensus. Looking ahead, the company expects 8% to 10% revenue growth and a 32.5% to 32.8% operating margin for 2024, which is lower than what analysts had forecasted.

Public Companies: Dassault Systemes (DSY.PA)
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Factuality Level: 7
Justification: The article provides specific financial information about Dassault Systemes’ fourth-quarter results and 2024 guidance. The information is presented in a factual manner without any obvious bias or opinion. However, the article does not provide any context or analysis of the results, which could affect the overall factuality level.

Noise Level: 3
Justification: The article provides specific financial information about Dassault Systemes’ fourth-quarter results and 2024 guidance. It includes details about revenue, operating profit, and cash flow. The article also mentions analysts’ expectations and provides a comparison to previous years. Overall, the article stays on topic and provides relevant information without excessive noise or filler content.

Financial Relevance: Yes
Financial Markets Impacted: Dassault Systemes shares

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the financial performance and guidance of Dassault Systemes, a software maker. The company’s shares dropped after reporting fourth-quarter results and providing 2024 guidance below analysts’ expectations. However, there is no mention of an extreme event or its impact in the article.

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