ANSYS Inc’s (ANSS) $35 billion deal to get acquired by Synopsys (SNPS) is currently under regulatory scrutiny by the U.K. Competition and Markets Authority (“CMA”), according to a Reuters report. Per the report, CMA is concerned that the acquisition could adversely impact competition in the market in Britain but has not yet launched a formal investigation. In January 2024, Ansys inked a definitive agreement to be acquired by Synopsys at roughly $35 billion. Synopsys is a vendor of electronic design automati ...

Earnings Performance - ANSYS Inc reported Q2 2024 earnings of $2 50 per share, beating the Zacks Consensus Estimate by 28 9% and increasing 56 3% year over year [1] - Revenues of $594 1 million surpassed the Zacks Consensus Estimate by 7 9%, rising 20% year over year (22% at constant currency) [1] - The revenue growth was driven by two major multi-year contracts worth $210 million in the automotive and high-tech industries in the Americas region [1] Acquisition Details - ANSYS and Synopsys announced a definitive agreement in January 2024, with Synopsys acquiring ANSYS for approximately $35 billion [1] - ANSYS shareholders will receive $197 in cash and 0 3450 shares of Synopsys common stock per ANSYS share [1] - The deal is expected to close in the first half of 2025 and was approved by ANSYS shareholders during Q2 2024 [1] Financial Outlook - ANSYS has suspended quarterly earnings conference calls and no longer provides a financial outlook due to the pending acquisition [2] - The company expects double-digit ACV and revenue growth in the second half of 2024 and double-digit ACV growth for the full year [2] Revenue Breakdown - Subscription lease revenues (36 8% of total revenues) increased 64 4% year over year at constant currency to $218 6 million [3] - Perpetual licenses revenues (10 9% of total revenues) declined 6% at constant currency to $64 6 million [3] - Maintenance revenues (49 5% of total revenues) grew 9 3% year over year at constant currency to $293 8 million [3] - Service revenues (2 9% of total revenues) decreased 4 5% at constant currency to $17 1 million [3] Regional Revenue Performance - Americas contributed 54 6% to total revenues, with revenues up 47 3% year over year at constant currency to $324 4 million [3] - EMEA contributed 22% to total revenues, with revenues up 4 4% at constant currency to $130 8 million [3] - Asia-Pacific contributed 23 4% to total revenues, with revenues down 1 6% at constant currency to $138 9 million [3] Operating Metrics - Non-GAAP gross margin increased 170 basis points year over year to 92 7% [5] - Total operating expenses rose 10 4% year over year to $367 4 million, primarily due to increased acquisition and personnel costs [5] - Non-GAAP operating margin increased 850 basis points year over year to 44 9% [5] Balance Sheet & Cash Flow - Cash and short-term investments totaled $1,119 3 million as of Jun 30, 2024, up from $1,070 6 million as of Mar 31, 2024 [5] - Long-term debt remained unchanged at $754 million as of Jun 30, 2024 [5] - Cash from operations was $80 7 million in Q2 2024, compared to $62 9 million in the prior-year quarter [5] Deferred Revenues & Backlog - Total deferred revenues and backlog increased 7 6% year over year to $1,394 0 million [4] Industry Comparison - Badger Meter Inc (BMI) reported Q2 2024 EPS of $1 12, beating the Zacks Consensus Estimate by 14 3%, with quarterly net sales of $216 7 million, up 23% year over year [6] - Arista Networks Inc (ANET) reported Q2 2024 EPS of $2 10, beating the Zacks Consensus Estimate by $0 16, with quarterly revenues of $1 69 billion, up 15 8% year over year [7] - SAP SE reported Q2 2024 non-IFRS earnings of €1 10 ($1 18) per share, up 59% year over year, with total revenues of €8 288 billion ($8,921 3 million), up 10% year over year [8]

Ansys (ANSS) came out with quarterly earnings of $2.50 per share, beating the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $1.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.87%. A quarter ago, it was expected that this maker of engineering-simulation software would post earnings of $1.93 per share when it actually produced earnings of $1.39, delivering a surprise of -27.98%.Over the last fou ...

Revenue and Financial Performance - Total revenue for the six months ended June 30, 2024, was $1,060.7 million, compared to $1,006.0 million in the same period of 2023, representing a 5.4% increase[19] - Total revenue for the three months ended June 30, 2024 was $594.1 million, a 19.6% increase from $496.6 million in the same period in 2023[39] - Revenue increased by 19.6% for the three months ended June 30, 2024, and by 5.4% for the six months ended June 30, 2024[104] - Revenue for Q2 2024 increased by 19.6% YoY to $594.1 million, or 21.6% in constant currency[129] - Total revenue for the six months ended June 30, 2024, increased by 5.4% to $1.06 billion, or 6.8% in constant currency[149][150] - Revenue growth in the Americas was 47.2% for the three months ended June 30, 2024, and 11.7% for the six months ended June 30, 2024[118] - Revenue in the Asia-Pacific region decreased by 7.4% for the three months ended June 30, 2024, but increased by 3.9% in constant currency for the six months ended June 30, 2024[118] - Revenue from the United States for the six months ended June 30, 2024 was $514.5 million, compared to $457.1 million for the same period in 2023[88] - International revenue accounted for 47.1% of total revenue in Q2 2024, down from 57.6% in Q2 2023[133] - International revenue accounted for 51.5% of total revenue, down from 54.6% in the prior year period[154] - Direct revenue accounted for 76.0% of total revenue for the three months ended June 30, 2024, up from 71.2% in the same period in 2023[39] - Direct revenue accounted for 76.0% of total revenue in Q2 2024, up from 71.2% in Q2 2023[133] - Subscription lease licenses revenue grew by 61.9% YoY to $218.6 million, driven by multi-year licenses[129] - Subscription lease license revenue grew 10.8% to $313.4 million, driven by incremental sales to existing customers[149][150] - Perpetual licenses revenue decreased by 7.5% YoY to $64.6 million, with a 20.1% drop in deal volume partially offset by a 12.6% increase in average deal size[129] - Maintenance revenue increased by 7.4% YoY to $293.8 million, driven by existing customer base[129] - Service revenue decreased by 5.2% YoY to $17.1 million in Q2 2024[129] - Total software licenses revenue increased by 38.2% YoY to $283.2 million in Q2 2024[129] - Software license revenue for the six months ended June 30, 2024 was $443.6 million, up 4.6% from $424.0 million in the same period in 2023[39] - Total revenue allocated to remaining performance obligations as of June 30, 2024 was $1.39 billion, with $862.0 million expected to be recognized in the next 12 months[43] - Deferred revenue and backlog totaled $1.39 billion as of June 30, 2024, with $445.9 million in deferred revenue and $948.1 million in backlog[135] - Deferred revenue decreased to $22.7 million in the first half of 2024, down from $45.4 million in the same period in 2023[25] - Deferred revenue decreased to $445.9 million as of June 30, 2024 from $479.8 million at the beginning of the year, primarily due to revenue recognition exceeding new deferrals[42] - Annual Contract Value (ACV) for the three months ended June 30, 2024, was $520.5 million, a 6.6% increase compared to the same period in 2023[114] - ACV for the six months ended June 30, 2024, was $927.9 million, a 4.5% increase compared to the same period in 2023[114] - Recurring ACV at 2023 monthly average exchange rates was $1.99 billion for the twelve months ended June 30, 2024, a 14.2% increase compared to the same period in 2023[115] - The company's ACV growth was supported by core industries including automotive, high-tech, and aerospace and defense (A&D) during the second quarter of 2024[116] Net Income and Earnings - Net income for the six months ended June 30, 2024, was $164.8 million, compared to $170.1 million in the same period of 2023, a decrease of 3.1%[19] - Net income for the six months ended June 30, 2024, was $164.8 million, compared to $170.1 million in the same period in 2023[25] - Net income for the six months ended June 30, 2024 was $164.8 million, down 3.1% from $170.1 million in the same period in 2023[50] - Net income for Q2 2024 reached $130.0 million, up 87.1% year-over-year, with diluted EPS of $1.48[147] - Net income decreased by $5.34 million to $164.81 million in 2024, with diluted earnings per share dropping from $1.95 to $1.88[166] - Earnings per share (diluted) for the six months ended June 30, 2024, was $1.88, compared to $1.95 in the same period of 2023, a 3.6% decrease[19] - Non-GAAP net income for the six months ended June 30, 2023 was $301.1 million, with diluted earnings per share of $3.45[173] Operating Income and Expenses - Operating income for the six months ended June 30, 2024, was $200.7 million, compared to $223.3 million in the same period of 2023, a 10.1% decrease[19] - GAAP operating income increased by 64.6% for the three months ended June 30, 2024, but decreased by 10.1% for the six months ended June 30, 2024[104] - Non-GAAP operating income increased by 47.7% for the three months ended June 30, 2024, and by 8.7% for the six months ended June 30, 2024[104] - Operating income grew by $61.8 million (64.6%) to $157.4 million, with a 26.5% margin[141] - Operating income declined by $22.56 million (10.1%) to $200.76 million in 2024, impacted by increased operating expenses and currency fluctuations[159][160] - Research and development expenses increased to $261.4 million for the six months ended June 30, 2024, from $245.3 million in the same period of 2023, a 6.5% increase[19] - Research and development expenses increased by $7.6 million (6.1%) due to higher salaries and stock-based compensation[141][142] - Research and development expenses increased by $16.08 million (6.6%) to $261.44 million in 2024, driven by higher salaries and stock-based compensation[159][160] - Selling, general, and administrative expenses rose by $26.5 million (13.1%) due to acquisition costs, higher salaries, and marketing expenses[141][142] - Selling, general, and administrative costs rose by $57.54 million (14.7%) to $448.27 million in 2024, primarily due to acquisition costs and increased compensation[159][160] - Acquisition-related expenses for the six months ended June 30, 2024 were $26.7 million, primarily related to the Merger Agreement with Synopsys[44] - Total cost of sales increased by $2.03 million (1.5%) to $138.02 million in 2024 compared to $135.99 million in 2023[156] - Gross profit increased by $96.5 million (22.5%) driven by higher revenue, partially offset by increased cost of sales[138] - Gross profit rose by $52.67 million (6.1%) to $922.72 million in 2024, driven by increased revenue[156] - Total GAAP gross profit for the six months ended June 30, 2023 was $870.1 million, representing 86.5% of revenue[173] - Non-GAAP gross profit margin improved to 91.9% in 2024, up from 87.0% under GAAP, reflecting adjustments for stock-based compensation and amortization[172] - Maintenance and service costs decreased by $3.9 million (10.0%) primarily due to reduced third-party technical support and headcount-related costs[138][139] - Maintenance and service costs decreased by $4.09 million (5.4%) to $71.80 million in 2024, primarily due to reduced third-party technical support and headcount-related costs[156][157] - Amortization expense increased by $5.17 million (13.0%) to $44.87 million in 2024 due to recently acquired intangible assets[156] - Software licenses cost increased by $2.7 million due to higher third-party royalties, representing a 30.6% year-over-year growth[138] Cash Flow and Liquidity - Cash and cash equivalents increased to $1,098.9 million as of June 30, 2024, from $860.2 million as of December 31, 2023, a 27.7% increase[16] - Cash and cash equivalents at the end of June 2024 stood at $1.1 billion, up from $477.9 million at the end of June 2023[25] - Net cash provided by operating activities increased to $363.5 million in the first half of 2024, up from $323.6 million in the same period in 2023[25] - Net cash provided by operating activities increased by $39.9 million (12.3%) to $363.5 million for the six months ended June 30, 2024 compared to the same period in 2023[189] - Net cash used in investing activities decreased by $166.3 million (77.1%) to $49.4 million for the six months ended June 30, 2024 compared to the same period in 2023[190] - Net cash used in financing activities decreased by $174.8 million (71.6%) to $69.2 million for the six months ended June 30, 2024 compared to the same period in 2023[191] - Cash, cash equivalents, and short-term investments increased by $258.9 million (30.1%) to $1.12 billion as of June 30, 2024 compared to December 31, 2023[185] - Domestic cash, cash equivalents, and short-term investments increased to $700.8 million (62.6% of total) as of June 30, 2024 from $529.1 million (61.5% of total) as of December 31, 2023[187] - Foreign cash, cash equivalents, and short-term investments increased to $418.4 million (37.4% of total) as of June 30, 2024 from $331.3 million (38.5% of total) as of December 31, 2023[187] - The company's cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market funds[36] - Short-term investments consist of available-for-sale debt securities with remaining maturities greater than three months, carried at fair value with unrealized gains and losses included in accumulated other comprehensive income[37] - Cash equivalents and short-term investments total $278.3 million, with $257.9 million in money market funds and $20.4 million in short-term investments[59] - Corporate debt securities of $15.2 million include $15.1 million in a loss position, and municipal bonds of $5.0 million include $4.6 million in a loss position as of June 30, 2024[59] - Unrealized losses on investments are primarily due to changes in interest rates, with the company expecting to realize full value upon maturity[60] - Available-for-sale debt securities maturing within 1 year total $8.0 million, and those maturing in 1-3 years total $12.2 million[61] - The company plans capital spending of $40.0 million to $50.0 million during fiscal year 2024, compared to $25.3 million spent in fiscal year 2023[190] - Capital expenditures for the six months ended June 30, 2024, were $23.8 million, up from $12.0 million in the same period in 2023[25] Debt and Financing - The company has a $755.0 million unsecured term loan facility and a $500.0 million unsecured revolving loan facility, both maturing on June 30, 2027[76] - Borrowings under the credit facilities accrue interest based on Term SOFR or the base rate plus an applicable margin, with a Sustainability Rate Adjustment of +/- 0.05% based on ESG KPIs[77][78] - The weighted average interest rate under the 2022 Credit Agreement for the three and six months ended June 30, 2024 was 6.24% and 6.28%, respectively, compared to 5.88% and 5.72% for the same periods in 2023[79] - As of June 30, 2024, the company had $755.0 million of borrowings outstanding under the term loan, with a carrying value of $754.0 million, net of $1.0 million of unamortized debt discounts and issuance costs[80] - The company entered into a $755.0 million unsecured term loan facility and a $500.0 million unsecured revolving loan facility, including a $50.0 million sublimit for letters of credit[192] - As of June 30, 2024, the carrying value of the term loan was $754.0 million, with no principal payments due in the next twelve months[193] - The interest rate in effect for the third quarter of 2024 under the 2022 Credit Agreement is 6.26%[194] - The company's debt is classified as Level 2 in the fair value hierarchy due to variable interest rates and lack of active trading[65] - A hypothetical 100 basis point increase in interest rates would result in an additional $7.7 million in interest expense over the next twelve months[204] - Interest income for Q2 2024 was $12.2 million, while interest expense was $12.2 million[203] - Interest income surged by $15.7 million to $23.2 million in 2024, driven by higher invested cash balances and interest rates[161] Leases and Commitments - Lease liabilities for office space include a 183-month lease expiring in December 2029, with annual base rent of $4.5 million through 2024 and $4.7 million from 2025-2029[71] - Total lease cost for the six months ended June 30, 2024, was $17.1 million, including $14.5 million in lease liability cost and $2.6 million in variable lease costs[72] - Operating lease commitments total $127.5 million, with $27.8 million due in the next twelve months[194] Stock-Based Compensation and Share Repurchases - Stock-based compensation expense rose to $125.6 million in the first half of 2024, compared to $100.5 million in the same period in 2023[25] - Stock-based compensation expense before taxes for the six months ended June 30, 2024 was $125.6 million, compared to $100.5 million for the same period in 2023[85] - No share repurchases were made in the first half of 2024, while 650 thousand shares were repurchased at an average price of $302.34 per share in the first half of 2023, totaling $196.5 million[83] - The company repurchased 650 thousand shares in the first half of 2023 at an average price of $302.34 per share, totaling $196.5 million[195] Taxes and Liabilities - The effective tax rate for the six months ended June 30, 2024 was 16.5%, compared to 16.9% for the same period in 2023[82] - Income before income tax provision for the three months ended June 30, 2024 was $156.5 million, compared to $84.0 million for the same period in 2023[82] - The company's Indian subsidiary faces potential tax charges and related liabilities of $7.3 million due to pending service tax audits[91] Assets and Liabilities - Total current assets increased to $2,091.8 million as of June 30, 2024, from $2,049.5 million as of December 31, 2023, a 2.1% increase[16] - Accounts receivable decreased to $724.1 million as of June 30, 2024, from $864.5 million as of December 31, 2023, a 16.2% decrease[16] - Total liabilities decreased to $1,733.1 million as of June 30, 2024, from $1,932.5 million as of December 31, 2023, a 10.3% decrease[16] - Total stockholders' equity increased to $5.59 billion as of June 30, 2024, compared to $4.91 billion as of June 30, 2023[27][28] - Goodwill decreased to $3.79 billion as of June 30, 2024 from $3.81 billion at the beginning of the year, primarily due to currency translation effects[56] Comprehensive Income and Other Financial

[Q2 2024 Financial Results Overview](index=1&type=section&id=Q2%202024%20Financial%20Results%20Overview) This section covers the highlights of Q2 2024 performance, including key financial metrics and the status of the Synopsys acquisition [Q2 2024 Performance Highlights](index=1&type=section&id=Q2%202024%20Performance%20Highlights) Ansys reported strong financial results for the second quarter of 2024, with significant year-over-year growth in revenue and earnings per share, alongside progress on the Synopsys acquisition Q2 2024 Performance Metrics | Metric | Q2 2024 Value (in millions) | | :--- | :--- | | Revenue | $594.1 | | GAAP Diluted EPS | $1.48 | | Non-GAAP Diluted EPS | $2.50 | | GAAP Operating Margin | 26.5% | | Non-GAAP Operating Margin | 44.9% | | Annual Contract Value (ACV) | $520.5 | | Deferred Revenue and Backlog | $1,394.0 | - Revenue increased by **20%** in reported currency and **22%** in constant currency compared to Q2 2023[2](index=2&type=chunk) - The pending acquisition by Synopsys is anticipated to close in the first half of 2025, subject to regulatory approvals, leading Ansys to suspend quarterly earnings calls and financial guidance[3](index=3&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section details Ansys' financial results, including comparative GAAP and non-GAAP figures, revenue analysis, and currency impacts [Summary of Financial Results](index=2&type=section&id=Summary%20of%20Financial%20Results) This section provides a comparative overview of Ansys' financial results for the second quarter and year-to-date periods of 2024 and 2023, presented on both a GAAP and non-GAAP basis GAAP Financial Results Summary (Q2 QTD, in millions) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $594.1 | $496.6 | 19.6% | | Net Income | $130.0 | $69.5 | 87.0% | | Diluted EPS | $1.48 | $0.80 | 85.0% | | Operating Margin | 26.5% | 19.3% | N/A | Non-GAAP Financial Results Summary (Q2 QTD, in millions) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $219.2 | $139.3 | 57.3% | | Diluted EPS | $2.50 | $1.60 | 56.3% | | Operating Margin | 44.9% | 36.4% | N/A | Key Performance Metrics (Q2 QTD, in millions) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | ACV | $520.5 | $488.3 | 6.6% | | Operating Cash Flows | $80.7 | $62.9 | 28.4% | [Supplemental Financial Information](index=3&type=section&id=Supplemental%20Financial%20Information) This section provides a deeper analysis of key business metrics, including Annual Contract Value (ACV), a detailed breakdown of revenue by type and geography, the status of deferred revenue and backlog, and the impact of currency fluctuations on financial results [Annual Contract Value (ACV)](index=3&type=section&id=Annual%20Contract%20Value%20%28ACV%29) Annual Contract Value (ACV) for Q2 2024 was $520.5 million, representing a growth of 6.6% as reported and 9.3% in constant currency compared to Q2 2023 ACV Performance (in millions) | Period | ACV (Reported, in millions) | % Change (Reported) | ACV (Constant Currency, in millions) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Q2 2024 | $520.5 | 6.6% | $533.7 | 9.3% | | YTD 2024 | $928.0 | 4.5% | $944.1 | 6.4% | [Revenue Analysis](index=5&type=section&id=Revenue%20Analysis) Q2 2024 revenue increased 19.6% to $594.1 million, primarily driven by two large multi-year contracts in the Americas totaling $210 million, with subscription lease revenue seeing substantial growth - Revenue growth was significantly impacted by two multi-year contracts with a combined value of **$210 million**, one in the automotive industry and one in high-tech, both in the Americas region[14](index=14&type=chunk) Q2 2024 Revenue by License Type (vs. Q2 2023, in millions) | Type | Revenue | % of Total | % Change | | :--- | :--- | :--- | :--- | | Subscription Lease | $218.6 | 36.8% | 61.9% | | Perpetual | $64.6 | 10.9% | (7.5)% | | Maintenance | $293.8 | 49.5% | 7.4% | | Service | $17.1 | 2.9% | (5.2)% | Q2 2024 Revenue by Geography (vs. Q2 2023, in millions) | Region | Revenue | % of Total | % Change | | :--- | :--- | :--- | :--- | | Americas | $324.4 | 54.6% | 47.2% | | EMEA | $130.8 | 22.0% | 3.6% | | Asia-Pacific | $138.9 | 23.4% | (7.4)% | [Deferred Revenue and Backlog](index=7&type=section&id=Deferred%20Revenue%20and%20Backlog) As of June 30, 2024, the company's total deferred revenue and backlog stood at $1.394 billion, indicating a strong pipeline of future revenue Deferred Revenue and Backlog (in millions) | Metric | June 30, 2024 (in millions) | June 30, 2023 (in millions) | | :--- | :--- | :--- | | Total Current Deferred Revenue and Backlog | $862.0 | $810.2 | | Total Long-Term Deferred Revenue and Backlog | $532.0 | $485.6 | | **Total Deferred Revenue and Backlog** | **$1,394.0** | **$1,295.8** | [Currency Impact](index=7&type=section&id=Currency%20Impact) Foreign currency fluctuations, primarily from the Euro and Japanese Yen against the U.S. Dollar, had an adverse impact on reported results for the second quarter and year-to-date 2024 Adverse Currency Fluctuation Impact (in thousands) | Metric | Q2 QTD 2024 | Q2 YTD 2024 | | :--- | :--- | :--- | | Revenue | $(9,806) | $(13,709) | | GAAP operating income | $(6,715) | $(10,113) | | Non-GAAP operating income | $(6,761) | $(9,939) | | ACV | $(13,167) | $(16,195) | [GAAP Financial Statements](index=9&type=section&id=GAAP%20Financial%20Statements) This section presents the company's condensed consolidated balance sheets and statements of income in accordance with GAAP [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2024, shows total assets of $7.32 billion, relatively stable compared to year-end 2023, with increases in cash and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$7,319,615** | **$7,322,875** | | Cash & short-term investments | $1,119,272 | $860,390 | | Goodwill | $3,793,510 | $3,805,874 | | **Total Liabilities & Equity** | **$7,319,615** | **$7,322,875** | | Long-term debt | $754,049 | $753,891 | | Stockholders' equity | $5,586,503 | $5,390,364 | [Condensed Consolidated Statements of Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2024, Ansys reported total revenue of $594.1 million and a net income of $130.0 million, a significant increase from the prior year Income Statement Summary (Three Months Ended June 30, in thousands) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total revenue | $594,138 | $496,599 | | Gross profit | $524,783 | $428,259 | | Operating income | $157,416 | $95,624 | | Net income | $130,034 | $69,526 | | Diluted EPS | $1.48 | $0.80 | [Non-GAAP Measures & Reconciliations](index=13&type=section&id=Non-GAAP%20Measures%20%26%20Reconciliations) This section provides reconciliations from GAAP to non-GAAP measures and explains the rationale for using non-GAAP metrics [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed tables reconciling GAAP results to non-GAAP results for key metrics, illustrating adjustments for items like stock-based compensation and amortization of intangibles Q2 2024 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $524,783 | $26,115 | $550,898 | | Operating Income | $157,416 | $109,167 | $266,583 | | Net Income | $130,034 | $89,168 | $219,202 | | Diluted EPS | $1.48 | $1.02 | $2.50 | YTD 2024 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $922,721 | $52,320 | $975,041 | | Operating Income | $200,755 | $216,083 | $416,838 | | Net Income | $164,812 | $176,386 | $341,198 | | Diluted EPS | $1.88 | $2.01 | $3.89 | [Use and Explanation of Non-GAAP Measures](index=15&type=section&id=Use%20and%20Explanation%20of%20Non-GAAP%20Measures) Ansys explains its use of non-GAAP financial measures to evaluate performance, set budgets, and allocate resources, believing they provide useful supplemental information to investors - Non-GAAP measures are used internally to evaluate financial performance, set sales targets, allocate resources, and determine variable compensation[38](index=38&type=chunk) - Key adjustments to GAAP results include: * **Amortization of intangible assets from acquisitions:** Excluded because these costs are fixed at the time of acquisition and not influenced by ongoing operations[39](index=39&type=chunk) * **Stock-based compensation expense:** Excluded to assess financial discipline over operational expenditures without its effect[41](index=41&type=chunk) * **Expenses related to business combinations:** Excluded as they are not considered part of core operations[42](index=42&type=chunk) - The company also uses constant currency results to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations[47](index=47&type=chunk) [Supporting Information](index=12&type=section&id=Supporting%20Information) This section includes a glossary of key terms, forward-looking statements, risk factors, and information regarding the Synopsys transaction [Glossary of Terms](index=12&type=section&id=Glossary%20of%20Terms) This section defines key business and financial terms used in the report to provide clarity for investors, including Annual Contract Value (ACV), Backlog, Deferred Revenue, and different software license types - **Annual Contract Value (ACV):** A key performance metric composed of the annualized value of maintenance and subscription contracts, the value of perpetual licenses, and the value of services contracts with start dates or work performed during the period[27](index=27&type=chunk) - **Subscription Lease:** A software license granted for a specified time period, which includes maintenance, with revenue recognized ratably for the maintenance portion and upfront for the license portion[30](index=30&type=chunk) - **Perpetual License:** A software license granted for use in perpetuity, with revenue recognized upfront[30](index=30&type=chunk) [Forward-Looking Statements and Risk Factors](index=18&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The company provides a standard safe harbor statement, cautioning that forward-looking statements are subject to numerous risks and uncertainties, including those related to the Synopsys transaction and macroeconomic conditions - Key risks that could cause actual results to differ materially from forward-looking statements include: * Ability to complete the proposed transaction with Synopsys on anticipated terms and timing[51](index=51&type=chunk) * Adverse conditions in the macroeconomic environment, including inflation and recessionary conditions[53](index=53&type=chunk) * Cybersecurity threats or other security breaches[53](index=53&type=chunk) * Increased volatility in revenue due to the timing of multi-year subscription contracts and reliance on high renewal rates[53](index=53&type=chunk) [Information Regarding Synopsys Transaction](index=21&type=section&id=Information%20Regarding%20Synopsys%20Transaction) This section provides important legal information regarding the proposed acquisition by Synopsys, directing investors to the registration statement on Form S-4 for comprehensive details - In connection with the proposed transaction with Synopsys, a registration statement on Form S-4 (File No. 333-277912) was filed with the SEC and declared effective on April 17, 2024[54](index=54&type=chunk) - Investors are urged to read the proxy statement/prospectus and other relevant documents filed with the SEC as they contain important information about the proposed transaction[54](index=54&type=chunk) - This document does not constitute an offer to sell or a solicitation of an offer to buy any securities related to the transaction[57](index=57&type=chunk)

/ Q2 2024 Results Revenue of $594.1 millionGAAP diluted earnings per share of $1.48 and non-GAAP diluted earnings per share of $2.50GAAP operating profit margin of 26.5% and non-GAAP operating profit margin of 44.9%Operating cash flows of $80.7 million and unlevered operating cash flows of $90.7 millionAnnual contract value (ACV) of $520.5 millionDeferred revenue and backlog of $1,394.0 million on June 30, 2024     PITTSBURGH, July 31, 2024 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ: ANSS), today reported seco ...

ANSYS Inc (ANSS) is scheduled to report results for the second quarter of 2024 on Jul 31, after the closing bell.The Zacks Consensus Estimate for EPS is pegged at $1.94, unchanged in the past 60 days. The figure indicates an increase of 21.25% from the year-ago quarter’s reported figure.The Zacks Consensus Estimate for revenues is pegged at $550.8 million, indicating growth of 10.91% from the prior-year quarter’s levels.ANSS’ earnings missed the Zacks Consensus Estimate in the last quarter but surpassed in ...

Core Insights - Ansys 2024 R2 enhances product design capabilities by integrating AI and multiphysics simulation, allowing for more efficient workflows and deeper insights into complex product performance [2][3][5] Product Enhancements - The release introduces Ansys TwinAI™ for AI-enhanced simulations and Ansys HFSS-IC™ for advanced electromagnetic analysis of integrated circuits [2][5] - Ansys 2024 R2 focuses on improving run times, scaling capacity, and providing hardware flexibility, making multiphysics simulations more accessible [2][3] Industry Applications - The new features are expected to boost productivity and collaboration across various industries, including automotive and semiconductor sectors [3][6] - Enhancements in Ansys Mechanical™ software improve noise, vibration, and harshness (NVH) analysis for electric vehicle powertrains [6] AI Integration - Ansys TwinAI software combines real-world data insights with multidomain models, facilitating cloud or edge deployments for enhanced data utilization [8] - AI-driven solutions in Ansys RaptorX™ optimize IC floorplans, significantly reducing design time from weeks to days [9] Hardware Optimization - Ansys 2024 R2 supports high-performance computing (HPC) with solvers optimized for both CPUs and GPUs, enhancing simulation speed and efficiency [10][11] - The AVxcelerate Sensors™ software now features adaptive grid sampling, achieving 3x faster simulations and 6.8x less GPU memory usage [10]

ANSYS, Inc. (ANSS) recently strengthened its collaboration with NVIDIA and Supermicro to offer Turnkey hardware solutions that dramatically enhance Ansys Multiphysics simulation capabilities. This partnership focuses on customizing hardware for Ansys' simulation software, resulting in remarkable speed enhancements of up to 1,600 times in computational tasks.Optimizing multiphysics simulations involves integrating various physics solvers with hardware options of different sizes and configurations, each provi ...

PITTSBURGH, July 18, 2024 /PRNewswire/ -- ANSYS, Inc. (NASDAQ: ANSS) announced today that the Company expects to release its second quarter earnings on Wednesday, July 31, 2024, after the market closes. As previously announced, in light of the pending transaction with Synopsys, Inc. (Synopsys), Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.After the market closes on Wednesday, July 31, 2024, you can find the following information on the investor ...