French software maker Dassault Systemes lifted its 2023 outlook for earnings per share (EPS) on Wednesday, after an uptick in subscriptions boosted its third-quarter sales.

The company raised its full-year guidance for diluted EPS to between 1.19 euros and 1.21 euros, compared with a previous target of 1.18-1.20 euros per share, and confirmed annual revenue target for 8-9% growth.

It reported an 11% revenue increase in constant currency to 1.42 billion euros ($1.51 bln) in the third quarter, at the top end of its forecast of 1.40-1.42 billion euros.

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This was driven by an 18% rise in subscription revenues due to an increasing share of large 3DEXPERIENCE contracts and a broad-based adoption of a subscription model, the company said.

Sales growth for the 3DEXPERIENCE platform, which offers 3D modelling, data management and project management tools, accelerated to 46% in the third quarter from 15% in the same period last year, and from just 2% in the second quarter.

Overall software revenue increased by 12% in the quarter, driven by 21% growth in Europe. The Americas region saw 9% growth in the quarter and Asia sales rose by 5%.

China stayed resilient with mid-single-digit percentage growth in software revenues despite tough economic conditions, the company said.

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(Edited by : Vivek Dubey)