ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2023 GAAP
and non-GAAP revenue growth of 16% in reported currency, or 15% in
constant currency, when compared to the fourth quarter of 2022. For
FY 2023, GAAP and non-GAAP revenue growth was 10% in reported and
constant currency when compared to FY 2022. For the fourth quarter
of 2023, the Company reported diluted earnings per share of $3.14
and $3.94 on a GAAP and non-GAAP basis, respectively, compared to
$2.95 and $3.09 on a GAAP and non-GAAP basis, respectively, for the
fourth quarter of 2022. For FY 2023, the Company reported diluted
earnings per share of $5.73 and $8.80 on a GAAP and non-GAAP basis,
respectively, compared to $5.99 and $7.99 on a GAAP and non-GAAP
basis, respectively, for FY 2022. Additionally, the Company
reported fourth quarter and FY 2023 ACV growth of 17% and 13% in
reported currency, respectively, or 16% and 13% in constant
currency, respectively, when compared to the fourth quarter and FY
2022.
On January 15, 2024, the Company entered into a
definitive agreement with Synopsys, Inc. (Synopsys) under which
Synopsys will acquire Ansys. Under the terms of the agreement,
Ansys shareholders will receive $197.00 in cash and 0.3450 shares
of Synopsys common stock for each Ansys share, representing an
enterprise value of approximately $35.0 billion based on the
closing price of Synopsys common stock on December 21, 2023. The
transaction is anticipated to close in the first half of 2025,
subject to approval by Ansys shareholders, the receipt of required
regulatory approvals and other customary closing conditions.
Bringing together Synopsys’ pioneering semiconductor electronic
design automation with Ansys’ broad simulation and analysis
portfolio will create a leader in silicon to systems design
solutions.
The non-GAAP financial results highlighted
represent non-GAAP financial measures. Reconciliations of these
measures to the comparable GAAP measures for the three and twelve
months ended December 31, 2023 and 2022 can be found later in
this release.
/ Summary of
Financial Results
Ansys’ fourth quarter and FY 2023 and 2022
financial results are presented below. The 2023 and 2022 non-GAAP
results exclude the income statement effects of stock-based
compensation, excess payroll taxes related to stock-based
compensation, amortization of acquired intangible assets, expenses
related to business combinations and adjustments for the income tax
effect of the excluded items. The 2022 period non-GAAP results also
exclude the income statement effects of acquisition accounting
adjustments to deferred revenue from business combinations closed
prior to 2022. This adjustment is not material in 2023.
GAAP and non-GAAP results are as follows:
|
GAAP |
|
Non-GAAP |
(in thousands, except per share data and
percentages) |
Q4 QTD 2023 |
|
Q4 QTD 2022 |
|
% Change |
|
Q4 QTD 2023 |
|
Q4 QTD 2022 |
|
% Change |
Revenue |
$ |
805,108 |
|
|
$ |
694,115 |
|
|
16.0 |
% |
|
$ |
805,108 |
|
|
$ |
694,690 |
|
|
15.9 |
% |
Net income |
$ |
274,762 |
|
|
$ |
257,947 |
|
|
6.5 |
% |
|
$ |
345,317 |
|
|
$ |
270,366 |
|
|
27.7 |
% |
Diluted earnings per share |
$ |
3.14 |
|
|
$ |
2.95 |
|
|
6.4 |
% |
|
$ |
3.94 |
|
|
$ |
3.09 |
|
|
27.5 |
% |
Gross margin |
|
91.3 |
% |
|
|
91.2 |
% |
|
|
|
|
94.3 |
% |
|
|
94.0 |
% |
|
|
Operating profit margin |
|
41.4 |
% |
|
|
37.5 |
% |
|
|
|
|
53.0 |
% |
|
|
48.0 |
% |
|
|
Effective tax rate |
|
15.4 |
% |
|
(0.6)% |
|
|
|
|
17.5 |
% |
|
|
18.0 |
% |
|
|
|
GAAP |
|
Non-GAAP |
(in thousands, except per share data and
percentages) |
FY 2023 |
|
FY 2022 |
|
% Change |
|
FY 2023 |
|
FY 2022 |
|
% Change |
Revenue |
$ |
2,269,949 |
|
|
$ |
2,065,553 |
|
|
9.9 |
% |
|
$ |
2,269,949 |
|
|
$ |
2,072,886 |
|
|
9.5 |
% |
Net income |
$ |
500,412 |
|
|
$ |
523,710 |
|
|
(4.4)% |
|
$ |
769,308 |
|
|
$ |
698,905 |
|
|
10.1 |
% |
Diluted earnings per share |
$ |
5.73 |
|
|
$ |
5.99 |
|
|
(4.3)% |
|
$ |
8.80 |
|
|
$ |
7.99 |
|
|
10.1 |
% |
Gross margin |
|
88.0 |
% |
|
|
87.9 |
% |
|
|
|
|
92.2 |
% |
|
|
91.8 |
% |
|
|
Operating profit margin |
|
27.6 |
% |
|
|
28.7 |
% |
|
|
|
|
42.6 |
% |
|
|
42.0 |
% |
|
|
Effective tax rate |
|
15.5 |
% |
|
|
9.0 |
% |
|
|
|
|
17.5 |
% |
|
|
18.0 |
% |
|
|
(in thousands, except percentages) |
Q4 QTD 2023 |
|
Q4 QTD 2022 |
|
% Change |
ACV |
$ |
955,161 |
|
$ |
818,009 |
|
16.8 |
% |
Operating cash flows |
$ |
232,722 |
|
$ |
173,972 |
|
33.8 |
% |
Unlevered operating cash flows |
$ |
242,848 |
|
$ |
181,067 |
|
34.1 |
% |
(in thousands, except percentages) |
FY 2023 |
|
FY 2022 |
|
% Change |
ACV |
$ |
2,300,466 |
|
$ |
2,031,744 |
|
13.2 |
% |
Operating cash flows |
$ |
717,122 |
|
$ |
631,003 |
|
13.6 |
% |
Unlevered operating cash flows |
$ |
755,129 |
|
$ |
648,095 |
|
16.5 |
% |
/
Management’s 2024 Financial Outlook and
Conference Call Information
As previously announced, in light of the pending
transaction with Synopsys, Ansys is suspending quarterly earnings
conference calls and will no longer be providing quarterly or
annual guidance. We expect FY 2024 ACV to grow double-digit and the
dollar value of ACV will continue to be highly skewed toward the
fourth quarter of the year as has been the case in prior years.
Additionally, 2024 quarterly ACV and revenue growth rates are
expected to be variable across the quarters and are affected by the
performance comparisons to 2023. As a result, we expect Q1 2024 ACV
and revenue results to be the lowest amongst the quarters with the
expectation that we will see double-digit ACV and revenue growth
the remaining quarters of the year.
Supplemental Financial Information |
/ Annual Contract
Value
(in thousands, except percentages) |
Q4 QTD 2023 |
|
Q4 QTD 2023 in Constant Currency |
|
Q4 QTD 2022 |
|
% Change |
|
% Change in Constant Currency |
ACV |
$ |
955,161 |
|
$ |
947,815 |
|
$ |
818,009 |
|
16.8 |
% |
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
FY 2023 |
|
FY 2023 in Constant Currency |
|
FY 2022 |
|
% Change |
|
% Change in Constant Currency |
ACV |
$ |
2,300,466 |
|
$ |
2,303,344 |
|
$ |
2,031,744 |
|
13.2 |
% |
|
13.4 |
% |
*Subscription lease ACV includes the bundled
arrangement of time-based licenses with related
maintenance.**Perpetual and service ACV includes perpetual
licenses, with related maintenance, and services.
Recurring ACV includes both subscription lease ACV
and all maintenance ACV (including maintenance from perpetual
licenses). It excludes perpetual license ACV and service ACV.
/
Revenue
(in thousands, except percentages) |
Q4 QTD 2023 |
|
Q4 QTD 2023 in Constant Currency |
|
Q4 QTD 2022 |
|
% Change |
|
% Change in Constant Currency |
GAAP Revenue |
$ |
805,108 |
|
$ |
799,681 |
|
$ |
694,115 |
|
16.0 |
% |
|
15.2 |
% |
Non-GAAP Revenue |
$ |
805,108 |
|
$ |
799,681 |
|
$ |
694,690 |
|
15.9 |
% |
|
15.1 |
% |
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
FY 2023 |
|
FY 2023 in Constant Currency |
|
FY 2022 |
|
% Change |
|
% Change in Constant Currency |
GAAP
Revenue |
$ |
2,269,949 |
|
$ |
2,275,702 |
|
$ |
2,065,553 |
|
9.9 |
% |
|
10.2 |
% |
Non-GAAP Revenue |
$ |
2,269,949 |
|
$ |
2,275,702 |
|
$ |
2,072,886 |
|
9.5 |
% |
|
9.8 |
% |
The difference between the GAAP and non-GAAP
revenue values for the 2022 period is a result of the application
of the fair value provisions applicable to the accounting for
business combinations closed prior to 2022.
REVENUE BY LICENSE TYPE |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
Q4 QTD 2023 |
|
% of Total |
|
Q4 QTD 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Subscription Lease |
$ |
399,556 |
|
49.6 |
% |
|
$ |
324,688 |
|
46.8 |
% |
|
23.1 |
% |
|
22.4 |
% |
Perpetual |
|
102,721 |
|
12.8 |
% |
|
|
88,958 |
|
12.8 |
% |
|
15.5 |
% |
|
14.8 |
% |
Maintenance1 |
|
283,130 |
|
35.2 |
% |
|
|
261,691 |
|
37.7 |
% |
|
8.2 |
% |
|
7.2 |
% |
Service |
|
19,701 |
|
2.4 |
% |
|
|
18,778 |
|
2.7 |
% |
|
4.9 |
% |
|
3.7 |
% |
Total |
$ |
805,108 |
|
|
|
$ |
694,115 |
|
|
|
16.0 |
% |
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
FY 2023 |
|
% of Total |
|
FY 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Subscription Lease |
$ |
786,050 |
|
34.6 |
% |
|
$ |
687,665 |
|
33.3 |
% |
|
14.3 |
% |
|
14.4 |
% |
Perpetual |
|
302,698 |
|
13.3 |
% |
|
|
301,313 |
|
14.6 |
% |
|
0.5 |
% |
|
0.7 |
% |
Maintenance1 |
|
1,103,523 |
|
48.6 |
% |
|
|
1,004,245 |
|
48.6 |
% |
|
9.9 |
% |
|
10.3 |
% |
Service |
|
77,678 |
|
3.4 |
% |
|
|
72,330 |
|
3.5 |
% |
|
7.4 |
% |
|
7.4 |
% |
Total |
$ |
2,269,949 |
|
|
|
$ |
2,065,553 |
|
|
|
9.9 |
% |
|
10.2 |
% |
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
Q4 QTD 2023 |
|
% of Total |
|
Q4 QTD 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Subscription Lease |
$ |
399,556 |
|
49.6 |
% |
|
$ |
324,700 |
|
46.7 |
% |
|
23.1 |
% |
|
22.4 |
% |
Perpetual |
|
102,721 |
|
12.8 |
% |
|
|
88,958 |
|
12.8 |
% |
|
15.5 |
% |
|
14.8 |
% |
Maintenance1 |
|
283,130 |
|
35.2 |
% |
|
|
262,254 |
|
37.8 |
% |
|
8.0 |
% |
|
7.0 |
% |
Service |
|
19,701 |
|
2.4 |
% |
|
|
18,778 |
|
2.7 |
% |
|
4.9 |
% |
|
3.7 |
% |
Total |
$ |
805,108 |
|
|
|
$ |
694,690 |
|
|
|
15.9 |
% |
|
15.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
FY 2023 |
|
% of Total |
|
FY 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Subscription Lease |
$ |
786,050 |
|
34.6 |
% |
|
$ |
687,790 |
|
33.2 |
% |
|
14.3 |
% |
|
14.4 |
% |
Perpetual |
|
302,698 |
|
13.3 |
% |
|
|
301,313 |
|
14.5 |
% |
|
0.5 |
% |
|
0.7 |
% |
Maintenance1 |
|
1,103,523 |
|
48.6 |
% |
|
|
1,011,452 |
|
48.8 |
% |
|
9.1 |
% |
|
9.5 |
% |
Service |
|
77,678 |
|
3.4 |
% |
|
|
72,331 |
|
3.5 |
% |
|
7.4 |
% |
|
7.4 |
% |
Total |
$ |
2,269,949 |
|
|
|
$ |
2,072,886 |
|
|
|
9.5 |
% |
|
9.8 |
% |
1Maintenance revenue is inclusive of both maintenance associated
with perpetual licenses and the maintenance component of
subscription leases.
REVENUE BY GEOGRAPHY |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
Q4 QTD 2023 |
|
% of Total |
|
Q4 QTD 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Americas |
$ |
410,681 |
|
51.0 |
% |
|
$ |
359,081 |
|
51.7 |
% |
|
14.4 |
% |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
81,828 |
|
10.2 |
% |
|
|
86,724 |
|
12.5 |
% |
|
(5.6 |
)% |
|
(9.6 |
)% |
Other
EMEA |
|
155,023 |
|
19.3 |
% |
|
|
112,909 |
|
16.3 |
% |
|
37.3 |
% |
|
33.0 |
% |
EMEA |
|
236,851 |
|
29.4 |
% |
|
|
199,633 |
|
28.8 |
% |
|
18.6 |
% |
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Japan |
|
61,243 |
|
7.6 |
% |
|
|
52,637 |
|
7.6 |
% |
|
16.3 |
% |
|
22.4 |
% |
Other
Asia-Pacific |
|
96,333 |
|
12.0 |
% |
|
|
82,764 |
|
11.9 |
% |
|
16.4 |
% |
|
16.3 |
% |
Asia-Pacific |
|
157,576 |
|
19.6 |
% |
|
|
135,401 |
|
19.5 |
% |
|
16.4 |
% |
|
18.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
805,108 |
|
|
|
$ |
694,115 |
|
|
|
16.0 |
% |
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
FY 2023 |
|
% of Total |
|
FY 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Americas |
$ |
1,106,242 |
|
48.7 |
% |
|
$ |
969,237 |
|
46.9 |
% |
|
14.1 |
% |
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
199,068 |
|
8.8 |
% |
|
|
198,612 |
|
9.6 |
% |
|
0.2 |
% |
|
(2.6 |
)% |
Other
EMEA |
|
406,719 |
|
17.9 |
% |
|
|
349,159 |
|
16.9 |
% |
|
16.5 |
% |
|
14.5 |
% |
EMEA |
|
605,787 |
|
26.7 |
% |
|
|
547,771 |
|
26.5 |
% |
|
10.6 |
% |
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Japan |
|
203,013 |
|
8.9 |
% |
|
|
186,199 |
|
9.0 |
% |
|
9.0 |
% |
|
16.2 |
% |
Other
Asia-Pacific |
|
354,907 |
|
15.6 |
% |
|
|
362,346 |
|
17.5 |
% |
|
(2.1 |
)% |
|
(0.8 |
)% |
Asia-Pacific |
|
557,920 |
|
24.6 |
% |
|
|
548,545 |
|
26.6 |
% |
|
1.7 |
% |
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
2,269,949 |
|
|
|
$ |
2,065,553 |
|
|
|
9.9 |
% |
|
10.2 |
% |
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
Q4 QTD 2023 |
|
% of Total |
|
Q4 QTD 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Americas |
$ |
410,681 |
|
51.0 |
% |
|
$ |
359,243 |
|
51.7 |
% |
|
14.3 |
% |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
81,828 |
|
10.2 |
% |
|
|
86,765 |
|
12.5 |
% |
|
(5.7 |
)% |
|
(9.7 |
)% |
Other
EMEA |
|
155,023 |
|
19.3 |
% |
|
|
112,991 |
|
16.3 |
% |
|
37.2 |
% |
|
32.9 |
% |
EMEA |
|
236,851 |
|
29.4 |
% |
|
|
199,756 |
|
28.8 |
% |
|
18.6 |
% |
|
14.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Japan |
|
61,243 |
|
7.6 |
% |
|
|
52,826 |
|
7.6 |
% |
|
15.9 |
% |
|
22.0 |
% |
Other
Asia-Pacific |
|
96,333 |
|
12.0 |
% |
|
|
82,865 |
|
11.9 |
% |
|
16.3 |
% |
|
16.1 |
% |
Asia-Pacific |
|
157,576 |
|
19.6 |
% |
|
|
135,691 |
|
19.5 |
% |
|
16.1 |
% |
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
805,108 |
|
|
|
$ |
694,690 |
|
|
|
15.9 |
% |
|
15.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) |
FY 2023 |
|
% of Total |
|
FY 2022 |
|
% of Total |
|
% Change |
|
% Change in Constant Currency |
Americas |
$ |
1,106,242 |
|
48.7 |
% |
|
$ |
972,373 |
|
46.9 |
% |
|
13.8 |
% |
|
13.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
199,068 |
|
8.8 |
% |
|
|
199,234 |
|
9.6 |
% |
|
(0.1 |
)% |
|
(2.9 |
)% |
Other
EMEA |
|
406,719 |
|
17.9 |
% |
|
|
350,374 |
|
16.9 |
% |
|
16.1 |
% |
|
14.1 |
% |
EMEA |
|
605,787 |
|
26.7 |
% |
|
|
549,608 |
|
26.5 |
% |
|
10.2 |
% |
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japan |
|
203,013 |
|
8.9 |
% |
|
|
187,617 |
|
9.1 |
% |
|
8.2 |
% |
|
15.4 |
% |
Other
Asia-Pacific |
|
354,907 |
|
15.6 |
% |
|
|
363,288 |
|
17.5 |
% |
|
(2.3 |
)% |
|
(1.0 |
)% |
Asia-Pacific |
|
557,920 |
|
24.6 |
% |
|
|
550,905 |
|
26.6 |
% |
|
1.3 |
% |
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
2,269,949 |
|
|
|
$ |
2,072,886 |
|
|
|
9.5 |
% |
|
9.8 |
% |
REVENUE BY CHANNEL |
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
Q4 QTD 2023 |
|
Q4 QTD 2022 |
|
FY 2023 |
|
FY 2022 |
Direct revenue, as a percentage of total revenue |
74.5 |
% |
|
80.7 |
% |
|
73.9 |
% |
|
76.1 |
% |
Indirect revenue, as a percentage of total revenue |
25.5 |
% |
|
19.3 |
% |
|
26.1 |
% |
|
23.9 |
% |
Non-GAAP |
|
|
|
|
|
|
|
|
|
Q4 QTD 2023 |
|
Q4 QTD 2022 |
|
FY 2023 |
|
FY 2022 |
Direct revenue, as a percentage of total revenue |
74.5 |
% |
|
80.7 |
% |
|
73.9 |
% |
|
76.1 |
% |
Indirect revenue, as a percentage of total revenue |
25.5 |
% |
|
19.3 |
% |
|
26.1 |
% |
|
23.9 |
% |
/ Deferred Revenue and
Backlog
(in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Current Deferred Revenue |
$ |
457,514 |
|
$ |
349,668 |
|
$ |
413,989 |
|
$ |
334,901 |
Current Backlog |
|
439,879 |
|
|
424,547 |
|
|
432,323 |
|
|
339,241 |
Total Current Deferred Revenue and Backlog |
|
897,393 |
|
|
774,215 |
|
|
846,312 |
|
|
674,142 |
|
|
|
|
|
|
|
|
Long-Term Deferred Revenue |
|
22,240 |
|
|
20,765 |
|
|
21,769 |
|
|
19,817 |
Long-Term Backlog |
|
552,951 |
|
|
410,697 |
|
|
548,765 |
|
|
414,929 |
Total Long-Term Deferred Revenue and Backlog |
|
575,191 |
|
|
431,462 |
|
|
570,534 |
|
|
434,746 |
|
|
|
|
|
|
|
|
Total Deferred Revenue and Backlog |
$ |
1,472,584 |
|
$ |
1,205,677 |
|
$ |
1,416,846 |
|
$ |
1,108,888 |
/ Currency
The fourth quarter and FY 2023 revenue, operating
income, ACV and deferred revenue and backlog, as compared to the
fourth quarter and FY 2022, were impacted by fluctuations in the
exchange rates of foreign currencies against the U.S. Dollar. The
currency fluctuation impacts on GAAP and non-GAAP revenue and
operating income, ACV, and deferred revenue and backlog based on
2022 exchange rates are reflected in the tables below. Amounts in
brackets indicate an adverse impact from currency fluctuations.
GAAP |
|
|
|
|
(in thousands) |
Q4 QTD 2023 |
|
FY 2023 |
Revenue |
$ |
5,427 |
|
$ |
(5,753 |
) |
Operating income |
$ |
1,745 |
|
$ |
(1,393 |
) |
Non-GAAP |
|
|
|
|
(in thousands) |
Q4 QTD 2023 |
|
FY 2023 |
Revenue |
$ |
5,427 |
|
$ |
(5,753 |
) |
Operating income |
$ |
2,083 |
|
$ |
(958 |
) |
Other Metrics |
|
|
|
|
(in thousands) |
Q4 QTD 2023 |
|
FY 2023 |
ACV |
$ |
7,346 |
|
$ |
(2,878 |
) |
Deferred revenue and backlog |
$ |
22,952 |
|
$ |
2,534 |
|
The most meaningful currency impacts are typically
attributable to U.S. Dollar exchange rate changes against the
Euro and Japanese Yen. Historical exchange rates are reflected in
the charts below.
|
Period-End Exchange Rates |
As of |
EUR/USD |
|
USD/JPY |
December 31, 2023 |
1.10 |
|
141 |
December 31, 2022 |
1.07 |
|
131 |
December 31, 2021 |
1.14 |
|
115 |
|
Average Exchange Rates |
Three Months Ended |
EUR/USD |
|
USD/JPY |
December 31, 2023 |
1.08 |
|
148 |
December 31, 2022 |
1.02 |
|
141 |
|
Average Exchange Rates |
Twelve Months Ended |
EUR/USD |
|
USD/JPY |
December 31, 2023 |
1.08 |
|
140 |
December 31, 2022 |
1.05 |
|
131 |
/ GAAP Financial
Statements
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(Unaudited) |
(in thousands) |
December 31, 2023 |
|
December 31, 2022 |
ASSETS: |
|
|
|
Cash & short-term investments |
$ |
860,390 |
|
$ |
614,574 |
Accounts receivable, net |
|
864,526 |
|
|
760,287 |
Goodwill |
|
3,805,874 |
|
|
3,658,267 |
Other intangibles, net |
|
835,417 |
|
|
809,183 |
Other assets |
|
956,668 |
|
|
845,634 |
Total assets |
$ |
7,322,875 |
|
$ |
6,687,945 |
LIABILITIES & STOCKHOLDERS’ EQUITY: |
|
|
|
Current deferred revenue |
$ |
457,514 |
|
$ |
413,989 |
Long-term debt |
|
753,891 |
|
|
753,574 |
Other liabilities |
|
721,106 |
|
|
654,531 |
Stockholders’ equity |
|
5,390,364 |
|
|
4,865,851 |
Total liabilities & stockholders’ equity |
$ |
7,322,875 |
|
$ |
6,687,945 |
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of Income |
(Unaudited) |
|
Three Months Ended |
|
Twelve Months Ended |
(in thousands, except per share data) |
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Revenue: |
|
|
|
|
|
|
|
Software licenses |
$ |
502,277 |
|
|
$ |
413,646 |
|
|
$ |
1,088,748 |
|
|
$ |
988,978 |
|
Maintenance and service |
|
302,831 |
|
|
|
280,469 |
|
|
|
1,181,201 |
|
|
|
1,076,575 |
|
Total revenue |
|
805,108 |
|
|
|
694,115 |
|
|
|
2,269,949 |
|
|
|
2,065,553 |
|
Cost of sales: |
|
|
|
|
|
|
|
Software licenses |
|
10,909 |
|
|
|
7,711 |
|
|
|
40,004 |
|
|
|
33,081 |
|
Amortization |
|
20,586 |
|
|
|
17,425 |
|
|
|
80,990 |
|
|
|
69,372 |
|
Maintenance and service |
|
38,554 |
|
|
|
36,291 |
|
|
|
150,304 |
|
|
|
148,188 |
|
Total cost of sales |
|
70,049 |
|
|
|
61,427 |
|
|
|
271,298 |
|
|
|
250,641 |
|
Gross profit |
|
735,059 |
|
|
|
632,688 |
|
|
|
1,998,651 |
|
|
|
1,814,912 |
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
|
269,857 |
|
|
|
257,450 |
|
|
|
855,135 |
|
|
|
772,871 |
|
Research and development |
|
126,288 |
|
|
|
111,390 |
|
|
|
494,869 |
|
|
|
433,661 |
|
Amortization |
|
5,914 |
|
|
|
3,747 |
|
|
|
22,512 |
|
|
|
15,722 |
|
Total operating expenses |
|
402,059 |
|
|
|
372,587 |
|
|
|
1,372,516 |
|
|
|
1,222,254 |
|
Operating income |
|
333,000 |
|
|
|
260,101 |
|
|
|
626,135 |
|
|
|
592,658 |
|
Interest income |
|
7,199 |
|
|
|
3,576 |
|
|
|
19,588 |
|
|
|
5,717 |
|
Interest expense |
|
(12,551 |
) |
|
|
(9,058 |
) |
|
|
(47,145 |
) |
|
|
(22,726 |
) |
Other (expense) income, net |
|
(2,876 |
) |
|
|
1,792 |
|
|
|
(6,440 |
) |
|
|
(334 |
) |
Income before income tax provision |
|
324,772 |
|
|
|
256,411 |
|
|
|
592,138 |
|
|
|
575,315 |
|
Income tax provision (benefit) |
|
50,010 |
|
|
|
(1,536 |
) |
|
|
91,726 |
|
|
|
51,605 |
|
Net income |
$ |
274,762 |
|
|
$ |
257,947 |
|
|
$ |
500,412 |
|
|
$ |
523,710 |
|
Earnings per share – basic: |
|
|
|
|
|
|
|
Earnings per share |
$ |
3.16 |
|
|
$ |
2.96 |
|
|
$ |
5.76 |
|
|
$ |
6.02 |
|
Weighted average shares |
|
86,888 |
|
|
|
87,017 |
|
|
|
86,833 |
|
|
|
87,051 |
|
Earnings per share – diluted: |
|
|
|
|
|
|
|
Earnings per share |
$ |
3.14 |
|
|
$ |
2.95 |
|
|
$ |
5.73 |
|
|
$ |
5.99 |
|
Weighted average shares |
|
87,541 |
|
|
|
87,473 |
|
|
|
87,386 |
|
|
|
87,490 |
|
/ Glossary of
TermsAnnual Contract Value (ACV): ACV is a key performance
metric and is useful to investors in assessing the strength and
trajectory of our business. ACV is a supplemental metric to help
evaluate the annual performance of the business. Over the life of
the contract, ACV equals the total value realized from a customer.
ACV is not impacted by the timing of license revenue recognition.
ACV is used by management in financial and operational
decision-making and in setting sales targets used for compensation.
ACV is not a replacement for, and should be viewed independently
of, GAAP revenue and deferred revenue as ACV is a performance
metric and is not intended to be combined with any of these items.
There is no GAAP measure comparable to ACV. ACV is composed of the
following:
- the annualized value of maintenance
and subscription lease contracts with start dates or anniversary
dates during the period, plus
- the value of perpetual license
contracts with start dates during the period, plus
- the annualized value of fixed-term
services contracts with start dates or anniversary dates during the
period, plus
- the value of work performed during the
period on fixed-deliverable services contracts.
When we refer to the anniversary dates in the
definition of ACV above, we are referencing the date of the
beginning of the next twelve-month period in a contractually
committed multi-year contract. If a contract is three years in
duration, with a start date of July 1, 2023, the anniversary dates
would be July 1, 2024 and July 1, 2025. We label these anniversary
dates as they are contractually committed. While this contract
would be up for renewal on July 1, 2026, our ACV performance metric
does not assume any contract renewals.
Example 1: For purposes of calculating ACV, a
$100,000 subscription lease contract or a $100,000 maintenance
contract with a term of July 1, 2023 – June 30, 2024, would each
contribute $100,000 to ACV for fiscal year 2023 with no
contribution to ACV for fiscal year 2024.
Example 2: For purposes of calculating ACV, a
$300,000 subscription lease contract or a $300,000 maintenance
contract with a term of July 1, 2023 – June 30, 2026, would each
contribute $100,000 to ACV in each of fiscal years 2023, 2024 and
2025. There would be no contribution to ACV for fiscal year 2026 as
each period captures the full annual value upon the anniversary
date.
Example 3: A perpetual license valued at $200,000
with a contract start date of March 1, 2023 would contribute
$200,000 to ACV in fiscal year 2023.
Backlog: Deferred revenue associated with
installment billings for periods beyond the current quarterly
billing cycle and committed contracts with start dates beyond the
end of the current period.
Deferred Revenue: Billings made or payments
received in advance of revenue recognition.
Subscription Lease or Time-Based License: A license
of a stated product of our software that is granted to a customer
for use over a specified time period, which can be months or years
in length. In addition to the use of the software, the customer is
provided with access to maintenance (unspecified version upgrades
and technical support) without additional charge. The revenue
related to these contracts is recognized ratably over the contract
period for the maintenance portion and up front for the license
portion.
Perpetual / Paid-Up License: A license of a stated
product and version of our software that is granted to a customer
for use in perpetuity. The revenue related to this type of license
is recognized up front.
Maintenance: A contract, typically one year in
duration, that is purchased by the owner of a perpetual license and
that provides access to unspecified version upgrades and technical
support during the duration of the contract. The revenue from these
contracts is recognized ratably over the contract period.
/ Reconciliations of
GAAP to Non-GAAP Measures (Unaudited)
|
Three Months Ended |
|
December 31, 2023 |
(in thousands, except percentages and per share
data) |
Revenue |
|
Gross Profit |
|
% |
|
Operating Income |
|
% |
|
Net Income |
|
EPS - Diluted1 |
Total GAAP |
$ |
805,108 |
|
$ |
735,059 |
|
91.3 |
% |
|
$ |
333,000 |
|
41.4 |
% |
|
$ |
274,762 |
|
|
$ |
3.14 |
|
Stock-based compensation expense |
|
— |
|
|
3,413 |
|
0.4 |
% |
|
|
63,358 |
|
7.9 |
% |
|
|
63,358 |
|
|
|
0.73 |
|
Excess payroll taxes related to stock-based awards |
|
— |
|
|
4 |
|
— |
% |
|
|
271 |
|
— |
% |
|
|
271 |
|
|
|
— |
|
Amortization of intangible assets from acquisitions |
|
— |
|
|
20,586 |
|
2.6 |
% |
|
|
26,500 |
|
3.3 |
% |
|
|
26,500 |
|
|
|
0.30 |
|
Expenses related to business combinations |
|
— |
|
|
— |
|
— |
% |
|
|
3,664 |
|
0.4 |
% |
|
|
3,664 |
|
|
|
0.04 |
|
Adjustment for income tax effect |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
(23,238 |
) |
|
|
(0.27 |
) |
Total non-GAAP |
$ |
805,108 |
|
$ |
759,062 |
|
94.3 |
% |
|
$ |
426,793 |
|
53.0 |
% |
|
$ |
345,317 |
|
|
$ |
3.94 |
|
1 Diluted weighted average shares were 87,541.
|
Three Months Ended |
|
December 31, 2022 |
(in thousands, except percentages and per share
data) |
Revenue |
|
Gross Profit |
|
% |
|
Operating Income |
|
% |
|
Net Income |
|
EPS - Diluted1 |
Total GAAP |
$ |
694,115 |
|
$ |
632,688 |
|
91.2 |
% |
|
$ |
260,101 |
|
37.5 |
% |
|
$ |
257,947 |
|
|
$ |
2.95 |
|
Acquisition accounting for deferred revenue |
|
575 |
|
|
575 |
|
— |
% |
|
|
575 |
|
— |
% |
|
|
575 |
|
|
|
0.01 |
|
Stock-based compensation expense |
|
— |
|
|
2,625 |
|
0.3 |
% |
|
|
46,009 |
|
6.7 |
% |
|
|
46,009 |
|
|
|
0.53 |
|
Excess payroll taxes related to stock-based awards |
|
— |
|
|
29 |
|
— |
% |
|
|
588 |
|
0.1 |
% |
|
|
588 |
|
|
|
0.01 |
|
Amortization of intangible assets from acquisitions |
|
— |
|
|
17,425 |
|
2.5 |
% |
|
|
21,172 |
|
3.0 |
% |
|
|
21,172 |
|
|
|
0.24 |
|
Expenses related to business combinations |
|
— |
|
|
— |
|
— |
% |
|
|
4,959 |
|
0.7 |
% |
|
|
4,959 |
|
|
|
0.06 |
|
Adjustment for income tax effect |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
(60,884 |
) |
|
|
(0.71 |
) |
Total non-GAAP |
$ |
694,690 |
|
$ |
653,342 |
|
94.0 |
% |
|
$ |
333,404 |
|
48.0 |
% |
|
$ |
270,366 |
|
|
$ |
3.09 |
|
1 Diluted weighted average shares were 87,473.
|
Twelve Months Ended |
|
December 31, 2023 |
(in thousands, except percentages and per share
data) |
Revenue |
|
Gross Profit |
|
% |
|
Operating Income |
|
% |
|
Net Income |
|
EPS - Diluted1 |
Total GAAP |
$ |
2,269,949 |
|
$ |
1,998,651 |
|
88.0 |
% |
|
$ |
626,135 |
|
27.6 |
% |
|
$ |
500,412 |
|
|
$ |
5.73 |
|
Stock-based compensation expense |
|
— |
|
|
13,337 |
|
0.6 |
% |
|
|
221,891 |
|
9.9 |
% |
|
|
221,891 |
|
|
|
2.54 |
|
Excess payroll taxes related to stock-based awards |
|
— |
|
|
307 |
|
0.1 |
% |
|
|
5,541 |
|
0.2 |
% |
|
|
5,541 |
|
|
|
0.06 |
|
Amortization of intangible assets from acquisitions |
|
— |
|
|
80,990 |
|
3.5 |
% |
|
|
103,502 |
|
4.5 |
% |
|
|
103,502 |
|
|
|
1.18 |
|
Expenses related to business combinations |
|
— |
|
|
— |
|
— |
% |
|
|
9,422 |
|
0.4 |
% |
|
|
9,422 |
|
|
|
0.11 |
|
Adjustment for income tax effect |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
(71,460 |
) |
|
|
(0.82 |
) |
Total non-GAAP |
$ |
2,269,949 |
|
$ |
2,093,285 |
|
92.2 |
% |
|
$ |
966,491 |
|
42.6 |
% |
|
$ |
769,308 |
|
|
$ |
8.80 |
|
1 Diluted weighted average shares were 87,386.
|
Twelve Months Ended |
|
December 31, 2022 |
(in thousands, except percentages and per share
data) |
Revenue |
|
Gross Profit |
|
% |
|
Operating Income |
|
% |
|
Net Income |
|
EPS - Diluted1 |
Total GAAP |
$ |
2,065,553 |
|
$ |
1,814,912 |
|
87.9 |
% |
|
$ |
592,658 |
|
28.7 |
% |
|
$ |
523,710 |
|
|
$ |
5.99 |
|
Acquisition accounting for deferred revenue |
|
7,333 |
|
|
7,333 |
|
— |
% |
|
|
7,333 |
|
0.2 |
% |
|
|
7,333 |
|
|
|
0.08 |
|
Stock-based compensation expense |
|
— |
|
|
10,073 |
|
0.5 |
% |
|
|
168,128 |
|
8.2 |
% |
|
|
168,128 |
|
|
|
1.92 |
|
Excess payroll taxes related to stock-based awards |
|
— |
|
|
510 |
|
— |
% |
|
|
6,118 |
|
0.3 |
% |
|
|
6,118 |
|
|
|
0.07 |
|
Amortization of intangible assets from acquisitions |
|
— |
|
|
69,372 |
|
3.4 |
% |
|
|
85,094 |
|
4.1 |
% |
|
|
85,094 |
|
|
|
0.97 |
|
Expenses related to business combinations |
|
— |
|
|
— |
|
— |
% |
|
|
10,335 |
|
0.5 |
% |
|
|
10,335 |
|
|
|
0.12 |
|
Adjustment for income tax effect |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
(101,813 |
) |
|
|
(1.16 |
) |
Total non-GAAP |
$ |
2,072,886 |
|
$ |
1,902,200 |
|
91.8 |
% |
|
$ |
869,666 |
|
42.0 |
% |
|
$ |
698,905 |
|
|
$ |
7.99 |
|
1 Diluted weighted average shares were 87,490.
|
Three Months Ended |
|
Twelve Months Ended |
(in thousands) |
December 31,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
Net cash provided by operating activities |
$ |
232,722 |
|
|
$ |
173,972 |
|
|
$ |
717,122 |
|
|
$ |
631,003 |
|
Cash paid for interest |
|
12,274 |
|
|
|
8,652 |
|
|
|
46,069 |
|
|
|
20,844 |
|
Tax benefit |
|
(2,148 |
) |
|
|
(1,557 |
) |
|
|
(8,062 |
) |
|
|
(3,752 |
) |
Unlevered operating cash flows |
$ |
242,848 |
|
|
$ |
181,067 |
|
|
$ |
755,129 |
|
|
$ |
648,095 |
|
/ Use of Non-GAAP
Measures
We provide non-GAAP revenue, non-GAAP gross
profit, non-GAAP gross profit margin, non-GAAP operating income,
non-GAAP operating profit margin, non-GAAP net income, non-GAAP
diluted earnings per share and unlevered operating cash flows as
supplemental measures to GAAP regarding our operational
performance. These financial measures exclude the impact of certain
items and, therefore, have not been calculated in accordance with
GAAP. A detailed explanation of each of the adjustments to these
financial measures is described below. This press release also
contains a reconciliation of each of these non-GAAP financial
measures to its most comparable GAAP financial measure, as
applicable.
We use non-GAAP financial measures (a) to
evaluate our historical and prospective financial performance as
well as our performance relative to our competitors, (b) to
set internal sales targets and spending budgets, (c) to
allocate resources, (d) to measure operational profitability
and the accuracy of forecasting, (e) to assess financial
discipline over operational expenditures and (f) as an
important factor in determining variable compensation for
management and employees. In addition, many financial analysts that
follow us focus on and publish both historical results and future
projections based on non-GAAP financial measures. We believe that
it is in the best interest of our investors to provide this
information to analysts so that they accurately report the non-GAAP
financial information. Moreover, investors have historically
requested, and we have historically reported, these non-GAAP
financial measures as a means of providing consistent and
comparable information with past reports of financial results.
While we believe that these non-GAAP financial
measures provide useful supplemental information to investors,
there are limitations associated with the use of these non-GAAP
financial measures. These non-GAAP financial measures are not
prepared in accordance with GAAP, are not reported by all our
competitors and may not be directly comparable to similarly titled
measures of our competitors due to potential differences in the
exact method of calculation. We compensate for these limitations by
using these non-GAAP financial measures as supplements to GAAP
financial measures and by reviewing the reconciliations of the
non-GAAP financial measures to their most comparable GAAP financial
measures.
The adjustments to these non-GAAP financial
measures, and the basis for such adjustments, are outlined
below:
Acquisition accounting for deferred
revenue. Historically, we have consummated
acquisitions in order to support our strategic and other business
objectives. Under prior accounting guidance, a fair value provision
resulted in acquired deferred revenue that was often recorded on
the opening balance sheet at an amount that was lower than the
historical carrying value. Although this fair value provision has
no impact on our business or cash flow, it adversely impacts our
reported GAAP revenue in the reporting periods following an
acquisition. In 2022, we adopted accounting guidance which
eliminates the fair value provision that resulted in the deferred
revenue adjustment on a prospective basis. In order to provide
investors with financial information that facilitates comparison of
both historical and future results, we have historically provided
non-GAAP financial measures which exclude the impact of the
acquisition accounting adjustment for acquisitions prior to the
adoption of the new guidance in 2022. The 2022 non-GAAP financial
measures presented in this document include the adjustment to
exclude the income statement effects of acquisition accounting
adjustments to deferred revenue from business combinations closed
prior to 2022. There is no adjustment included for 2023 as the
impact is not material.
Amortization of intangible assets from
acquisitions. We incur amortization of intangible
assets, included in our GAAP presentation of amortization expense,
related to various acquisitions we have made. We exclude these
expenses for the purpose of calculating non-GAAP gross profit,
non-GAAP gross profit margin, non-GAAP operating income, non-GAAP
operating profit margin, non-GAAP net income and non-GAAP diluted
earnings per share when we evaluate our continuing operational
performance because these costs are fixed at the time of an
acquisition, are then amortized over a period of several years
after the acquisition and generally cannot be changed or influenced
by us after the acquisition. Accordingly, we do not consider these
expenses for purposes of evaluating our performance during the
applicable time period after the acquisition, and we exclude such
expenses when making decisions to allocate resources. We believe
that these non-GAAP financial measures are useful to investors
because they allow investors to (a) evaluate the effectiveness
of the methodology and information used by us in our financial and
operational decision-making, and (b) compare our past reports
of financial results as we have historically reported these
non-GAAP financial measures.
Stock-based compensation
expense. We incur expense related to stock-based
compensation included in our GAAP presentation of cost of
maintenance and service; research and development expense; and
selling, general and administrative expense. This non-GAAP
adjustment also includes excess payroll tax expense related to
stock-based compensation. Although stock-based compensation is an
expense and viewed as a form of compensation, we exclude these
expenses for the purpose of calculating non-GAAP gross profit,
non-GAAP gross profit margin, non-GAAP operating income, non-GAAP
operating profit margin, non-GAAP net income and non-GAAP diluted
earnings per share when we evaluate our continuing operational
performance. Specifically, we exclude stock-based compensation
during our annual budgeting process and our quarterly and annual
assessments of our performance. The annual budgeting process is the
primary mechanism whereby we allocate resources to various
initiatives and operational requirements. Additionally, the annual
review by our Board of Directors during which it compares our
historical business model and profitability to the planned business
model and profitability for the forthcoming year excludes the
impact of stock-based compensation. In evaluating the performance
of our senior management and department managers, charges related
to stock-based compensation are excluded from expenditure and
profitability results. In fact, we record stock-based compensation
expense into a stand-alone cost center for which no single
operational manager is responsible or accountable. In this way, we
can review, on a period-to-period basis, each manager’s performance
and assess financial discipline over operational expenditures
without the effect of stock-based compensation. We believe that
these non-GAAP financial measures are useful to investors because
they allow investors to (a) evaluate our operating results and
the effectiveness of the methodology used by us to review our
operating results, and (b) review historical comparability in
our financial reporting as well as comparability with competitors’
operating results.
Expenses related to business
combinations. We incur expenses for professional
services rendered in connection with business combinations, which
are included in our GAAP presentation of selling, general and
administrative expense. We also incur other expenses directly
related to business combinations, including compensation expenses
and concurrent restructuring activities, such as employee
severances and other exit costs. These costs are included in our
GAAP presentation of selling, general and administrative and
research and development expenses. We exclude these
acquisition-related expenses for the purpose of calculating
non-GAAP operating income, non-GAAP operating profit margin,
non-GAAP net income and non-GAAP diluted earnings per share when we
evaluate our continuing operational performance, as we generally
would not have otherwise incurred these expenses in the periods
presented as a part of our operations. We believe that these
non-GAAP financial measures are useful to investors because they
allow investors to (a) evaluate our operating results and the
effectiveness of the methodology used by us to review our operating
results, and (b) review historical comparability in our financial
reporting as well as comparability with competitors’ operating
results.
Non-GAAP tax provision. We
utilize a normalized non-GAAP annual effective tax rate (AETR) to
calculate non-GAAP measures. This methodology provides better
consistency across interim reporting periods by eliminating the
effects of non-recurring items and aligning the non-GAAP tax rate
with our expected geographic earnings mix. To project this rate, we
analyzed our historic and projected non-GAAP earnings mix by
geography along with other factors such as our current tax
structure, recurring tax credits and incentives, and expected tax
positions. On an annual basis we re-evaluate and update this rate
for significant items that may materially affect our
projections.
Unlevered operating cash flows.
We make cash payments for the interest incurred in connection with
our debt financing which are included in our GAAP presentation of
operating cash flows. We exclude this cash paid for interest, net
of the associated tax benefit, for the purpose of calculating
unlevered operating cash flows. Unlevered operating cash flow is a
supplemental non-GAAP measure that we use to evaluate our core
operating business. We believe this measure is useful to investors
and management because it provides a measure of our cash generated
through operating activities independent of the capital structure
of the business.
Non-GAAP financial measures are not in
accordance with, or an alternative for, GAAP. Our non-GAAP
financial measures are not meant to be considered in isolation or
as a substitute for comparable GAAP financial measures and should
be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP. We have provided a
reconciliation of the non-GAAP financial measures to the most
directly comparable GAAP financial measures as listed below:
GAAP Reporting Measure |
Non-GAAP Reporting Measure |
Revenue |
Non-GAAP Revenue |
Gross Profit |
Non-GAAP Gross Profit |
Gross Profit Margin |
Non-GAAP Gross Profit Margin |
Operating Income |
Non-GAAP Operating Income |
Operating Profit Margin |
Non-GAAP Operating Profit Margin |
Net Income |
Non-GAAP Net Income |
Diluted Earnings Per Share |
Non-GAAP Diluted Earnings Per Share |
Operating Cash Flows |
Unlevered Operating Cash Flows |
Constant currency. In addition
to the non-GAAP financial measures detailed above, we use constant
currency results for financial and operational decision-making and
as a means to evaluate period-to-period comparisons by excluding
the effects of foreign currency fluctuations on the reported
results. To present this information, the 2023 results for entities
whose functional currency is a currency other than the U.S. Dollar
were converted to U.S. Dollars at rates that were in effect for the
2022 comparable period, rather than the actual exchange rates in
effect for 2023. Constant currency growth rates are calculated by
adjusting the 2023 reported amounts by the 2023 currency
fluctuation impacts and comparing the adjusted amounts to the 2022
comparable period reported amounts. We believe that these non-GAAP
financial measures are useful to investors because they allow
investors to (a) evaluate the effectiveness of the methodology
and information used by us in our financial and operational
decision-making, and (b) compare our reported results to our
past reports of financial results without the effects of foreign
currency fluctuations.
/ About
Ansys
Our Mission: Powering Innovation that Drives
Human Advancement™
When visionary companies need to know how their
world-changing ideas will perform, they close the gap between
design and reality with Ansys simulation. For more than 50 years,
Ansys software has enabled innovators across industries to push
boundaries by using the predictive power of simulation. From
sustainable transportation to advanced semiconductors, from
satellite systems to life-saving medical devices, the next great
leaps in human advancement will be powered by Ansys.
/ Forward-Looking
Information
This document contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 (the
Exchange Act). Forward-looking statements are statements that
provide current expectations or forecasts of future events based on
certain assumptions. Forward-looking statements are subject to
risks, uncertainties, and factors relating to our business which
could cause our actual results to differ materially from the
expectations expressed in or implied by such forward-looking
statements.
Forward-looking statements use words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,”
“intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,”
“should,” “target,” or other words of similar meaning.
Forward-looking statements include those about market opportunity,
including our total addressable market, the proposed transaction
with Synopsys, Inc., including the expected date of closing and the
potential benefits thereof, or other aspects of future operation.
We caution readers not to place undue reliance upon any such
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to update forward-looking
statements, whether as a result of new information, future events
or otherwise.
The risks associated with the following, among
others, could cause actual results to differ materially from those
described in any forward-looking statements:
- our ability to complete the proposed
transaction with Synopsys on anticipated terms and timing,
including obtaining stockholder and regulatory approvals, and other
conditions related to the completion of the transaction;
- the realization of the anticipated
benefits of the proposed transaction with Synopsys, including
potential disruptions to our and Synopsys’ businesses and
commercial relationships with others resulting from the
announcement or completion of the proposed transaction and
uncertainty as to the long-term value of Synopsys’ common
stock;
- restrictions during the pendency of
the proposed transaction with Synopsys that could impact our
ability to pursue certain business opportunities or strategic
transactions, including tuck-in M&A;
- adverse conditions in the
macroeconomic environment, including inflation, recessionary
conditions and volatility in equity and foreign exchange markets;
political, economic and regulatory uncertainties in the countries
and regions in which we operate;
- impacts from tariffs, trade sanctions,
export controls or other trade barriers, including export control
restrictions and licensing requirements for exports to China;
- impacts resulting from the conflict
between Israel and Hamas, including impacts from changes to
diplomatic relations and trade policy between the United States and
other countries resulting from the conflict; impacts from changes
to diplomatic relations and trade policy between the United States
and Russia or the United States and other countries that may
support Russia or take similar actions due to the conflict between
Russia and Ukraine;
- constrained credit and liquidity due
to disruptions in the global economy and financial markets, which
may limit or delay availability of credit under our existing or new
credit facilities, or which may limit our ability to obtain credit
or financing on acceptable terms or at all;
- our ability to timely recruit and
retain key personnel in a highly competitive labor market,
including potential financial impacts of wage inflation and
potential impacts due to the proposed transaction with
Synopsys;
- our ability to protect our proprietary
technology; cybersecurity threats or other security breaches,
including in relation to breaches occurring through our products
and an increased level of our activity that is occurring from
remote global off-site locations; and disclosure and misuse of
employee or customer data whether as a result of a cybersecurity
incident or otherwise;
- increased volatility in our revenue
due to the timing, duration and value of multi-year subscription
lease contracts; and our reliance on high renewal rates for annual
subscription lease and maintenance contracts;
- declines in our customers’ businesses
resulting in adverse changes in procurement patterns; disruptions
in accounts receivable and cash flow due to customers’ liquidity
challenges and commercial deterioration; uncertainties regarding
demand for our products and services in the future and our
customers’ acceptance of new products; delays or declines in
anticipated sales due to reduced or altered sales and marketing
interactions with customers; and potential variations in our sales
forecast compared to actual sales;
- our ability and our channel partners’
ability to comply with laws and regulations in relevant
jurisdictions; and the outcome of contingencies, including legal
proceedings, government or regulatory investigations and tax audit
cases;
- uncertainty regarding income tax
estimates in the jurisdictions in which we operate; and the effect
of changes in tax laws and regulations in the jurisdictions in
which we operate;
- the quality of our products, including
the strength of features, functionality and integrated multiphysics
capabilities; our ability to develop and market new products to
address the industry’s rapidly changing technology; failures or
errors in our products and services; and increased pricing pressure
as a result of the competitive environment in which we
operate;
- investments in complementary
companies, products, services and technologies; our ability to
complete and successfully integrate our acquisitions and realize
the financial and business benefits of the transactions; and the
impact indebtedness incurred in connection with any acquisition
could have on our operations;
- investments in global sales and
marketing organizations and global business infrastructure; and
dependence on our channel partners for the distribution of our
products;
- current and potential future impacts
of a global health crisis, natural disaster or catastrophe, and the
actions taken to address these events by our customers, suppliers,
regulatory authorities and our business, on the global economy and
consolidated financial statements, and other public health and
safety risks; and government actions or mandates;
- operational disruptions generally or
specifically in connection with transitions to and from remote work
environments; and the failure of our technological infrastructure
or those of the service providers upon whom we rely including for
infrastructure and cloud services;
- our intention to repatriate previously
taxed earnings and to reinvest all other earnings of our non-U.S.
subsidiaries;
- plans for future capital spending; the
extent of corporate benefits from such spending including with
respect to customer relationship management; and higher than
anticipated costs for research and development or a slowdown in our
research and development activities;
- our ability to execute on our
strategies related to environmental, social, and governance
matters, and meet evolving and varied expectations, including as a
result of evolving regulatory and other standards, processes, and
assumptions, the pace of scientific and technological developments,
increased costs and the availability of requisite financing, and
changes in carbon markets; and
- other risks and uncertainties
described in our reports filed from time to time with the
Securities and Exchange Commission (SEC).
Important Information and Where to Find
It
This document relates to a proposed transaction
between Synopsys and Ansys. Synopsys will file a registration
statement on Form S-4 with the SEC, which will include a document
that serves as a prospectus of Synopsys and a proxy statement of
Ansys referred to as a proxy statement/prospectus. This proxy
statement/prospectus will be sent to all Ansys shareholders.
Synopsys and Ansys also will file other documents regarding the
proposed transaction with the SEC. INVESTORS AND SECURITY HOLDERS
ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY
STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT
WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED
TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE
DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME
AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to
obtain free copies of the registration statement, proxy
statement/prospectus and all other relevant documents filed or that
will be filed with the SEC by Synopsys or Ansys through the website
maintained by the SEC at www.sec.gov.
The documents filed by Synopsys with the SEC also
may be obtained free of charge at Synopsys’ website at
https://investor.synopsys.com/overview/default.aspx or upon
written request to Synopsys at Synopsys, Inc., 675 Almanor Avenue,
Sunnyvale, California 94085, Attention: Investor Relations
Department. The documents filed by Ansys with the SEC also may be
obtained free of charge at Ansys’ website at
https://investors.ansys.com/ or upon written request to
kelsey.debriyn@ansys.com.
Participants in Solicitation
Synopsys, Ansys and their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from Ansys’ shareholders in connection with
the proposed transaction.
Information about Ansys’ directors and executive
officers and their ownership of Ansys’ common stock is set forth in
Ansys’ proxy statement for its 2023 Annual Meeting of Shareholders
on Schedule 14A filed with the SEC on March 28, 2023. To the extent
that holdings of Ansys’ securities have changed since the amounts
printed in Ansys’ proxy statement, such changes have been or will
be reflected on Statements of Change in Ownership on Form 4 filed
with the SEC. Information about Synopsys’ directors and executive
officers is set forth in Synopsys’ proxy statement for its 2023
Annual Meeting of Shareholders on Schedule 14A filed with the SEC
on February 17, 2023 and Synopsys’ subsequent filings with the SEC.
Additional information regarding the direct and indirect interests
of those persons and other persons who may be deemed participants
in the proposed transaction may be obtained by reading the proxy
statement/prospectus regarding the proposed transaction when it
becomes available. You may obtain free copies of these documents as
described in the preceding paragraph.
No Offer or Solicitation
This document is for informational purposes only
and is not intended to and shall not constitute an offer to buy or
sell or the solicitation of an offer to buy or sell any securities,
or a solicitation of any vote or approval, nor shall there be any
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made, except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended.
Ansys and any and all ANSYS, Inc. brand,
product, service and feature names, logos and slogans are
registered trademarks or trademarks of ANSYS, Inc. or its
subsidiaries in the United States or other countries. All
other brand, product, service and feature names or trademarks are
the property of their respective owners.
Visit https://investors.ansys.com for more
information.
ANSS-F
Contact: |
|
|
Investors: |
|
Kelsey DeBriyn |
|
|
724.820.3927 |
|
|
kelsey.debriyn@ansys.com |
Media: |
|
Mary Kate Joyce |
|
|
724.820.4368 |
|
|
marykate.joyce@ansys.com |
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/f50aa615-1229-41e3-ace7-52f5f3695bda
https://www.globenewswire.com/NewsRoom/AttachmentNg/8536c3b4-9a75-4aac-92d8-4b1c361b784c
https://www.globenewswire.com/NewsRoom/AttachmentNg/a0082ecc-30a9-4a7b-a141-20338c843539
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