Financial Data and Key Metrics Changes - Q3 ACV was $365.4 million, growing 20% year-over-year or 19% in constant currency [21] - Total revenue for Q3 was $445.4 million, representing a 21% increase or 20% in constant currency [22] - Operating margin for Q3 was 39.7%, exceeding guidance, with a gross margin of 89.9% [22][23] - Q3 EPS was $1.59, also above the high-end of guidance [23] - Cash flow from operations in Q3 totaled $157.8 million [23] - The company ended the quarter with $1,081.4 million in cash and short-term investments [24] Business Line Data and Key Metrics Changes - Strong performance across customer types, with recurring sources representing 76% of total ACV [21] - The high-tech and semiconductor, aerospace & defense, and automotive sectors were the largest contributors to revenue [8] - SMB customers showed recovery, increasing their investment in ANSYS simulation [11] Market Data and Key Metrics Changes - The Americas led in performance, followed by Asia Pacific, with expectations for strong Q4 results [9] - Asia Pacific saw a 21% growth in constant currency, with several seven-figure contracts contributing to this growth [40] Company Strategy and Development Direction - The company is focused on making simulation pervasive across the product lifecycle and expanding its multiphysics product leadership [8] - ANSYS is investing in optical simulation as a key growth area, with recent acquisitions enhancing its capabilities [12][15] - Partnerships with companies like Autodesk and TSMC are being expanded to enhance product offerings and market reach [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the newly increased outlook for 2021, citing a robust deal pipeline and strong Q4 sales expectations [20] - The company is optimistic about the long-term tailwinds from customers rethinking their supply chains and investing in R&D [61] Other Important Information - ANSYS acquired Zemax for $399.1 million, expected to contribute $6 million to $8 million in Q4 [24][75] - The company is committed to environmental, social, and governance initiatives, including a report on the role of simulation in developing autonomous vehicles [18][19] Q&A Session Summary Question: How does the current growth composition compare to the original budget? - Management noted that while core businesses continue to grow, newer areas like optical simulation are becoming significant contributors [32][33] Question: What is driving the significant outgrowth in the U.S.? - The U.S. has been a strong performer due to deep customer relationships and successful execution of the business model [38][40] Question: Can you discuss trends in SMB customers? - SMBs have shown improvement over the last four quarters, contributing to overall confidence in the business outlook [46][47] Question: What enabled the raised ACV guidance? - The raised guidance reflects improved momentum across various industries and customer types [51][52] Question: How is the company addressing supply chain constraints? - ANSYS is not directly affected by supply chain issues as its software is tied to R&D and product design rather than manufacturing [59][60] Question: What are the plans for investments in technical support and consulting? - The company continues to invest in technical support and consulting to enhance customer relationships and product development [65][71]

Start Time: 08:30 January 1, 0000 9:29 AM ET ANSYS, Inc. (NASDAQ:ANSS) Q2 2021 Earnings Conference Call August 05, 2021, 08:30 AM ET Company Participants Ajei Gopal - President and CEO Nicole Anasenes - SVP and CFO Kelsey DeBriyn - VP, Investor and Government Relations Conference Call Participants Ken Wong - Guggenheim Securities Gal Munda - Berenberg Adam Borg - Stifel Jay Vleeschhouwer - Griffin Securities Andrew Obin - Bank of America Merrill Lynch Saket Kalia - Barclays John Walsh - Credit Suisse Blair ...

Revenue Growth - Ansys reported a revenue increase of 15.8% for the three months ended June 30, 2021, and 17.3% for the six months ended June 30, 2021 compared to the same periods in 2020[97]. - Total revenue for the quarter ended June 30, 2021, increased by 15.8% to $446,654,000 compared to $385,661,000 for the same quarter in 2020[114]. - Total revenue for the six months ended June 30, 2021, increased by 17.3% to $809.88 million compared to $690.65 million for the same period in 2020[136]. - GAAP revenue growth was 15.8% for the three months and 17.3% for the six months ended June 30, 2021, while non-GAAP revenue growth was 16.1% and 18.1%, respectively[97]. - The company expects a favorable impact of $4.2 million on reported revenue for the quarter ending September 30, 2021, due to acquisition accounting treatment of deferred revenue[118]. Annual Contract Value (ACV) - The Annual Contract Value (ACV) for the three months ended June 30, 2021 was $430.5 million, representing a 25.0% increase from $344.4 million in the same period of 2020[102]. - Recurring ACV as a percentage of total ACV decreased to 82.1% in the three months ended June 30, 2021, down from 83.2% in the same period of 2020[102]. Operating Income and Expenses - Operating income for the three months ended June 30, 2021 was 3.5% on a GAAP basis and 12.9% on a non-GAAP basis, reflecting increased personnel costs and expenses related to acquisitions[97]. - Operating expenses for the quarter were $265,723,000, representing a 21.3% increase from $218,994,000 in the same quarter of 2020[125]. - Total operating expenses for the six months ended June 30, 2021, rose to $516,824,000, an increase of 17.5% from $439,790,000 in the same period of 2020[145]. Research and Development - Research and development expenses increased by 17.1% to $100,879,000, reflecting the company's commitment to innovation[125]. - Research and development costs rose by $29.11 million, primarily due to increased salaries and incentive compensation[146]. - Research and development expenses increased by 16.9% to $201,358,000, reflecting continued investment in product capabilities[145]. Cash and Investments - Ansys maintained $958.2 million in cash and short-term investments, with working capital of $1,027.0 million as of June 30, 2021[104]. - Cash and cash equivalents increased to $958,208 thousand as of June 30, 2021, up from $913,151 thousand at December 31, 2020, representing a change of $45,057 thousand[169]. - Net cash provided by operating activities for the six months ended June 30, 2021, was $289,984 thousand, an increase of $10,980 thousand compared to $279,004 thousand for the same period in 2020[173]. Income and Earnings Per Share - Net income for the six months ended June 30, 2021, was $166,114, compared to $142,628 for the same period in 2020, representing a year-over-year increase of 16.4%[151]. - Diluted earnings per share increased to $1.89 for the six months ended June 30, 2021, up from $1.64 in the prior year, reflecting a growth of 15.2%[151]. - The effective tax rate increased to 27.3% for the quarter ended June 30, 2021, compared to 14.2% for the same quarter in 2020[131]. Market and Business Environment - The engineering software simulation market is experiencing strong growth driven by demand for rapid innovation and investments in high-growth solutions like 5G and electrification[92]. - The company anticipates a recovery in the business environment in the second half of the year as vaccine distribution increases[114]. - The company continues to focus on expanding its product offerings and enhancing distribution channels to address competitive pressures[94]. Currency Fluctuations - The U.S. Dollar was approximately 5.4% weaker against primary foreign currencies for the quarter ended June 30, 2021, compared to the same quarter in 2020[186]. - Currency fluctuations resulted in increased operating income of $1.4 million for the three months ended June 30, 2021, compared to the same period in 2020[187]. - The impacts from currency fluctuations resulted in increased operating income of $3.5 million for the six months ended June 30, 2021, compared to the same period in 2020[187]. Future Plans and Investments - The company plans to continue investing in research and development, acquisitions, and digital transformation projects, including CRM and HRIS systems[96]. - The company plans to continue targeted investments in global sales and marketing to support revenue-generating activities[128]. - The company plans capital spending of $30,000 thousand to $40,000 thousand during fiscal year 2021, compared to $35,400 thousand spent in fiscal year 2020[174].

ANSYS, Inc. (NASDAQ:ANSS) Q1 2021 Earnings Conference Call May 6, 2021 8:30 AM ET Company Participants Kelsey DeBriyn - Head, IR & Government Affairs Ajei Gopal - President, CEO & Director Nicole Anasenes - CFO & SVP, Finance Conference Call Participants Gal Munda - Berenberg Jay Vleeschhouwer - Griffin Securities Andrew Obin - Bank of America Merrill Lynch John Walsh - Crédit Suisse Tyler Radke - Citigroup Joseph Vruwink - Robert W. Baird & Co. Adam Borg - Stifel, Nicolaus & Company Jackson Ader - JPMorgan ...

ANSYS, Inc. (NASDAQ:ANSS) Q4 2020 Earnings Conference Call February 25, 2021 8:30 AM ET Company Participants Annette Arribas - Senior Director, Global Investor Relations Ajei Gopal - President and Chief Executive Officer Maria Shields - Senior Vice President and Chief Financial Officer Nicole Anasenes - Senior Vice President Conference Call Participants Jackson Ader - JPMorgan Ken Wong - Guggenheim Securities Richard Valera - Needham and Company John Walsh - Credit Suisse Jay Vleeschhouwer - Griffin Securit ...