Transformation for Higher Profit Margins
Human and Machine Software SE (MuM) impressively demonstrates how a strategic realignment of the business model can significantly increase profitability. In the first quarter of 2025, MuM achieved an EBIT margin of 24.4%, the second-best quarterly value in its history and a substantial increase compared to 16.7% in the previous quarter. This was primarily due to a realignment in collaboration with Autodesk.
New Model Increases Efficiency
MuM has fundamentally revamped its licensing and commission model with Autodesk. Despite a revenue decline of 35% in the first quarter of 2025, this change has led to a margin increase through reduced purchasing costs and optimized revenue streams.
Sustainable Profitability and Growth Strategy
EBIT grew by 21% per year, and operating cash flow as well as net profit reported sustainable growth of 22% annually. MuM follows a strategy of organic growth with an improved gross profit margin of 8.9% per year, combined with proprietary standard software and customer-specific digitalization solutions.
Attraction for Investors
MuM’s ability to develop innovative business models shows how software companies can revolutionize profitability in a changing market environment through efficiency improvements. The focus on forward-looking technologies significantly increases attractiveness for investors.
In summary, Human and Machine benefits significantly from the new Autodesk model by improving profit margins despite temporary revenue declines. This example underscores the importance of innovation in business models for increasing profitability.