Aspen Technology (AZPN) recently announced that Omaha Public Power District (“OPPD”) will be leveraging its cutting-edge Digital Grid Management (DGM) to achieve net zero carbon production by 2050. OPPD will leverage the DGM suite to monitor, schedule and optimize the performance of their energy assets while maintaining grid reliability. OPPD serves a population of 885,000 people across 5,000 square miles in Nebraska. The integration of the DGM solution with OPPD’s grid will enable the utility to manage dis ...

Corporate Transactions and Partnerships - The transaction between AspenTech and Emerson Electric Co. was completed on May 16, 2022, with a change in fiscal year end from September 30 to June 30 starting fiscal year 2022[7]. - The partnership with Emerson Electric Co. aims to identify cross-selling opportunities and expand into new markets, including pharmaceuticals and green hydrogen[58][59]. - AspenTech's partnership with Emerson includes both OEM and joint solution development, enhancing opportunities for portfolio expansion[75]. Energy Transition and Sustainability - Global energy investment is projected to exceed $3 trillion in 2024, with $2 trillion allocated for clean energy technologies and infrastructure[16]. - The International Energy Agency forecasts a potential 40-fold increase in lithium demand and a 25-fold increase in cobalt demand by 2040 due to electrification and energy transition[20]. - The United Nations Climate Change convention COP28 aims to double energy efficiency improvements and triple renewable energy capacity by 2030[18]. - AspenTech is collaborating with Saudi Aramco to develop a new integrated modeling and optimization solution for CCUS decision-making and sustainability strategy investments[24]. - The company is focused on building partner ecosystems to enhance energy transition strategies and innovate on sustainability pathways[23]. - AspenTech has developed several sustainability pathways to assist customers in energy transition and decarbonization, optimizing for economics and reliability[82]. - The company’s sustainability strategy focuses on reducing emissions and advancing diversity, equity, and inclusion within its workforce[39]. Digitalization and Automation - The company emphasizes the importance of digitalization and automation to support operational excellence amid a generational workforce transition, with over 45% of industry personnel expected to retire between 2025 and 2027[22]. - The company introduced the latest version of aspenONE, V14.3, in May 2024, enhancing planning and scheduling capabilities with Industrial AI for higher optimization levels[37]. - The Industrial Data Fabric, acquired from inmation Software GmbH in August 2022, supports data management across product suites, enabling operational data lakes for better data security and integration[46]. Financial Performance and Revenue Model - The company’s revenue model primarily consists of software licenses and maintenance contracts, with a focus on transitioning the Digital Grid Management suite to a term software model for predictable cash flows[47][48]. - The company utilizes key financial metrics such as Annual Contract Value (ACV) and Total Contract Value (TCV) to assess business performance, alongside non-GAAP metrics like Free Cash Flow[52]. - The sales and marketing team comprised 876 employees as of June 30, 2024, focusing on strategic engagement with asset-intensive industries[55]. - The software maintenance and support service includes access to over 30,000 knowledge base articles as of June 30, 2024, enhancing customer support and satisfaction[63]. Workforce and Training - AspenTech University trains approximately 17,000 individuals annually through over 1,800 classes, including 20 courses focused on sustainability[66]. - As of June 30, 2024, there were 1,187 employees in customer support, professional services, and training groups[68]. - The Emerging Leaders Program has seen over half of its participants promoted since 2018, improving employee retention[94]. - As of June 30, 2024, AspenTech had 3,937 employees globally, with 1,821 located in the United States[89][95]. Market Challenges and Risks - The competitive landscape includes large global industrial automation companies and start-ups, some of which may have greater resources than AspenTech[105]. - The company faces challenges in increasing product adoption and usage across its five product suites, which is critical for its growth strategy[143]. - Economic uncertainty and reduced demand in asset-intensive industries could adversely affect the company's operating results[150]. - The ongoing Israeli-Hamas conflict may lead to reduced capital expenditures from customers in the region, adversely affecting sales[136]. - The company faces significant climate-related transition risks that may adversely affect its business and financial condition due to the need to adapt to decarbonization and electrification efforts[152]. - New legal and regulatory requirements related to ESG measures may increase operating expenses and expose the company to potential liabilities and reputational damage[155]. Cybersecurity and Data Privacy - Cybersecurity threats and data privacy breaches pose risks to the company's operations, potentially leading to significant revenue loss and increased costs for protection measures[175]. - Cybersecurity incidents could lead to significant financial loss, reputational damage, and increased costs for cybersecurity protection and remediation[179]. Foreign Operations and Currency Risks - A significant portion of the company's revenue is derived from operations outside the United States, making it vulnerable to various foreign risks, including regulatory changes and economic instability[130]. - Approximately 14.0%, 9.0%, and 17.0% of total revenue for the twelve months ended June 30, 2024, 2023, and the nine months ended June 30, 2022, respectively, was denominated in currencies other than the U.S. dollar[328]. - Net foreign currency exchange losses were recorded at $9.1 million, $4.1 million, and $(0.3) million for the twelve months ended June 30, 2024, 2023, and the nine months ended June 30, 2022, respectively[329]. Strategic Transactions and Integration - The integration of Heritage AspenTech, DGM, and SSE businesses may face challenges that could delay anticipated benefits[110]. - Transaction-related costs incurred during the integration of DGM and SSE businesses may reduce expected cost synergies in the near term[112]. - Strategic transactions, such as acquisitions, may disrupt operations and dilute shareholder value, with risks including unanticipated costs and challenges in integration[162]. Intellectual Property and Competition - The company holds 430 issued patents and pending patent applications worldwide as of June 30, 2024[97]. - Intellectual property infringement claims could result in substantial costs and damage to the company's business, as defending such claims can be time-consuming and expensive[168]. - The competitive landscape is challenging, with established vendors and new entrants potentially offering lower prices and better products, which could pressure the company's margins[157].

After lowering guidance on its last earnings call, Aspen Technology gave good guidance for the new financial year ahead.Shares of industrial software company Aspen Technology (AZPN 0.99%) rose by 14.9% in the week through Friday morning, according to data compiled by S&P Global Market Intelligence. The move comes after a reassuring fourth-quarter 2024 earnings report earlier in the week.Aspen Technology steadies the shipAfter disappointing investors by lowering its full-year 2024 annual contract value (ACV) ...

Aspen Technology (AZPN) reported fourth-quarter fiscal 2024 non-GAAP earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.08. AZPN reported non-GAAP earnings of $2.13 per share in the year-ago quarter.The company reported revenues of $342.9 million, surpassing the Zacks Consensus Estimate by 8.7%. The company generated revenues of $320.6 million in the year-ago quarter.Aspen suspended all commercial activities in Russia following the expanded sanctions announced by the U.S. government in ...

Aspen Technology, Inc. (NASDAQ:AZPN) Q4 2024 Earnings Call August 6, 2024 4:30 PM ET Company Participants Brian Denyeau - Investor Relations Antonio Pietri - President and Chief Executive Officer Dave Baker - Chief Financial Officer Conference Call Participants Rob Oliver - Baird David Ridley-Lane - Bank of America Dylan Becker - William Blair Jason Celino - KeyBanc Capital Markets Nay Soe Naing - Berenberg Arsenije Matovic - Wolfe Research Operator Good day. Thank you for standing by. Welcome to AspenTech’ ...

Core Insights - Aspen Technology reported revenue of $342.91 million for the quarter ended June 2024, marking a year-over-year increase of 6.9% and an EPS of $2.37 compared to $2.13 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $315.45 million by 8.70%, while the EPS surpassed the consensus estimate of $2.08 by 13.94% [1] Revenue Breakdown - Maintenance revenue was $89.17 million, exceeding the estimated $86.96 million, reflecting a year-over-year increase of 7.9% [3] - Services and other revenue reached $22.74 million, significantly higher than the estimated $15.85 million, representing a substantial year-over-year increase of 49.8% [4] - License and solutions revenue totaled $231 million, surpassing the average estimate of $212.64 million, with a year-over-year change of 3.7% [5] Stock Performance - Aspen Technology's shares have declined by 13.1% over the past month, compared to a 6.7% decline in the Zacks S&P 500 composite [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

Aspen Technology (AZPN) came out with quarterly earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.08 per share. This compares to earnings of $2.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.94%. A quarter ago, it was expected that this software maker would post earnings of $1.32 per share when it actually produced earnings of $1.70, delivering a surprise of 28.79%.Over the last four quarters, the ...

Exhibit 99.1 Contacts: | --- | --- | |----------------------------|--------------------| | | | | Media Contact | Investor Contact | | Len Dieterle | William Dyke | | Aspen Technology | Aspen Technology | | +1 781-221-4291 | +1 781-221-5571 | | len.dieterle@aspentech.com | ir@aspentech.com | Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal 2024 Bedford, Mass. – August 6, 2024 - Aspen Technology, Inc. ("AspenTech" or the "Company") (NASDAQ: AZPN), a global leader in industrial so ...

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 ...