Aspen Technology, Inc. (“AspenTech” or the “Company”), a global leader in industrial software, announced financial results for its second quarter in fiscal 2025, ended December 31, 2024.
Second Quarter Fiscal Year 2025 and Recent Business Highlights
- Annual contract value (“ACV”) was $964.9 million for the second quarter of fiscal 2025, increasing 9.2% year over year and 2.5% quarter over quarter.
- Cash flow from operations was $38.1 million and free cash flow was $36.4 million in the second quarter of fiscal 2025.
Second Quarter Fiscal Year 2025 Financial Results Summary
AspenTech’s total revenue was $303.6 million in the second quarter of fiscal 2025, compared to $257.2 million in the second quarter of fiscal 2024. Total revenue in the period included license and solutions revenue of $188.2 million, compared to $152.5 million in the second quarter of fiscal 2024, maintenance revenue of $90.6 million, compared to $85.1 million in the second quarter of fiscal 2024, and services and other revenue of $24.7 million, compared to $19.6 million in the second quarter of fiscal 2024. Bookings was $307.5 million in the second quarter of fiscal 2025, compared to $233.4 million in the second quarter of fiscal 2024.
Income from operations was $9.0 million in the second quarter of fiscal 2025, compared to a loss from operations of $49.2 million in the second quarter of fiscal 2024. Non-GAAP income from operations was $149.0 million in the second quarter of fiscal 2025, compared to $88.7 million in the second quarter of fiscal 2024. Net income was $20.3 million, or $0.32 per diluted share, in the second quarter of fiscal 2025, compared to a net loss of $21.5 million, or $0.34 per diluted share, in the second quarter of fiscal 2024. Non-GAAP net income was $131.1 million, or $2.06 per diluted share, in the second quarter of fiscal 2025, compared to $87.8 million, or $1.37 per diluted share, in the second quarter of fiscal 2024.
AspenTech had cash and cash equivalents of $181.8 million as of December 31, 2024, compared to $237.0 million as of June 30, 2024. The decrease in cash and cash equivalents during this period was due to the impact of share repurchase activity under the Company’s fiscal 2025 share repurchase authorization in the first quarter of fiscal 2025 and a net use of cash of $36.5 million in the second quarter of fiscal 2025 for the purchase of Open Grid Systems Limited. Under its revolving credit facility, AspenTech had no borrowings and $194.5 million available as of December 31, 2024.
AspenTech generated $38.1 million in cash flow from operations and $36.4 million in free cash flow in the second quarter of fiscal 2025, compared to $29.8 million in cash flow from operations and $29.2 million in free cash flow in the second quarter of fiscal 2024.
Conference Call and Fiscal 2025 Business Outlook
As a result of AspenTech entering into an Agreement and Plan of Merger (the “Merger Agreement”) with Emerson Electric Co. (“Emerson”) and Emersub CXV, Inc. (the “Purchaser”) on January 26, 2025, AspenTech will not host an earnings conference call for its second quarter fiscal 2025 results nor provide future guidance. For more information on the Merger Agreement, please refer to AspenTech’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 27, 2025.
