ANSYS Q1 Earnings & Revenues Miss Estimates, Increase Y/Y, Stock Falls

Core Insights - ANSYS, Inc. reported first-quarter 2025 earnings of $1.64 per share, missing the Zacks Consensus Estimate by 6.3%, but showing an 18% year-over-year increase [1] - Revenues of $504.9 million also missed estimates by 4.6%, yet grew 8.2% year over year on a reported basis and 9.9% on a constant currency basis, driven by growth in maintenance, service, and subscription lease revenues [1] Financial Performance - Subscription lease revenues accounted for 19.2% of total revenues, increasing 4% year over year at constant currency to $96.9 million [4] - Perpetual licenses revenues, making up 12.5% of total revenues, decreased 2.9% at constant currency to $63 million [4] - Maintenance revenues, which comprised 64.2% of total revenues, rose 13.9% year over year at constant currency to $324.4 million [5] - Service revenues increased 22.5% at constant currency to $20.4 million [5] - Total deferred revenues and backlog reached $1,627.7 million, up 18.9% year over year [6] Regional Performance - The Americas contributed 45.6% to revenues, with a year-over-year increase of 10.5% at constant currency to $230.4 million [6] - EMEA contributed 23.5% to revenues, with a 2.6% increase at constant currency to $118.9 million [6] - Asia-Pacific contributed 30.8% to revenues, with a 15% increase at constant currency to $155.7 million [6] Operating Metrics - Non-GAAP gross margin improved by 30 basis points year over year to 91.2% [7] - Total operating expenses rose 5.3% year over year to $373.4 million, primarily due to increased selling, general and administrative, and research and development expenses [7] - Non-GAAP operating margin increased by 130 basis points to 33.5% from 32.2% in the prior-year quarter [9] Balance Sheet and Cash Flow - As of March 31, 2025, cash and short-term investments totaled $1.8 billion, up from $1.5 billion as of December 31, 2024 [10] - Long-term debt was $754.3 million, showing a slight increase from the previous quarter [10] - Cash from operations increased by 41% to $398.9 million from $282.8 million in the prior-year quarter [10] Acquisition Update - Ansys and Synopsys announced a $35 billion acquisition deal, with Ansys shareholders set to receive $197 in cash and 0.3450 Synopsys shares per ANSS share [2] - The deal has received regulatory clearance from multiple jurisdictions, including the Israeli Competition Authority and the U.K. Competition and Markets Authority [3] - The acquisition is expected to close in the first half of 2025, and Ansys has suspended its earnings calls and guidance due to the pending acquisition [3]