Industry Summary Articles

ANSYS, Inc. reported second quarter 2022 GAAP and non-GAAP revenue growth of 6% and 5% in reported currency, respectively, or 13% and 12% in constant currency, respectively, when compared to the second quarter of 2021. For the second quarter of 2022, the Company reported diluted earnings per share of $1.13 and $1.77 on a GAAP and non-GAAP basis, respectively, compared to $1.06 and $1.85 on a GAAP and non-GAAP basis, respectively, for the second quarter of 2021. Additionally, the Company reported second quarter 2022 ACV growth of 7% in reported currency, or 13% in constant currency, when compared to the second quarter of 2021.

“Ansys delivered another excellent quarter, once again exceeding our financial guidance across all key metrics. We delivered double-digit ACV and revenue growth in constant currency in both the second quarter and for the first half of 2022. Our strong performance year-to-date was broad-based across geographies and industries, highlighting how our diversified multiphysics product portfolio is crucial to customers’ key research and development initiatives. I am excited about the future and look forward to discussing our continued momentum, long-term strategy and outlook at our investor update next week,” said Ajei Gopal, Ansys president and CEO.

Nicole Anasenes, Ansys CFO, stated, “Our outstanding performance was highlighted by 13% ACV growth in constant currency for the second quarter. This consistent and robust performance of double-digit topline growth is a testament to the strength and resilience of our core business and the value we deliver to our customers. Looking toward the second half of 2022, we are raising our full-year guidance on ACV and revenue in constant currency. Given the continued strong demand for simulation, coupled with the momentum across our business, I am more confident than ever in our future.”

/ Financial Results

Ansys' second quarter and year-to-date (YTD) 2022 and 2021 financial results are presented below. The 2022 and 2021 non-GAAP results exclude the income statement effects of the acquisition accounting adjustments to deferred revenue from business combinations closed prior to 2022, 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.

GAAP and non-GAAP results are as follows:

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2022 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, 2022 and 2021, and for the 2022 financial outlook, can be found later in this release.

/ Other Performance Metrics

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 subscription 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 2022 Financial Outlook

The Company's third quarter and updated FY 2022 revenue, diluted earnings per share and ACV guidance is provided below. The Company is also updating its FY 2022 guidance for 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, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, acquisition-related expenses and adjustments for the income tax effect of the excluded items.

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 additional information regarding the Company's financial guidance, including its assumptions regarding overall business dynamics.

/ Third Quarter 2022 Guidance

The Company currently expects the following for the quarter ending September 30, 2022:

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 closed prior to 2022 in the amount of $1.2 million for the quarter ending September 30, 2022.

/ Fiscal Year 2022 Guidance

The Company currently expects the following for the fiscal year ending December 31, 2022:

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 closed prior to 2022 in the amount of $7.3 million for the fiscal year ending December 31, 2022.

Our diluted FY 2022 EPS guidance is inclusive of $22.0M in interest expense ($18.0 million, net of tax). This compares to interest expense in FY 2021 of $12.4 million ($10.0 million, net of tax) with the significant increase in FY 2022 driven by the recent rising interest rate environment and our floating interest rate on our term loans.

Despite an ongoing volatile macroeconomic environment, the updated FY 2022 guidance reflects an operational raise on ACV, revenue, diluted EPS and operating cash flows driven by the underlying strength of our business model and market position. Offsetting this outlook, persistent and meaningful U.S. Dollar strengthening in exchange rates continues to drive unprecedented headwinds. As a result, the guidance assumes additional incremental adverse impacts from currency, primarily driven by substantial weakening in the Euro and Japanese Yen.

As we mentioned in the previous quarter, the currency impacts are solely the result of externally driven events. The underlying foundation of our business remains strong, and we continue to see momentum. The chart below captures the drivers of the update to our last guidance provided in early May:

Additionally, when compared to the 2021 currency rates, our full-year 2022 guidance is negatively impacted on ACV by approximately $100 million and on operating cash flow by approximately $35 million.

/ Conference Call Information

Ansys will hold a conference call at 8:30 a.m. Eastern Time on August 4, 2022 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 3042539. The archived webcast can be accessed, along with other financial information, on Ansys' website at https://investors.ansys.com/events-and-presentations/events-calendar.

To view the original press release, please click here.

Search for Ansys on CIMdata.com