ANSYS(US:ANSS)2025-04-30 20:32Financial 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]