Good morning, everyone. I'm François-José Bordonado from Dassault Systèmes Investor Relations team. From the company, we have Bernard Charlès, our Vice Chairman, Chief Executive Officer, and Pascal Daloz, Executive Vice President, Chief Financial Officer, and Chief Strategy Officer. I would like to welcome you to Dassault Systèmes first quarter 2018 earnings presentation, which is also being webcast. At the end of the presentation, we will take questions from the audience and from participants on the webcast call. Later today, we will also hold a conference call. Dassault Systèmes financial results are prepared in accordance with IFRS. During 2018, which is the first year of implementation of IFRS 15, we will provide IFRS financial information on both an IFRS 15 and IAS 18 basis. All figures and comparison during the presentation are under IAS 18 and are on a non-IFRS basis, with revenue growth figure in constant currency, unless otherwise noted.
We have provided supplemental IFRS 15 and IAS 18 non-IFRS financial information and IFRS non-IFRS reconciliation schedule in our earnings press release. Some of the 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 2017 document, "Références." Just a word before giving the floor to these gentlemen. I would like to invite you on June, Friday 15th for our Capital Market Day, which will be held in Dassault Systèmes campus. Let me now introduce Bernard Charlès.
Thank you, François- José, good morning. I'm pleased to talk to you again, and thank you for your continued interest in Dassault Systèmes. I'm sure you have read what we have announced. I would have loved to have Thibault's 3DEXPERIENCE twin with me. Maybe one day we will have Thibault of mixed reality. He says hello to all of you, and he was part, of course, of the preparation for what we are communicating today. He's doing well. He's very busy, more than ever. I have many topics for him. Anyway, Q1, as you can notice, we are on a good start with good software revenue margin as well as the EPS to really deliver on the full year. As you may have noticed already, the organic license revenue is up 14% and with a very strong 3DEXPERIENCE license dynamic up 53%.
I'm speaking with excluding exchange rates, so it gives you comparable. Strong license growth on the three sales channel, with this being the case for almost all the brands on nine of the 12 geos. You can see also that there are core industries which are double-digit growth. We continue to have double-digit growth on new industries like natural resources on what we call CPG retail on AEC, where I stated to you that there is something to do in that sector. It will take some time, but we're going to do something. Pascal wanted to have the Daloz signature on the way we report, so there are a few minor presentation changes, but you will see there, it's not a revolution, it's consistent. We wanted to mention that, yes, we do focus on implementing our strategy, Social Industry Experience.
The key point for social this quarter is the adoption of cloud, which is really very strong, also the announcement of the new portfolio that supplements SOLIDWORKS to make it really powered by 3DEXPERIENCE on the cloud. The 3DEXPERIENCE World event was a very key event this year. Things were extremely welcome by the users and resellers. On the industry side, we continue to really focus on the movers and shakers. If you look at the industry, you have traditional players. There are more and more new movers and shakers in those industries. The number of those companies is exponential. The nature of those companies, I will come back to it, are very interesting. Small, but all users are using our system. In the past, big companies, limited population within the big companies.
I believe that this is a very strong argument for the more conservative companies to open their eyes about the fact that something is happening. I will come back on that topic. Experience with really new approaches in terms of solutions around customer simplicity. When you create new product lines, how you create the experience for the customers, the consumers or the citizens. We'll see that also. We confirm our full-year guidance. Pascal will come on that topic. Here is the way I see the evolution of the industry. 12 industries, 70 segments. We look at the industry reference we have. We look at the new shakers coming in. We look at all the numbers of those companies around the world. We target maximum footprint for their adoption.
Which means that they are not big installation at the beginning. The penetration in those companies is high. I don't know if you realize, there are more than 600 new companies doing e-mobility these days. I'm not talking about the existing ones in the world. People probably have in mind 10, 15, but when you sum up, it's a significant number. It's true in many, many sectors. They are illustrated here with, of course, the air transportation, ground mobility, also constructions. There is, I think, something happening. It's a good timing because with the cloud, we provide affordable solutions with low CapEx at the beginning on a model which is a very sustainable model going forward. Our KPIs are very simple for cloud. It's number of users and data volume.
I know the number of users and data volume is there, revenue will come. Talking about the industry, I believe we are going far beyond the Industry 4.0, far beyond, with several key showcase clients. It's not about only the production side of the industry, it's about the ideation side to create new categories of products. Clearly, in many of those sectors, there are new categories of products being invented. It's changing the way the ideation process works. It's also changing the way you serve the product on the market, even the sell, how you sell it and market it. Of course, we continue to increase our penetration with the makers and innovators. We are in the 1,200 innovation centers, hub labs in the world. We are also doing that now even for life science.
There is, I believe, at the beginning of this 21st century, I think a new dynamic in terms of what are the future categories of products that will serve consumers, citizens, and customers. I think that a company like Tesla has demonstrated to a very conservative auto industry that new categories make sense because it's a new set of services. This is happening also in air transportation, mobility with Joby Aviation and many others, and you have seen many of those, including those we cannot yet mention. The 3DEXPERIENCE is now complete in terms of scope. It's an operating system for our solutions. It's also an operating system, not in the sense of IT. It's an operating system in terms of what it means, operating your company on the solutions.
It's also expanded now to do POWER'BY, so we can connect legacy application to it. On the other side, with the marketplace, it's becoming a new business model. How do you buy? How do you produce, and how do you sell? As you know, on January 20th, we opened the marketplace, after one year of test, and I will come back on this. It's a new business model from that standpoint. We plan to use the marketplace for two things, for users building communities, but also for companies using the marketplace inside, so they can change with that marketplace, the way they trade with their value network. The dynamic for 3DEXPERIENCE is good. As you see, 53% up excluding exchange rates, and we continue to focus on the three dimensions of this strategy and more to come, in fact, this year.
Few concrete illustrations before I give the floor to Pascal. Well-known company, at least for many of us, Kärcher in Germany, and they have adopted the 3DEXPERIENCE platform on the cloud. When you do that, you reach new nature of users, including sales, marketers, because all is there. You just have to connect. You just need an ID to connect. Through a browser, you can see product configuration. The quality of what is represented now on screens, tablet, and so on, is so high, you cannot really make the difference between a picture and what you see in terms of real data. They have made that decision. It's a significant one because first of all, it's not a startup. It's a real industrial company, and they have made this to reduce their product development cost, but also to integrate all the production system.
They have a plan to use it for sales and marketing, really to promote easily to the marketers in the world or distributor in the world, the products they are doing. SOLIDWORKS World, we announced five things. We announced software cloud services online. We announced SOLIDWORKS PLM services for SOLIDWORKS users. They were PDM-centric before managing their parts. SOLIDWORKS Product Designer, which is really reuse of technology from the CATIA world. SOLIDWORKS xDesign, which is basically through a browser, anytime, and you can use a browser-based tool for design. On 3DEXPERIENCE Marketplace, you remember three or four years ago, where I got some question from you about new startups in this area that I will not name. They have almost disappeared, and I think this is a groundbreaker because it's the power of SOLIDWORKS through a browser on the marketplace for make on parts supply .
Transportation and mobility, we are focused on three core things. Not the electrification, much more important, the new vehicle architecture, because those vehicles are not architected the same way. Of course, the regulation and what it means in terms of certification versus testing, because they are discovering what we have been doing in aerospace for 30 years, the difference between testing and certifying, and it's a big difference because you need to prove. The cost and quality, of course, because the value chain for an electrical vehicle is very different. They are not getting the profit from the same things. Before, the engine was making a lot of the difference, but now, the battery is the engine, not the engine. The battery is the engine of those things. EVelocity, this is a new startup, a significant startup.
They are creating new type of e-mobility, and they are really starting with our entire solution at front with the 3DEXPERIENCE platform on the cloud. We've been able to see at which speed they could start. The speed at which they could start has never been achieved with implementation of software on premises. Aerospace and defense, we focus on production rate. The backlog is so huge that basically our digital manufacturing solution are more and more the industry standard in aerospace. Their backlog is so huge that their top line is coming from the capacity to deliver. That's the case for most of the players in this area. Mechatronics and systems, because of the sophistication and the customer experience.
It's interesting, if you want to have industry focus in terms of analysis, if you look at the annual report of those companies and you look at the projected revenue in service for parts supply maintenance, there is a game changer aspect going on in this industry as we speak. They are changing the nature of what are the service and it's tens of billions of future revenue made on things which are service online for the operators. More to come on this area also. We continue to work on the supply to value chain optimization with Quintiq. This is a good illustration with Lufthansa Cargo, where they have been optimizing the full flow using Quintiq. We are changing the boundaries of even what PLM is about, because we want to optimize the full value flow.
Biopharma, as you remember, we invested a lot in the past years in the biotech. I think the biotech and the bioscience will change the manufacturing world, and we should not underestimate it. You look at the hub in Boston related to bio, not only for life science, for material science, and for the future of making physical goods. Things are changing in this area. I think it's as important as what chemical was at the beginning of the previous century. Passion-centric innovation, we deliver experience. It's not about only small molecule going big molecule, but it's about the process by which you go with treatment, which means equipment and personalized equipments. We are connecting things which have never been connected before. Gilead Sciences adopted BIOVIA, and it's a very interesting showcase. It's more than BIOVIA, it's BIOVIA and of course the 3DEXPERIENCE platform.
With that, Pascal, I let you comment the numbers. Thank you very much.
Thank you, Bernard. Welcome to all of you. It's a pleasure to start with a good quarter in my new role. If I look at, we were expecting a good start of the year, continuing the strength we have seen in Q4, this is the case. This is really the case. Not only this growth is solid, but it's a broad-based growth. Bernard said, we saw the growth across the three channels, nine of the 12 geos, most of our core industry as well as the diversified industry, and in all the major brands. This is basically the key point for this quarter. If I look at a little bit more on the numbers, the revenue reported is EUR 771 million. You remember the guidance we gave to you was EUR 750 million-EUR 770 million. We are in this range.
The growth, including currency effect, at 9%. It's the middle because we gave to you 8%-10%, it's 9%. We are in the high end of the software growth because we are at the 10% growth. If you remember, we gave to you this high end in the guidance. Basically the gap is coming from the services, and I will give more detail about it. If you look at the operating margin, 27% operating margin, again, high end of the guidance and a significant improvement because we are talking about 80 basis points compared to last year. EPS at EUR 0.59, which is again, higher than the guidance we gave to you because the high end was at EUR 0.57. 11% growth, taking into account the currency effect, excluding the currency effect, 26%.
I think we can qualify this as a good quarter and a good momentum. From a software standpoint, by regions, we had a significant good growth in Americas with 11%, it's coming from NAM, North America, as well as LATAM. That's a good point. In Europe, the growth is also coming from all the major brands in Americas. For Europe, 6% growth. I want you to keep in mind that last year, Europe was growing at 11%. Basically, we have a comparison-based effect. Does not explain everything, but at least it's a good point. Europe growth is driven by France and southern Europe, essentially, as well as Russia. The good news are really coming from Asia, with a strong growth in Asia across all the major countries, including Japan, China, Korea, South Korea, and India.
If you remember, Japan was a little bit weak last year. We are recovering the situations in a good manner in Japan. China, we are back on track what we used to have, which is close to 20% growth. The software revenue by brand. CATIA grows 5% on the software side. If I look at the new license, it's a double-digit growth and it's driven by Asia. It's led by Asia at large, and it's also led by Americas and also the indirect channels globally. ENOVIA, which is also the good news for this quarter. You remember Q4, ENOVIA was a little bit weak, and the 3DEXPERIENCE was having a good momentum. Here we have ENOVIA being aligned with a good momentum with 3DEXPERIENCE platform as well. +11%, which means, in term of new license, 36% growth.
Clearly, it's a good dynamic. The dynamic is coming from Asia and Europe to the large extent, and also North America as well. SOLIDWORKS, we continue the good ride, +13%, a double-digit license growth, coming from basically all the geos. The other software, I would like to mention three of them. SIMULIA, again, good performance on SIMULIA, and I will come back a little bit more in detail just after. DELMIA and GEOVIA are basically growing on a new license more than 20%. Clearly good dynamic. Again, demonstration that it's a broad-based growth. It's not only one or two product lines driving it. Let's zoom on simulations and SIMULIA. Why I want to make this zoom? Again, it's probably the first time we are disclosing to you the weight of SIMULIA in our revenue, so it's 15%.
Again, I'm not talking about all the simulation activities we have inside DS, because this is not taking into account what we do, for example, in life sciences or what we do also on the manufacturing side. It's really the core product simulations, which is equivalent to our peers. If you look at the organic software growth, it's up 9%, and it's driven by the core industry, or we say transportation and mobility, but also the diversification, high tech and life sciences, especially the medical devices. We had a strong performance of Exa this quarter. This is good because you remember last year, Exa, before the acquisition, was a little bit suffering some of growth. We have been able to reestablish a good dynamic. Just for you to know overall, the growth for SIMULIA this year is 26%.
If I take into account the Exa performance, a 9% organic growth. The key point I want to mention, we are really expanding the market leadership in simulation. I know with all the acquisition we did, we are covering 70% of the market in term of coverage. If I take the fluid dynamic, the structural analysis, the high frequency as well. When we do the pro forma and we compare with others, we are definitively the number two. We are not yet the number one. We still have a big competitor in front of us. If you look at all the acquisitions, our competition they did in the simulation space, we are still number two and we have a well-established position into this space. Keep an eye on simulations because this will continue to grow at a significant pace. Zooming on the financials.
For the software growth, I spoke about it, 10%, which is the high end of the guidance, and the organic growth at 8% if you include the currency effect. If you split the software growth by the new license and the subscription and support, an organic growth on the new license of 14%, which is a very good dynamic. I really want to draw the attention on this. This new license growth is really coming from 3DEXPERIENCE platform. Bernard said it's 53% growth for this quarter, and it's a significant momentum. We still have a good momentum with SOLIDWORKS, even if for the second half of the year, I really want you to consider the moderate pace for SOLIDWORKS.
The good news is really coming also from the subscription and support because if you remember, we shared with you a range between 6.5%-8% growth on a recurrent part. We are at 9%, exceeding not only the consensus but also our guidance. This is reflecting really the renewal rate at large. If you look at a little bit more in deep, the improvement is coming from the subscription. We had, on a pro forma basis, an organic growth which is higher than 10% for the subscriptions for this quarter. Moving to services. We are flat, excluding the currency effect, it means the EUR 6 million gap. The point is clearly the following, if I look at the nature of the services, the gap is not coming from all the services related to 3DEXPERIENCE platform.
You remember all the big projects we signed last year are really delivering growth on the services. The gap is coming from the brand services and especially 3DEXCITE, where we are still suffering. The prospects for Q2 is much better, clearly we expect a recovery for 3DEXCITE and to a mixed result on others. Again, we are talking about the EUR 6 million gap, and this gap is largely offset by the performance of the software, either on the new license and the recurrent part. On the operating margin, significant lever, as you can see, 240 basis points improvement organically, and it's basically the direct contribution of the bigger recurrent revenue. It's almost pure margin and also a tight control costs we have put in place for Q1 in order to basically have the discipline.
This has been offset by the currency effects of 110 basis points and the acquisitions of Exa Corporation, which contribute to 50 basis points dilution for this quarter. Overall, 80 basis points improvement, a good lever, and at the end, we are delivering at the high range of the EBIT margin of 27%. On the EPS, EUR 0.59, EUR 0.02 higher than basically the consensus and also the guidance. A growth excluding the currency effect at 26%. It's the direct contribution of the margin expansions and also a lower tax rate compared to what we share with you. One cent is coming from the tax rate. Okay. Cash is king. Look, this beautiful cash flow statement, EUR 407 million, moving by 17% compared to last year.
At the end, we are landing with a net financial position at EUR 1.845 billion, so significant cash position. If you zoom a little bit, the improvement is coming from the good collection and also the increase in the net revenue, which is consistent with basically the organic growth of the recurrent revenue. Basically, again, the cash flow is really solid. Let's zoom on the objective for the full year. We are reconfirming the full year objectives. Just as a reminder, 8%-9% growth excluding currency effects and a license growth between 8%-10%, an operating margin between 31%-31.5% and an EPS in a range of EUR 2.83-EUR 2.88 and a growth as a reporting between 6%-8%. We are not changing our assumptions for the exchange rate.
We are still keeping, basically for H2, 1.20 for the USD and 135 for the JPY. If we have to do it, we will do it in Q2. If I zoom on the full year and the Q2. For the full year, again, the only changes is coming from the services whereby I shared with you last quarterly call, basically the 12% growth for the full year, which was the initial guidance. We are slightly reducing it to 9%, but again, it's still a good number because services are back on track. Again, it's largely compensated by the better recurrent revenue on the software side. No significant impact, and I think from a mix standpoint, it's much better.
Which basically means for the full year, the total revenue grows between 8%-9%, so no changes, and the license between 8%-10%, the recurring between 7%-8%. An operating margin gains between -1 and 0.5 points, which is coming from the dilution of the acquisitions for 60 basis points and the currency effect for 40 basis points. Tax rate at 29.7%, no change, and EPS still in the same range. For Q2, we are targeting a revenue range between EUR 815 million-EUR 830 million, which is a growth excluding currency effect between 8%-10%. Also, an operating margin which is stable, at least on the high end of the guidance, and an EPS, which is in the range of EUR 0.65-EUR 0.68, is a reporting growth between 5%-10%. Excluding the currency effect, a growth between 16%-22%.
Clearly, Q2, which is a good and solid one, and almost in line with what we have seen until now and in the perspective of the full year. That's it for today. I think we are ready to take the questions with Bernard.
We'll take first question from the room. After, we will take question from the call.
Great. Thank you. You've now done three consecutive quarters of double-digit organic license growth. For Q2, Pascal, you're sort of indicating 10% more at the upper end. I think your comments on pipeline activity still seem to be pretty good. Should we read anything into that, and how do you expect the year to develop? Everything sort of points fundamentally in the right direction. Am I reading too much into this from a cautionary standpoint?
Again, I gave you the range and, obviously, we are targeting the high end of the range. We still want to have a 10% growth on the new license, and the pipeline is here to deliver it. There is no specific thing hidden behind this. Again, if you combine Q1 and Q2 for H1, it means that basically, we will land close to 12% growth for the new license, which is exceeding the double-digit growth. For the rest of the year, the pipeline is full. Q3, we have a relatively good visibility. Q4 is still a little bit early because even if the pipeline is here, it's difficult to assess the maturity. No, nothing specific to say on this.
At the same time, we don't want you to conclude on overestimate. We want to continue to build a track record on which we can deliver. We are careful about not creating over expectation that's always difficult to manage. You notice that in what Pascal and I presented, we put a lot of attention on new clients, on I would say, new situation, new setup for the evolution of the market. Because the cycle at which the existing companies are transforming themselves is not only dependent about our sales efficiency. They have cycles. We want to grow as quickly as possible the footprint, because that provides a long-term visibility. It's about assigning the resources properly.
Obviously, you signed in middle of last year the Boeing deal, and I think it wasn't the Boeing deal that excited you, but the implications of that. Nine months on, can you give us an update on how that's perhaps changed the conversation you're having with many existing but also potential new customers and the strategic engagements that you're having, not just in aerospace, but in autos and the other verticals?
We were astonished ourself with the effect of this announcement. While we have not said so much, I think what was astonishing for the market is the scale of it. Not only that, it's also the wide spectrum, the scope, of what is called the Boeing, and that was discussed with Dennis Muilenburg, the CEO Muilenburg, about what they call the Boeing Second Century, called Boeing 2CES. This program is center on industry experience platform. It has changed the behavior of many large clients, in terms of looking, understanding the scope, from manufacturing, ideation, of course, engineering, simulation, but also using the platform for service. The conversation is different, which is good for the midterm. We have to orchestrate things properly.
One thing that we did not mention, I think we are pleased with the evolution of the behavior of the key CSIs, Consulting and System Integration companies. I think it's becoming a topic on their agenda. We need their capacity.
Question on the other software growth running at 14%. How much of that was Exa ?
If you look at SIMULIA, I would say SIMULIA represents 15% of the total revenue. The growth for SIMULIA for this quarter is 26%. If you exclude Exa, we're at 9%. You'll be able to compute the number. Then on SOLIDWORKS growth, what was the split volume and pricing? In term of unit, the growth is at 8% of the unit, and the balance is coming from the pricing. There is also another topic of attention, if I may add, Pascal. As you know, the subscription attachment level for SOLIDWORKS is lower than what it is for all the other software we have. We are putting a lot of attention on this contributes to the recurring part of it on that topic, because it's a good preparation for subscription with cloud services.
We still have levers to use here, in a positive sense. I mean, to provide them the flexibility for them to use basically either or desktop or. As you may remember, we have not spent too much time, maybe in middle of the year we will. Consumers or customers who are subscribing to the subscription, we don't say maintenance anymore. It's a subscription. They get a lot of evolutions of product, but they get also many contents which are available on MySolidWorks, training and so on, which is almost reaching 1 million user subscription. It's becoming a visible line in terms of potential of development, especially with what I told you about the new 3DEXPERIENCE-based services for SOLIDWORKS desktop. If they are connected already, it facilitates the adoption of broader set of services.
In short, focusing our channel for increasing the attachment rate on the existing install base for the subscription. Right. Cool. One question.
Thanks. A couple for me for Pascal and one for you, Bernard. Pascal, just on CATIA, there was a 5% growth overall, double-digit license. Can you say, is there a mix shift here from rental to upfront licensing? What's going on with the recurring? Is this led by CATIA V5 now you've got the POWER'BY offering or is it actually CATIA V6 adoption? Just on SOLIDWORKS for the second half, I think maybe Bernard was alluding it to there. Are you now teeing us up for a more significant shift to cloud, and that's why the license growth will slow in the second half and get maybe into 2019? Or is this just the tougher comparatives? Bernard, as Mo said, 3 quarters of strong growth. Do you think this is about sales execution or more where the product maturity is now postponing with POWER'BY, et cetera?
Okay. I will start with CATIA. I will give you a statistic which will be, I think, straightforward. Half of the large deal we have for CATIA are on 3DEXPERIENCE platform. I think it's really taking off. For SOLIDWORKS, no, I think the point is not the one related to the massive cloud adoption, and this is the reason why we are being more cautious for the second half is really because the base of comparisons is significant. This is the point. Related to the visible double-digit growth, we still have a long way to go to improve our sales system. We have improved it, but there's a lot more that we are doing. I'm not saying about additional investment. It's about the value engagement itself.
It's making sure we don't spend too much time in the early engagement because basically what is happening is 3DEXPERIENCE is on the agenda, not only for our clients but for prospect. It's visible now. Before it was something like, what is it? As compared to PLM. The visibility is much higher. The time we spend to explain what it is and why it is game changer, it's much less. The other factors you mentioned in your question, we still have room to improve. Basically you have seen in some of the showcase, we have proof points which are very significant in terms of value. Not the cost of the software, but the value that it brings. The quality in which our sales globally can explain to clients, here is what you are going to be able to save. It's improving.
This is facilitating the engagement and also the negotiation for what they are going to acquire. That's basically where we are. I think that in the next quarters, we still have a lot of levers to exploit. I'm confident.
Hi. Thanks for taking the question. Pascal, could you maybe just talk through the bridge to the margin guidance for the full year of -1 to -0.5 points? Obviously, you've had a good performance this quarter, could be flat next quarter. Just maybe talk about the phasing of costs that means that margin is down overall for the year, firstly. Then secondly, on SOLIDWORKS, I think historically, you have been pretty generous with the commissions that you pay to resellers. I think you're up in the mid, even high 40% level versus competitors in the mid-market paying more like 30% or so as a commission. Do you have room to be less generous on the commissions to the SOLIDWORKS channel or maybe adjusting it in some way? Thanks.
Okay. I will start with the first questions. Remember, for the full year, for the EBIT margin, we say that the currency effect will count for 40 basis points. The dilutions coming from the acquisitions, mainly Exa, from 60 basis points. We are still targeting an improvement which is half a point, which is 50 basis points, organically speaking. This is what we have in the guidance. Now, we started slowly hiring people all this quarter, and we expect to accelerate, which is usually what's happening in Q1. It's not unnormal, because with all the kickoff, all the new organizations to put in place. We will accelerate a little bit on the Q2 and Q3. Clearly, we are still on this plan.
Related to the, if I may.
Sure.
I think there's a lot of engineering that Pascal is doing on the second part of your question, of course, with Thibault on the team about the right model for resellers. The first statement I want to say is, unlike most of the other players, we are putting a lot of attention on the long-term commitment for our indirect channel is significant. In fact, we believe that the two indirect channel will create more growth than our direct channel. On the efficiency of the model, took us years to set it up, is very good. I insist to say, unlike most of the players. Related to your question, without revealing too many secrets, because it's a little bit early, our priority number one, as you might imagine, is to make sure that those resellers for volume channel or value partners for [BS transition to cloud.
We are not going to do cloud without them, because we know they can provide a lot. The nature of what they are going to provide is different, because they are also going to use the marketplace. Basically, in some way, instead of installing software, I talk in the old way of on-premise, they will providing direct service, direct output results to their clients. That's a very, I think, differentiating model. There is a lot of potential because in some way, our marketplace calls for more players to provide service on it. Not application, service. Our application world in the marketplace is not application, it's the service. Like, "Can you do this design for me, please? Can it be ready by tomorrow morning, eight o'clock? For how much?" Or, "Can you make this 3D printing? For how much?
When?" Or, "Can you do laser cutting?" Et cetera. The nature of this is going to be the seller and the doer of the services. We plan to leverage our powerful networks of partners. Again, unlike most of the players in the industry.
We'll take now a question from the call. Sergey?
Stacy Pollard of J.P. Morgan, please go ahead.
Thank you for taking the question. Sorry, I couldn't quite make it there today. Three from me. First of all, how much of the Boeing contract is flowing into 2018? I understand you won't be able to give an exact amount, but could we just get a sense of timing of the ramp-up and flow over the next few years? Second question, you said 3DEXPERIENCE software revenue's up 26% and the cloud activity up significantly. Again, can you give us an idea of the actual size of these two numbers or order of magnitude, percentage of revenues, that kind of thing? Third, and kind of a follow-on to that on the cloud, just to make sure that I understand, can you tell us what products are the cloud revenues mainly coming from, and how much of CATIA is in the cloud?
Okay. I will start with the first one. The Boeing contribution for next year-
For 2018, sorry.
For 2018. Sorry. I was in mind the 2019, because usually this is the question. It is less than 10 million. I will not give you the exact number. For next year, it's having an impact of a point. With this, I think you have a good order of magnitude. On your second questions, we are not disclosing the number for the cloud. I think Bernard made the statement in the introduction, which is, at the end, the revenue is a consequence of something else. The something else is the footprint, and the way we measure the footprint is by the number of users and the volume of activities those users are doing. This is basically the KPIs we have right now. As far as I remember, we shared with you at the last presentations, the number.
I was expecting to have some questions, but we have 15 million connected users. Besides that, all of them are on the cloud. As part of this number, it's not only the professional, you have also the consumer side from HomeByMe . Nevertheless, this gives you an indicators about the footprint we are talking about. We will probably provide a little bit more at the June meeting. The point is, there are two surprising remarks. One is really no churn when you start with on top. The second remark is the impressive data volume. The last is, most of the projects are not for trial. They do the job. Which is not very frequent with software on the cloud, when I talk about software used, not for consumers, but for enterprises. Those are not evaluation. They are real programs going on.
I think we have now a very robust. Two weeks ago, we do a major evolution every three months. It goes smoothly, very smoothly. Zero regression. We are learning how to go from three months to two months. We go to one month. They can get the full benefit real time. The infrastructure now has reached a level of extreme robustness, and it's very critical because unlike many startups in the cloud, for us, they are doing cars or planes. Or Kärcher, they are going to build the next product lines on our system. It has to work. It's not just for evaluation. Those are very interesting special characteristics that I think made the bar to entry very high.
Next question, please, Sergey.
As a reminder, to ask a question over the phone, please press star one. Amit Harchandani of Citigroup, please go ahead.
Good morning, everyone. Amit Harchandani for Citi, thanks for taking my question. Two if I may. My first question really relates to the growth we have seen in the 3DEXPERIENCE platform. You talked about very strong new license numbers there. Could you maybe help me understand a bit more how should we think about this level going forward? Particularly also the drivers that you see, for example, is it coming more installed base versus new customers? Any comments in terms of regional or adoption in different industries? That would be helpful to get a better understanding of the drivers. Secondly, if I may, you've talked about cloud computing. Could you help me get your perspective on the adoption in case of hybrid versus public cloud as it relates to your solutions, and what are you hearing with your customers, and what are the kind of discussions you're having?
Thank you.
Okay. I will answer to the first questions. You're right. The dynamic for the new license for 3DEXPERIENCE platform is exceeding 50%. For this quarter, it's 53%, to be precise. Keep in mind that for the last quarter, we gave to you the numbers, which was 25% of the software. The total software revenue is coming from 3DEXPERIENCE platform. From an adoption standpoint, clearly, what is the difference we are seeing for the last few quarters? For the last few years, the traction was really coming from the diversification. All the new industries starting from scratch, basically, they were adopting day one, the 3DEXPERIENCE platform. Now, since few quarters, we are seeing massive adoptions of the car industry.
This is the reason why, for at least the last two quarters, we are saying to you, not only we have a good new license growth, but it's coming from transportation and mobility. It's coming also from aerospace and defense. Clearly, this is the shift we are really seeing for the last few quarters. This is also accelerating thanks to the POWER'BY, because we just released the POWER'BY early this year, and we already have customers adopting it.
I can basically share with you that a large Japanese auto company has adopted the POWER'BY products, and it's in our book for this quarter. If I look at the pipeline for the full year, it's already exceeding EUR 10 million. It's reflecting in the ENOVIA numbers. Basically, to answer to your question, the 3DEXPERIENCE dynamic is coming now from the multiple industry. Related to the, if I understood well your question related to the conversation topic on the cloud. It's relatively easy, in fact. You have new categories of players that basically know our reputation in terms of the power of the software, whether it's CATIA, SIMULIA, or others. They just say, "Okay, we go on the cloud directly." We announced a few of them today. I mean, Kärcher, EVelocity, and others, and those guys are doing real large-scale programs.
Joby Aviation, we talked about it in the past. That's one category. It's basically the category where they know they are having access to the power of what we provide to big companies, and they can do it quickly through an extremely easy deployment. As you remember, we also provide our own end-to-end infrastructure in addition to Amazon, because we want to do very specific things related to security on the entire stack, from the hardware up to the service. We will continue to do so. The second is large companies want to do a semi-open innovation. Basically, they have already on-premise, whether on V5, whether on the new experience platform, and they want to establish the ecosystem of innovators around them, and they really evaluate. They will not only evaluate, they use the cloud to do that. That's the second.
The third factor for us are new sectors like AEC. In AEC and architecture, this is a game changer because there is little CapEx, and they can start quickly. Kengo Kuma, we mentioned many of them already, SHoP of New York, Kengo Kuma in Japan and others. Those are proof points. They have started and they don't stop. They continue to expand. We see the data volume produced is quite interesting, in terms of dynamic as well as the user or number. That's the topic. The last one, certain customers for us are basically the size of a country. You take their ecosystem. Those very big ones are really asking us to prepare private cloud for them, subject to be discussed at another point in time. The reason for that is not only for the POWER'BY, it's also about the Marketplace.
They are going to massively simplify their transaction management with suppliers. Today, it's very complex. You have a supply chain system, you have an ERP system, you have to consolidate it between different units. We have a proposal where we say we take care of the transaction ourselves. We do everything for you end-to-end. We do everything, one-shot, and we trace everything. This is game changer. More to discuss on that topic.
Very helpful, Bernard. Thank you.
Are we done? Okay. Thank you very much for participating to this call. Once again, we are always available for you, of course. As you may notice, I think we are starting with a good smile for 2018. See you in June, I hope we see a lot of you on the campus, because I think there is a lot of interesting topics that we will cover at this point in time. Thank you again. Have a good day.