ANSYS (ANSS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 31.2% year-over-year to $601.9 million, driven by strong growth in subscription lease licenses and maintenance revenue.

• Net income for Q3 2024 was $128.2 million, up 131% year-over-year, with diluted EPS rising to $1.46 from $0.64.

• Annual Contract Value (ACV) for Q3 2024 grew 18.1% year-over-year to $540.5 million.

• The pending Synopsys acquisition is expected to close in the first half of 2025, with regulatory approvals nearly complete.

• Deferred revenue and backlog as of September 30, 2024: $1.46 billion.

Financial highlights

• Q3 2024 total revenue: $601.9 million, up 31.2% year-over-year; nine-month revenue: $1.66 billion, up 13.5%.

• Q3 2024 operating income: $161.5 million, up 131.4% year-over-year; nine-month operating income: $362.3 million, up 23.6%.

• Q3 2024 gross profit margin: 88.5% (GAAP), 92.8% (non-GAAP); nine-month gross profit margin: 87.5%.

• Q3 2024 diluted EPS: $1.46 (GAAP), $2.58 (non-GAAP); nine-month diluted EPS: $3.34.

• Cash, cash equivalents, and short-term investments totaled $1.30 billion as of September 30, 2024.

Outlook and guidance

• Synopsys acquisition expected to close in H1 2025, with continued investment in product development and global expansion.

• Management highlights strong demand in core industries and ongoing focus on expanding the multiphysics portfolio and cloud capabilities.