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ANSYS (ANSS) Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
ANSSANSYS(ANSS) ZACKS·2024-08-01 15:36

Earnings Performance - ANSYS Inc reported Q2 2024 earnings of 250pershare,beatingtheZacksConsensusEstimateby2892 50 per share, beating the Zacks Consensus Estimate by 28 9% and increasing 56 3% year over year [1] - Revenues of 594 1 million surpassed the Zacks Consensus Estimate by 7 9%, rising 20% year over year (22% at constant currency) [1] - The revenue growth was driven by two major multi-year contracts worth 210millionintheautomotiveandhigh−techindustriesintheAmericasregion[1]AcquisitionDetails−ANSYSandSynopsysannouncedadefinitiveagreementinJanuary2024,withSynopsysacquiringANSYSforapproximately210 million in the automotive and high-tech industries in the Americas region [1] Acquisition Details - ANSYS and Synopsys announced a definitive agreement in January 2024, with Synopsys acquiring ANSYS for approximately 35 billion [1] - ANSYS shareholders will receive 197incashand03450sharesofSynopsyscommonstockperANSYSshare[1]−Thedealisexpectedtocloseinthefirsthalfof2025andwasapprovedbyANSYSshareholdersduringQ22024[1]FinancialOutlook−ANSYShassuspendedquarterlyearningsconferencecallsandnolongerprovidesafinancialoutlookduetothependingacquisition[2]−Thecompanyexpectsdouble−digitACVandrevenuegrowthinthesecondhalfof2024anddouble−digitACVgrowthforthefullyear[2]RevenueBreakdown−Subscriptionleaserevenues(368197 in cash and 0 3450 shares of Synopsys common stock per ANSYS share [1] - The deal is expected to close in the first half of 2025 and was approved by ANSYS shareholders during Q2 2024 [1] Financial Outlook - ANSYS has suspended quarterly earnings conference calls and no longer provides a financial outlook due to the pending acquisition [2] - The company expects double-digit ACV and revenue growth in the second half of 2024 and double-digit ACV growth for the full year [2] Revenue Breakdown - Subscription lease revenues (36 8% of total revenues) increased 64 4% year over year at constant currency to 218 6 million [3] - Perpetual licenses revenues (10 9% of total revenues) declined 6% at constant currency to 646million[3]−Maintenancerevenues(49564 6 million [3] - Maintenance revenues (49 5% of total revenues) grew 9 3% year over year at constant currency to 293 8 million [3] - Service revenues (2 9% of total revenues) decreased 4 5% at constant currency to 171million[3]RegionalRevenuePerformance−Americascontributed54617 1 million [3] Regional Revenue Performance - Americas contributed 54 6% to total revenues, with revenues up 47 3% year over year at constant currency to 324 4 million [3] - EMEA contributed 22% to total revenues, with revenues up 4 4% at constant currency to 1308million[3]−Asia−Pacificcontributed234130 8 million [3] - Asia-Pacific contributed 23 4% to total revenues, with revenues down 1 6% at constant currency to 138 9 million [3] Operating Metrics - Non-GAAP gross margin increased 170 basis points year over year to 92 7% [5] - Total operating expenses rose 10 4% year over year to 3674million,primarilyduetoincreasedacquisitionandpersonnelcosts[5]−Non−GAAPoperatingmarginincreased850basispointsyearoveryearto449367 4 million, primarily due to increased acquisition and personnel costs [5] - Non-GAAP operating margin increased 850 basis points year over year to 44 9% [5] Balance Sheet & Cash Flow - Cash and short-term investments totaled 1,119 3 million as of Jun 30, 2024, up from 1,0706millionasofMar31,2024[5]−Long−termdebtremainedunchangedat1,070 6 million as of Mar 31, 2024 [5] - Long-term debt remained unchanged at 754 million as of Jun 30, 2024 [5] - Cash from operations was 807millioninQ22024,comparedto80 7 million in Q2 2024, compared to 62 9 million in the prior-year quarter [5] Deferred Revenues & Backlog - Total deferred revenues and backlog increased 7 6% year over year to 1,3940million[4]IndustryComparison−BadgerMeterInc(BMI)reportedQ22024EPSof1,394 0 million [4] Industry Comparison - Badger Meter Inc (BMI) reported Q2 2024 EPS of 1 12, beating the Zacks Consensus Estimate by 14 3%, with quarterly net sales of 2167million,up23216 7 million, up 23% year over year [6] - Arista Networks Inc (ANET) reported Q2 2024 EPS of 2 10, beating the Zacks Consensus Estimate by 016,withquarterlyrevenuesof0 16, with quarterly revenues of 1 69 billion, up 15 8% year over year [7] - SAP SE reported Q2 2024 non-IFRS earnings of €1 10 (118)pershare,up591 18) per share, up 59% year over year, with total revenues of €8 288 billion (8,921 3 million), up 10% year over year [8]