Ansys Announces Q3 Financial Results
/ Q3 2024 Results
Revenue of $601.9 million
GAAP diluted earnings per share of $1.46 and non-GAAP diluted earnings per share of $2.58
GAAP operating profit margin of 26.8% and non-GAAP operating profit margin of 45.8%
Operating cash flows of $174.2 million and unlevered operating cash flows of $184.5 million
Annual contract value (ACV) of $540.5 million
Deferred revenue and backlog of $1,463.8 million on September 30, 2024
PITTSBURGH, Nov. 06, 2024 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported third quarter 2024 revenue of $601.9 million, an increase of 31% in reported and constant currency when compared to the third quarter of 2023. For the third quarter of 2024, the Company reported diluted earnings per share of $1.46 and $2.58 on a GAAP and non-GAAP basis, respectively, compared to $0.64 and $1.41 on a GAAP and non-GAAP basis, respectively, for the third quarter of 2023. Additionally, the Company reported third quarter ACV growth of 18% in reported and constant currency, when compared to the third quarter of 2023. The Company continues to expect FY 2024 ACV growth to be double-digit.
On January 15, 2024, the Company entered into a definitive agreement with Synopsys, Inc. (Synopsys) under which Synopsys will acquire Ansys. Ansys and Synopsys have received foreign direct investment approvals for the proposed transaction in nearly all of the relevant jurisdictions, and received unconditional clearance from the Israeli Competition Authority on October 9, 2024. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.
The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures for the three and nine months ended September 30, 2024 and 2023 can be found later in this release.
/ Summary of Financial Results
Ansys' third quarter and year-to-date (YTD) 2024 and 2023 financial results are presented below. The 2024 and 2023 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.
Our results are as follows:
GAAP
(in thousands, except per share data and percentages)
Q3 QTD2024
Q3 QTD2023
% Change
Q3 YTD2024
Q3 YTD2023
% Change
Revenue
$
601,892
$
458,795
31.2
%
$
1,662,635
$
1,464,841
13.5
%
Net income
$
128,192
$
55,502
131.0
%
$
293,004
$
225,650
29.8
%
Diluted earnings per share
$
1.46
$
0.64
128.1
%
$
3.34
$
2.58
29.5
%
Gross margin
88.5
%
85.8
%
87.5
%
86.3
%
Operating profit margin
26.8
%
15.2
%
21.8
%
20.0
%
Effective tax rate
20.5
%
11.3
%
18.3
%
15.6
%
Non-GAAP
(in thousands, except per share data and percentages)
Q3 QTD2024
Q3 QTD2023
% Change
Q3 YTD2024
Q3 YTD2023
% Change
Net income
$
227,010
$
122,897
84.7
%
$
568,208
$
423,991
34.0
%
Diluted earnings per share
$
2.58
$
1.41
83.0
%
$
6.47
$
4.85
33.4
%
Gross margin
92.8
%
91.1
%
92.2
%
91.1
%
Operating profit margin
45.8
%
34.1
%
41.6
%
36.8
%
Effective tax rate
17.5
%
17.5
%
17.5
%
17.5
%
Other Metrics
(in thousands, except percentages)
Q3 QTD2024
Q3 QTD2023
% Change
Q3 YTD2024
Q3 YTD2023
% Change
ACV
$
540,527
$
457,549
18.1
%
$
1,468,477
$
1,345,305
9.2
%
Operating cash flows
$
174,237
$
160,768
8.4
%
$
537,767
$
484,400
11.0
%
Unlevered operating cash flows
$
184,482
$
170,625
8.1
%
$
567,805
$
512,281
10.8
%
Supplemental Financial Information
/ Annual Contract Value
(in thousands, except percentages)
Q3 QTD2024
Q3 QTD 2024 in Constant Currency
Q3 QTD2023
% Change
% Change in Constant Currency
ACV
$
540,527
$
538,963
$
457,549
18.1
%
17.8
%
(in thousands, except percentages)
Q3 YTD2024
Q3 YTD 2024 in Constant Currency
Q3 YTD2023
% Change
% Change in Constant Currency
ACV
$
1,468,477
$
1,483,108
$
1,345,305
9.2
%
10.2
%
Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.
/ Revenue
(in thousands, except percentages)
Q3 QTD2024
Q3 QTD 2024 in Constant Currency
Q3 QTD2023
% Change
% Change in Constant Currency
Revenue
$
601,892
$
601,759
$
458,795
31.2
%
31.2
%
(in thousands, except percentages)
Q3 YTD2024
Q3 YTD 2024 in Constant Currency
Q3 YTD2023
% Change
% Change in Constant Currency
Revenue
$
1,662,635
$
1,676,211
$
1,464,841
13.5
%
14.4
%
The increase in revenue was driven by strong multi-year lease growth. The Company closed an $88 million contract during the quarter in the high-tech industry in the Americas region, contributing to multi-year lease growth.
REVENUE BY LICENSE TYPE
(in thousands, except percentages)
Q3 QTD2024
% of Total
Q3 QTD2023
% of Total
% Change
% Change in Constant Currency
Subscription Lease
$
194,322
32.3
%
$
103,573
22.6
%
87.6
%
87.4
%
Perpetual
82,626
13.7
%
58,849
12.8
%
40.4
%
39.9
%
Maintenance1
306,670
51.0
%
278,108
60.6
%
10.3
%
10.5
%
Service
18,274
3.0
%
18,265
4.0
%
—
%
(0.3)%
Total
$
601,892
$
458,795
31.2
%
31.2
%
(in thousands, except percentages)
Q3 YTD2024
% of Total
Q3 YTD2023
% of Total
% Change
% Change in Constant Currency
Subscription Lease
$
507,711
30.5
%
$
386,494
26.4
%
31.4
%
32.3
%
Perpetual
212,790
12.8
%
199,977
13.7
%
6.4
%
6.9
%
Maintenance1
889,836
53.5
%
820,393
56.0
%
8.5
%
9.5
%
Service
52,298
3.1
%
57,977
4.0
%
(9.8) %
(9.5)%
Total
$
1,662,635
$
1,464,841
13.5
%
14.4
%
1 Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.
REVENUE BY GEOGRAPHY
(in thousands, except percentages)
Q3 QTD2024
% of Total
Q3 QTD2023
% of Total
% Change
% Change in Constant Currency
Americas
$
306,516
50.9
%
$
218,294
47.6
%
40.4
%
40.4
%
Germany
38,717
6.4
%
37,901
8.3
%
2.2
%
0.7
%
Other EMEA
98,303
16.3
%
83,719
18.2
%
17.4
%
15.2
%
EMEA
137,020
22.8
%
121,620
26.5
%
12.7
%
10.7
%
Japan
46,737
7.8
%
40,956
8.9
%
14.1
%
16.9
%
Other Asia-Pacific
111,619
18.5
%
77,925
17.0
%
43.2
%
44.6
%
Asia-Pacific
158,356
26.3
%
118,881
25.9
%
