Core Insights - The Microelectronics Commons network, funded by the CHIPS Act, aims to enhance domestic semiconductor manufacturing through collaboration among regional technology hubs [1][2] - Ansys has been awarded a contract to provide digital engineering solutions to the Commons, granting access to nearly 90% of its simulation suite to drive microelectronics innovation [1][2] - The initiative focuses on critical areas such as 5G/6G, AI, EM spectrum dominance, IoT computing, and quantum technologies, with Ansys playing a key role in workforce development and prototyping [1][3] Group 1 - The Commons network consists of eight regional technology hubs aimed at fostering domestic innovation in various advanced technologies [1] - Ansys will support six of these hubs through the Cross Hub Enablement Solution (CHES) program, enhancing the microelectronics technology supply chain [1] - Ansys Government Initiatives will collaborate with industry, academic, and government organizations to produce mature prototypes, demonstrating the lab-to-fab concept [1][2] Group 2 - Ansys will provide the Ansys Learning Hub to participating technology hubs, facilitating education in semiconductor workforce development [3] - The initiative is crucial for maintaining U.S. intellectual property and market influence, thereby enhancing national security [3] - Ansys emphasizes the importance of bridging the gap between research and practice to accelerate domestic prototyping in the semiconductor sector [4] Group 3 - Ansys has extensive experience working with chip manufacturers and designers, reinforcing its commitment to improving national distribution and access to critical resources [4] - The collaboration aims to solidify the U.S. position as a global leader in the semiconductor industry [4] - Ansys' mission is to power innovation that drives human advancement through predictive simulation across various industries [5]

Group 1: Collaboration and Technology - ANSYS Inc. collaborates with Vertiv to leverage digital engineering technologies for designing next-generation data center cooling systems, aiming to reduce development time and costs while enhancing customization [1][4] - The heat exchanger (HX) coil is a critical component in data center thermal management, and its design is complex and time-consuming, but ANSYS technology allows Vertiv to design them more quickly and accurately [2][3] - ANSYS provides a suite of digital tools, including Minerva and optiSLang, which streamline the design process and enhance collaboration among teams [3][4] Group 2: Market Position and Financial Performance - ANSYS maintains a strong position in the high-end design simulation software market, with steady demand from the automotive and high-tech industries, and its software is widely used by major manufacturing companies [5] - In the last reported quarter, ANSYS' revenues increased by 31.2% year over year to $601.9 million, surpassing the Zacks Consensus Estimate by 13.3%, driven by robust multi-year lease growth [7] - ANSYS secured an $88 million deal in the high-tech industry, significantly contributing to its multi-year lease agreements and reinforcing its market presence [7] Group 3: Strategic Partnerships - ANSYS has deepened its partnership with TSMC to utilize AI for improving semiconductor technologies and workflows, achieving a 10X speed boost in photonic simulations through collaboration with Microsoft and NVIDIA [6] - The collaboration with TSMC and Microsoft enhances the simulation capabilities for silicon Photonic Integrated Circuits, showcasing ANSYS' commitment to innovation in the semiconductor space [6] Group 4: Acquisition and Stock Performance - ANSYS has not issued an outlook due to its pending acquisition by Synopsys, which has received approval from ANSYS shareholders [8] - Currently, ANSYS holds a Zacks Rank 3 (Hold), with its shares gaining 9.9% over the past year, compared to a 14.4% growth in the sub-industry [9]

ANSYS Inc (ANSS) reported third-quarter 2024 earnings of $2.58 per share, beating the Zacks Consensus Estimate by 37.2%. The bottom line also increased 83% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues of $601.9 million beat the Zacks Consensus Estimate by 13.3%. The top line rose 31.2% year over year on both reported and constant currency basis. This revenue growth was driven by solid multi-year lease growth. ANSS closed an $88 million contract in the high ...

Core Insights - Ansys reported quarterly earnings of $2.58 per share, exceeding the Zacks Consensus Estimate of $1.88 per share, and showing a significant increase from $1.41 per share a year ago, resulting in an earnings surprise of 37.23% [1] - The company achieved revenues of $601.89 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 13.34% and up from $458.8 million year-over-year [2] Financial Performance - Over the last four quarters, Ansys has surpassed consensus EPS estimates three times [2] - The company has also topped consensus revenue estimates three times in the last four quarters [2] - Ansys shares have declined approximately 10.6% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] Future Outlook - The future performance of Ansys stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $4.19 on revenues of $896.2 million, and for the current fiscal year, it is $9.96 on revenues of $2.49 billion [7] - The Zacks Industry Rank indicates that the Computer - Software sector is in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this industry [8]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section details ANSYS, Inc.'s unaudited condensed consolidated financial statements, including Balance Sheets, Income, Comprehensive Income, Cash Flows, and Stockholders' Equity, for specified interim periods [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | September 30, 2024 | December 31, 2023 | |:---------------|:-------------------|:------------------| | **ASSETS** | | | | Total current assets | $2,348,078 | $2,049,567 | | Total long-term assets | $5,259,995 | $5,273,308 | | **Total assets** | **$7,608,073** | **$7,322,875** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $754,490 | $889,294 | | Total long-term liabilities | $1,024,807 | $1,043,217 | | Total stockholders' equity | $5,828,776 | $5,390,364 | | **Total liabilities and stockholders' equity** | **$7,608,073** | **$7,322,875** | - **Total assets increased by $285.2 million (3.9%)** from **$7,322,875 thousand** at December 31, 2023, to **$7,608,073 thousand** at September 30, 2024, primarily driven by an increase in cash and cash equivalents[6](index=6&type=chunk) - **Total stockholders' equity increased by $438.4 million (8.1%)** from **$5,390,364 thousand** at December 31, 2023, to **$5,828,776 thousand** at September 30, 2024[6](index=6&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Condensed Consolidated Statements of Income (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:--------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Total revenue | $601,892 | $458,795 | $1,662,635 | $1,464,841 | | Gross profit | $532,783 | $393,538 | $1,455,504 | $1,263,592 | | Operating income | $161,538 | $69,816 | $362,293 | $293,135 | | Net income | $128,192 | $55,502 | $293,004 | $225,650 | | Basic EPS | $1.47 | $0.64 | $3.36 | $2.60 | | Diluted EPS | $1.46 | $0.64 | $3.34 | $2.58 | - **Total revenue** for the three months ended September 30, 2024, **increased by 31.2% year-over-year**, and for the nine months, it **increased by 13.5% year-over-year**[8](index=8&type=chunk) - **Net income** for the three months ended September 30, 2024, **more than doubled, increasing by 130.9% year-over-year**, and for the nine months, it **increased by 29.8% year-over-year**[8](index=8&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Condensed Consolidated Statements of Comprehensive Income (in thousands) | (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:---------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Net income | $128,192 | $55,502 | $293,004 | $225,650 | | Foreign currency translation adjustments | $48,714 | $(32,834) | $18,357 | $(11,547) | | Unrealized gains on available-for-sale securities, net of tax | $361 | $— | $276 | $— | | Comprehensive income | $177,267 | $22,668 | $311,637 | $214,103 | - **Comprehensive income significantly increased** for both the three and nine months ended September 30, 2024, largely due to **positive foreign currency translation adjustments** compared to losses in the prior year[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:---------------|:-------------------------------|:-------------------------------| | Net cash provided by operating activities | $537,767 | $484,400 | | Net cash used in investing activities | $(86,030) | $(220,166) | | Net cash used in financing activities | $(76,470) | $(232,600) | | Net increase in cash and cash equivalents | $385,856 | $24,951 | | Cash and cash equivalents, end of period | $1,246,057 | $639,342 | - **Net cash provided by operating activities increased by 11.0% to $537.8 million** for the nine months ended September 30, 2024, compared to **$484.4 million** in the prior year[12](index=12&type=chunk) - **Net cash used in investing activities decreased significantly by 60.9% to $86.0 million**, primarily due to decreased acquisition-related cash outlays[12](index=12&type=chunk) - **Net cash used in financing activities decreased by 67.1% to $76.5 million**, mainly due to the absence of share repurchases in 2024[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) Condensed Consolidated Statements of Stockholders' Equity (in thousands) | (in thousands) | Balance, January 1, 2024 | Balance, September 30, 2024 | |:---------------|:-------------------------|:----------------------------|\n| Common Shares | 95,267 | 95,267 |\n| Stock Amount | $953 | $953 |\n| Additional Paid-In Capital | $1,670,450 | $1,750,243 |\n| Retained Earnings | $5,283,342 | $5,576,346 |\n| Treasury Stock, Amount | $(1,474,110) | $(1,427,128) |\n| Accumulated Other Comprehensive (Loss) Income | $(90,271) | $(71,638) |\n| Total Stockholders' Equity | $5,390,364 | $5,828,776 | - **Total stockholders' equity increased by $438.4 million** from January 1, 2024, to September 30, 2024, primarily driven by net income and stock-based compensation activity[13](index=13&type=chunk) - **Treasury stock decreased by $46.9 million**, indicating fewer shares held in treasury, while **additional paid-in capital increased by $79.8 million**[13](index=13&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. Organization](index=8&type=section&id=1.%20Organization) - ANSYS, Inc. develops and globally markets engineering simulation software and services across various industries and academia[15](index=15&type=chunk) - The company operates as a single segment due to its integrated approach to multi-discipline problem-solving and multi-year product integration strategy[16](index=16&type=chunk)[17](index=17&type=chunk) - A pending acquisition by Synopsys, Inc. was announced on January 15, 2024, and is anticipated to close in the first half of 2025, subject to regulatory approvals[18](index=18&type=chunk) [2. Accounting Policies](index=8&type=section&id=2.%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and should be read with the 2023 Form 10-K[19](index=19&type=chunk) - New accounting guidance (ASU 2023-07 on Segment Reporting and ASU 2023-09 on Income Tax Disclosures) will require enhanced footnote disclosures in future annual periods[20](index=20&type=chunk)[21](index=21&type=chunk) - Cash and cash equivalents are highly liquid investments, while short-term investments are available-for-sale debt securities carried at fair value[23](index=23&type=chunk)[24](index=24&type=chunk) [3. Revenue from Contracts with Customers](index=9&type=section&id=3.%20Revenue%20from%20Contracts%20With%20Customers) Revenue from Contracts with Customers (in thousands) | (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:---------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Subscription lease licenses | $194,322 | $103,573 | $507,711 | $386,494 | | Perpetual licenses | $82,626 | $58,849 | $212,790 | $199,977 | | Software licenses | $276,948 | $162,422 | $720,501 | $586,471 | | Maintenance | $306,670 | $278,108 | $889,836 | $820,393 | | Service | $18,274 | $18,265 | $52,298 | $57,977 | | Total revenue | $601,892 | $458,795 | $1,662,635 | $1,464,841 | - **Subscription lease licenses revenue increased by 87.6%** for the three months and **31.4%** for the nine months ended September 30, 2024, primarily from existing customers and multi-year licenses[25](index=25&type=chunk)[112](index=112&type=chunk)[132](index=132&type=chunk) - Total revenue allocated to remaining performance obligations as of September 30, 2024, was **$1,463,797 thousand**, with **$902,792 thousand** expected to be recognized in the next 12 months[29](index=29&type=chunk) [4. Acquisitions](index=10&type=section&id=4.%20Acquisitions) - Acquisition-related expenses of **$13.2 million** and **$39.9 million** were incurred for the three and nine months ended September 30, 2024, mainly due to the pending merger with Synopsys[30](index=30&type=chunk) - An agreement to make a strategic equity investment in Humanetics for **$300.0 million** was mutually terminated in July 2024 due to regulatory interactions[31](index=31&type=chunk)[180](index=180&type=chunk) - In 2023, ANSYS acquired DYNAmore for **$140.8 million** and completed other smaller acquisitions to expand solution offerings, with their effects not material to consolidated results[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [5. Other Receivables and Current Assets](index=11&type=section&id=5.%20Other%20Receivables%20and%20Current%20Assets) Other Receivables and Current Assets (in thousands) | (in thousands) | September 30, 2024 | December 31, 2023 | |:---------------|:-------------------|:------------------| | Receivables related to unrecognized revenue | $176,725 | $253,646 | | Income taxes receivable, including overpayments and refunds | $29,034 | $22,104 | | Prepaid expenses and other current assets | $64,376 | $48,901 | | Total other receivables and current assets | $270,135 | $324,651 | - **Total other receivables and current assets decreased by $54.5 million** from December 31, 2023, to September 30, 2024, primarily due to a decrease in receivables related to unrecognized revenue[35](index=35&type=chunk) [6. Earnings Per Share](index=11&type=section&id=6.%20Earnings%20Per%20Share) Earnings Per Share (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:--------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Net income | $128,192 | $55,502 | $293,004 | $225,650 | | Weighted average shares outstanding – basic | 87,399 | 86,817 | 87,266 | 86,814 | | Dilutive effect of stock plans | 486 | 564 | 548 | 521 | | Weighted average shares outstanding – diluted | 87,885 | 87,381 | 87,814 | 87,335 | | Basic earnings per share | $1.47 | $0.64 | $3.36 | $2.60 | | Diluted earnings per share | $1.46 | $0.64 | $3.34 | $2.58 | - **Diluted EPS increased significantly to $1.46** for the three months ended September 30, 2024, from **$0.64** in the prior year, and to **$3.34** for the nine months, from **$2.58**[36](index=36&type=chunk) [7. Goodwill and Intangible Assets](index=11&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Finite-lived and Other Intangible Assets, Net (in thousands) | (in thousands) | September 30, 2024 | December 31, 2023 | |:---------------|:-------------------|:------------------| | **Finite-lived intangible assets:** | | | | Developed software and core technologies, net | $532,107 | $588,663 | | Customer lists, net | $183,318 | $200,074 | | Trade names, net | $40,930 | $46,323 | | **Total finite-lived intangible assets, net** | **$756,355** | **$835,060** | | Indefinite-lived intangible asset: Trade name | $357 | $357 | | **Other intangible assets, net** | **$756,712** | **$835,417** | Goodwill (in thousands) | (in thousands) | 2024 | 2023 | |:---------------|:------------|:------------| | Beginning balance – January 1 | $3,805,874 | $3,658,267 | | Acquisitions and adjustments | $841 | $113,502 | | Currency translation | $11,845 | $(2,448) | | Ending balance – September 30 | $3,818,560 | $3,769,321 | - **Goodwill increased to $3,818,560 thousand** as of September 30, 2024, from **$3,805,874 thousand** at January 1, 2024, primarily due to currency translation[39](index=39&type=chunk) - No impairment was identified for goodwill or indefinite-lived intangible assets during the annual test in Q1 2024 or through September 30, 2024[40](index=40&type=chunk)[182](index=182&type=chunk) [8. Cash Equivalents and Short-Term Investments](index=13&type=section&id=8.%20Cash%20Equivalents%20and%20Short-Term%20Investments) Cash Equivalents and Short-Term Investments (in thousands) | (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |:---------------|:---------------|:-----------------------|:------------------------|:---------------------| | Money market funds | $246,657 | $— | $— | $246,657 | | Corporate debt securities | $26,855 | $244 | $— | $27,099 | | Municipal bonds | $16,746 | $117 | $(8) | $16,855 | | U.S. agency bonds | $5,062 | $17 | $(4) | $5,075 | | Other short-term investments | $183 | $— | $— | $183 | | Total cash equivalents and short-term investments | $295,503 | $378 | $(12) | $295,869 | - The company holds **$295.9 million** in cash equivalents and short-term investments, with a small amount of unrealized losses primarily due to changes in interest rates[42](index=42&type=chunk)[43](index=43&type=chunk) Contractual Maturities of Debt Securities (in thousands) | (in thousands) | Amortized Cost | Fair Value | |:---------------|:---------------|:-----------| | Less than 1 year | $15,551 | $15,599 | | 1-3 years | $33,112 | $33,430 | | Total | $48,663 | $49,029 | [9. Fair Value Measurement](index=14&type=section&id=9.%20Fair%20Value%20Measurement) - Assets and liabilities reported at fair value are classified into Level 1 (quoted prices in active markets), Level 2 (observable inputs), or Level 3 (unobservable inputs)[46](index=46&type=chunk) - Money market funds, deferred compensation plan investments, and equity securities are classified as Level 1, while corporate debt securities, municipal bonds, U.S. agency bonds, and forward contracts are Level 2[48](index=48&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - The carrying amount of the company's debt approximates its estimated fair value and is classified within Level 2[47](index=47&type=chunk) [10. Leases](index=15&type=section&id=10.%20Leases) - Operating lease right-of-use assets and lease liabilities primarily relate to office space, including the executive offices in Canonsburg, Pennsylvania, with a lease term expiring December 31, 2029[53](index=53&type=chunk) Lease Costs (in thousands) | (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:---------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Lease liability cost | $7,016 | $7,097 | $21,472 | $21,207 | | Variable lease cost | $1,454 | $1,523 | $4,096 | $4,134 | | Total lease cost | $8,470 | $8,620 | $25,568 | $25,341 | Future Lease Payments (in thousands) | (in thousands) | Remainder of 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | |:---------------|:------------------|:---------|:---------|:---------|:---------|:-----------| | Total future lease payments | $7,295 | $27,488 | $23,101 | $18,930 | $17,493 | $30,222 | | Less: Present value adjustment | $(10,882) | | | | | | | Present value of future lease payments | $113,647 | | | | | | [11. Debt](index=16&type=section&id=11.%20Debt) - The company has a 2022 Credit Agreement providing a **$755.0 million** unsecured term loan facility and a **$500.0 million** unsecured revolving loan facility, both maturing on June 30, 2027[58](index=58&type=chunk)[173](index=173&type=chunk) - Interest rates are variable, based on Term SOFR or base rate plus an applicable margin, with a Sustainability Rate Adjustment introduced in September 2023[59](index=59&type=chunk)[60](index=60&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - As of September 30, 2024, **$755.0 million** was outstanding under the term loan (carrying value **$754.1 million**), with no borrowings under the revolving loan facility, and the company was in compliance with all covenants[64](index=64&type=chunk)[65](index=65&type=chunk)[174](index=174&type=chunk) [12. Income Taxes](index=17&type=section&id=12.%20Income%20Taxes) Income Tax Provision and Effective Tax Rate (in thousands, except percentages) | (in thousands, except percentages) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:-----------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Income before income tax provision | $161,255 | $62,545 | $358,745 | $267,366 | | Income tax provision | $33,063 | $7,043 | $65,741 | $41,716 | | Effective tax rate | 20.5% | 11.3% | 18.3% | 15.6% | - The **effective tax rate increased** for both the three and nine months ended September 30, 2024, primarily due to higher U.S. federal tax expense on foreign earnings and increased non-deductible expenses from business combinations[66](index=66&type=chunk)[129](index=129&type=chunk)[145](index=145&type=chunk) [13. Stock Repurchase Program](index=17&type=section&id=13.%20Stock%20Repurchase%20Program) - No share repurchases occurred in 2024. In the nine months ended September 30, 2023, **650 thousand shares were repurchased for $196.5 million**[67](index=67&type=chunk)[177](index=177&type=chunk) - As of September 30, 2024, **1.1 million shares remained available** for repurchase under the program[67](index=67&type=chunk)[177](index=177&type=chunk) [14. Stock-Based Compensation](index=17&type=section&id=14.%20Stock-Based%20Compensation) Stock-Based Compensation Expense (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:--------------------------------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | Stock-based compensation expense before taxes | $72,330 | $58,061 | $197,884 | $158,533 | | Related income tax benefits | $(13,051) | $(12,993) | $(50,340) | $(41,848) | | Stock-based compensation expense, net of taxes | $59,279 | $45,068 | $147,544 | $116,685 | | Net impact on diluted EPS | $(0.67) | $(0.52) | $(1.68) | $(1.34) | - **Stock-based compensation expense before taxes increased by 24.6%** for the three months and **24.8%** for the nine months ended September 30, 2024[68](index=68&type=chunk) [15. Geographic Information](index=18&type=section&id=15.%20Geographic%20Information) Total Revenue by Geographic Region (in thousands) | (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | |:---------------|:--------------------------------|:--------------------------------|:-------------------------------|:-------------------------------| | United States | $292,364 | $204,824 | $806,867 | $661,953 | | Japan | $46,737 | $40,956 | $132,253 | $141,770 | | Germany | $38,717 | $37,901 | $111,187 | $117,240 | | China and Hong Kong | $34,516 | $19,548 | $107,288 | $91,128 | | South Korea | $29,193 | $27,928 | $80,210 | $75,868 | | Other EMEA | $98,303 | $83,719 | $275,250 | $251,696 | | Other international | $62,062 | $43,919 | $149,580 | $125,186 | | Total revenue | $601,892 | $458,795 | $1,662,635 | $1,464,841 | - **U.S. revenue significantly increased by 42.7%** for the three months and **21.9%** for the nine months ended September 30, 2024[69](index=69&type=chunk) - **China and Hong Kong revenue saw substantial growth of 76.6%** for the three months and **17.7%** for the nine months ended September 30, 2024[69](index=69&type=chunk) [16. Contingencies and Commitments](index=18&type=section&id=16.%20Contingencies%20and%20Commitments) - The company is subject to various claims, investigations, and legal proceedings in the ordinary course of business, but their resolution is not expected to have a material adverse effect on financial position, results of operations, or cash flows[71](index=71&type=chunk) - An Indian subsidiary has pending service tax audits that could result in **$7.3 million** in tax charges and liabilities, though these are not considered probable at this time[72](index=72&type=chunk) - Contractual agreements generally include indemnification provisions for intellectual property infringement, but payments related to these have been immaterial to date[73](index=73&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes ANSYS, Inc.'s financial condition and operations, covering GAAP and non-GAAP performance, foreign currency impact, ACV, geographic trends, and critical accounting estimates, highlighting revenue growth and acquisition-related expenses [Business](index=19&type=section&id=Business) - ANSYS develops and markets engineering simulation software and services globally, serving industries like high-tech, aerospace, automotive, and healthcare[75](index=75&type=chunk) - The company's 'Pervasive Insights' strategy aims to deepen simulation use, extend accessibility to more users, and drive more computations, supported by investments in AI capabilities and cloud solutions[76](index=76&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - The engineering simulation software market is growing due to demand for rapid innovation, cost efficiency, and increasing product complexity, driven by trends like electrification, autonomy, and sustainability[78](index=78&type=chunk) - The proposed merger with Synopsys, Inc. was approved by the Board and stockholders and is expected to close in the first half of 2025, subject to regulatory approvals[82](index=82&type=chunk) [Overview](index=20&type=section&id=Overview) Key Financial Performance Metrics (Year-over-Year Change) | Metric | Three Months Ended Sep 30, 2024 (YoY Change) | Nine Months Ended Sep 30, 2024 (YoY Change) | |:-------|:---------------------------------------------|:--------------------------------------------| | Revenue | 31.2% | 13.5% | | GAAP Operating income | 131.4% | 23.6% | | Non-GAAP Operating income | 76.3% | 28.3% | | GAAP Diluted earnings per share | 128.1% | 29.5% | | Non-GAAP Diluted earnings per share | 83.0% | 33.4% | - Revenue growth for both periods was driven by increases in subscription lease, maintenance, and perpetual license revenue, while operating expenses rose due to personnel and acquisition costs related to the Synopsys merger[87](index=87&type=chunk) Impact of Foreign Currency on Financial Metrics (in thousands) | (in thousands) | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2024 | |:---------------|:--------------------------------|:-------------------------------| | Revenue (Impact of FX) | $133 | $(13,576) | | GAAP Operating income (Impact of FX) | $(418) | $(10,531) | | Non-GAAP Operating income (Impact of FX) | $(320) | $(10,259) | Constant Currency Year-over-Year Change | Metric | Three Months Ended Sep 30, 2024 (Constant Currency YoY Change) | Nine Months Ended Sep 30, 2024 (Constant Currency YoY Change) | |:-------|:---------------------------------------------------------------|:--------------------------------------------------------------| | Revenue | 31.2% | 14.4% | | GAAP Operating income | 132.0% | 27.2% | | Non-GAAP Operating income | 76.5% | 30.2% | Annual Contract Value (ACV) (in thousands, except percentages) | Metric | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2024 | |:-------|:--------------------------------|:-------------------------------| | ACV (Actual) | $540,527 (18.1% YoY) | $1,468,477 (9.2% YoY) | | ACV (Constant Currency) | $538,963 (17.8% YoY) | $1,483,108 (10.2% YoY) | | Trailing Twelve-Month Recurring ACV (at 2023 monthly average exchange rates) | $2,046,306 (13.6% YoY) | | - **ACV growth in Q3 2024** was supported by core industries: aerospace and defense (A&D), high-tech, and automotive, driven by digital engineering, semiconductor solutions, and electrified power systems[98](index=98&type=chunk) Revenue Growth by Geographic Region (Year-over-Year Change) | Geographic Region | Three Months Ended Sep 30, 2024 (Actual YoY Change) | Three Months Ended Sep 30, 2024 (Constant Currency YoY Change) | Nine Months Ended Sep 30, 2024 (Actual YoY Change) | Nine Months Ended Sep 30, 2024 (Constant Currency YoY Change) | |:------------------|:----------------------------------------------------|:---------------------------------------------------------------|:---------------------------------------------------|:--------------------------------------------------------------| | Americas | 40.4% | 40.4% | 20.7% | 20.7% | | EMEA | 12.7% | 10.7% | 4.7% | 3.9% | | Asia-Pacific | 33.2% | 35.1% | 9.1% | 13.2% | | Total | 31.2% | 31.2% | 13.5% | 14.4% | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Revenue by Category (Three Months Ended September 30, 2024 vs. 2023, GAAP) | Revenue Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | |:-----------------|:--------------------|:--------------------|:----------------------|:---------| | Subscription lease licenses | $194,322 | $103,573 | $90,749 | 87.6% | | Perpetual licenses | $82,626 | $58,849 | $23,777 | 40.4% | | Maintenance | $306,670 | $278,108 | $28,562 | 10.3% | | Service | $18,274 | $18,265 | $9 | —% | | **Total Revenue** | **$601,892** | **$458,795** | **$143,097** | **31.2%**| - **Subscription lease license revenue increased by 87.6%** (87.4% in constant currency) for the three months, driven by a **$76.8 million increase from multi-year licenses** and a **$13.9 million increase from annual licenses**[112](index=112&type=chunk) - **Perpetual license revenue increased by 40.4%** (39.9% in constant currency) for the three months, due to a **49.5% increase in average deal size**, despite a **9.1% decrease in deal volume**[112](index=112&type=chunk) Revenue by Category (Nine Months Ended September 30, 2024 vs. 2023, GAAP) | Revenue Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | |:-----------------|:--------------------|:--------------------|:----------------------|:---------| | Subscription lease licenses | $507,711 | $386,494 | $121,217 | 31.4% | | Perpetual licenses | $212,790 | $199,977 | $12,813 | 6.4% | | Maintenance | $889,836 | $820,393 | $69,443 | 8.5% | | Service | $52,298 | $57,977 | $(5,679) | (9.8)% | | **Total Revenue** | **$1,662,635** | **$1,464,841** | **$197,794** | **13.5%**| - For the nine months, **subscription lease license revenue increased by 31.4%** (32.3% in constant currency), and **perpetual license revenue increased by 6.4%** (6.9% in constant currency) due to a **24.0% increase in average deal size**[132](index=132&type=chunk) Cost of Sales (Three Months Ended September 30) | Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | |:---------|:--------------------|:--------------------|:----------------------|:---------| | Software licenses | $11,067 | $8,692 | $2,375 | 27.3% | | Amortization | $21,890 | $20,707 | $1,183 | 5.7% | | Maintenance and service | $36,152 | $35,858 | $294 | 0.8% | | **Total cost of sales** | **$69,109** | **$65,257** | **$3,852** | **5.9%** | - **Gross profit for the three months increased by 35.4% to $532.8 million**, and for the nine months, it **increased by 15.2% to $1,455.5 million**, driven by revenue growth[120](index=120&type=chunk)[137](index=137&type=chunk) Operating Expenses (Three Months Ended September 30) | Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | |:---------|:--------------------|:--------------------|:----------------------|:---------| | Selling, general and administrative | $233,065 | $194,552 | $38,513 | 19.8% | | Research and development | $132,320 | $123,223 | $9,097 | 7.4% | | Amortization | $5,860 | $5,947 | $(87) | (1.5)% | | **Total operating expenses** | **$371,245** | **$323,722** | **$47,523** | **14.7%**| - **Selling, general and administrative costs increased by 19.8%** for the three months and **16.4%** for the nine months, primarily due to increased salaries, incentive compensation, and acquisition costs related to the Synopsys merger[122](index=122&type=chunk)[123](index=123&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - **Research and development costs increased by 7.4%** for the three months and **6.8%** for the nine months, mainly due to higher personnel and stock-based compensation expenses[124](index=124&type=chunk)[140](index=140&type=chunk) - **Interest income significantly increased to $13.3 million** (three months) and **$36.5 million** (nine months) due to higher invested cash balances and a favorable interest rate environment[126](index=126&type=chunk)[142](index=142&type=chunk) [Non-GAAP Results](index=36&type=section&id=Non-GAAP%20Results) Reconciliation of GAAP to Non-GAAP Measures (Three Months Ended September 30, 2024) | Metric | GAAP (in thousands) | Non-GAAP (in thousands) | Non-GAAP % of Revenue | |:-------|:--------------------|:------------------------|:----------------------| | Gross Profit | $532,783 | $558,367 | 92.8% | | Operating Income | $161,538 | $275,447 | 45.8% | | Net Income | $128,192 | $227,010 | | | Diluted EPS | $1.46 | $2.58 | | Reconciliation of GAAP to Non-GAAP Measures (Nine Months Ended September 30, 2024) | Metric | GAAP (in thousands) | Non-GAAP (in thousands) | Non-GAAP % of Revenue | |:-------|:--------------------|:------------------------|:----------------------| | Gross Profit | $1,455,504 | $1,533,408 | 92.2% | | Operating Income | $362,293 | $692,285 | 41.6% | | Net Income | $293,004 | $568,208 | | | Diluted EPS | $3.34 | $6.47 | | - Non-GAAP adjustments primarily exclude stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, and expenses related to business combinations[157](index=157&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk) - Non-GAAP measures are used by management for evaluating performance, setting targets, allocating resources, and assessing financial discipline, and are provided to investors for consistent and comparable information[155](index=155&type=chunk) - Constant currency results are used to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations[163](index=163&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Cash, Cash Equivalents, Short-Term Investments, and Working Capital (in thousands) | (in thousands) | September 30, 2024 | December 31, 2023 | Change Amount | % Change | |:---------------|:-------------------|:------------------|:--------------|:---------| | Cash, cash equivalents and short-term investments | $1,295,269 | $860,390 | $434,879 | 50.5% | | Working capital | $1,593,588 | $1,160,273 | $433,315 | 37.3% | - **Cash, cash equivalents, and short-term investments increased by 50.5% to $1,295.3 million**, with **64.4% held domestically**[166](index=166&type=chunk)[168](index=168&type=chunk) - **Net cash provided by operating activities increased by 11.0% to $537.8 million** for the nine months, driven by higher customer receipts and interest income, partially offset by increased operating expenses and tax payments[169](index=169&type=chunk) - **Net cash used in investing activities decreased by 60.9% to $86.0 million**, primarily due to lower acquisition-related cash outlays, despite increased capital expenditures and short-term investments[170](index=170&type=chunk) - **Net cash used in financing activities decreased by 67.1% to $76.5 million**, mainly due to the absence of share repurchases in 2024[172](index=172&type=chunk) - The company believes existing cash, operating cash flows, and access to its **$500.0 million** revolving loan facility are sufficient to meet future liquidity needs[179](index=179&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) - No significant changes occurred to critical accounting estimates as previously reported in the 2023 Form 10-K[183](index=183&type=chunk) - The annual impairment test for goodwill and indefinite-lived intangible assets was completed in Q1 2024, with no impairment identified as of January 1, 2024, or through September 30, 2024[182](index=182&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section quantifies the company's exposure to market risks, including foreign currency exchange and interest rate fluctuations, and their potential impact on financial results - Foreign currency exchange risk impacts revenue, expenses, cash, and accounts receivable, with the U.S. Dollar being **0.1% weaker** on average for Q3 2024 revenue and **2.0% stronger** for the nine months ended September 30, 2024[185](index=185&type=chunk) Foreign Currency Exchange Impact on Revenue (in thousands) | (in thousands) | Three Months Ended Sep 30, 2024 (FX Impact) | Nine Months Ended Sep 30, 2024 (FX Impact) | |:---------------|:--------------------------------------------|:-------------------------------------------| | Japanese Yen | $(1,153) | $(12,111) | | South Korean Won | $(635) | $(2,904) | | Taiwan Dollar | $(228) | $(1,069) | | British Pound | $658 | $1,312 | | Euro | $1,719 | $1,823 | | Other | $(228) | $(627) | | **Total** | **$133** | **$(13,576)** | - A hypothetical **10% strengthening of the U.S. Dollar** would decrease revenue by **$23.8 million** (three months) and **$66.9 million** (nine months), and operating income by **$10.7 million** (three months) and **$24.9 million** (nine months)[187](index=187&type=chunk) - Interest rate risk affects interest income from cash and investments and interest expense from variable-rate borrowings. A **100 basis point increase in interest rates** would increase interest expense by **$7.7 million** over the next twelve months[188](index=188&type=chunk)[189](index=189&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting for the quarter - The Chief Executive Officer and Chief Financial Officer concluded that **disclosure controls and procedures were effective** as of September 30, 2024[191](index=191&type=chunk) - No changes in internal control over financial reporting occurred during the three months ended September 30, 2024, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[194](index=194&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, but their resolution is not expected to materially affect financial position or results - The company is subject to various claims and legal proceedings, including commercial disputes, labor matters, tax audits, and intellectual property rights[196](index=196&type=chunk) - Resolution of pending matters is not expected to have a material adverse effect on financial position, results of operations, or cash flows[196](index=196&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the company's risk factors since the 2023 Form 10-K filing - No material changes have occurred to the risk factors previously disclosed in the 2023 Form 10-K[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the period [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended September 30, 2024[199](index=199&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL documents - The report includes certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002[201](index=201&type=chunk) - Various Inline XBRL documents are filed, including the instance document, schema, calculation linkbase, definition linkbase, label linkbase, and presentation linkbase[201](index=201&type=chunk) [SIGNATURES](index=48&type=section&id=SIGNATURES) The report is duly signed by ANSYS, Inc.'s President and CEO, Ajei S. Gopal, and CFO, Rachel Pyles, on November 6, 2024 - The report was signed by Ajei S. Gopal, President and Chief Executive Officer, and Rachel Pyles, Chief Financial Officer and Senior Vice President of Finance, on November 6, 2024[203](index=203&type=chunk)

Revenue and Financial Performance - Q3 2024 revenue reached $601.9 million, a 31% increase compared to Q3 2023[2] - Total revenue for Q3 2024 was $601.9 million, a 31.2% increase compared to Q3 2023[14] - Total revenue for Q3 2024 increased to $601.892 million, up 31.2% from $458.795 million in Q3 2023[21] - Americas revenue for Q3 2024 reached $306.5 million, representing 50.9% of total revenue, a 40.4% increase YoY[14] - EMEA revenue for Q3 2024 was $137.0 million, accounting for 22.8% of total revenue, with a 12.7% YoY growth[14] - Asia-Pacific revenue for Q3 2024 totaled $158.4 million, making up 26.3% of total revenue, with a 33.2% YoY increase[14] - Direct revenue as a percentage of total revenue increased to 74.6% in Q3 2024, up from 73.5% in Q3 2023[14] - Subscription lease revenue for Q3 2024 was $194.3 million, representing 32.3% of total revenue and an 87.6% increase compared to Q3 2023[13] - Maintenance revenue for Q3 2024 was $306.7 million, accounting for 51% of total revenue[13] - Software licenses revenue grew 70.5% to $276.948 million in Q3 2024 compared to $162.422 million in Q3 2023[21] - Net income for Q3 2024 rose to $128.192 million, a 131% increase from $55.502 million in Q3 2023[21] - Operating income for Q3 2024 increased 131% to $161.538 million from $69.816 million in Q3 2023[21] - Non-GAAP operating income for Q3 2024 was $275.447 million, representing 45.8% of revenue[31] - Gross profit margin improved to 88.5% in Q3 2024 from 85.8% in Q3 2023[31][32] - Total GAAP gross profit is $1,263,592 thousand, representing 86.3% of revenue[34] - Non-GAAP gross profit is $1,334,223 thousand, representing 91.1% of revenue[34] - GAAP operating income for the nine months ended September 30, 2023 is $293,135 thousand, representing 20.0% of revenue[34] - Non-GAAP operating income for the nine months ended September 30, 2023 is $539,698 thousand, representing 36.8% of revenue[34] - GAAP net income for the nine months ended September 30, 2023 is $225,650 thousand, with diluted EPS of $2.58[34] - Non-GAAP net income for the nine months ended September 30, 2023 is $423,991 thousand, with diluted EPS of $4.85[34] Earnings and Profitability - GAAP diluted earnings per share for Q3 2024 was $1.46, while non-GAAP diluted earnings per share was $2.58[2] - Diluted EPS for Q3 2024 was $1.46, up 128% from $0.64 in Q3 2023[21] - Net income for Q3 2024 rose to $128.192 million, a 131% increase from $55.502 million in Q3 2023[21] - Operating income for Q3 2024 increased 131% to $161.538 million from $69.816 million in Q3 2023[21] - Non-GAAP operating income for Q3 2024 was $275.447 million, representing 45.8% of revenue[31] - Gross profit margin improved to 88.5% in Q3 2024 from 85.8% in Q3 2023[31][32] - Total GAAP gross profit is $1,263,592 thousand, representing 86.3% of revenue[34] - Non-GAAP gross profit is $1,334,223 thousand, representing 91.1% of revenue[34] - GAAP operating income for the nine months ended September 30, 2023 is $293,135 thousand, representing 20.0% of revenue[34] - Non-GAAP operating income for the nine months ended September 30, 2023 is $539,698 thousand, representing 36.8% of revenue[34] - GAAP net income for the nine months ended September 30, 2023 is $225,650 thousand, with diluted EPS of $2.58[34] - Non-GAAP net income for the nine months ended September 30, 2023 is $423,991 thousand, with diluted EPS of $4.85[34] Contract Value and Deferred Revenue - Annual Contract Value (ACV) for Q3 2024 was $540.5 million, an 18% increase compared to Q3 2023[2] - Deferred revenue and backlog as of September 30, 2024, stood at $1,463.8 million[2] - Current deferred revenue and backlog as of September 30, 2024, was $902.8 million, up from $774.2 million in the same period last year[15] - Total deferred revenue and backlog reached $1.46 billion as of September 30, 2024, compared to $1.21 billion in the same period last year[15] - Annual Contract Value (ACV) includes annualized value of maintenance, subscription lease contracts, and perpetual licenses[22] - A $300,000 subscription lease contract contributes $100,000 to ACV annually over its 3-year term[25] Cash Flow and Investments - Operating cash flows for Q3 2024 were $174.2 million, an 8.4% increase compared to Q3 2023[5] - Net cash provided by operating activities for the nine months ended September 30, 2024 is $537,767 thousand, compared to $484,400 thousand for the same period in 2023[35] - Unlevered operating cash flows for the nine months ended September 30, 2024 is $567,805 thousand, compared to $512,281 thousand for the same period in 2023[35] - Cash and short-term investments as of September 30, 2024, stood at $1.30 billion, up from $860.4 million at the end of 2023[19] - Stockholders' equity increased to $5.83 billion as of September 30, 2024, from $5.39 billion at the end of 2023[20] Expenses and Costs - Research and development expenses increased 7.4% to $132.320 million in Q3 2024 from $123.223 million in Q3 2023[21] - Stock-based compensation expense for the nine months ended September 30, 2023 is $158,533 thousand, representing 10.7% of revenue[34] - Expenses related to business combinations for the nine months ended September 30, 2023 is $77,002 thousand, representing 5.3% of revenue[34] Risks and Challenges - Potential risks from the proposed transaction with Synopsys, including regulatory approvals, business disruptions, and long-term stock value uncertainty[48] - Macroeconomic challenges such as inflation, recessionary conditions, and equity market volatility impacting operations[48] - Geopolitical risks including trade sanctions, export controls, and impacts from conflicts in the Middle East and Russia-Ukraine[48] - Cybersecurity threats and potential breaches affecting proprietary technology and customer data[48] - Revenue volatility due to multi-year subscription contracts and reliance on high renewal rates[48] - Uncertainty in income tax estimates and changes in tax laws across operating jurisdictions[50] - Investments in global sales, marketing, and acquisitions, with potential impacts from integration challenges and indebtedness[50] - Operational disruptions from remote work transitions and reliance on third-party infrastructure[50] - Plans for future capital spending and potential higher R&D costs[50] Acquisitions and Regulatory Approvals - Ansys and Synopsys received foreign direct investment approvals for the proposed acquisition, with the transaction expected to close in the first half of 2025[3] - Regulatory filings and documentation related to the Synopsys transaction available on SEC and company websites[51][53] Currency and Market Impact - Currency fluctuations had an adverse impact on Q3 2024 revenue, with a $133 thousand negative effect[17]

/ Q3 2024 Results Revenue of $601.9 millionGAAP diluted earnings per share of $1.46 and non-GAAP diluted earnings per share of $2.58GAAP operating profit margin of 26.8% and non-GAAP operating profit margin of 45.8%Operating cash flows of $174.2 million and unlevered operating cash flows of $184.5 millionAnnual contract value (ACV) of $540.5 millionDeferred revenue and backlog of $1,463.8 million on September 30, 2024 PITTSBURGH, Nov. 06, 2024 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ: ANSS), today reported t ...

Ansys won four TSMC 2024 OIP Partner of the Year awards, highlighting excellence in multiphysics analysis solutions for system design using advanced silicon processes and the rapidly evolving 3D-IC and silicon photonics packaging technologies/ Key Highlights Ansys multiphysics analysis solutions are critical to the successful integration and performance of advanced multi-chip packaging and electronic and photonic co-packaged optics in TSMC's compact universal photonics engine (COUPE) Ansys' joint developme ...

Group 1 - ANSYS, Inc. is set to release its third quarter earnings on November 6, 2024, after market close, and has suspended quarterly earnings conference calls due to a pending transaction with Synopsys, Inc. [1] - The acquisition of ANSYS by Synopsys is expected to close in the first half of 2025, pending regulatory approvals, which will combine Synopsys' semiconductor electronic design automation with ANSYS' simulation and analysis capabilities [2] - ANSYS has been a leader in simulation software for over 50 years, enabling innovation across various industries, including sustainable transportation, advanced semiconductors, and medical devices [3]

Core Insights - Ansys Inc.'s multiphysics analysis solutions are utilized by Faraday Technology Corporation for developing advanced designs for multi-die 2.5D/3D integrated circuits, enhancing product performance, reliability, and power efficiency [1][2] - Faraday has launched a new 2.5D/3D-IC advanced package service to address the growing demand in sectors like AI, IoT, and 5G, while also tackling challenges related to signal integrity and power distribution [2][3] - The collaboration between Faraday and Ansys emphasizes the importance of advanced simulation tools in the semiconductor industry, particularly with the integration of Ansys RaptorX for accurate EM modeling [3][4] Company Developments - Ansys maintains a strong position in the high-end design simulation software market, driven by demand in the automotive and high-tech sectors, and has strengthened its collaboration with TSMC to enhance semiconductor technologies [4][5] - A joint effort among Ansys, TSMC, and Microsoft has resulted in a 10X speed-up in photonic simulations, showcasing the effectiveness of using advanced computing technologies [5] - In the last reported quarter, Ansys' revenues increased by 20% year over year to $594.1 million, exceeding estimates, largely due to significant contracts in the automotive and high-tech industries [5][6] Market Position - Ansys currently holds a Zacks Rank of 3 (Hold), with its stock gaining 10.5% over the past year, compared to a 33% growth in the sub-industry [7]