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ANSYS Inc (ANSS - Free Report) reported second-quarter 2024 earnings of $2.50 per share, beating the Zacks Consensus Estimate by 28.9%. The bottom line increased 56.3% year over year.
Revenues of $594.1 million beat the Zacks Consensus Estimate by 7.9%. The top line rose 20% (up 22% at constant currency or cc) year over year. This revenue growth was driven by two major multi-year contracts worth $210 million, secured in the automotive and high-tech industries during the quarter in the Americas region.
In January 2024, Ansys and Synopsys announced a definitive agreement, per which the latter will acquire ANSS. The terms of the agreement outline that ANSS’ shareholders will receive $197 in cash, along with 0.3450 shares of Synopsys common stock for each Ansys share.
This deal, valued at approximately $35 billion, is anticipated to close in the first half of 2025. During the quarter ended Jun 30, 2024, the transaction was approved by Ansys shareholders.
Given the pending acquisition, Ansys has suspended quarterly earnings conference calls and no longer provides a financial outlook. It expects double-digit ACV and revenue growth in the second half of the year and expects 2024 ACV to grow in double-digits.
Quarter in Detail
Subscription lease revenues (36.8% of total revenues) were up 64.4% year over year at cc to $218.6 million. Perpetual licenses revenues (10.9%) declined 6% at cc to $64.6 million.
Maintenance revenues (49.5%) climbed 9.3% year over year at cc to $293.8 million. Service revenues (2.9%) were down 4.5% at cc to $17.1 million.
Direct and indirect channels contributed 76% and 24%, respectively, to total revenues. ACV grew 6.6% year over year (up 9.3% at cc) to $520.5 million.
On a regional basis, the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 54.6%, 22% and 23.4% to revenues, respectively.
Revenues from the Americas were up 47.3% year over year at cc to $324.4 million. EMEA revenues were up 4.4% at cc to $130.8 million. Revenues from the Asia-Pacific decreased 1.6% at cc to $138.9 million.
Total deferred revenues and backlog was $1,394.0 million, up 7.6% year over year.
Operating Details
Non-GAAP gross margin was up 170 basis points (bps) on a year-over-year basis to 92.7%.
Total operating expenses jumped 10.4% year over year to $367.4 million, primarily due to increased acquisition and personnel costs.
Non-GAAP operating margin increased 850 bps on a year-over-year basis to 44.9%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and short-term investments amounted to $1119.3 million compared with $1070.6 million as of Mar 31, 2024.
As of Jun 30, 2024, the company’s long-term debt was $754 million, unchanged from Mar 31, 2024.
In the quarter under review, cash from operations came in at $80.7 million compared with $62.9 million in the prior-year quarter.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. Its shares have risen 26.2% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.3% in the past 60 days to $7.94. ANET’s long-term earnings growth rate is 16.1%. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 15.02%. Shares of ANET have gained 95.4% in the past year.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP’s long-term earnings growth rate is 10.7%. The company recently reported results for the second quarter of 2024, wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s level. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million) rose 10% year over year both at nominal and cc basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 58.8% in the past year.
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ANSYS (ANSS) Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
ANSYS Inc (ANSS - Free Report) reported second-quarter 2024 earnings of $2.50 per share, beating the Zacks Consensus Estimate by 28.9%. The bottom line increased 56.3% year over year.
Revenues of $594.1 million beat the Zacks Consensus Estimate by 7.9%. The top line rose 20% (up 22% at constant currency or cc) year over year. This revenue growth was driven by two major multi-year contracts worth $210 million, secured in the automotive and high-tech industries during the quarter in the Americas region.
In January 2024, Ansys and Synopsys announced a definitive agreement, per which the latter will acquire ANSS. The terms of the agreement outline that ANSS’ shareholders will receive $197 in cash, along with 0.3450 shares of Synopsys common stock for each Ansys share.
This deal, valued at approximately $35 billion, is anticipated to close in the first half of 2025. During the quarter ended Jun 30, 2024, the transaction was approved by Ansys shareholders.
ANSYS, Inc. Price, Consensus and EPS Surprise
ANSYS, Inc. price-consensus-eps-surprise-chart | ANSYS, Inc. Quote
Given the pending acquisition, Ansys has suspended quarterly earnings conference calls and no longer provides a financial outlook. It expects double-digit ACV and revenue growth in the second half of the year and expects 2024 ACV to grow in double-digits.
Quarter in Detail
Subscription lease revenues (36.8% of total revenues) were up 64.4% year over year at cc to $218.6 million. Perpetual licenses revenues (10.9%) declined 6% at cc to $64.6 million.
Maintenance revenues (49.5%) climbed 9.3% year over year at cc to $293.8 million. Service revenues (2.9%) were down 4.5% at cc to $17.1 million.
Direct and indirect channels contributed 76% and 24%, respectively, to total revenues.
ACV grew 6.6% year over year (up 9.3% at cc) to $520.5 million.
On a regional basis, the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 54.6%, 22% and 23.4% to revenues, respectively.
Revenues from the Americas were up 47.3% year over year at cc to $324.4 million. EMEA revenues were up 4.4% at cc to $130.8 million. Revenues from the Asia-Pacific decreased 1.6% at cc to $138.9 million.
Total deferred revenues and backlog was $1,394.0 million, up 7.6% year over year.
Operating Details
Non-GAAP gross margin was up 170 basis points (bps) on a year-over-year basis to 92.7%.
Total operating expenses jumped 10.4% year over year to $367.4 million, primarily due to increased acquisition and personnel costs.
Non-GAAP operating margin increased 850 bps on a year-over-year basis to 44.9%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and short-term investments amounted to $1119.3 million compared with $1070.6 million as of Mar 31, 2024.
As of Jun 30, 2024, the company’s long-term debt was $754 million, unchanged from Mar 31, 2024.
In the quarter under review, cash from operations came in at $80.7 million compared with $62.9 million in the prior-year quarter.
Zacks Rank
ANSS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Badger Meter, Inc. (BMI - Free Report) , SAP SE (SAP - Free Report) and Arista Networks, Inc. (ANET - Free Report) . BMI presently sports a Zacks Rank #1 (Strong Buy), whereas SAP & ANET both carry 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 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. Its shares have risen 26.2% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.3% in the past 60 days to $7.94. ANET’s long-term earnings growth rate is 16.1%. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 15.02%. Shares of ANET have gained 95.4% in the past year.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP’s long-term earnings growth rate is 10.7%. The company recently reported results for the second quarter of 2024, wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s level. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million) rose 10% year over year both at nominal and cc basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 58.8% in the past year.