ANSYS, Inc.
CEO : Dr. Ajei S. Gopal Ph.D.
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q2 | 4.8% YoY | -25.3% | -29.8% | 2023-08-03 |
Ajei Gopal says,
Strong Q2 Performance and Raised Guidance
- ANSYS beat its guidance across all key metrics in Q2 2023.
- Double-digit growth in ACV and revenue for the first half of 2023.
- Broad-based growth across industries, geographies, and customer types.
- Full year guidance for ACV and revenue has been raised.
Key Contributors and Contracts
- Top three contributors by industry in Q2 were high-tech and semiconductors, aerospace and defense, and automotive and ground transportation.
- A four-year 8-figure agreement with a multinational industrial company based in Japan was one of the largest contracts of the quarter.
- A nearly $57 million multiyear agreement with a global aerospace and defense company based in the United States reflects significant growth.
- A key contract in Q2 was with a Space 2.0 leader, leveraging the full ANSYS portfolio.
ANYSYS Solutions Driving Sustainability in Aerospace
- ANSYS solutions are helping aerospace companies drive sustainability and achieve net 0 carbon emissions by 2050.
- Simulation is playing a key role in the industry transformation of commercial aircraft.
- Customers are using ANSYS solutions to explore alternative fuels, boost aircraft efficiency, and design biomimetic coatings.
- Automation technology and AI-based software are being integrated to optimize the development of autonomous air mobility systems.
Simulation in the Space Sector
- Simulation is critical for space-related companies due to the unforgiving environment and the inability to perform physical testing.
- Micro satellites are being used for certain missions, and ANSYS customers are leveraging simulation to optimize their designs.
- An agreement was reached with a long-time Space 2.0 customer for synthetic aperture radar coverage through small satellite constellations.
- ANSYS technology is being used to design and operate lunar landers for space exploration.
Partnership Activities
- Intel Foundry Services has certified ANSYS semiconductor solutions for power integrity sign-off verification.
- The partnership with Samsung Foundry has been expanded, with ANSYS solutions certified for heterogeneous multi-die packaging technologies and Samsung’s 2-nanometer silicon process technology.
- The partnership with Synopsys includes a new reference flow for Samsung’s 14 LPU technology.
- The collaboration with PTC focuses on integrated materials management and sustainability workflows.
ESG Initiatives and Recognition
- ANSYS has been named to USA TODAY’s inaugural list of America’s climate leaders for achieving the greatest reduction in core emissions intensity.
- ANSYS has been named to Newsweek’s list of most loved global workplaces, ranking 27th globally.
Nicole Anasenes says,
ACV and Revenue
- ACV for Q2 was $488.3 million, growing 6% YoY or 7% in constant currency.
- ACV from recurring sources grew 13% or 17% in constant currency on a trailing 12-month basis, representing 82% of the total.
- Q2 total revenue was $496.6 million, growing 4% or 5% in constant currency.
- Year-to-date, ACV and revenue both grew double digits in constant currency at 12% and 13% respectively.
Operating Margin and EPS
- Q2 operating margin was 36.4%, exceeding guidance, driven by outperformance on revenue and the mix of license types sold.
- Q2 EPS was $1.60, better than guidance, also benefiting from strong revenue results and timing of expenses.
Guidance for 2023
- ACV outlook raised to a range of $2.275 billion to $2.340 billion, representing growth of 12% to 15.2% or 11.4% to 14.6% in constant currency.
- Revenue outlook raised to a range of $2.257 billion to $2.327 billion, representing growth of 8.9% to 12.3% or 8.5% to 11.9% in constant currency.
- EPS expected to be in the range of $8.39 to $8.88.
Unlevered Operating Cash Flow
- Q2 unlevered operating cash flow was $72.1 million, in line with expectations.
- Full year 2023 guidance for unlevered operating cash flow is a range of $699 million to $749 million.
Q3 Guidance
- Q3 ACV expected in the range of $460.5 million to $480.5 million, with 13% constant currency growth.
- Q3 revenue expected in the range of $453.7 million to $473.7 million.
- Q3 operating margin expected in the range of 29.6% to 31.3%.
- Q3 EPS expected in the range of $1.18 to $1.31.
Q & A sessions,
AI investments
- Investing in AI to improve products and user experience of ANSYS tools
- Continued focus on AI and making simulation easier to use
- Recent introduction of ANSYS GPT virtual support technology based on AI
- Example of AI capabilities reducing simulation time by 1,000x for a European automaker
Aerospace market
- Aerospace industry going through a transition with discussions on different takeoff modalities and propulsion
- Many small companies in the aerospace supply chain are designing technology and potentially ANSYS customers
- ANSYS has technologies like mission engineering to support aerospace companies’ transformation
Impact of AI on end markets
- High-tech and semiconductor industry leading the way in adopting AI techniques
- ANSYS technologies help customers in high-tech market with physical design limits and mixed signal power integrity
- Other industries like aerospace and automotive have longer design cycles but will eventually incorporate more AI techniques, driving simulation intensity
Simulation in advanced chip designs
- Simulation necessary for sign off at advanced process nodes, providing a tailwind for ANSYS
- Next-generation silicon designs like 3D ICs introduce multiscale and multiphysics challenges
- ANSYS technologies can handle challenges of multiscale and multiphysics in chip design
Role of ANSYS in semiconductor industry
- Historically strong portfolio in power integrity and thermal effects
- Excited about product capabilities and certifications at advanced process nodes
No bad stock 