Dassault Systèmes, a leading software company, saw its shares plummet by 15% in early trading, marking the third-largest decline in its history. The drop follows the release of significantly below-expected third-quarter results, driven by a sharp decline in license sales, which fell by 13% excluding currency effects. The company also lowered its 2025 growth targets and provided a very broad forecast for Q4, indicating ongoing market challenges. Revenues for July-September reached €1.46 billion, 3% below analyst consensus, with license sales shrinking despite the company's shift towards a subscription model where licenses now account for only 13% of revenue. The company's performance in the life sciences sector, particularly Medidata, continued to disappoint due to reduced clinical trial launches. Additionally, growth in the subsidiary Centric PLM was weaker than expected. As a result, Dassault Systèmes revised its full-year revenue guidance downward to €6.255-6.375 billion, with a growth forecast of only 4-6%, and a significant cut in license sales growth outlook from 4-7% to -8% to 0%. The company also provided a wide range for Q4 growth, from a 3% decline to a 4% increase. Analysts highlight the company's difficulty in transitioning to a slower, more uncertain subscription-based revenue model, with some describing the outlook as 'zero visibility.' The stock's decline reflects concerns about the company's growth trajectory and market positioning amid broader industry pressures.