Core Points - ANSYS, Inc. reported fourth-quarter 2024 earnings of $4.44 per share, exceeding the Zacks Consensus Estimate by 11% and reflecting a year-over-year increase of 12.7% [1] - Revenues reached $882.2 million, surpassing the Zacks Consensus Estimate by 1%, with a year-over-year growth of 9.6% on a reported basis and 11% on a constant currency basis [2] - The company announced a $35 billion acquisition deal with Synopsys, with shareholders receiving $197 in cash and 0.3450 Synopsys shares per ANSS share, which has received regulatory approvals in several jurisdictions [3][4] Financial Performance - Subscription lease revenues, accounting for 50% of total revenues, increased by 12.1% year over year to $441.1 million, while perpetual licenses revenues rose 1.7% to $102.3 million [6] - Maintenance revenues climbed 13.8% year over year to $319.4 million, while service revenues decreased by 1.2% to $19.4 million [6] - Total deferred revenues and backlog amounted to $1,718.3 million, reflecting a year-over-year increase of 16.7% [8] Operational Metrics - The Americas contributed 51.9% to total revenues, with a year-over-year increase of 11.5% to $457.8 million, while EMEA revenues grew 16.3% to $269.1 million [8] - Non-GAAP gross margin improved by 30 basis points to 94.6%, and non-GAAP operating margin increased to 53.3% from 53% in the prior-year quarter [10] - Cash from operations rose by 10.9% to $258 million compared to $232.7 million in the prior-year quarter [11] Market Performance - ANSS shares increased by 2.3% in after-market trading on February 19, 2025, with a 5.6% gain over the past year, compared to the Zacks Computer - Software industry's growth of 9.5% [5]

Company Performance - Ansys reported quarterly earnings of $4.44 per share, exceeding the Zacks Consensus Estimate of $4 per share, and up from $3.94 per share a year ago, representing an earnings surprise of 11% [1] - The company posted revenues of $882.17 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.98%, and an increase from $805.11 million year-over-year [2] - Over the last four quarters, Ansys has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Future Outlook - The sustainability of Ansys's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $1.70 on revenues of $527.9 million, and for the current fiscal year, it is $11.28 on revenues of $2.77 billion [7] - The estimate revisions trend for Ansys is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computer - Software industry, to which Ansys belongs, is currently in the bottom 46% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Ansys's stock performance [5]

Core Viewpoint - Ansys delivered strong Q4 2024 earnings, exceeding expectations despite regulatory and geopolitical challenges [1][2] Financial Performance - Revenue for Q4 2024 reached $882.2 million, surpassing analysts' projections of $867 million, reflecting a year-over-year increase of 9.6% from $805.1 million [2][7] - Non-GAAP EPS was reported at $4.44, exceeding the estimate of $3.95 and showing a 12.7% increase from $3.94 in Q4 2023 [3][8] - Non-GAAP operating margin improved slightly to 53.3%, up from 53.0% a year ago [3][8] - Annual Contract Value (ACV) grew by 14.6% to $1,094.6 million compared to $955.2 million in the previous year [3][7] Business Overview - Ansys specializes in engineering simulation, providing essential modeling and simulation solutions for industries such as high-tech, aerospace, automotive, and healthcare [4] - The company emphasizes technological leadership and innovation, investing $528 million in R&D in 2024 to maintain its competitive edge [5][9] Strategic Initiatives - Ansys is pursuing strategic mergers, including a pending merger with Synopsys, which is expected to enhance its capabilities despite anticipated regulatory hurdles from EU authorities [6][10] - The company is focusing on market expansion, particularly driven by the automotive sector's demand for electrification and autonomous technologies [6][7] Future Outlook - Management anticipates strong double-digit growth in ACV for 2025, driven by advancements in AI and machine learning technologies [11] - Investors are advised to monitor developments regarding the Synopsys merger, which may provide synergies in semiconductor design and technological integration [12]

Revenue and Financial Performance - No single customer accounted for more than 5% of the company's revenue in 2024, 2023, or 2022[74]. - As of December 31, 2024, deferred revenue was $536.3 million, an increase from $479.8 million in 2023, while backlog rose to $1.18 billion from $992.8 million[92]. - The impacts from currency fluctuations resulted in a decreased operating income of $19.6 million for the year ended December 31, 2024, compared to the previous year[308]. - A hypothetical 10% strengthening in the U.S. Dollar against other currencies would have decreased revenue by $105.3 million and operating income by $46.0 million for the year ended December 31, 2024[309]. - Interest income for the year ended December 31, 2024, was $51.1 million, while interest expense was $47.8 million[310]. - The outstanding term loan borrowings amounted to $755.0 million as of December 31, 2024[311]. - A hypothetical increase of 100 basis points in interest rates would result in an increase in interest expense of $7.7 million over the next twelve months[313]. Workforce and Employee Engagement - The company employed 6,500 people as of December 31, 2024, with 43% located in the Americas, 29% in EMEA, and 28% in APAC[95]. - As of December 31, 2024, the company's self-identified gender diversity was 74% male and 23% female among global employees[97]. - The company is committed to attracting and retaining talent through various recruitment and development strategies, including partnerships with universities and engineering societies[98]. - For the year ended December 31, 2024, the annual turnover rate was 6%, with a voluntary turnover rate of 5%[101]. - The compensation program includes competitive annual salaries, annual cash incentives, and long-term equity incentives, with over half of employees receiving equity grants each year[102]. - Health and welfare benefit programs include a mix of company-provided benefits, focusing on providing choice and value to employees[103]. - Employee feedback mechanisms include leadership roundtable events and new employee surveys to improve the employee experience[105]. Strategic Partnerships and Collaborations - The company has established over 350 technology partnerships to enhance its software solutions across various simulation areas[81]. - Strategic alliances with Microsoft and AWS have been formed to enhance cloud-based engineering simulations, including offerings like Ansys Access powered by Azure and Ansys Gateway powered by AWS[77][78]. - The company collaborates with leading CAD and EDA software companies to facilitate data transfer between systems, enhancing product integration[76]. - The company has expanded its collaboration with NVIDIA to advance AI-infused simulation solutions and 6G communication systems[80]. Seasonal Revenue Patterns - The company reported that subscription lease and maintenance contract renewals are typically highest in the fourth quarter, indicating seasonal revenue patterns[91]. Skill Development and Training - The company expanded its Ansys digital academy to support emerging skills such as AI and ML[100].

Financial Performance - Q4 2024 revenue reached $882.2 million, a 10% increase in reported currency and 11% in constant currency compared to Q4 2023[4] - FY 2024 revenue grew by 12% in reported currency and 13% in constant currency, totaling $2,544.8 million[4] - Q4 2024 diluted earnings per share were $3.21 (GAAP) and $4.44 (non-GAAP), compared to $3.14 and $3.94 in Q4 2023, respectively[4] - Annual Contract Value (ACV) for Q4 2024 was $1.1 billion, contributing 43% of the full year 2024 ACV of $2.6 billion, with a 15% growth in Q4 and 11% for FY 2024[4][5] - Operating cash flows for Q4 2024 were $258.0 million, with unlevered operating cash flows of $266.8 million, reflecting a 10.9% and 9.9% increase year-over-year, respectively[5][12] - Total revenue for Q4 2024 reached $882,174, representing a 9.6% increase compared to $805,108 in Q4 2023[30] - For FY 2024, total revenue was $2,544,809, up 12.1% from $2,269,949 in FY 2023[30] - Net income for Q4 2024 was $282,688, compared to $274,762 in Q4 2023, reflecting a slight increase[31] - Earnings per share (diluted) for FY 2024 was $6.55, up from $5.73 in FY 2023[31] - Q4 2024 total GAAP revenue reached $809,486 thousand, a 10.1% increase from Q4 2023's $735,059 thousand[43] - For the twelve months ended December 31, 2024, total GAAP revenue was $2,264,990 thousand, a 13.3% increase from $1,998,651 thousand in 2023[44] - Non-GAAP net income for the twelve months ended December 31, 2024, was $959,252 thousand, with an EPS of $10.91, compared to $8.80 in 2023[44] Revenue Composition - Subscription lease revenue for FY 2024 increased by 20.7% year-over-year, accounting for 37.3% of total revenue[18] - Direct revenue as a percentage of total revenue increased to 79.7% in Q4 2024 from 74.5% in Q4 2023[22] - Current deferred revenue as of December 31, 2024, was $504,527, an increase from $457,514 on December 31, 2023[23] - Current backlog as of December 31, 2024, was $524,617, up from $439,879 a year earlier[23] - The Americas region contributed $1,297,367 in revenue for FY 2024, a 17.3% increase from $1,106,242 in FY 2023[30] - Germany's revenue increased by 5.3% to $209,714 in FY 2024 from $199,068 in FY 2023[30] Operational Metrics - The company reported a gross margin of 91.8% for Q4 2024, slightly up from 91.3% in Q4 2023[8] - Non-GAAP gross profit for Q4 2024 was $834,961 thousand, representing a gross profit margin of 94.6%, compared to 94.3% in Q4 2023[43] - Operating income for Q4 2024 was $470,295 thousand, which is 53.3% of revenue, up from 53.0% in Q4 2023[43] - Net cash provided by operating activities for Q4 2024 was $257,973 thousand, an increase from $232,722 thousand in Q4 2023[44] Future Outlook - The company expects double-digit ACV growth for FY 2025[4] - The proposed transaction with Synopsys is expected to bring potential benefits, but is subject to risks including regulatory approvals and operational disruptions[64] - Future capital spending plans are in place, with an emphasis on customer relationship management and research and development activities[67] Strategic Initiatives - Ansys has entered into a definitive agreement with Synopsys for acquisition, with the transaction expected to close in the first half of 2025, pending regulatory approvals[6] - The company is focused on developing new products that incorporate artificial intelligence and machine learning to address rapidly changing technology demands[67] - The company is investing in global sales and marketing organizations to enhance its distribution capabilities through channel partners[67] - The company emphasizes the importance of high renewal rates for annual subscription lease and maintenance contracts to maintain revenue stability[67] - The company is committed to executing strategies related to environmental, social, and governance matters, adapting to evolving regulatory standards[67] Risk Factors - The company experienced a negative impact of $11,822 on Q4 2024 revenue due to currency fluctuations[25] - The company faces various risks including macroeconomic conditions, geopolitical uncertainties, and the ability to recruit and retain key personnel in a competitive labor market[67] Non-GAAP Measures - The company continues to utilize non-GAAP measures to provide a clearer view of operational performance and to set internal targets[46] - The company utilizes unlevered operating cash flows as a non-GAAP measure to evaluate its core operating business, excluding cash paid for interest[54] - Non-GAAP financial measures are provided alongside GAAP measures to give investors a clearer view of the company's financial performance[55] - The company employs constant currency results to evaluate financial performance, adjusting for foreign currency fluctuations to compare period-to-period results[57]

/ Q4 2024 Results Revenue of $882.2 millionGAAP diluted earnings per share of $3.21 and non-GAAP diluted earnings per share of $4.44GAAP operating profit margin of 40.3% and non-GAAP operating profit margin of 53.3%Operating cash flows of $258.0 million and unlevered operating cash flows of $266.8 millionAnnual contract value (ACV) of $1,094.6 million /FY 2024 Results Revenue of $2,544.8 millionGAAP diluted earnings per share of $6.55 and non-GAAP diluted earnings per share of $10.91GAAP operating profit ...

ANSYS Inc (ANSS) is scheduled to report earnings for the fourth quarter of 2024 on Feb. 19, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for earnings per share (EPS) is pegged at $4.00, unchanged in the past 60 days. The figure indicates an increase of 1.5% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for revenues is pegged at $873.6 million, indicating growth of 8.5% from the prior-year quarter leve ...

Core Insights - Ansys and Concepts NREC have expanded their partnership to integrate computational fluid dynamics (CFD) analysis software into turbomachinery design tools, creating an automated workflow that enhances design efficiency and predictive accuracy [2][4][7] Group 1: Partnership and Integration - The collaboration aims to connect design tools with robust analysis tools for turbomachinery applications, allowing for quicker evaluation of machine performance [2][4] - The integration of CFX into AxCent enables a seamless workflow where parameters for blade rows are automatically created, reducing time delays and computational resource requirements [3][4] Group 2: Benefits of the New Technology - The new technology allows engineers to verify turbomachinery designs rapidly using Ansys' solvers, which is crucial for optimizing design efficiency and meeting safety and environmental standards [4][6] - The "one-click" approach to CFD simulation significantly shortens design cycles, enabling faster development of complex products like jet engines [7][8] Group 3: Industry Impact - Companies like AtmosZero are leveraging this integration to innovate in decarbonization technologies, showcasing the practical applications of the partnership in reducing carbon footprints [5][6] - The expanded capabilities are expected to include a broader variety of fluids and features to capture dynamic behaviors, further enhancing the design process in turbomachinery [6][7]

Digital engineering-enabling technologies connect parallel workstreams, reducing costly prototyping, facilitating cross-functional collaboration, and accelerating time-to-market/ Key Highlights The Ansys SimAI™ cloud-enabled artificial intelligence solution now allows users to expand the training data to gain further insight during post-processing New capabilities in the Ansys System Architecture Modeler (SAM)™ include support for SysML v2, enabling more optimized product designs and significant time savin ...

PITTSBURGH, Jan. 23, 2025 /PRNewswire/ -- ANSYS, Inc. (NASDAQ: ANSS) announced today that the Company expects to release its fourth quarter and FY 2024 earnings on Wednesday, February 19, 2025, 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, February 19, 2025, you can find the following informa ...