ANSYS (ANSS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $594.1 million, up 19.6% year-over-year, driven by strong growth in subscription lease licenses and maintenance revenue.

• Net income for Q2 2024 was $130.0 million, up 87% year-over-year; diluted EPS rose to $1.48 GAAP and $2.50 non-GAAP.

• Operating income for Q2 2024 grew 64.6% year-over-year to $157.4 million, with a gross margin of 88.3% GAAP and 92.7% non-GAAP.

• Annual contract value (ACV) for Q2 2024 was $533.7 million, up 9.3% year-over-year; trailing twelve-month recurring ACV reached $1.99 billion.

• Ansys stockholders approved the pending acquisition by Synopsys, expected to close in the first half of 2025.

Financial highlights

• Six-month 2024 revenue rose 5.4% year-over-year to $1.06 billion; net income was $164.8 million, down from $170.1 million in the prior year.

• Q2 2024 subscription lease license revenue increased 61.9% year-over-year, now 36.8% of total revenue; perpetual license revenue declined 7.5%.

• Maintenance revenue for Q2 2024 grew 7.4% year-over-year, while service revenue declined 5.2%.

• Operating expenses rose due to higher acquisition costs (related to the Synopsys merger), increased personnel, and stock-based compensation.

• Cash, cash equivalents, and short-term investments totaled $1.12 billion as of June 30, 2024, up 30.1% from year-end 2023.

Outlook and guidance

• Double-digit ACV and revenue growth expected in the second half of 2024; full-year ACV also expected to grow double-digit.

• The Synopsys acquisition is anticipated to close in the first half of 2025, pending regulatory approvals.

• Fiscal year results are emphasized over quarterly results due to revenue volatility from multi-year contracts and license mix.