ANSYS, Inc. reported second quarter 2021 GAAP and non-GAAP revenue growth of 16% in reported currency, or 13% and 14% in constant currency, respectively, when compared to the second quarter of 2020. For the second quarter of 2021, the Company reported diluted earnings per share of $1.06 and $1.85 on a GAAP and non-GAAP basis, respectively, compared to $1.11 and $1.55 on a GAAP and non-GAAP basis, respectively, for the second quarter of 2020.
"Ansys delivered exceptionally strong results for the second quarter and significantly beat our financial guidance across our key metrics. Our broad-based growth validates our strategy of Pervasive Simulation, and our product leadership and ongoing go-to-market momentum gives us increased confidence in our business and ability to execute against our goals. In July, we extended our technology leadership with Ansys 2021 R2, which introduced breakthrough technologies and innovative capabilities across our product portfolio. These enhancements are bolstering the value of Ansys simulation for our customers by providing them greater engineering insight with enhanced speed and scalability,” said Ajei Gopal, Ansys president and CEO.
Nicole Anasenes, Ansys CFO, stated, “Our outstanding performance was highlighted by 25% ACV growth in the second quarter, driving our first half 2021 ACV growth to 16%. Given the strength and momentum in our core business year-to-date, coupled with our sales pipeline, I am confident in our ability to achieve our increased full-year 2021 guidance.”
Financial Results
Ansys' second quarter and year-to-date (YTD) 2021 and 2020 financial results are presented below. The 2021 and 2020 non-GAAP results exclude the income statement effects of the acquisition accounting adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, and transaction expenses related to business combinations.
GAAP and non-GAAP results are as follows:
|
|
GAAP |
|
Non-GAAP |
|||||||||||||||||||
|
(in millions, except percentages and per share data) |
Q2 QTD 2021 |
|
Q2 QTD 2020 |
|
% Change |
|
Q2 QTD 2021 |
|
Q2 QTD 2020 |
|
% Change |
|||||||||||
|
Revenue |
$ |
446.7 |
|
|
$ |
385.7 |
|
|
16 |
|
% |
|
$ |
452.6 |
|
|
$ |
389.7 |
|
|
16 |
% |
|
Net income |
$ |
93.7 |
|
|
$ |
96.6 |
|
|
(3 |
) |
% |
|
$ |
162.6 |
|
|
$ |
134.3 |
|
|
21 |
% |
|
Diluted earnings per share |
$ |
1.06 |
|
|
$ |
1.11 |
|
|
(5 |
) |
% |
|
$ |
1.85 |
|
|
$ |
1.55 |
|
|
19 |
% |
|
Operating profit margin |
26.1 |
% |
|
29.3 |
% |
|
|
|
41.7 |
% |
|
42.9 |
% |
|
|
|||||||
|
|
GAAP |
|
Non-GAAP |
||||||||||||||||||
|
(in millions, except percentages and per share data) |
Q2 YTD 2021 |
|
Q2 YTD 2020 |
|
% Change |
|
Q2 YTD 2021 |
|
Q2 YTD 2020 |
|
% Change |
||||||||||
|
Revenue |
$ |
809.9 |
|
|
$ |
690.6 |
|
|
17 |
% |
|
$ |
824.7 |
|
|
$ |
698.6 |
|
|
18 |
% |
|
Net income |
$ |
166.1 |
|
|
$ |
142.6 |
|
|
16 |
% |
|
$ |
261.5 |
|
|
$ |
206.6 |
|
|
27 |
% |
|
Diluted earnings per share |
$ |
1.89 |
|
|
$ |
1.64 |
|
|
15 |
% |
|
$ |
2.97 |
|
|
$ |
2.37 |
|
|
25 |
% |
|
Operating profit margin |
20.6 |
% |
|
21.3 |
% |
|
|
|
38.0 |
% |
|
36.9 |
% |
|
|
||||||
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2021 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three and six months ended June 30, 2021 and 2020, and for the 2021 financial outlook, can be found in the condensed financial information included in this release.
/ Other Performance Metrics
|
(in millions, except percentages) |
Q2 QTD 2021 |
|
Q2 QTD 2020 |
|
% Change |
|
% Change in Constant Currency |
|||||||
|
ACV |
$ |
430.5 |
|
|
$ |
344.4 |
|
|
25 |
|
% |
|
23 |
% |
|
Operating cash flows |
$ |
118.9 |
|
|
$ |
131.6 |
|
|
(10 |
) |
% |
|
|
|
|
(in millions, except percentages) |
Q2 YTD 2021 |
|
Q2 YTD 2020 |
|
% Change |
|
% Change in Constant Currency |
||||||
|
ACV |
$ |
749.9 |
|
|
$ |
645.5 |
|
|
16 |
% |
|
14 |
% |
|
Operating cash flows |
$ |
290.0 |
|
|
$ |
279.0 |
|
|
4 |
% |
|
|
|
ACV is a metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. ACV is composed of the following:
- the annualized value of maintenance and lease contracts with start dates or anniversary dates during the period, plus
- the value of perpetual license contracts with start dates during the period, plus
- the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
- the value of work performed during the period on fixed-deliverable services contracts.
/ Management's 2021 Financial Outlook
The Company's third quarter and fiscal year 2021 revenue and diluted earnings per share guidance is provided below. The Company is also providing its fiscal year 2021 guidance for ACV and operating cash flows. The revenue and diluted earnings per share guidance is provided on both a GAAP and non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets and acquisition-related transaction expenses.
The financial guidance below reflects the Company's current estimates of the impacts of the global pandemic and trade restrictions. This guidance is based on the Company's evaluation of factual information it has determined to be relevant and the application of certain assumptions made by the Company. Please refer to the Company's prepared remarks document for essential additional information regarding the Company's financial guidance, including its assumptions regarding overall business dynamics and the economic impacts of COVID-19 and trade restrictions.
/ Third Quarter 2021 Guidance
The Company currently expects the following for the quarter ending September 30, 2021:
|
(in millions, except percentages and per share data) |
GAAP |
|
Non-GAAP |
||||||||||||
|
Revenue |
|
$395.8 |
|
- |
|
$420.8 |
|
|
|
$400.0 |
|
- |
|
$425.0 |
|
|
Revenue Growth Rate |
|
7.9% |
|
- |
|
14.7% |
|
|
|
8.4% |
|
- |
|
15.1% |
|
|
Revenue Growth Rate — Constant Currency |
|
7.0% |
|
- |
|
13.8% |
|
|
|
7.5% |
|
- |
|
14.2% |
|
|
Diluted earnings per share |
|
$0.58 |
|
- |
|
$0.80 |
|
|
|
$1.22 |
|
- |
|
$1.39 |
|
/ Fiscal Year 2021 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2021:
|
(in millions, except percentages and per share data) |
GAAP |
|
Non-GAAP |
||||||||||||
|
Revenue |
|
$1,818.9 |
|
- |
|
$1,868.9 |
|
|
|
$1,840.0 |
|
- |
|
$1,890.0 |
|
|
Revenue Growth Rate |
|
8.2% |
|
- |
|
11.2% |
|
|
|
8.5% |
|
- |
|
11.5% |
|
|
Revenue Growth Rate — Constant Currency |
|
6.9% |
|
- |
|
9.9% |
|
|
|
7.3% |
|
- |
|
10.2% |
|
|
Diluted earnings per share |
|
$4.51 |
|
- |
|
$4.91 |
|
|
|
$6.85 |
|
- |
|
$7.15 |
|
The difference between the GAAP and non-GAAP revenue guidance presented above is a result of the expected impact of the application of the fair value provisions applicable to the accounting for business combinations in the amount of $4.2 million for the third quarter and $21.1 million for FY 2021.
|
(in millions, except percentages) |
Other Financial Metrics |
||||
|
ACV |
|
$1,800.0 |
- |
$1,845.0 |
|
|
ACV Growth Rate |
|
11.4% |
- |
14.1% |
|
|
ACV Growth Rate — Constant Currency |
|
10.8% |
- |
13.5% |
|
|
Operating cash flows |
|
$495.0 |
- |
$535.0 |
|
/ Conference Call Information
Ansys will hold a conference call at 8:30 a.m. Eastern Time on August 5, 2021 to discuss second quarter results. The Company will provide its prepared remarks on the Company’s investor relations homepage and as an exhibit in its Form 8-K in advance of the call to provide stockholders and analysts with additional time and detail for analyzing its results in preparation for the conference call. The prepared remarks will not be read on the call, and only brief remarks will be made prior to the Q&A session.
To participate in the live conference call, dial 855-239-2942 (US) or 412-542-4124 (Canada & Int’l). The call will be recorded and a replay will be available within two hours after the call. The replay will be available by dialing (877) 344-7529 (US), (855) 669-9658 (Canada) or (412) 317-0088 (Int’l) and entering the passcode 10156465. The archived webcast can be accessed, along with other financial information, on Ansys' website.
