[Financial Results Overview](index=1&type=section&id=Financial%20Results%20Overview) The company demonstrated strong FY2024 performance with significant ACV and cash flow growth, alongside increased Q4 revenue and profitability [Fiscal Year 2024 and Recent Business Highlights](index=1&type=section&id=Fiscal%20Year%202024%20and%20Recent%20Business%20Highlights) AspenTech reported strong FY2024 execution, highlighted by a 9.4% year-over-year increase in Annual Contract Value **FY2024 Key Performance Indicators** | Metric | Value | YoY Change | Note | | :--- | :--- | :--- | :--- | | ACV (pre-write-off) | $968.4 million | +9.4% | Excludes $35.5M Russia write-off | | ACV (post-write-off) | $932.9 million | - | Adjusted for Russia, growth was 10.0% YoY | | Cash Flow from Operations | $339.9 million | +13.6% | - | | Free Cash Flow | $335.3 million | +14.7% | - | - The Board of Directors has approved a new share repurchase authorization of up to **$100.0 million** for fiscal 2025, following the completion of the $300.0 million authorization in fiscal 2024[3](index=3&type=chunk) - The company suspended all commercial activities in Russia due to expanded sanctions, resulting in a write-off of approximately **$35.5 million in ACV**[3](index=3&type=chunk) [Summary of Fourth Quarter and Fiscal Year 2024 Financial Results](index=2&type=section&id=Summary%20of%20Fourth%20Quarter%20and%20Fiscal%20Year%202024%20Financial%20Results) In Q4 FY2024, total revenue grew to $342.9 million, with significant year-over-year increases in net income **Q4 FY2024 vs Q4 FY2023 Revenue Breakdown (in millions)** | Revenue Stream | Q4 FY2024 | Q4 FY2023 | | :--- | :--- | :--- | | License and solutions | $231.0 | $222.8 | | Maintenance | $89.2 | $82.6 | | Services and other | $22.7 | $15.2 | | **Total Revenue** | **$342.9** | **$320.6** | **Q4 FY2024 vs Q4 FY2023 Profitability (in millions, except EPS)** | Metric | Q4 FY2024 | Q4 FY2023 | | :--- | :--- | :--- | | GAAP Income from Operations | $39.2 | $6.0 | | Non-GAAP Income from Operations | $173.4 | $148.9 | | GAAP Net Income | $44.7 | $27.3 | | Non-GAAP Net Income | $150.7 | $138.2 | | GAAP EPS (Diluted) | $0.70 | $0.42 | | Non-GAAP EPS (Diluted) | $2.37 | $2.13 | - Cash and cash equivalents stood at **$237.0 million** as of June 30, 2024, with **$153.0 million in free cash flow** generated in Q4 FY2024[7](index=7&type=chunk) [Recent Developments](index=2&type=section&id=Recent%20Developments) The company ceased operations in Russia and initiated key corporate actions including a workforce reduction and a new share repurchase program [Russia Business Exit](index=2&type=section&id=Russia%20Business%20Exit) AspenTech suspended all Russian commercial activities, resulting in a $35.5 million ACV write-off and a $5.5 million revenue reversal - The company suspended all commercial activities in Russia, including sales, service, maintenance, and support, due to new U.S. sanctions[8](index=8&type=chunk) - The exit resulted in a write-off of **$35.5 million in Russia-based ACV** and a reversal of **$5.5 million of revenue** in Q4 FY2024[9](index=9&type=chunk) - Cash balances held in Russia amounting to **$11.5 million** have been classified as restricted cash as of June 30, 2024[9](index=9&type=chunk) [Corporate Actions](index=3&type=section&id=Corporate%20Actions) The company initiated a workforce reduction, a new $100 million share repurchase program, and renewed its credit facility - A workforce reduction of approximately **5%** was implemented in Q1 FY2025, with expected restructuring expenses of **$7.0 million to $9.0 million**[10](index=10&type=chunk) - The company completed its **$300.0 million** share repurchase authorization in FY2024 and the Board has approved a new authorization of up to **$100.0 million** for FY2025[11](index=11&type=chunk) - On June 27, 2024, AspenTech entered into a new Second Amended and Restated Credit Agreement, providing a **$200.0 million** revolving credit facility[12](index=12&type=chunk) [Fiscal Year 2025 Business Outlook](index=3&type=section&id=Fiscal%20Year%202025%20Business%20Outlook) The company projects approximately 9% ACV growth and provides detailed revenue, profitability, and cash flow guidance for fiscal year 2025 [FY2025 Guidance](index=3&type=section&id=FY2025%20Guidance) AspenTech projects 9.0% ACV growth, $1.19 billion in revenue, and non-GAAP EPS of approximately $7.47 for FY2025 **Fiscal Year 2025 Guidance** | Metric | Guidance (approx.) | | :--- | :--- | | ACV Growth | ~9.0% YoY | | Total Revenue | ~$1.19 billion | | GAAP Operating Loss | ~($24) million | | Non-GAAP Operating Income | ~$514 million | | GAAP Net Income per Share | ~$0.81 | | Non-GAAP Net Income per Share | ~$7.47 | | Free Cash Flow | ~$340 million | - The fiscal 2025 ACV guidance is based on the adjusted ACV balance of **$932.9 million** as of June 30, 2024, which reflects the impact of the Russia business write-off[14](index=14&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's revenue growth, asset composition, and cash flow generation for fiscal year 2024 [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenue increased to $1.13 billion in FY2024, while the company reported an improved GAAP net loss of $9.8 million **Fiscal Year 2024 vs 2023 Statement of Operations (in thousands)** | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Total Revenue | $1,127,482 | $1,044,178 | | Gross Profit | $744,906 | $670,589 | | Income (Loss) from Operations | $(89,540) | $(183,065) | | Net Income (Loss) | $(9,771) | $(107,760) | | Diluted EPS | $(0.15) | $(1.67) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets were $14.07 billion, with goodwill and intangible assets representing the majority **Balance Sheet Summary (in thousands)** | Account | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $236,970 | $241,209 | | Goodwill | $8,328,201 | $8,330,811 | | Intangible assets, net | $4,184,750 | $4,659,657 | | Total Assets | $14,071,707 | $14,486,052 | | Total Liabilities | $1,258,852 | $1,415,123 | | Total Stockholders' Equity | $12,812,855 | $13,070,929 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated $339.9 million in net cash from operations in FY2024, with significant cash used for stock repurchases **Fiscal Year 2024 vs 2023 Cash Flow Summary (in thousands)** | Cash Flow Category | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $339,886 | $299,209 | | Net cash used in investing activities | $(25,706) | $(107,317) | | Net cash used in financing activities | $(294,273) | $(383,771) | [Non-GAAP Financial Measures and Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section reconciles GAAP financial results to non-GAAP measures, highlighting adjustments for items like amortization and stock-based compensation [Reconciliation of GAAP to Non-GAAP Results](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) For FY2024, non-GAAP net income was $422.1 million, a significant adjustment from the GAAP net loss of $9.8 million **FY2024 GAAP to Non-GAAP Net Income Reconciliation (in thousands)** | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(9,771)** | | Stock-based compensation | $57,311 | | Amortization of intangibles | $486,490 | | Acquisition and integration planning related fees | $1,947 | | Income tax effect on Non-GAAP items | $(113,923) | | **Non-GAAP net income** | **$422,054** | **FY2024 Free Cash Flow Reconciliation (in thousands)** | Description | Amount | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $339,886 | | Purchases of property, equipment and leasehold improvements | $(4,432) | | Payments for capitalized computer software development costs | $(183) | | **Free cash flow (non-GAAP)** | **$335,271** | [Reconciliation of Forward-Looking Guidance](index=15&type=section&id=Reconciliation%20of%20Forward-Looking%20Guidance) The company reconciles its FY2025 GAAP net income guidance of $52 million to a non-GAAP expectation of $478 million **FY2025 Guidance Reconciliation for Net Income (in thousands)** | Description | Amount | | :--- | :--- | | **GAAP expectation - net income** | **$52,000** | | Stock-based compensation | $56,000 | | Amortization of intangibles | $474,000 | | Restructuring | $8,000 | | Income tax effect on Non-GAAP items | $(112,000) | | **Non-GAAP expectation - net income** | **$478,000** |

Core Viewpoint - The software industry presents a complex investment landscape, with a mix of profitable and high-risk companies. The article emphasizes the importance of investing in proven technologies rather than speculative ones, highlighting unique pricing trends and opportunities within the sector [2]. Group 1: Company Financial Highlights - Roper Technologies, Inc. (ROP) has a 10-year growth CAGR of 7.3%, a leverage ratio of 2.8, a P/S ratio of 9.6, and EBITDA and net income margins of 41% and 22%, respectively, showing improving trends [3]. - Dassault Systèmes SE (OTCPK:DASTY) boasts a 10-year growth CAGR of 11.5%, is net cash positive, has a P/S ratio of 7.5x, and EBITDA and net income margins of 23% and 19%, respectively, indicating cyclical performance [3]. - The Descartes Systems Group Inc. (DSGX) has a 10-year growth CAGR of 14%, is net cash positive, has a P/S ratio of 14.8, and EBITDA and net income margins of 41% and 21%, respectively, showing improvement [3]. - Aspen Technology (AZPN) has a growth range of 6-9%, a low leverage ratio of 0.2, a P/S ratio of 11, and EBITDA and net income margins of 33% and -2.5%, indicating volatility [3]. - Nemetschek SE (OTCPK:NEMTF) has a 10-year growth CAGR of 16%, is net cash positive, has a P/S ratio of 12.1, and EBITDA and net income margins of 26% and 19%, respectively, showing improvement [3]. Group 2: Investment Opportunities - Roper Technologies is noted for its strong financial profile and steady revenue growth of 5-8%, with a high valuation that may present buying opportunities during price declines [6]. - Dassault Systèmes is currently in a revenue down cycle, allowing investors to purchase shares at a lower P/S ratio of 7.6x compared to a 5-year mean of 9.9x, presenting a short-term opportunity [8]. - The Descartes Systems Group has maintained a revenue growth above 14% annually, with negligible debt, indicating strong long-term potential for investors [10]. - Aspen Technology offers unique exposure to sustainability in industrial processes, with a majority ownership by Emerson Electric, which may lead to future acquisition opportunities [11]. - Nemetschek is positioned for steady growth with better margin improvements and a significant cash reserve, making it an attractive long-term investment [14]. Group 3: Strategic Developments - Nemetschek has formed partnerships with Autodesk and Hexagon to enhance interoperability and efficiency in the AEC/O and M&E industries, indicating strategic growth initiatives [14].

Investors don’t need an excuse to acquire shares of enterprises tied to artificial intelligence. With the sector exploding in scope and scale, it’s inherently attracted significant attention. However, there’s a clear need for hidden AI stocks; that is, entities that haven’t quite captured the spotlight like Nvidia (NASDAQ:NVDA) or some of the other usual suspects.Not to pick on the semiconductor giant but the company encountered a worrying barrage of selling pressure after briefly topping the rankings as th ...

A month has gone by since the last earnings report for Aspen Technology (AZPN) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Aspen Technology due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Aspen Q3 Earnings Surpass EstimatesAspen re ...

Aspen Technology (AZPN) reported third-quarter fiscal 2024 non-GAAP earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.32. AZPN reported non-GAAP earnings of $1.06 per share in the year-ago quarter.The company reported revenues of $278.1 million, surpassing the Zacks Consensus Estimate by 10.5%. The company had reported revenues of $230 million in the year-ago quarter.Following the announcement, shares of the company were down 1.4% in pre-market trading on May 8. In the past year, share ...

Aspen Technology (AZPN) reported $278.11 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 21%. EPS of $1.70 for the same period compares to $1.06 a year ago.The reported revenue represents a surprise of +10.51% over the Zacks Consensus Estimate of $251.65 million. With the consensus EPS estimate being $1.32, the EPS surprise was +28.79%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Financial Data and Key Metrics Changes - Annual contract value (ACV) was $936 million in Q3, increasing 2.4% quarter-over-quarter and 9.5% year-over-year, including a large delayed renewal agreement [7][27] - Free cash flow was $137 million in Q3, compared to $129 million in the same quarter last year [29] - Total bookings were $301 million in Q3, increasing 30% year-over-year, while total revenue was $278 million, increasing 21% year-over-year [27][28] - Non-GAAP operating income was $116 million in Q3, representing a 41.8% non-GAAP operating margin, up from 29% a year ago [28] Business Line Data and Key Metrics Changes - Digital Grid Management (DGM) suite saw strong demand, contributing approximately 2.5 points of growth for fiscal year 2024, with expectations of around 40% growth for the year [10][38] - Subsurface Science & Engineering (SSE) had a softer quarter, with expectations of approximately 1 point of growth for fiscal year 2024 [12][13] - Heritage AspenTech Suites experienced a slowdown, particularly in Engineering, with many deals pushed out of the quarter [14] - Asset Performance Management (APM) performed below expectations, with no expected contribution to ACV growth in fiscal 2024 [17] Market Data and Key Metrics Changes - Customers' budgets are generally consistent with those of calendar 2023, but spending intent has been cautious due to macroeconomic uncertainties [8][42] - The procurement process for utility customers is materially different and longer than for older customer segments, impacting sales timelines [12] Company Strategy and Development Direction - The company is focused on driving efficiencies and productivity across the organization to achieve best-in-class profitability and free cash flow [21][63] - Continued investment in strategically important areas, particularly in DGM, is planned due to strong growth opportunities [21][22] - The company aims to enhance its sales execution and align its expanded sales team to capitalize on long-term growth opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strength of end markets despite Q3 performance not meeting expectations [22][32] - The company is actively engaging with customers to confirm spending plans and ensure a successful Q4 outcome [32] - Management noted that the dynamics observed in Q3 were surprising and broad-based across regions and product suites [33][55] Other Important Information - The company announced the appointment of a new Chief Financial Officer, David Baker, and a new Board member, David Henshall [23][24] - The upcoming software update, Version 14.3, will include significant enhancements and new features aimed at improving operational outcomes [18][19] Q&A Session Summary Question: What specifically changed in the Heritage business? - Management noted that engagement with customers was strong until mid-March, but the last two weeks saw a decline in deal closures due to extended timelines and cautious spending [33] Question: What is the outlook for Q4 guidance? - The guidance reflects confirmed customer budgets and intent to spend, with a strong pipeline of business expected to close [35] Question: Can you provide more color around DGM's pipeline? - DGM is expected to contribute significantly to growth, with a mix of long and short sales cycles, and the pipeline continues to grow [39] Question: Is attrition trending as expected? - Attrition is in line with guidance at about 5%, with some large deals affecting the overall numbers [66] Question: Have there been improvements since March? - The company has seen good business closed in April, with many deals pushed from Q3 to Q4, indicating a positive outlook [69]

Aspen Technology (AZPN) came out with quarterly earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.32 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.79%. A quarter ago, it was expected that this software maker would post earnings of $1.49 per share when it actually produced earnings of $1.37, delivering a surprise of -8.05%.Over the last four quarters, the ...

Exhibit 99.1 Media Contact Investor Contact Len Dieterle Brian Denyeau Aspen Technology ICR for Aspen Technology +1 781-221-4291 +1 646-277-1251 len.dieterle@aspentech.com ir@aspentech.com Contacts: Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2024 Bedford, Mass. – May 7, 2024 - Aspen Technology, Inc. (AspenTech) (NASDAQ: AZPN), a global leader in industrial software, today announced financial results for its third quarter in fiscal 2024, ended March 31, 2024. Antonio Pietri, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________ Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common stock, $0.0001 par value per share AZPN Nasdaq Global Select Market ____________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period en ...