ANSYS, Inc. reported fourth quarter 2024 revenue of $882.2 million, an increase of 10% in reported currency, or 11% in constant currency, when compared to the fourth quarter of 2023. For FY 2024, revenue growth was 12% in reported currency, or 13% in constant currency, when compared to FY 2023. For the fourth quarter of 2024, the Company reported diluted earnings per share of $3.21 and $4.44 on a GAAP and non-GAAP basis, respectively, compared to $3.14 and $3.94 on a GAAP and non-GAAP basis, respectively, for the fourth quarter of 2023. For FY 2024, the Company reported diluted earnings per share of $6.55 and $10.91 on a GAAP and non-GAAP basis, respectively, compared to $5.73 and $8.80 on a GAAP and non-GAAP basis, respectively, for FY 2023. Additionally, the Company reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.
As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. ("Synopsys") under which Synopsys will acquire Ansys. As previously announced by Synopsys, Ansys and Synopsys have received conditional clearance from the European Commission. The U.K. Competition and Markets Authority provisionally accepted our remedies towards a transaction approval in Phase 1. The State Administration for Market Regulation of the People’s Republic of China has officially accepted our filing, and its review of the proposed transaction is in process. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. 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 can be found later in this release. |
/ Summary of Financial Results
Ansys’ fourth quarter and fiscal year (FY) 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) |
Q4 QTD |
Q4 QTD |
% Change |
FY |
FY |
% Change |
|||||||||||||||
|
Revenue |
$ |
882,174 |
$ |
805,108 |
9.6 |
% |
$ |
2,544,809 |
$ |
2,269,949 |
12.1 |
% |
|||||||||
|
Net income |
$ |
282,688 |
$ |
274,762 |
2.9 |
% |
$ |
575,692 |
$ |
500,412 |
15.0 |
% |
|||||||||
|
Diluted earnings per share |
$ |
3.21 |
$ |
3.14 |
2.2 |
% |
$ |
6.55 |
$ |
5.73 |
14.3 |
% |
|||||||||
|
Gross margin |
91.8 |
% |
91.3 |
% |
89.0 |
% |
88.0 |
% |
|||||||||||||
|
Operating profit margin |
40.3 |
% |
41.4 |
% |
28.2 |
% |
27.6 |
% |
|||||||||||||
|
Effective tax rate |
21.3 |
% |
15.4 |
% |
19.8 |
% |
15.5 |
% |
|||||||||||||
|
Non-GAAP |
|||||||||||||||||||||
|
(in thousands, except per share data and percentages) |
Q4 QTD |
Q4 QTD |
% Change |
FY |
FY |
% Change |
|||||||||||||||
|
Net income |
$ |
391,044 |
$ |
345,317 |
13.2 |
% |
$ |
959,252 |
$ |
769,308 |
24.7 |
% |
|||||||||
|
Diluted earnings per share |
$ |
4.44 |
$ |
3.94 |
12.7 |
% |
$ |
10.91 |
$ |
8.80 |
24.0 |
% |
|||||||||
|
Gross margin |
94.6 |
% |
94.3 |
% |
93.1 |
% |
92.2 |
% |
|||||||||||||
|
Operating profit margin |
53.3 |
% |
53.0 |
% |
45.7 |
% |
42.6 |
% |
|||||||||||||
|
Effective tax rate |
17.5 |
% |
17.5 |
% |
17.5 |
% |
17.5 |
% |
|||||||||||||
|
Other Metrics |
|||||||||||||||||
|
(in thousands, except percentages) |
Q4 QTD |
Q4 QTD |
% Change |
FY |
FY |
% Change |
|||||||||||
|
ACV |
$ |
1,094,552 |
$ |
955,161 |
14.6 |
% |
$ |
2,563,029 |
$ |
2,300,466 |
11.4 |
% |
|||||
|
Operating cash flows |
$ |
257,973 |
$ |
232,722 |
10.9 |
% |
$ |
795,740 |
$ |
717,122 |
11.0 |
% |
|||||
|
Unlevered operating cash flows |
$ |
266,777 |
$ |
242,848 |
9.9 |
% |
$ |
834,582 |
$ |
755,129 |
10.5 |
% |
|||||
/ Key Long-Term Metrics
The Company’s long-term outlook covering the years 2022 through 2025 provided at the 2022 Investor Update has been suspended given the pending transaction with Synopsys. Below is a summary of key metrics covering the years 2022 through 2024.
- Consistent double-digit ACV growth with a 2022 through 2024 CAGR of 12.3% at actual exchange rates and 13.0% at 2022 exchange rates.
- Unlevered operating cash flows grew faster than ACV with a 2022 through 2024 CAGR of 13.5%.
- With FY 2024 unlevered operating cash flows of $834.6 million, cumulative 3-year unlevered operating cash flows (FY 2022 to 2024) are $2.2 billion.
- Note: 2024 unlevered operating cash flows includes $28.2 million of cash outflows primarily associated with the pending transaction with Synopsys.
|
Supplemental Financial Information |
/ Annual Contract Value
|
(in thousands, except percentages) |
Q4 QTD |
Q4 QTD 2024 in Constant Currency |
Q4 QTD |
% Change |
% Change in |
|||||||||
|
ACV |
$ |
1,094,552 |
$ |
1,110,711 |
$ |
955,161 |
14.6 |
% |
16.3 |
% |
||||
|
(in thousands, except percentages) |
FY |
FY 2024 in |
FY |
% Change |
% Change in |
|||||||||
|
ACV |
$ |
2,563,029 |
$ |
2,593,819 |
$ |
2,300,466 |
11.4 |
% |
12.8 |
% |
||||
/ Revenue
|
(in thousands, except percentages) |
Q4 QTD |
Q4 QTD 2024 in Constant Currency |
Q4 QTD |
% Change |
% Change in |
|||||||||
|
Revenue |
$ |
882,174 |
$ |
893,996 |
$ |
805,108 |
9.6 |
% |
11.0 |
% |
||||
|
(in thousands, except percentages) |
FY |
FY 2024 in |
FY |
% Change |
% Change in |
|||||||||
|
Revenue |
$ |
2,544,809 |
$ |
2,570,207 |
$ |
2,269,949 |
12.1 |
% |
13.2 |
% |
||||
|
REVENUE BY LICENSE TYPE |
|||||||||||||||||
|
(in thousands, except percentages) |
Q4 QTD |
% of Total |
Q4 QTD |
% of Total |
% Change |
% Change in Constant Currency |
|||||||||||
|
Subscription Lease |
$ |
441,120 |
50.0 |
% |
$ |
399,556 |
49.6 |
% |
10.4 |
% |
12.1 |
% |
|||||
|
Perpetual |
102,295 |
11.6 |
% |
102,721 |
12.8 |
% |
(0.4)% |
1.7 |
% |
||||||||
|
Maintenance1 |
319,381 |
36.2 |
% |
283,130 |
35.2 |
% |
12.8 |
% |
13.8 |
% |
|||||||
|
Service |
19,378 |
2.2 |
% |
19,701 |
2.4 |
% |
(1.6)% |
(1.2)% |
|||||||||
|
Total |
$ |
882,174 |
$ |
805,108 |
9.6 |
% |
11.0 |
% |
|||||||||
|
(in thousands, except percentages) |
FY |
% of Total |
FY |
% of Total |
% Change |
% Change in Constant Currency |
|||||||||||
|
Subscription Lease |
$ |
948,831 |
37.3 |
% |
$ |
786,050 |
34.6 |
% |
20.7 |
% |
22.1 |
% |
|||||
|
Perpetual |
315,085 |
12.4 |
% |
302,698 |
13.3 |
% |
4.1 |
% |
5.1 |
% |
|||||||
|
Maintenance1 |
1,209,217 |
47.5 |
% |
1,103,523 |
48.6 |
% |
9.6 |
% |
10.6 |
% |
|||||||
|
Service |
71,676 |
2.8 |
% |
77,678 |
3.4 |
% |
(7.7)% |
(7.4)% |
|||||||||
|
Total |
$ |
2,544,809 |
$ |
2,269,949 |
12.1 |
% |
13.2 |
% |
|||||||||
1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.
|
REVENUE BY GEOGRAPHY |
|||||||||||||||||
|
(in thousands, except percentages) |
Q4 QTD |
% of Total |
Q4 QTD |
% of Total |
% Change |
% Change in Constant Currency |
|||||||||||
|
Americas |
$ |
457,752 |
51.9 |
% |
$ |
410,681 |
51.0 |
% |
11.5 |
% |
11.5 |
% |
|||||
|
Germany |
98,527 |
11.2 |
% |
81,828 |
10.2 |
% |
20.4 |
% |
24.2 |
% |
|||||||
|
Other EMEA |
170,541 |
19.3 |
% |
155,023 |
19.3 |
% |
10.0 |
% |
12.2 |
% |
|||||||
|
EMEA |
269,068 |
30.5 |
% |
236,851 |
29.4 |
% |
13.6 |
% |
16.3 |
% |
|||||||
|
Japan |
52,294 |
5.9 |
% |
61,243 |
7.6 |
% |
(14.6)% |
(11.1)% |
|||||||||
|
Other Asia-Pacific |
103,060 |
11.7 |
% |
96,333 |
12.0 |
% |
7.0 |
% |
10.1 |
% |
|||||||
|
Asia-Pacific |
155,354 |
17.6 |
% |
157,576 |
19.6 |
% |
(1.4)% |
1.8 |
% |
||||||||
|
Total |
$ |
882,174 |
$ |
805,108 |
9.6 |
% |
11.0 |
% |
|||||||||
|
(in thousands, except percentages) |
FY |
% of Total |
FY |
% of Total |
% Change |
% Change in Constant Currency |
|||||||||||
|
Americas |
$ |
1,297,367 |
51.0 |
% |
$ |
1,106,242 |
48.7 |
% |
17.3 |
% |
17.3 |
% |
|||||
|
Germany |
209,714 |
8.2 |
% |
199,068 |
8.8 |
% |
5.3 |
% |
6.6 |
% |
|||||||
|
Other EMEA |
445,791 |
17.5 |
% |
406,719 |
17.9 |
% |
9.6 |
% |
9.8 |
% |
|||||||
|
EMEA |
655,505 |
25.8 |
% |
605,787 |
26.7 |
% |
8.2 |
% |
8.8 |
% |
|||||||
|
Japan |
184,547 |
7.3 |
% |
203,013 |
8.9 |
% |
(9.1)% |
(2.1)% |
|||||||||
|
Other Asia-Pacific |
407,390 |
16.0 |
% |
354,907 |
15.6 |
% |
14.8 |
% |
16.9 |
% |
|||||||
|
Asia-Pacific |
591,937 |
23.3 |
% |
557,920 |
24.6 |
% |
6.1 |
% |
10.0 |
% |
|||||||
|
Total |
$ |
2,544,809 |
$ |
2,269,949 |
12.1 |
% |
13.2 |
% |
|||||||||
|
REVENUE BY CHANNEL |
|||||||||||
|
Q4 QTD |
Q4 QTD |
FY |
FY |
||||||||
|
Direct revenue, as a percentage of total revenue |
79.7 |
% |
74.5 |
% |
75.2 |
% |
73.9 |
% |
|||
|
Indirect revenue, as a percentage of total revenue |
20.3 |
% |
25.5 |
% |
24.8 |
% |
26.1 |
% |
|||
/ Deferred Revenue and Backlog
|
(in thousands) |
December 31 , |
September 30 , |
December 31 , |
September 30 , |
|||||||
|
Current Deferred Revenue |
$ |
504,527 |
$ |
427,188 |
$ |
457,514 |
$ |
349,668 |
|||
|
Current Backlog |
524,617 |
475,604 |
439,879 |
424,547 |
|||||||
|
Total Current Deferred Revenue and Backlog |
1,029,144 |
902,792 |
897,393 |
774,215 |
|||||||
|
Long-Term Deferred Revenue |
31,778 |
24,150 |
22,240 |
20,765 |
|||||||
|
Long-Term Backlog |
657,345 |
536,855 |
552,951 |
410,697 |
|||||||
|
Total Long-Term Deferred Revenue and Backlog |
689,123 |
561,005 |
575,191 |
431,462 |
|||||||
|
Total Deferred Revenue and Backlog |
$ |
1,718,267 |
$ |
1,463,797 |
$ |
1,472,584 |
$ |
1,205,677 |
|||
/ Currency
The fourth quarter and FY 2024 revenue, operating income, ACV and deferred revenue and backlog, as compared to the fourth quarter and FY 2023, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income, ACV, and deferred revenue and backlog based on 2023 exchange rates are reflected in the tables below. Amounts in brackets indicate an adverse impact from currency fluctuations.
|
(in thousands) |
Q4 QTD |
FY |
|||||
|
Revenue |
$ |
(11,822 |
) |
$ |
(25,398 |
) |
|
|
GAAP operating income |
$ |
(9,057 |
) |
$ |
(19,588 |
) |
|
|
Non-GAAP operating income |
$ |
(9,076 |
) |
$ |
(19,335 |
) |
|
|
ACV |
$ |
(16,159 |
) |
$ |
(30,790 |
) |
|
|
Deferred revenue and backlog |
$ |
(38,306 |
) |
$ |
(40,993 |
) |
|
The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.
|
Period-End Exchange Rates |
|||
|
As of |
EUR/USD |
USD/JPY |
|
|
December 31, 2024 |
1.04 |
157 |
|
|
December 31, 2023 |
1.10 |
141 |
|
|
December 31, 2022 |
1.07 |
131 |
|
|
Average Exchange Rates |
|||
|
Three Months Ended |
EUR/USD |
USD/JPY |
|
|
December 31, 2024 |
1.07 |
153 |
|
|
December 31, 2023 |
1.08 |
148 |
|
|
Average Exchange Rates |
|||
|
Twelve Months Ended |
EUR/USD |
USD/JPY |
|
|
December 31, 2024 |
1.08 |
151 |
|
|
December 31, 2023 |
1.08 |
140 |
|
/ GAAP Financial Statements
|
ANSYS, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
|
Condensed Consolidated Balance Sheets |
|||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||
|
(in thousands) |
December 31, 2024 |
December 31, 2023 |
|||||||||||||||||||
|
ASSETS: |
|||||||||||||||||||||
|
Cash & short-term investments |
$ |
1,497,517 |
$ |
860,390 |
|||||||||||||||||
|
Accounts receivable, net |
1,022,850 |
864,526 |
|||||||||||||||||||
|
Goodwill |
3,778,128 |
3,805,874 |
|||||||||||||||||||
|
Other intangibles, net |
716,244 |
835,417 |
|||||||||||||||||||
|
Other assets |
1,036,692 |
956,668 |
|||||||||||||||||||
|
Total assets |
$ |
8,051,431 |
$ |
7,322,875 |
|||||||||||||||||
|
LIABILITIES & STOCKHOLDERS’ EQUITY: |
|||||||||||||||||||||
|
Current deferred revenue |
$ |
504,527 |
$ |
457,514 |
|||||||||||||||||
|
Long-term debt |
754,208 |
753,891 |
|||||||||||||||||||
|
Other liabilities |
706,256 |
721,106 |
|||||||||||||||||||
|
Stockholders’ equity |
6,086,440 |
5,390,364 |
|||||||||||||||||||
|
Total liabilities & stockholders’ equity |
$ |
8,051,431 |
$ |
7,322,875 |
|||||||||||||||||
|
ANSYS, INC. AND SUBSIDIARIES |
|||||||||||||||||||||
|
Condensed Consolidated Statements of Income |
|||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||
|
(in thousands, except per share data) |
December 31 , |
December 31 , |
December 31 , |
December 31 , |
|||||||||||||||||
|
Revenue: |
|||||||||||||||||||||
|
Software licenses |
$ |
543,415 |
$ |
502,277 |
$ |
1,263,916 |
$ |
1,088,748 |
|||||||||||||
|
Maintenance and service |
338,759 |
302,831 |
1,280,893 |
1,181,201 |
|||||||||||||||||
|
Total revenue |
882,174 |
805,108 |
2,544,809 |
2,269,949 |
|||||||||||||||||
|
Cost of sales: |
|||||||||||||||||||||
|
Software licenses |
12,947 |
10,909 |
45,367 |
40,004 |
|||||||||||||||||
|
Amortization |
21,801 |
20,586 |
88,560 |
80,990 |
|||||||||||||||||
|
Maintenance and service |
37,940 |
38,554 |
145,892 |
150,304 |
|||||||||||||||||
|
Total cost of sales |
72,688 |
70,049 |
279,819 |
271,298 |
|||||||||||||||||
|
Gross profit |
809,486 |
735,059 |
2,264,990 |
1,998,651 |
|||||||||||||||||
|
Operating expenses: |
|||||||||||||||||||||
|
Selling, general and administrative |
314,009 |
269,857 |
995,340 |
855,135 |
|||||||||||||||||
|
Research and development |
134,259 |
126,288 |
528,014 |
494,869 |
|||||||||||||||||
|
Amortization |
5,623 |
5,914 |
23,748 |
22,512 |
|||||||||||||||||
|
Total operating expenses |
453,891 |
402,059 |
1,547,102 |
1,372,516 |
|||||||||||||||||
|
Operating income |
355,595 |
333,000 |
717,888 |
626,135 |
|||||||||||||||||
|
Interest income |
14,636 |
7,199 |
51,131 |
19,588 |
|||||||||||||||||
|
Interest expense |
(10,924 |
) |
(12,551 |
) |
(47,849 |
) |
(47,145 |
) |
|||||||||||||
|
Other expense, net |
(14 |
) |
(2,876 |
) |
(3,132 |
) |
(6,440 |
) |
|||||||||||||
|
Income before income tax provision |
359,293 |
324,772 |
718,038 |
592,138 |
|||||||||||||||||
|
Income tax provision |
76,605 |
50,010 |
142,346 |
91,726 |
|||||||||||||||||
|
Net income |
$ |
282,688 |
$ |
274,762 |
$ |
575,692 |
$ |
500,412 |
|||||||||||||
|
Earnings per share – basic: |
|||||||||||||||||||||
|
Earnings per share |
$ |
3.23 |
$ |
3.16 |
$ |
6.59 |
$ |
5.76 |
|||||||||||||
|
Weighted average shares |
87,455 |
86,888 |
87,313 |
86,833 |
|||||||||||||||||
|
Earnings per share – diluted: |
|||||||||||||||||||||
|
Earnings per share |
$ |
3.21 |
$ |
3.14 |
$ |
6.55 |
$ |
5.73 |
|||||||||||||
|
Weighted average shares |
88,137 |
87,541 |
87,895 |
87,386 |
|||||||||||||||||
