In its upcoming report, Aspen Technology (AZPN) is predicted by Wall Street analysts to post quarterly earnings of $1.32 per share, reflecting an increase of 24.5% compared to the same period last year. Revenues are forecasted to be $251.65 million, representing a year-over-year increase of 9.5%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projectio ...

Antonio Pietri, CEO of AspenTech speaks at OPTIMIZE24, the company's thought leadership event in ... [+] Houston, Texas, U.S. on April 30, 2024.AspenTechAs decarbonization and energy transition efforts gather momentum across the global industrial and manufacturing complex, specialist process software firm AspenTech (NASDAQ: AZPN) is "uniquely positioned" as an optimization enabler and a "co-innovator", according to its boss."From modelling simulated molecules for sustainable fuels to managing and optimizing ...

Aspen Technology (AZPN) announced that its digital grid management (DGM) solutions are being leveraged by a leading power company in India — Adani Electricity.Aspen’s Advanced Distribution Management System and SCADA system have been integrated into Adani Electricity’s latest network operation center, which is located in Hiranandani Powai. The above-mentioned systems will allow Adani to monitor and control an intelligent power grid, which provides resilient and safe service to its vast customer base through ...

Group 1 - Aspen Technology, Inc. (NASDAQ: AZPN) is a global leader in industrial software, focusing on optimizing asset design, operation, and maintenance lifecycle for asset-intensive industries [2] - The company will have a presentation at the KeyBanc Emerging Technology Summit in San Francisco on March 6, 2024, at 2:00 p.m. ET [1] - The presentation will be available for live webcast on the company's Investor Relations website [1] Group 2 - AspenTech aims to help industries meet the increasing demand for resources sustainably amid a rapidly growing population [2] - The company's solutions are designed to improve operational excellence by enabling customers to run their assets safer, greener, longer, and faster [2]

BEDFORD, Mass.--(BUSINESS WIRE)--Aspen Technology, Inc. (NASDAQ:AZPN), a global leader in industrial software, today announced the implementation of its digital grid management solutions by Adani Electricity, a leading power company in India. AspenTech’s next generation SCADA system and its Advanced Distribution Management System (ADMS) have been incorporated into Adani Electricity’s new network operation center located in Hiranandani Powai to monitor and control in real-time an intelligent power grid that ...

BEDFORD, Mass.--(BUSINESS WIRE)--Aspen Technology, Inc. (NASDAQ:AZPN), a global leader in industrial software, today announced a strategic technology milestone with TenneT, a leading transmission system operator in Europe providing electricity to 43 million homes and businesses. TenneT recently completed implementation of its new Power Management System (PMS) which was developed using AspenTech OSI digital grid management solutions. The new PMS is an important step in TenneT’s energy transition strategy to ...

Core Insights - Körber has appointed Lawrence Schwartz as Chief Marketing Officer (CMO) and Executive Vice President Software of Körber Supply Chain, bringing over 20 years of experience in transformational marketing strategies [1][2] - Schwartz's background includes expertise in artificial intelligence, machine learning, SaaS, data management, and sustainability, with a focus on scaling high-margin B2B businesses [1][2] - The company aims to enhance brand visibility and strengthen customer connections through innovative market strategies under Schwartz's leadership [2] Company Overview - Körber Supply Chain provides a broad range of end-to-end solutions designed to manage supply chain complexities, catering to various business sizes and industries [3] - The company offers a portfolio that includes software, voice, and robotics solutions, along with the expertise to integrate these elements effectively [3] - Körber positions itself as a leader in supply chain solutions, helping customers leverage supply chain management as a competitive advantage [3]

Core View - Aspen Technology (AZPN) reported second-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $1.37, missing the Zacks Consensus Estimate of $1.49, compared to non-GAAP EPS of 35 cents in the same quarter last year [1] - Revenues of $257.2 million increased by 5.9% year over year but fell short of the Zacks Consensus Estimate by 1% [1] Revenue Breakdown - License and solutions' revenues, accounting for 59.3% of total revenues, rose by 1.7% year over year to $152.5 million [2] - Maintenance revenues, making up 33.1% of total revenues, increased by 8.2% year over year to $85.1 million [2] - Revenues from Services and other, which represent 7.6% of total revenues, surged by 36.7% year over year to $19.6 million [2] - The Zacks Consensus Estimate for fiscal second-quarter revenues for the License, Maintenance, and Services segments were $158 million, $86 million, and $15.3 million, respectively [2] Margins and Expenses - Gross profit increased to $162.2 million from $149.7 million in the prior year, with gross margin improving to 63.1% from 61.7% [3] - Total operating expenses rose to $211.4 million from $209.1 million year over year, driven by higher selling, marketing, and research and development costs [3] - Non-GAAP operating income was $88.7 million, up from $86.6 million in the year-ago quarter [3] Balance Sheet & Cash Flow - As of December 31, 2023, cash and cash equivalents were $130.7 million, an increase from $120.5 million as of September 30, 2023 [4] - The company generated $29.8 million in cash from operations, down from $49.5 million in the previous quarter, with non-GAAP free cash flow at $29.2 million compared to $47.8 million in the prior-year quarter [4] - Aspen repurchased 375,041 shares for $72.1 million in the fiscal second quarter, totaling 954,839 shares worth $186.3 million repurchased under a $300 million buyback authorization [4] Fiscal 2024 Outlook - For fiscal 2024, Aspen expects revenues to be at least $1.12 billion, aligning with the Zacks Consensus Estimate [5] - Non-GAAP net income is anticipated to be at least $6.59 per share, slightly up from earlier guidance of $6.57 per share, with the consensus estimate at $6.63 per share [5] - Management projects Annual Contract Value growth of at least 11.5% year over year and total bookings to reach at least $1.04 billion [6] - Non-GAAP operating income is estimated to be at least $445 million, with total expenses expected to be nearly $675 million [6] - Free cash flow is projected to be at least $360 million [6]

Financial Data and Key Metrics Changes - Annual contract value (ACV) was $914 million, increasing by 9.6% year-over-year and 1.8% quarter-over-quarter [7][28] - Total bookings were $233.4 million, decreasing by 3.9% year-over-year [28] - Total revenue was $257 million, up 5.9% year-over-year [28] - Non-GAAP operating income was $89 million, representing a 34% non-GAAP operating margin, compared to $87 million and 36% a year ago [28][29] - Non-GAAP net income was $88 million, or $1.37 per share, compared to $23 million or $0.35 per share a year ago [29] Business Line Data and Key Metrics Changes - Digital Grid Management (DGM) suite saw significant growth, with a 500% increase in term software pipeline over the last 12 months [39] - Subsurface Science & Engineering (SSE) suite performed well, closing a large deal with a national oil company in Asia [13] - Engineering suite experienced strong demand, winning a large-scale deal with a new EPC logo in the Middle East [15] - Manufacturing and Supply Chain (MSC) suite faced challenges due to weakness in the chemicals market but is expected to perform better in the second half of the year [17] Market Data and Key Metrics Changes - Utilities are in the early stages of a significant investment cycle to expand the electrical grid and enhance cybersecurity capabilities [10] - CapEx spending in oil and gas is expected to remain consistent with last year, with a slight increase of 5% to 10% in some segments [58] - Utilities are increasingly targeting CapEx towards global electrification and renewable energy integration [59] Company Strategy and Development Direction - The company is focused on capturing opportunities in energy transition and sustainability [6] - Continued investment in expanding sales channels and enhancing product offerings to drive growth [9][25] - Commitment to achieving net zero emissions by 2045, with a decarbonization plan to be developed [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least 11.5% ACV growth for the full fiscal year, supported by a strong pipeline and favorable macro environment [25][31] - The delayed renewal of a large customer agreement is expected to close in Q3, contributing positively to future growth [7][28] - Management highlighted the importance of strong performance in the second half of the fiscal year to meet growth targets [34] Other Important Information - The company has made significant advancements in product upgrades and sustainability-related use cases [9] - The recent V14 software update introduced enhancements that are expected to drive growth [23] Q&A Session Summary Question: What gives confidence in the back-half ramp for ACV? - Management noted a 30% growth in the total pipeline over the last 12 months and successful transformation initiatives in DGM and SSE [38][39] Question: Impact of Aramco's production cut on CapEx? - Management stated that the relationship with Aramco remains strong and that global oil and gas companies need to maintain production levels, ensuring continued CapEx [44] Question: Details on the slipped renewal contract? - Management confirmed the renewal was delayed due to internal issues with the customer, not market demand, and expects it to close in Q3 [54][71] Question: Implementation capacity for DGM? - Management expressed confidence in their ability to meet demand through the expansion of their implementation services partner network [50] Question: CapEx rates for the year? - Management indicated that CapEx rates are in line with last year, with healthy spending in oil and gas and refining sectors [58][59]

Core Insights - Aspen Technology reported revenue of $257.16 million for the quarter ended December 2023, reflecting a year-over-year increase of 5.9% [1] - The earnings per share (EPS) for the quarter was $1.37, significantly higher than the $0.35 reported in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate by 0.98%, while the EPS was below the consensus estimate by 8.05% [1] Financial Metrics - Annual Contract Value (ACV) was reported at $914.10 million, slightly below the average estimate of $925 million from two analysts [2] - Revenue from Maintenance was $85.06 million, compared to the average estimate of $86.20 million, marking an 8.2% increase year-over-year [2] - Revenue from Services and other reached $19.64 million, exceeding the average estimate of $15.30 million, with a year-over-year growth of 36.7% [2] - Revenue from License and solutions was $152.46 million, below the average estimate of $158.21 million, showing a year-over-year increase of 1.8% [2] Stock Performance - Aspen Technology's shares have declined by 8.3% over the past month, contrasting with a 5.3% increase in the Zacks S&P 500 composite [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]