Not all China's fault
Sales of Solidworks fell in Q2 of 2022, which is an unusual event for Dassault Systemes. Here to explain it is an executive from Dassault, who spoke during the company’s quarterly conference call with financial analysts. The text has been edited for clarity and brevity.
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Q: Was the Q2 drop in new Solidworks CAD licenses due mostly due to China?
A: Yes, you're right.
But something [else] happened this year, as you may know we increased prices. It was aligned in some countries with the level of inflation. Many of our resellers anticipated the price increase effective April 1 [to sell more in Q1 than Q2].
To give you an order of magnitude for Q1, we were a little bit more than 20,000 units. And for Q2, we are roughly 17,000 to 18,000 units.
Q: Could you update us on how 3dExperience Works adoption is going within the Solidworks space? How are you seeing the average seats-per-customer adoption versus the three-to-four average number of seats [per customer] for Solidworks itself?
A: The vast majority of the customers have between two to three seats of Solidworks. And when we deploy the 3dExperience Works family, depending the product line we have different ratios:
When you look at Enovia Works [PLM software], usually the ratio is roughly three times -- between three to four times bigger. If you have two seats at the end, you have ten seats for the end of the awards. That's in average.
For simulation work, I would say it's probably once -- if you have three or two, you have only one. So the penetration rate is less.
And if we are speaking about the manufacturing side and specifically to the Delmia Works [factory simulation software], this is really where we have an expansion in terms of number of users. Because remember that with Delmia Works, we are targeting a company in the range of not bigger than €200 million in revenue. Having at least two manufacturing sites and usually you have between 30 to 40 people to be equipped, which gives you a sense of ratio between three to 30, if not 15. So this is how we multiply the footprint inside the Solidworks installed base leveraging the Works family.