ESI Group releases its sales for the first quarter of 2023 (period from January 1st to March 31st).
Thanks to our dedicated team and steadfast commitment to customers, we are thrilled to report that our Q1 revenue has exceeded our guidance. Our focus on Annual Recurring Revenue, combined with the strategic actions we put in place since the inception of our plan, have resulted in significant growth on our top line. We remain committed to driving growth and delivering exceptional value to our customers, and we look forward to building on this momentum in the quarters ahead."
Cristel de Rouvray
Chief Executive Officer of ESI Group
In the first quarter of its fiscal year (January 1, 2023 - March 31, 2023), ESI recorded revenues of €60.8m, up 6,0% (+7.2% cer), above the guidance (5% to 7%). At current perimeter and exchange rates, quarterly revenue increases by +4.4%. The first quarter is the biggest quarter of the Group in terms of license business. The Group has been focusing on its core business to sustain such growth and saw an 8.9% increase in licensing revenues (+10.1% cer) in Q1. Conversely, the Group continues to focus on services that drive software usage thus shifting away from other types of services, experiencing a reduction of 22.0% in Q1 (-20.9% cer).
Significant development in Annual Recurring Revenue (ARR) supporting the Group's long-term growth
In continuity with the FY22 results, the Group is pursuing growth in its ARR revenues. Q1-23 saw a significant jump in ARR at +10.9% (+11.8% cer). This increase, which adds €6.1 million in ARR revenues, illustrates the results of ESI’s strategic focus and global sales transformation.
Continued focus on the core business
On April 17, ESI Group announced the sale of SYSTUS software and related engineering servicesThe sale of SYSTUS software and related activities to Framatome, an international player in the nuclear energy sector, illustrates the Group's continued execution of its strategic plan to focus on its core business. This activity represented €1.2 million in license revenues, €3.2 million in associated services revenues in 2022, and employed 27 people. The main customers are EDF and Framatome. This divestiture doesn’t impact the Group’s Q1 revenue.
