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ANSYS Inc (ANSS - Free Report) reported second-quarter 2023 earnings of $1.60 per share, beating the Zacks Consensus Estimate by 7.4%. The bottom line declined 9.6% year over year.
Non-GAAP revenues of $496.6 million surpassed the Zacks Consensus Estimate by 1.1%. The top line increased 4% (up 5% at constant currency or cc) from the year-ago quarter.
The company’s solutions continue to witness strong demand in the high-tech, aerospace and automotive sectors. Deferred revenues and backlogs were $1.296 billion, up 9.9% year over year.
Subscription lease revenues (27.2% of non-GAAP revenues) rose 1.1% at cc to $135 million. Perpetual licenses revenues (14.1%) fell 4.9% year over year at cc to $69.9 million.
Maintenance revenues (55.1%) climbed 10.2% at cc to $273.7 million. Service revenues (3.6%) were up 4.3% year over year to $18 million.
Direct and indirect channels contributed 71.2% and 28.8%, respectively, to non-GAAP revenues.
Annual contract value or ACV grew 6% year over year (up 7% at cc) to $488.3 million. Our model estimate for ACV for the second quarter was pegged at $487 million.
On a geographic basis, non-GAAP revenues from the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 44.4%, 25.4% and 30.2% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were up 12% to $220.4 million at cc. EMEA revenues inched up 0.6% to $126.3 million at cc. Revenues from the Asia-Pacific decreased 0.1% to $150 million at cc.
Operating Details
Non-GAAP gross margin was unchanged on a year-over-year basis at 91%.
Total operating expenses gained 17.4% year over year to $332.6 million due to higher research and development, and selling, general and administrative expenses.
Non-GAAP operating margin contracted 430 bps on a year-over-year basis to 36.4%.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and short-term investments amounted to $478 million compared with $507.8 million as of Mar 31, 2023.
As of Jun 30, 2023, the company’s long-term debt was $753.7 million compared with $753.6 million as of Mar 31, 2023.
In the quarter under review, cash from operations came in at $62.9 million compared with $118.9 million reported in the prior-year quarter.
In the quarter under discussion, the company did not repurchase shares. As of Jun 30, 2023, ANSS had 1.1 million shares remaining under its share buyback program.
Guidance
For third-quarter 2023, ANSYS expects non-GAAP earnings in the range of $1.18-$1.31 per share.
Non-GAAP revenues are anticipated to be between $453.7 million and $473.7 million. Management projects non-GAAP operating margin in the 29.6-31.3% band.
For 2023, ANSYS projects non-GAAP revenues in the range of $2,257-$2,327 million. Management suggests non-GAAP operating margin to be between 41% and 42%.
Non-GAAP earnings are envisioned in the range of $8.39-$8.88 per share compared with the previous guidance of $8.39-$8.91.
ACV is estimated to be between $2,275 million and $2,340 million. Operating cash flow is projected in the $699-$749 million band for 2023.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 4.8% in the past 60 days to $2.82 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 69% in the past year.
The consensus mark for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.5%. Shares of CRM have grown 15.3% in the past year.
The consensus estimate for Autodesk’s fiscal 2024 earnings of $7.25 per share remained flat in the past 60 days. The long-term earnings growth rate is anticipated to be 24.3%.
ADSK’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 2.1%. Shares of ADSK have declined 6.8% in the past year.
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ANSYS (ANSS) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
ANSYS Inc (ANSS - Free Report) reported second-quarter 2023 earnings of $1.60 per share, beating the Zacks Consensus Estimate by 7.4%. The bottom line declined 9.6% year over year.
Non-GAAP revenues of $496.6 million surpassed the Zacks Consensus Estimate by 1.1%. The top line increased 4% (up 5% at constant currency or cc) from the year-ago quarter.
The company’s solutions continue to witness strong demand in the high-tech, aerospace and automotive sectors. Deferred revenues and backlogs were $1.296 billion, up 9.9% year over year.
ANSYS, Inc. Price, Consensus and EPS Surprise
ANSYS, Inc. price-consensus-eps-surprise-chart | ANSYS, Inc. Quote
Quarter in Detail
Subscription lease revenues (27.2% of non-GAAP revenues) rose 1.1% at cc to $135 million. Perpetual licenses revenues (14.1%) fell 4.9% year over year at cc to $69.9 million.
Maintenance revenues (55.1%) climbed 10.2% at cc to $273.7 million. Service revenues (3.6%) were up 4.3% year over year to $18 million.
Direct and indirect channels contributed 71.2% and 28.8%, respectively, to non-GAAP revenues.
Annual contract value or ACV grew 6% year over year (up 7% at cc) to $488.3 million. Our model estimate for ACV for the second quarter was pegged at $487 million.
On a geographic basis, non-GAAP revenues from the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 44.4%, 25.4% and 30.2% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were up 12% to $220.4 million at cc. EMEA revenues inched up 0.6% to $126.3 million at cc. Revenues from the Asia-Pacific decreased 0.1% to $150 million at cc.
Operating Details
Non-GAAP gross margin was unchanged on a year-over-year basis at 91%.
Total operating expenses gained 17.4% year over year to $332.6 million due to higher research and development, and selling, general and administrative expenses.
Non-GAAP operating margin contracted 430 bps on a year-over-year basis to 36.4%.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and short-term investments amounted to $478 million compared with $507.8 million as of Mar 31, 2023.
As of Jun 30, 2023, the company’s long-term debt was $753.7 million compared with $753.6 million as of Mar 31, 2023.
In the quarter under review, cash from operations came in at $62.9 million compared with $118.9 million reported in the prior-year quarter.
In the quarter under discussion, the company did not repurchase shares. As of Jun 30, 2023, ANSS had 1.1 million shares remaining under its share buyback program.
Guidance
For third-quarter 2023, ANSYS expects non-GAAP earnings in the range of $1.18-$1.31 per share.
Non-GAAP revenues are anticipated to be between $453.7 million and $473.7 million. Management projects non-GAAP operating margin in the 29.6-31.3% band.
For 2023, ANSYS projects non-GAAP revenues in the range of $2,257-$2,327 million. Management suggests non-GAAP operating margin to be between 41% and 42%.
Non-GAAP earnings are envisioned in the range of $8.39-$8.88 per share compared with the previous guidance of $8.39-$8.91.
ACV is estimated to be between $2,275 million and $2,340 million. Operating cash flow is projected in the $699-$749 million band for 2023.
Zacks Rank
ANSYS currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Autodesk (ADSK - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) while each of Salesforce and Autodesk carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 4.8% in the past 60 days to $2.82 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 69% in the past year.
The consensus mark for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.5%. Shares of CRM have grown 15.3% in the past year.
The consensus estimate for Autodesk’s fiscal 2024 earnings of $7.25 per share remained flat in the past 60 days. The long-term earnings growth rate is anticipated to be 24.3%.
ADSK’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 2.1%. Shares of ADSK have declined 6.8% in the past year.