Financial Performance - Revenue for the three months ended March 31, 2025, increased by 8.2% compared to the same period in 2024[89] - GAAP operating income for the same period rose by 35.9%, while non-GAAP operating income increased by 12.5%[89] - GAAP diluted earnings per share grew by 47.5%, and non-GAAP diluted earnings per share increased by 18.0%[89] - Total revenue for the three months ended March 31, 2025, was $504.9 million[107] - Net income for the three months ended March 31, 2025, was $51,865 thousand, resulting in diluted earnings per share of $0.59, compared to $34,778 thousand and $0.40 in the same period of 2024, marking an increase of 49.1% in net income[123] - Non-GAAP net income for the three months ended March 31, 2025, was $144,149 thousand, with a diluted earnings per share of $1.64, compared to $121,996 thousand and $1.39 in the same period of 2024[126] Revenue Breakdown - Maintenance revenue grew by 12.1%, or 13.9% in constant currency, driven by a $35.1 million increase, primarily from existing customers[107] - Service revenue increased by 21.2%, or 22.5% in constant currency, mainly due to increased consulting work in the EMEA region[107] - Subscription lease license revenue rose by 2.2%, or 4.0% in constant currency, with the increase largely attributed to sales to existing customers[107] - Perpetual license revenue decreased by 3.8%, or 2.9% in constant currency, due to a 13.8% drop in deal volume[107] Cash Flow and Investments - Cash, cash equivalents, and short-term investments increased by $331,042 thousand, or 22.1%, from $1,497,517 thousand on December 31, 2024, to $1,828,559 thousand on March 31, 2025[135] - Net cash provided by operating activities rose by $116,118 thousand, or 41.1%, from $282,817 thousand for the three months ended March 31, 2024, to $398,935 thousand for the same period in 2025[138] - Net cash used in investing activities decreased by $3,749 thousand, or 10.9%, from $(34,436) thousand in Q1 2024 to $(30,687) thousand in Q1 2025[139] - Net cash used in financing activities decreased by $13,406 thousand, or 24.5%, from $(68,049) thousand in Q1 2024 to $(54,643) thousand in Q1 2025[140] Operating Expenses - Total operating expenses were $373,429 thousand, which is 74.0% of revenue, an increase of $18,830 thousand or 5.3% from the previous year[116] - Research and development expenses increased to $137,292 thousand, representing 27.2% of revenue, an increase of $8,481 thousand or 6.6% compared to the prior year[116] - The company experienced a net increase in maintenance and service costs of $3,631 thousand, primarily due to increased salaries and stock-based compensation[115] Market Trends and Strategic Initiatives - The engineering simulation software market is experiencing strong growth driven by the need for rapid, quality innovation and increased product complexity[77] - Key industry trends include electrification, autonomy, connectivity, and the industrial internet of things (IIoT)[78] - Investments in AI capabilities across the simulation portfolio are enhancing customer experience and accelerating simulation processes[76] - The company continues to focus on sales improvement activities, including hiring and customer engagement initiatives[100] Currency Impact - The company reported a total adverse impact from currency fluctuations on revenue of $7,679 thousand for the three months ended March 31, 2025[152] - The U.S. Dollar was 3.5% stronger against foreign currencies on average for the three months ended March 31, 2025, compared to the same period in 2024[151] - A hypothetical 10% strengthening in the U.S. Dollar would have decreased revenue by $22.2 million and operating income by $5.7 million for the three months ended March 31, 2025[153] Debt and Interest Rates - The carrying value of the term loan as of March 31, 2025, was $754,300 thousand, with no principal payments due in the next twelve months[142] - The interest rate under the 2022 Credit Agreement was 5.25% as of March 31, 2025, following an amendment for a Sustainability Rate Adjustment[143] - Outstanding term loan borrowings amounted to $755.0 million as of March 31, 2025, with interest rates based on Term SOFR or base rate plus applicable margin[155] - A hypothetical increase of 100 basis points in interest rates would increase interest expense and decrease cash flows by $7.7 million over the next twelve months[157]

Financial Performance - Q1 2025 revenue reached $504.9 million, an increase of 8.2% compared to Q1 2024[3] - GAAP diluted earnings per share were $0.59, up 47.5% from $0.40 in Q1 2024; non-GAAP diluted earnings per share were $1.64, an 18.0% increase from $1.39[7] - Annual contract value (ACV) for Q1 2025 was $410.1 million, reflecting a 0.7% increase compared to Q1 2024[7] - Operating cash flows for Q1 2025 were $398.9 million, a 41.1% increase from $282.8 million in Q1 2024[8] - Total revenue for Q1 2025 reached $504.891 million, a 8.2% increase from $466.605 million in Q1 2024[33] - Gross profit for Q1 2025 was $432.322 million, representing a gross margin of 85.6%, compared to 85.3% in Q1 2024[43] - Operating income increased to $58.893 million, up 36.0% from $43.339 million in the same quarter last year[33] - Net income for Q1 2025 was $51.865 million, a significant increase of 49.2% compared to $34.778 million in Q1 2024[33] - Cash provided by operating activities was $398.935 million, compared to $282.817 million in Q1 2024[43] Deferred Revenue and Backlog - Deferred revenue and backlog totaled $1,627.7 million as of March 31, 2025, compared to $1,369.5 million in Q1 2024[26] - Total current deferred revenue and backlog decreased to $1,001.5 million from $1,029.1 million in the previous quarter[26] Expenses - Research and development expenses for Q1 2025 totaled $137.292 million, an increase from $128.811 million in Q1 2024[33] - Selling, general and administrative expenses rose to $230.415 million, compared to $219.643 million in the prior year[33] - Interest income increased to $16.743 million, while interest expense decreased to $10.177 million, indicating improved financial management[33] - The company incurs expenses related to business combinations, including professional services and restructuring activities, which are excluded from non-GAAP financial measures to evaluate operational performance[50] Future Outlook - The company anticipates double-digit FY 2025 ACV growth[3] - Ansys entered into a definitive agreement with Synopsys for acquisition, with regulatory approvals in progress and expected closure in the first half of 2025[4] - Forward-looking statements include expectations regarding the proposed transaction with Synopsys and potential benefits, subject to risks and uncertainties[58] - Risks include the ability to complete the Synopsys transaction, macroeconomic conditions, and potential disruptions in operations[60] Innovation and Strategy - The company is focused on innovation in simulation software, enabling advancements across various industries[56] - The company emphasizes the importance of developing new products, including the integration of artificial intelligence and machine learning[63] - Future capital spending plans and the impact of research and development costs are critical for the company's growth strategy[63] Financial Metrics and Measures - A normalized non-GAAP annual effective tax rate (AETR) is utilized to provide consistency across reporting periods by eliminating non-recurring items[51] - Unlevered operating cash flows are calculated by excluding cash paid for interest, providing a measure of cash generated through operating activities independent of capital structure[52] - Non-GAAP financial measures are not a substitute for GAAP measures and should be read in conjunction with GAAP financial statements[53] - Constant currency results are used for financial decision-making, adjusting reported amounts to exclude foreign currency fluctuations[55]

Core Viewpoint - ANSYS, Inc. reported a strong performance in Q1 2025, with revenue growth and improved earnings per share, while also progressing towards a significant acquisition by Synopsys, Inc. [2][3] Financial Performance - Q1 2025 revenue reached $504.9 million, marking an 8% increase in reported currency and a 10% increase in constant currency compared to Q1 2024 [2][14] - GAAP diluted earnings per share were $0.59, up 47.5% from $0.40 in Q1 2024, while non-GAAP diluted earnings per share increased to $1.64 from $1.39, a rise of 18% [2][7] - The company reported a net income of $51.9 million, a 49.1% increase from $34.8 million in the same quarter last year [5][26] - Annual Contract Value (ACV) for Q1 2025 was $410.1 million, reflecting a 0.7% increase compared to Q1 2024 [6][8] Revenue Breakdown - Revenue by license type showed that subscription lease revenue was $96.9 million (19.2% of total), maintenance revenue was $324.4 million (64.2%), and service revenue was $20.5 million (4.1%) [15] - Geographically, revenue from the Americas was $230.4 million (45.6% of total), while Asia-Pacific contributed $155.7 million (30.8%) [17] Acquisition Progress - ANSYS has entered into a definitive agreement with Synopsys for acquisition, with regulatory approvals from several jurisdictions, including the U.K. and Turkey [3][6] - The transaction is expected to close in the first half of 2025, pending further regulatory approvals [3] Cash Flow and Deferred Revenue - Operating cash flows for Q1 2025 were $398.9 million, a 41.1% increase from $282.8 million in Q1 2024 [6][39] - Total deferred revenue and backlog as of March 31, 2025, was $1.63 billion, down from $1.72 billion at the end of 2024 [19]

Core Insights - Ansys has announced thermal and multiphysics signoff tool certifications for designs using Intel's 18A process technology, enhancing the reliability of advanced semiconductor systems for AI, GPUs, and HPC applications [2][8] - The collaboration between Ansys and Intel Foundry includes a comprehensive multiphysics signoff analysis flow for Intel's EMIB technology, facilitating the development of multi-die 3D integrated circuit systems [2][4] Group 1: Certification and Tools - Ansys RedHawk-SC and Totem are recognized for their speed, accuracy, and capacity in analyzing power integrity and reliability of Intel's 18A RibbonFET GAA transistors with PowerVia backside power delivery [3][8] - HFSS-IC Pro, a new addition to the HFSS-IC product family, is introduced for scalable electromagnetic analysis, certified for on-chip electromagnetic integrity in various telecommunication applications [3][8] - The qualification process for RedHawk-SC, Totem, and HFSS-IC Pro is ongoing for the Intel 18A high-performance process node, with customers able to request the latest Intel PDK for early design work [5][8] Group 2: Collaboration and Ecosystem - Ansys is joining the Intel Foundry Chiplet Alliance to develop a secure ecosystem for designing and manufacturing interoperable chiplets, enhancing multi-die assembly efficiency [6][7] - The collaboration aims to advance chiplet technology and improve the performance and integration of advanced computing systems through the EMIB-T technology, which will include through-silicon vias [4][7] - Ansys emphasizes the importance of precise tools for ensuring reliability in semiconductor systems, reinforcing its commitment to providing open-source and interoperable technology [7][8]

Core Viewpoint - ANSYS, Inc. is set to report its Q1 2025 earnings on April 30, with an expected EPS of $1.75, reflecting a 25.9% increase year-over-year [1][2] Financial Performance - The Zacks Consensus Estimate for revenues stands at $529.4 million, indicating a 13.5% growth from the previous year [2] - ANSYS has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 12.28% [2] Factors Driving Performance - Increased sales of simulation solutions across key sectors such as aerospace and defense, high tech, automotive, industrial equipment, and energy are expected to contribute to revenue growth [3] - Advanced simulation solutions for 5G, autonomous vehicles, IoT devices, and high-performance chips are likely enhancing customer engagement and deal activity [4] - The integration of NVIDIA Omniverse capabilities into ANSYS products may positively impact performance [4] Revenue Streams - ANSYS is benefiting from rising maintenance and subscription lease revenues, along with growth in perpetual license revenues [5] - Strategic partnerships, particularly the collaboration with Microsoft to enhance product accessibility via Azure, are expected to positively influence performance [5] Recent Developments - On April 24, 2025, ANSYS announced expanded AI-assisted workflows for RF design migration and photonic ICs, enhancing its semiconductor certifications through collaboration with TSMC [7] - ANSYS completed the largest-ever commercial Fluent CFD simulation using AMD GPUs, showcasing its technological capabilities [9] - Certification of ANSYS' Lumerical Photonic Design Tools by GlobalFoundries supports advanced chip development for generative AI and other applications [10] Market Context - ANSYS shares have decreased by 2.4% over the past six months, while the Zacks Computer-Software industry has declined by 8.6% [2] - Geopolitical challenges, unfavorable forex fluctuations, and macroeconomic uncertainties are ongoing concerns for the company [6]

Core Insights - Ansys and TSMC have enhanced AI-assisted workflows for semiconductor design, focusing on RF design migration and photonic integrated circuits, which aim to optimize 3D integrated circuit design for AI and HPC applications [2][9] - The collaboration includes new certifications for Ansys' semiconductor solutions, particularly for TSMC's advanced A16 technology and the newly announced N3C technology [2][3][9] AI-Assisted Workflows - Ansys has introduced AI-assisted photonic design optimization solutions that leverage its optiSLang process integration and design optimization software, enhancing the performance of photonic integrated circuits [6] - The AI-assisted RF design migration flow combines Ansys HFSS-IC Pro with Synopsys tools, automating device placement and routing optimization while maintaining design intent and performance [7] Certification and Technology Advancements - Ansys' RedHawk-SC, RedHawk-SC Electrothermal, and Totem platforms are certified for TSMC's A16 process, ensuring reliable thermal management and electromigration analysis [3][4][9] - The new HFSS-IC product family, certified for TSMC's 5nm and 3nm processes, meets the accuracy requirements for next-generation semiconductor products [5][9] Multiphysics Analysis - A joint multiphysics signoff analysis flow has been established, integrating Ansys and Synopsys tools for comprehensive extraction, timing, power, EM/IR, and thermal analysis [10] - This multiphysics approach supports thermal-aware and voltage-aware timing analysis, facilitating the convergence of large 3D-IC designs [10] Industry Impact - The collaboration between Ansys, TSMC, and Synopsys is driving innovation in 3D-IC design, improving chip reliability and addressing the challenges posed by shrinking chip sizes and increasing energy efficiency demands [11] - AI-driven solutions are significantly enhancing productivity in designing 3D-IC components, providing automation for essential tasks [11]

PITTSBURGH, April 17, 2025 /PRNewswire/ -- ANSYS, Inc. (NASDAQ: ANSS) announced today that the Company expects to release its first quarter earnings on Wednesday, April 30, 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, April 30, 2025, you can find the following information on the invest ...

ANSYS, Inc. (ANSS) has achieved a milestone by completing the largest-ever commercial Fluent CFD simulation using AMD Instinct MI250X graphics processing units (GPUs). This groundbreaking achievement was made possible through the use of the Frontier exascale supercomputer, housed at the U.S. Department of Energy's Oak Ridge National Laboratory and powered by AMD EPYC CPUs and Instinct GPUs.In collaboration with energy technology company Baker Hughes, Ansys successfully scaled its Fluent software to 1,024 GP ...

Ansys' accelerated, high-capacity approach to verifying electrical design rules for final validation addresses critical industry need as chips rapidly increase in size/ Key Highlights Ansys PathFinder-SC™ electrostatic discharge (ESD) reliability analysis solution for point-to-point (P2P) and current density (CD) is certified for TSMC's N2 process technology TSMC certified the accuracy of Ansys SeaScape™ cloud-optimized electronic design automation platform solutions including Ansys RedHawk-SC™, PathFinder- ...

Ansys Fluent solvers powered by AMD Instinct GPUs reduce simulation run time by 96%, unlocking transformative possibilities for high-fidelity CFD analysis / Key Highlights PITTSBURGH, April 1, 2025 /PRNewswire/ -- Ansys (NASDAQ: ANSS) today announced groundbreaking results from the largest commercial Fluent CFD simulation ever run on AMD Instinct™ MI250X GPUs. Leveraging the power of the Frontier exascale supercomputer, powered by AMD EPYC™ CPUs and Instinct GPUs, Ansys and energy company Baker Hughes scale ...