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Aspen (AZPN) Q1 Earnings Miss Estimates, Revenues Down Y/Y
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Aspen Technology (AZPN - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $1.16, which missed the Zacks Consensus Estimate of $1.41. AZPN reported non-GAAP EPS of $2.20 in the year-ago quarter.
Revenues of $249.3 million lagged the Zacks Consensus Estimate by 3.5%. The company reported revenues of $250.8 million in the prior-year quarter. The year-over-year decline was due to weakness in the License and solutions business segment.
Aspen Technology, Inc. Price, Consensus and EPS Surprise
License’s revenues (59.5% of revenues) were down 7.2% year over year to $148.6 million.
Maintenance’s revenues (34.1%) rose 8.4% year over year to $84.9 million.
Revenues from Services and other (6.4%) increased 28.3% from the year-ago quarter’s figure to $15.6 million.
The Zacks Consensus Estimate for fiscal first-quarter revenues for the License, Maintenance and Services segments was pegged at $161 million, $84 million and $13.87 million, respectively.
As of Sep 30, 2023, the annual spend (which Aspen Technology defines as the annualized value of all term license and maintenance contracts at the quarter end other than Open Systems International and Subsurface Science and Engineering) totaled $897.6 million, up 10.9% year over year and 1.4% quarter over quarter.
Margins
Gross profit decreased to $151.2 million from the year-ago quarter’s $159.6 million. As a percentage of total revenues, the figure reached 60.1% from 63.7% reported in the prior-year quarter.
Total operating expenses amounted to $211.4 million from the year-ago quarter’s $210.8 million due to higher selling, marketing, and research and development costs.
Non-GAAP operating income totaled $77.8 million compared with $92.6 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents were $120.5 million compared with $241.2 million as of Jun 30, 2023.
The company generated $17 million in cash from operations compared with $5.1 million reported in the previous quarter. Non-GAAP free cash flow was $16 million in the fiscal first quarter.
Fiscal 2024 View
For fiscal 2024, Aspen expects revenues to be at least $1.12 billion. The Zacks Consensus Estimate is pegged at $1.12 billion.
Non-GAAP net income is anticipated to be at least $6.57 per share. The consensus estimate is pegged at $6.58 per share.
Management projects Annual Contract Value growth to be at least 11.5% year over year and total bookings to be at least $1.04 billion.
Non-GAAP operating income is estimated to be at least $445 million, while non-GAAP total expenses are expected to be nearly $675 million.
Free cash flow is projected to be at least $360 million.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 27.5% in the past year.
The Zacks Consensus Estimate for Flex’s 2024 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 35.4% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has increased 7.5% in the past 60 days to $3.60.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 24.1% in the past year.
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Aspen (AZPN) Q1 Earnings Miss Estimates, Revenues Down Y/Y
Aspen Technology (AZPN - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $1.16, which missed the Zacks Consensus Estimate of $1.41. AZPN reported non-GAAP EPS of $2.20 in the year-ago quarter.
Revenues of $249.3 million lagged the Zacks Consensus Estimate by 3.5%. The company reported revenues of $250.8 million in the prior-year quarter. The year-over-year decline was due to weakness in the License and solutions business segment.
Aspen Technology, Inc. Price, Consensus and EPS Surprise
Aspen Technology, Inc. price-consensus-eps-surprise-chart | Aspen Technology, Inc. Quote
Quarter in Detail
License’s revenues (59.5% of revenues) were down 7.2% year over year to $148.6 million.
Maintenance’s revenues (34.1%) rose 8.4% year over year to $84.9 million.
Revenues from Services and other (6.4%) increased 28.3% from the year-ago quarter’s figure to $15.6 million.
The Zacks Consensus Estimate for fiscal first-quarter revenues for the License, Maintenance and Services segments was pegged at $161 million, $84 million and $13.87 million, respectively.
As of Sep 30, 2023, the annual spend (which Aspen Technology defines as the annualized value of all term license and maintenance contracts at the quarter end other than Open Systems International and Subsurface Science and Engineering) totaled $897.6 million, up 10.9% year over year and 1.4% quarter over quarter.
Margins
Gross profit decreased to $151.2 million from the year-ago quarter’s $159.6 million. As a percentage of total revenues, the figure reached 60.1% from 63.7% reported in the prior-year quarter.
Total operating expenses amounted to $211.4 million from the year-ago quarter’s $210.8 million due to higher selling, marketing, and research and development costs.
Non-GAAP operating income totaled $77.8 million compared with $92.6 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents were $120.5 million compared with $241.2 million as of Jun 30, 2023.
The company generated $17 million in cash from operations compared with $5.1 million reported in the previous quarter. Non-GAAP free cash flow was $16 million in the fiscal first quarter.
Fiscal 2024 View
For fiscal 2024, Aspen expects revenues to be at least $1.12 billion. The Zacks Consensus Estimate is pegged at $1.12 billion.
Non-GAAP net income is anticipated to be at least $6.57 per share. The consensus estimate is pegged at $6.58 per share.
Management projects Annual Contract Value growth to be at least 11.5% year over year and total bookings to be at least $1.04 billion.
Non-GAAP operating income is estimated to be at least $445 million, while non-GAAP total expenses are expected to be nearly $675 million.
Free cash flow is projected to be at least $360 million.
Zacks Rank
Aspen currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the broader technology space are Asure Software (ASUR - Free Report) , Flex (FLEX - Free Report) and Wix.com (WIX - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 27.5% in the past year.
The Zacks Consensus Estimate for Flex’s 2024 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 35.4% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has increased 7.5% in the past 60 days to $3.60.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 24.1% in the past year.