Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter and Full Year Dassault Systemes Earnings Presentation. Call. I must advise you that this today, Thursday, 6th February 2020. And now I would like to hand the conference over to your speaker today, the Vice Chairman and CEO, Bernard Tals.
Please go ahead.
Thank you very much, Priscilla. Thank you for joining us on our earnings conference call. Sorry for the delay. With then Alice, Vice Chairman, and CEO and Pascal Daloz, Chief Operating Officer and CFO. That's our system's result.
Are prepared in accordance with IFRS. Most of the financial figures on this conference call are presented on a non IFRS basis with revenue growth rates in constant currencies unless otherwise noted. Some of our comments on this call will contain forward looking statements that could differ materially from actual results. Please refer to today's press release and to the risk factors section of our 2018 document refinance. All earnings materials are available on our website and these prepared remarks will be available shortly after this call.
Also, I would like now to introduce Bernard Aleste. Thank you. Thank you for joining us on this call. On our earlier webcast. Summarizing 2019 in a few words It was a year where we when achieved our 5 year plan delivering on our 2019 financial objectives on setting the stage for multi decade expansion.
1st, 2019 represents the achievement of our 5 year plan, 2014 to 2019. To double EPS. We are delivering against our commitments, thanks to the sustainability of our key growth drivers. 3DEXPERIENCE now represents almost 1 third of OLED software. We are reaching more industries on achieving further end market balance.
The diversification industries are presented Over one serve of our software revenue in 2019, with 3DEXPERIENCE enabling this 2nd, looking at the year 2019, we met our annual financial objectives with revenue up 13% operating margin at 32% on earning per share up 17% to and as you have seen from our guidance, We envisage 2020 to be a year with a solid financial performance. Sir, we unveiled this morning that we are opening up new horizons in health and life science. We have 3 d experience for the virtual twin of human. To support our multi decade ambition, We will focus on developing our leadership in Life Science And Health Care continuing to extend our investment on leadership in Manufacturing Industries and advancing forward in the promising infrastructure on cities sector. We also announced this morning the appointment of Pascal Delos to the nearly newly created position of Chief Operating Officer.
In addition, to continuing in his role as CFO, Pascal, assemble a top talented new generation of leaders, on, set up a new operational executive committee. We want to ensure excellence in operational decision making and preparing the new leadership team that will carry forward our ambitions in the future in a seamless manner. Finally, we are introducing new product lines reporting beginning of 2020 to align our disclosure with these 3 sectors and to ensure that you have a clear line of sight on our progress. We have learned a good deal since 2012. When we opened a new Horizon introducing our purpose on unveiled 3D experience on the 3DEXPERIENCE platform.
At the time, Aishan, I believe that the 21st century would be a time of unprecedented invention and innovation by providing business on people with 3 d experiences to imagine sustainable innovations, capable of harmonizing products, Nature on Life. In 2012. We also dark imagine the 3DEXPERIENCE platform would become the most powerful vehicle for sustainable innovation. I couldn't have imagined that the proof points over the last 7 years would be so severe. At the time, we were largely focused on products in a world, things.
But through our research on investment, living hard living brain, 3DEXPERIENCE CT or multi physics, multi science capabilities, and now the Medidata acquisition. We have discovered that we can go further. And so we are extending from things to life. We also realized that while social industry experience made good sense, it was not enough. Expariances are human, the power to create a better world, whether as a worker, passion of citizen.
So we are speaking about human industry experiences, indeed. To do so, we see 3 sectors of the economy that have a significant impact on each and every one of us. Like science on health care, infrastructure on cities, and of course, Manufacturing Industries on where we believe that the system can become a global leader. Critical to this is virtual twin experiences. For Dassault System.
They have been part of, our DNA for more than 25 years, and we believe that can be instrumental to our contribution to a sustainable world over the next 20 years. There was a before and after 1989, the year where we created the first virtual twin of a gigantic airplane, the Boeing 777. There was a before and after February 9th to 2012, when we shift the center of gravity of the industry from product to experience. It will be a before and after the virtual twin experience of human body, which will have profound implications for the future of health care life science discovery on the human experience. To ensure that all operational decisions are made in a very coherent manner according to our corporate strategy, we are extending the scope of responsibility of key executives on establishing a new leadership system, combining talents on multigenerations and led by Pascal Pascal Delos as Chief Operating Officer, underlying the construction of our new operations, executive committee are 2 important themes.
First, we want to ensure continuity as we move forward by taking steps. In advance to prepare our leadership transitions. 2nd, the key characteristics of our long term performance on long term value in Dassault System has been the ability to ensure resiliency of our performance. In other words to see and manage in a seamless fashion, key transitions in our business. In addition, we have strong leadership on that across three sectors on all across the organizations, from strategy to operational excellence, research and development.
Congratulations Pascal. Let me turn over to you.
Thank you, Bernard. Hello, and thanks for joining us today. I would like to share a summary of our view followed by more detailed financial and business review and finishing up with our new 2020 financial objectives. So let's start with the year 2019 performance. With respect to our full year financial results, Both total revenue and software revenue increased 13%.
We had a broad based organic growth, with the total revenue and software revenue up 7%, recurring software up 8% and services up 9%. EPS increased 17% with our operating margin at 32%, led by 100% sorry, 100 basis points underlying improvements. Our cash flow from operation increased 32% to 1,000,000,000. Zooming in our 4th quarter, financial results were in line with our guidance. This was the case for the revenue and the operating margin.
EPS came in ahead on a lower effective tax rate and reflecting final year and estimates refinements. Solidworks, Simulias and Centric PLM delivered good growth. Results from Medidata by including as of October 29, when we completed the acquisition. And as we outlined our life science day on November 30, we see a significant growth opportunity and we're off to a good start. Moving in our 3DEXPERIENCE performance, From a growth perspective, 3DEXPERIENCE software revenue increased 22% in 2019.
Following the 24% growth in 2018. From a penetration rate, our mix capacity 3DEXPERIENCE increased to 29 percent, up 400 basis points over 2018 800 basis points over 2017. From a license revenue perspective, 3Dx terms licenses, revenue grew 12% in 2019. And as you know, we had significant growth on the subscription side heading to the total 22 software growth I'll mention. 3dexperience had been the important driver of our diversification.
EDF with whom we entered into a long term partnership in June 2018 is expanding the adoption of the 3DEXPERIENCE platform. EDF will deploy our capital facility information excellence industry solution experience to access real time project data and to create the digital tweaks of nuclear plants, whether they are at design, construction, or operational phases. This will enable EDF to have a single source of truth for every stage of the plan life cycle from early design and engineering to constructions, operations and decommissionings. With these deployments, EDF expects to increase by 30% its operational efficiency and well support the partnership goals of strengthening plant performance and the overall competitiveness of nuclear power. Moving to industry highlights, following double digit growth for our 3 largest industry in 2018, we had some mixed performance during 2019.
Aerospace and defense software revenue was up high double digits on a broad based trend. Transportation And Mobility grew mid single digit with a number of automotive OEMs making significant in new investments, while we saw a slowing of the automotive supply chain. Industrial Equipment also had a mid single digit software revenue growth 2019. However, we saw some improvement in H2 compared to earlier in the year and this is visible in part in SOLIDWORKS stronger second half results. With respect to our diversification industry, They would have represent about 50 percent of our software revenue on a like for like basis, assuming Medidata, we are consolidated with DS for all of 2019.
In home and lifetime, Centric PLM is leading the way, working with more than 12,000 well known brands around the world, helping them increase income, sales, improve inventory management, reduce logistic costs, translating into More new products increased efficiency, faster time to market and improved sustainability, thanks to less waste. Century PLM leadership is evidenced with a strong growth in booking, new client acquisitions and revenue during 2019. In Consumer packaged goods, we are seeing a strong appetite for sciences. Creating the right formula is more complex than ever, Consumer are demanding more quality, transparency, and global and local regulatory bodies, creating more stringent guidelines for raw materials and product claims. CPG brands and contract manufacturers need system in place to manage our product innovations regulatory quality and cost constraints as a key driver for the business success.
Last quarter, I mentioned our perfect formulation solution, well structured to address these issues. In Life Sciences, we are consolidating we are consolidating our position in Met devices, segments. For example, leading manufacturers in the sectors, B Bronze, as selecting the 3DEXPERIENCE platform and the license to cure for medical device industry solutions to accelerate the delivery of innovative sales and fully compliant medical devices. These solutions will allow them to eliminate scattered processes and data and to embed regulation as an asset, optimizing quality and compliance and reducing costs and time to market. These solutions will be deployed among 13,000 users.
Looking at our software results. License and other software revenue increased 6% for 2019 2% in Q4. On an organic basis, license other software revenue increased 3% for the year, with growth flat in Q4. As you may recall, we began 2019 with a license revenue growth target of 10% to 11% in constant currencies. And we ended the year as I say, with 6% growth with the 2 major area of change being weakness in the automotive supply chain, decisions, timelines shift by clients due to internal customer's factors and license and software review totaled SEK 1,000,000,000 for 20 19.
As we have maintained our revenue growth objective unchanged since the beginning of 2019 before adding Medidata, recurring software and services compensated for the softer license growth. Moving to our recurring software, it represented 72% for 2019. Total software. For the full year and on an organic basis, recurring software increased 8% at the high end of our growth objectives, This represents an improvement of growth rates of about 200 basis points over 2018. Compared to a target organic increase of 100 to 200 basis points we share with you at the start of 2019.
In comparison to 2017, our organic recurring software growth is up 300 basis points and both 20182017 growth rate were on a IAS 18 basis. For the 4th quarter, The organic recurrent software revenue growth was 5%, reflecting continued strong support dynamics globally offset in part by the IFS 15 accounting treatments, which affect not only the quarter to quarter variations for subscriptions, but also the year over year. In fact, in Q4 twenty eighteen, under the IAS 18 subscription revenue growth was up sharply in parts related to catch up on renewables. As a reminder, revenue recognition rules are different under IFRS 15, and we have been in 2019 vigilant to renew subscription at each quarter, hence, the amounts of catch up was much lower in Q4 19. Moving to our software performance by regions.
The Americas had a solid 1st quarter year, led by a strong growth in subscription revenue and the contribution from acquisitions. In Europe, we continue to have a contrasting view Northern And Southern Europe had a good growth all along the year, and Germany continued to reflect macro weakness that we have seen most of the year. Finally, also record Q4 twenty 18, where we had a very strong 3DEXPERIENCE activity, notably France. Asia software revenue increased 7 percent in 2019 led by China up 16%. In the 4th quarter, Korea saw some improvements and China grew 11% slowing from earlier in the year.
Zooming in on our software performance by Broad CATIA had a contrasted H1 and H2 performance with software revenue up 8% in the first half and weaker result in issue, bringing its growth for the year to 6%. Keep in mind that last year, Catia was growing at 4%. What was very clear, however, was the traction with 3DEXPERIENCE, which is posting 3DEX and software revenue growth up just over 30% for 2019. Following double digit growth in 2018, Nokia Software revenue increased 5% in 2019, reflecting the combination of a high comparison base, particularly in Q4, as well as the extended decision making time frame. Enofia continue to maintain a high meeting rates over its key competitors.
SOLIDWORKS software revenues saw better result in H2 with 4 quarter growth of 9% on an improving license performance, and a very solid support revenue growth around the globe. Just as a reminder, in Q4 2018, SOLIDWORKS grew 12% so it was not an easy comparison. Moving to other software. Demia had a very strong workforce quarter, and year, with a strong offer in manufacturing. Similarly is benefiting from its broader multi physics portfolio, and we are seeing an improvement an improving performance for Biovia.
Then the Aquatic has a more difficult year with many opportunities, but some operational issues that slow its ability to convert these assets to sales. I believe they are now largely resolved and behind them. During 2019 Centric PLM expanded its industry leading position as I liked early earlier. Turning to Medidata. Its revenue growth was driven by RevPAR, well unplanned and strong growth in RAVE attached products as well as professional services a large proportion of which is recurring services.
From our life science day, we share that these 3 categories are expected to drive the large majority of its growth between now and 2023. Metadata's data analytics business, which includes Aecon, AI, launched in early 2019 and its commercial analytics from 2018 acquisitions are the early stage and part of our longer term business plan. For 2020, we are estimating Medidata revenue growth at about 13% in constant currency. Within the target range of 13% to 15% growth, we see over the 20 23 timeframe, embedding revenue synergy in the later part. One final point is the high retention rate that I ended the year with, on par with 2018, so a strong endorsement from its client base.
Turning briefly to services. Revenue increased 9% for the full year on an organic basis. This was principally driven by 3DEX family services engagements, up double digits. In Q4, on an organic basis, overseas revenue was lower by 1%. This reflects a large catch up for Wintiq in the year ago, Q4 as we noted at the time, as well as a high base of comparisons of 3dexperienced services growth with the Boeing ramp up.
For 20 19, our operating profit increased 17 percent to EUR 1,300,000,000. Our operating margin was up slightly at 32% thanks to an organic improvement of 100 basis points, largely offsetting 120 basis points of acquisition dilutions. Currently sorry, currency had a positive impact of 30 basis points. Moving to the earning per share, EPS increased 17 percent to in 2019 with a contribution from Medidata. Our effective tax rate decreased by 1.8 percentage points to 26.5 percent, related principally to the favorable patterns and software treatments in France.
Our operating cash flow was 1,000,000,000 in 2019, up 32%. The principal contributors were growth in the net income and noncash items. Account receivable and the lower tax down payment in 2019 related the 2018 U. S. Tax change on the foreign driven intangible assets.
Contract liability were up 8% in constant currency and parameters. And finally, following the acquisition of Medidata, our adjusted net debt including leases to be compliant with IFRS 16. So to EBITDAO, ratio for 2019 was 2.5 times right in line with our expectations. Before moving to our financial outlook, let me share changes we plan to make to product line reporting to reflect our new vision and also as a consequence of integrating Millidata. Our first grouping will be Industrial Innovation Software Revenue where we will give a total software figures and then breakout CATIA and Innovia.
In addition to those these two brands, The first book will include Simuliya, the Miag, Jovia, NET LiveXANIT and 3Dxite. So someone grouping will be life sciences, software revenue, And here, we are we will combine Medidata and Biogia. And the 3rd product line will be mainstream innovation software revenue and this will include SOLIDWORKS Centric Software, 3DEXPERIENCE works and 3dVR. In this category, we will also break out SOLIDWORKS. In the Q4 presentation on our website, we have provided historical information for this group.
Now let's move to our 2020 financial objectives. For total revenue, we are targeting growth 21% to 23% in constant currency. Based upon our currency assumptions, this will lead to a reported revenue range of 1,000,000,000 to 1,000,000,000. For software, Our gross target is 22% to 23%. Recurring revenue will be at the biggest will be the biggest contributor to this growth, increasing the range 28%.
Assuming media data has been part of Dassault System for all 2019, our recurring software revenue growth target on a like for like basis would be about 9.5%. Our operating margin range is about 31% to 31.5%, representing a decrease of about 1 half to one point. On an organic basis, the operating margin improvement we are targeting is between 80 to 100 and 30 basis points, excluding currency. Our EPS range for 2020 is 4 point to growing 14% to 15% based upon an effective tax rate of about 26% Q1 EPS growth will be in the range of 3% to 9%. For Medidata, We are targeting 2020 revenue growth of about 13% in constant currency, and they are entering the year with a coverage around 93% of their total revenue growth targets.
From an operational perspective, the goal is about of 200 basis point improvement in its operating margins. Now to give you some further color, from a structural perspective as well as a pipeline timing, the growth in license for revenue is weighted to the second half of twenty twenty. More specifically, we would expect license growth in the range of 5% to 10% for 2020. And Q1, assume a decrease of about 5% to stable on the high comparison basis and reflecting macro and end markets as we see them presently. We are not able to fully factor the potential impact of health emergencies, especially in China, where the topography of source of freedom movements can eat sales.
To sum up, as Bernard indicated, we are beginning a new horizons setting the stage for the coming decades, while I don't see it towards our 20s, 23 financial goals. We also want to share with you that our success will not be possible without the intelligence dedication and pride of all the Dassault System employees. Energized
by a purpose,
giving strong meaning to our daily expenses as employees, citizens and human beings, We hope you will put a save the dates on your calendars for our Capital Market Day in Paris on June 12. And Bernard and I will now be happy to take your questions.
We will now begin our question and answer session.
You.
Please standby, we'll recompile the Q And A Q. This will only take a few moments. You. First question comes from the line of Jay Blicheover from Griffin Securities. Please go ahead.
Thank you. Good afternoon, Bernard and Pascal. I have 3 subjects I'd like to ask about, starting with SOLIDWORKS, then metadata and then finishing up on cloud For SolidWorks first, Bernardo, I'd like your thoughts on the very long list of objectives that solid work seems to have, over the next year or more, including, accelerating its unit volume growth. It looks to me like in 2019. Units were up just about 2% to maybe $81,000 or so.
So perhaps you could comment on that and your expectations for driving better unit growth, additional objectives that SOLIDWORK seems to have include, doing more large transactions than has historically been the case, 3Dx platform, DELMIA Works, SIMOLI efforts, Hollywood, and marketplace and so forth. So it's a pretty long list of objectives and perhaps you could just give us your prognosis for, for that and how you're thinking about the solid works, growth over time. And then, then I'll finish up with some metadata and cloud questions. Thank you.
Thank you, Jay, good to talk to you again. I will let Pascal make, whatever remarks he wants to do about solid works. But let me, just, take this opportunity, to, to say that, the main objective for SOLIDWORKS is the platform game changer approach that we will be introducing a 3DEXPERIENCE World next week in Nashville. On this is about having SOLIDWORKS users enjoying the power of form to expand their use of what they love the most, the SOLIDWORKS capabilities, with mobility, native cloud, web based, solidworks. Experiences for 1.
The second aspect of it because today SOLIDWORKS only mainly available on, on a workstation, on a PC. So the mobility of solid work The second big thing is being powered by the platform is to be able to move from 3 d design and assembly to basically drill virtual twin experience using other type of solid works like roles on the platform. That will be leaving next week with very concrete, availability plan on that's, that's, I think, going to create the next 20 years of growth for, for SOLIDWORKS. To be noticed that the growth accelerated in our view, and Pascala will let you comment on that. And also, we, while the unit might be seen as a gross as modest.
The number of new clients are significant Pascal?
Yes, it would just echo what they're not saying. We are talking about 25,000 new customers. This is the other expenditures. And in terms of unit, we are close to 80,000. So I'm sure Jay will appreciate that those numbers are big ones and not so easy for the competitions to replicate.
Now if you look at the track record for solid work for the year, as Bernard mentioned, yes, you're right. We started with a growth between 4% to 5% for each one. And you have seen that we lend by 9% for the Q4. Knowing that last year, Q4 2018 was growing at 12. So I think we are seeing a significant improvement of the situation.
Especially in Europe and Asia. I would say, the growth in the U. S. Is probably more modest compared to what we have seen in the other parts of the world.
And to compete, to be, to add what I said this morning, Pascal, I might mention something which is important. There is a lot of, PRACI around solidworks. I will say giant PRACI. We don't want to be brutal on that topic. We continue to improve the compliancy processes.
But clearly, those clients using it, without pain to be simple They are, I think they will progressively pay on, on we are going without being brutal, we are going progressively introduce the idea that, subscription will be mandatory, on that shift is going to be progressive and will be converging because with cloud, that's the case. So you can imagine that we are clearly, high promise, both on value footprint platform phenomenon and the evolution for the years to come both for partners and clients.
Thank you for that. On metadata, could you comment on any product integration or cost synergies that you've accomplished thus far. And what you're thinking of in 1 or both of those for 2020, in terms of further integrations, perhaps with Biovia and cost synergies. And for Pascal, you're guiding to a 20% operating margin for, the metadata for this year. However, given the magnitude of the amortization of intangibles for that acquisition, would it be fair to say that the IFRS operating margin for metadata would be closer to, to the mid single digits?
Well, the first thing, before I leave the answer to Pascal is we are, we are 3 to have Tarek Sheriff. On Glendiveries with us, they are top leaders and they are part of the family. We feel part of their family. They have built this startup to be almost a 1,000,000,000 company. And they have a significant ambition to lead us together in this new, in this new sector of the economy, which is really life science on health care.
On, above our, this is a big thing on, on, I think, we are in a position to realize our own our mutual dreams coming from different perspectives on, I think, a setup done with Pascal is is a great one. So Pascal, you can come under the short term steps.
So if I start by the soon part of your questions, The vast majority of the operating margin improvement is coming from the growth because now our multi debt has been with us we have the infrastructure in many countries, and there is no need for them to invest as much as they used to do. To develop some presence in some countries. So clearly for and I've been very explicit during the Capital Market Day. That the synergy will come later in the plan because the primary objective is to continue to fulfill the growth. That's the point.
Now coming back to the first part of your questions, we already have we already have seen synergy between the BioVIA and Minineta, especially with 1 lab solutions. As you may know, 1 lab is used for the preclinical And we have, company and especially, for example, the Tiros, which are significant partners and also customers who need data and they are more and more interested by also endorsing and adopting the solution of OneNote. So clearly, it's mainly on the commercial side, For 2020, we do not want to mix the 2 sales team because we want this to be structured. So the way we do it, we have selected the number of customers we want to approach jointly with a very well done set of solutions and combined value proposal. And Tarek and Glenn are guiding this approach across the board.
Okay. And then finally on cloud, at the 2016 Capital Markets Day, the company gave some very blicit forecast for your cloud contribution in terms of, user growth, for example. And I know that's a few years ago already, but we've not really heard from the company in terms of explicit contribution of your cloud business, although you've certainly talked about your products deliverable on the cloud, would you, as part of your new disclosures, consider, giving more regular up on the contribution from the cloud business, and that's the question. Would you be willing to provide more like
So, Jay, I love you. I love you. One of those is because you're right. I mean, We as part of the new revenue reporting, we disclosed this morning and I briefly spoke about There is one thing I didn't touch is the willingness on our size to, to a certain extent, to report the different business model we have. 1, we call it, software as a license and the other one is software as a services, which is nothing more than what you are calling the cloud.
So to answer precisely to your questions, we we want to make our own experience within this year before to start to disclose the number in such a way because we need to learn how to do it. We need also to learn how to guide you guys because those are 2 different business models, and we do not want to mix ups. So clearly, I have set up the team, I have set up the framework or the reporting line internally to make it happen. And if, it's I mean, if we conclude this is the right way to do in 2021, you will have the visibility on both line.
Very good. Thank you both.
Thank you so much. And the next question comes from the line of Stacy Pollard from JP Morgan. Please go ahead.
Thank you. Like the revenue growth is underlying maybe around 4% to 7% or maybe that was 6% to 9% in constant currency. Does that sound about right? And then you used to talk about licenses accelerating into the double digits, obviously tough comps and macro today. So we know where we stand today, but is that still possible in the midterm?
And then a third component, is there any impact from sort of a conversion to subscriptions perhaps in SOLIDWORKS or something over that midterm?
So again, on BD Data, I gave you almost all the numbers this morning because it's in the guidance, we took 30% growth, excluding the currency effect, okay? I told you that the like for like growth is 9.5% And if you, 2010, you do the reverse engineering and you look at, it should be the organic growth the consequence of the of the rest, you will lend to much more close to 8% than 6%. So at least this is the way the guidance has been built.
So around 8% organic and then midterm opportunity to get license into double digits still?
I was speaking about the reference part, right, Stacy? Now for the new license, where we are coming from is the following. First of all, the pipeline is back loaded. And especially on HD. Okay.
No surprise. It happened almost half a year now since the last 5 years. 2, the base comparisons is, to a certain extent, helping us on the second half and 3, You know, we with as I was very explicit this morning, I took some cautiousness for Q1. Because the Chinese situation is providing some certainty. And we believe the license is probably the one going to be impacted if the situation is staying the weighted for a certain time.
So combining all this effect, we are relatively confident that, we could come back to a high double digit or higher single digit maybe a double digit growth on the strong half on the license. Remember, we started at 4% and we are landing at 9%. And all the indicators we have are giving some confidence about it.
That's perfect. Thanks.
Thank you. And the next question comes from the line of Michael Breast from UBS. Please go ahead.
Yes, thank you. And I forgot to say Pascal. Congratulations on the new role. You've got a lot of hats to juggle. Just a couple from me.
Just in terms of SOLIDWORKS, Bernadhi talked about an improved compliance process there. And mandatory subscription. I think you mean sort of mandatory support. Was that a driver in Q4 of the strong growth? Are you being more for Thrive on auditing your clients?
And what proportion of clients today actually take support, if you like, on SOLIDWORKS. And then I've got a couple more for Pascal.
Well, Michael, I don't call this support. Let's be clear. When we deliver such kind of incredible functional deliveries on new roles every year. It's not support anymore. It's really true on expanded scope.
So we are changing, really the approach because this is not support anymore. This is, this is subscribing to significant evolution, on capabilities that we deliver. And that is a big difference because in some way, this can easily justify the fact that it becomes no matter It's too easy for too many clients to pay once and get all the updates offering forever. And we are going to change that rule.
But I mean, how are you introducing a program of, I don't know, going around and checking on license compliance? How would you actually enforce this unless you had cloud based and sort of keys to access the products?
That will be presented to the partners on customers first.
Okay. Understood. And then Pascal, I think you said on your comments on a 3 d experience that licenses were up 12% for the year. I think at the 9 months stage, they were up 40%. So was there quite a big slowdown in Q4?
And can you talk to the causes of that?
Oh, but Michael, when the license growth is flat for two quarters, whenever the mix is representing by 3DEXPERIENCE platform automatically you have the consequence. So 40% and flat on the second half, even if we are increasing the mix to a certain extent, you land with almost what I provided to you. What is missing is maybe last year, we had 1 or 2 very large deal at the end of the quarter. Those two large deals are missing. But on the other hand,
I do I
told you this morning, we had more than 140 opportunity exceeding 1,000,000 with 3D expense platform for the full year. So So I think, less big contract to a certain extent, but much more sizable opportunity This is the way the pipe is now.
And then just finally, I appreciate you've got metadata on board and it's at least historically be more CapEx heavy. What guidance are you giving for CapEx and interest expense this year?
You know, the vast majority of the CapEx from any data was coming from the cloud. And, just because we have some of our capacity being available. The extra CapEx you could expect from Medidata would be primary redirect to the usage of our own capacity. So I'm not expecting significant changes compared to what you have seen previously
And on interest?
Sorry, Michael.
Finance charges or interest expense?
Not sure to understand.
Well, how much was the interest on the metadata bond going to chop costs every quarter?
Michael, I do not have the information in front of me. So if you don't mind, could answer to you by email.
All right.
Thank you. Okay. Thanks.
Thank you. And the next question comes from the line of Jason Coe Linoff from KeyBanc. Please go ahead.
Hi guys. Thanks for taking my question. As it relates to SOLIDWORKS and the move to more cloud subscription and more user compliance, what type of what do you anticipate customer and channel feedback to be?
Very good because that's the platform phenomenon. I think when you apply such rule for the same scope, meaning a license on a PC is very different from moving to subscription of service and capabilities with the platform power. So as a scope, of the offer is evolving, it's very easy in my mind to articulate why this is the way to go. And we know ultimately that most at a certain horizon, most of, if not all, in the mainstream market, will be one way or another cloud based, which by the way, is the converging point. So, we, we didn't change the rules on the desktop only, but as you go platform, it become a logical value for everyone.
So we have tested already with partners on, I think, days see the rationale on the CWU. So, so we, but we've said we want to be doing it with a good value for everyone. Including the numbers.
Great. Thanks. And one question for Pascal. Looks like Asia was up 6% growth for the quarter and you mentioned Korea and China were double digits. Can you just reconcile maybe some of the other areas that Warren has more as strong as China in Korea?
Oh, the Japan is almost flat. India is growing mid single digits for the full year as well as APSOS.
Got it. And is Japan mostly flat just on automotive?
No, it's not on on the overall software. And again, the pressure is coming from the auto supply chain Same situation that we are facing in Germany. Having said that, you remember that we are, making good progress in as well. We signed a big contract with Toyota. So it's not because to a certain extent, you are not seeing the momentum in the numbers.
That's how our the 3 d experience adoption by the Japanese market is not happening. So It's happening here.
Great. I appreciate the color. Thank you.
Yes, please come.
Thank you. And the next question comes from the line of Neil Steer from Red burn. Please go ahead.
It will be our last question. Please go ahead.
Thanks very much. I just have a couple of quick ones, if I may. Firstly, Pascal, for your full new role. Just backing out the commentary on the services growth, it looks obviously if we include the contribution from the Meditator business this year. It looks to say on an organic basis, services are likely to be flat or minimal growth.
Is that the case? And can you just explain that dynamic over 2020?
For the services at large or for our ability data as well,
No, just take Medidata out of the equation, just in non Medidata services in 2020. What's the soft revenue through there?
Okay. So, we, we against, for we see a good balance for all the 3DEXPERIENCE related engagements. So I think we will continue to grow at a high single digit on this. The question mark is as I was stated clearly this morning, we had some issues with Quintiq. And Quintiq is a it's a larger services revenue because this business, not only you're filling the software, but for 1, you're spending software, you almost have 1.5 in services.
And this is where the gap is coming from. And on Boeing, I have been explicit this morning. We would expect some reduction on the services bill around 20%. And if you combine those numbers with BD Data, you'll land to the 19% growth by putting the guidance.
Okay. So if you so ex Medidata, it looks to say there'll be sort of flat to sort of just a little bit of a change in the services growth. A separate question on SOLIDWORKS. You've mentioned a couple of times this morning and also on the call now. That, you believe there's quite significant piracy there.
Can you just explain the situation that occurred whereby customers in the past have been able to buy a license. And it seems to be that you're describing year in, year out. They are getting updates and support for licenses not entitled to. Is there no audit process or how do the sort of management information systems exist that that has actually taken place?
Yes, of course, and we have a compliance team on processes for that. But PRACIS PRACI And it's a significant there is a significant PRAC. So we are evolving with the systems to reduce that factor on, the one who want to have PRIC are very smart. But we think that we evolution the platform on mobility and connectivity This is changing. The profile of usage is not anymore one client, 1 PC, on when we when you go form, it changed the landscape about how the profiling of usage, even the affordability, the entry price for, let's say, what we call 3 d creator, which is really solidworks native, on the web, on a phone or on a tablet, it's providing a wide range of solution that will contribute to a use BRS.
But to complement what Bernard is saying, we have the rights to do with this. In every contract, we sign, we have it But when you are targeting the mainstream market, if you want to do this in the, you know, the 200,000 customers we have, you need an army. So you need to find a technical way, a technological way to do it. That's the reason why combining the cloud approach with the subscription base, it's really the way to handle this
Okay. Without wishing to go into too much detail, is this more of a channel issue than it is a selling issue or is there and does that have implications for the management there?
Well, I think it's also, making sure that every users, we'll see the value of being in a more regular environment on that's why I mentioned the mobility, the collaborative cloud online and all those services that are making. This, even for those who have been PRC, at the end of the day, a good deal to pay. And that's what we want to do. This is why we want to be constructive, looking forward because they on the other end, they do love our software. We want them to continue to use but to really solve that issue.
Okay. Thanks very much.
Okay. So thank you very much all of you for participating into this call. Thank you for your interest. As you know, we are setting up a very wide horizon very exciting despite the uncertainty for the 2020, on, we hope to see you soon on, as Pascal said, said, save the day for, June 12th, information, and we will talk to you first in a quick for the first quarter results. Thanks a lot.
Have a good day.
Thank you so much. That does conclude our conference for today. Thank you for participating. You may all disconnect.