“Bring yourself to a 1% improved version every day, and you will witness a 37x improvement in one year." This quote from a past leader is a guiding principle for me. I believe consistent atomic changes drive mega results. And I’m proud of the team at Computer Modelling Group for remaining committed to this mentality and our strategy as we report our third-quarter earnings today.
This quarter, it’s important to note we made changes to our financial reporting to reflect our evolving business strategy and present the first full quarter of performance from Bluware. We are now reporting two operating segments: Computer Modelling Group (CMG), which has a 40 year history in simulation, and now Bluware (BHV), which we recently acquired. This allows our stakeholders to understand the performance of our existing CMG business and our acquisitions independently. It mirrors how I think about the business and evaluate the progress of our CMG strategy.
CMG Group (both CMG and Bluware) third-quarter revenue increased by 70% year over year, and we generated strong Free Cash Flow of $7.7M. We continue to see the importance of energy transition in the market, with 22% of software revenue from this stream.
Our goal remains to foster long-term, sustained, and durable growth. Our journey to date has been significant, and there’s much more ahead. I express my deep gratitude to the dedicated members of our team, who consistently rise to the challenge as we all strive to surpass our own expectations.
I encourage you to read the full financial report and my letter to shareholders to learn more, link is in the comments. - Pramod Jain