ANSYS, Inc. (ANSS) Bundle
A Brief History of ANSYS, Inc.
ANSYS, Inc., a global leader in engineering simulation software, has seen significant growth and transformation over the years. As of 2024, the company continues to innovate and expand its product offerings, catering to industries such as aerospace, automotive, and high-tech.
Financial Performance
For the nine months ended September 30, 2024, ANSYS reported total revenue of $1.66 billion, a 13.5% increase compared to $1.46 billion in the same period of 2023. This growth was driven by a substantial increase in subscription lease license revenue, which rose by 31.4% to $507.7 million.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $601.9 million | $458.8 million | 31.2% |
| Net Income | $128.2 million | $55.5 million | 130.0% |
| Diluted EPS | $1.46 | $0.64 | 128.1% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was composed of the following:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Subscription Lease Licenses | $507,711 | $386,494 | 31.4% |
| Perpetual Licenses | $212,790 | $199,977 | 6.4% |
| Maintenance Revenue | $889,836 | $820,393 | 8.5% |
| Service Revenue | $52,298 | $57,977 | (9.8%) |
Operating Expenses
Operating expenses increased for the nine months ended September 30, 2024, totaling $1.09 billion, compared to $970.5 million in 2023, reflecting an increase of 12.6%.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Selling, General and Administrative | $681,331 | $585,278 | 16.4% |
| Research and Development | $393,755 | $368,581 | 6.8% |
Debt and Cash Flow
As of September 30, 2024, ANSYS had $755 million in borrowings outstanding under its term loan, with no borrowings under the revolving loan facility. Interest expense for the nine months ended September 30, 2024 was $36.9 million.
Net cash used in financing activities for the nine months ended September 30, 2024 was ($76.5 million), a decrease of 67.1% compared to ($232.6 million) in 2023, primarily due to reduced stock repurchases.
Market Trends and Future Outlook
ANSYS continues to experience strong demand for its simulation software, particularly in high-growth sectors such as electric vehicles and aerospace. The company is well-positioned to capitalize on trends toward digital transformation and sustainability in engineering.
As of September 30, 2024, ANSYS' total backlog was $1.01 billion, with deferred revenue of $451.3 million, indicating a robust pipeline for future growth.
A Who Owns ANSYS, Inc. (ANSS)
Ownership Structure
As of 2024, ANSYS, Inc. (NASDAQ: ANSS) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Ownership (%) | Number of Shares (in millions) |
|---|---|---|
| Institutional Investors | 85.3 | 81.2 |
| Insider Ownership | 3.2 | 3.1 |
| Retail Investors | 11.5 | 11.1 |
Major Institutional Investors
The following table lists the top institutional investors in ANSYS, Inc. as of 2024:
| Institution | Ownership (%) | Number of Shares (in millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.9 | 8.5 |
| BlackRock, Inc. | 7.2 | 6.9 |
| State Street Corporation | 5.5 | 5.3 |
| FMR LLC (Fidelity) | 4.8 | 4.6 |
| Invesco Ltd. | 3.1 | 3.0 |
Insider Ownership
Insider ownership is relatively low, with key executives and board members holding a combined total of 3.2% of the company's shares. The following details the major insiders:
| Name | Position | Ownership (%) | Number of Shares (in thousands) |
|---|---|---|---|
| Ajay Gupta | CEO | 0.5 | 475 |
| Prith Banerjee | CTO | 0.4 | 382 |
| Other Executives | Various | 2.3 | 2,300 |
Stock Performance
As of September 30, 2024, ANSYS, Inc.'s stock price was approximately $310.50 per share, reflecting a year-to-date increase of 18.7%. The market capitalization stood at approximately $29.2 billion.
Recent Financial Highlights
- Revenue for the third quarter of 2024 was $601.9 million, a 31.2% increase year-over-year.
- Net income for the same quarter was $128.2 million, resulting in a diluted earnings per share (EPS) of $1.46.
- Operating income for Q3 2024 was reported at $161.5 million, representing a 131.4% increase compared to the previous year.
Market Trends
ANSYS continues to experience robust demand across its core industries, particularly in aerospace, automotive, and high-tech sectors. The company is strategically positioned to benefit from the increasing adoption of simulation software in various applications, driving future growth.
As of September 30, 2024, the following table outlines the revenue breakdown by geographic region:
| Region | Revenue (in millions) | Percentage of Total Revenue (%) |
|---|---|---|
| United States | 292.4 | 48.6 |
| Europe, Middle East, Africa (EMEA) | 150.3 | 24.9 |
| Asia-Pacific | 159.2 | 26.5 |
ANSYS, Inc. (ANSS) Mission Statement
Current Mission Statement
As of 2024, ANSYS, Inc. is dedicated to empowering innovators by providing the best engineering simulation software to the world. Their mission is to enable organizations to design and deliver the world's best products through simulation, which allows them to innovate and achieve their business objectives with greater efficiency and effectiveness.
Financial Overview
In the third quarter of 2024, ANSYS reported total revenue of $601.9 million, marking a 31.2% increase compared to the same quarter in 2023. This growth is attributed to strong demand for subscription lease licenses, which surged by 87.6% year-over-year, reflecting the company's commitment to enhancing customer value through innovative solutions.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $601.9 million | $458.8 million | 31.2% |
| Subscription Lease Licenses Revenue | $194.3 million | $103.6 million | 87.6% |
| Perpetual Licenses Revenue | $82.6 million | $58.8 million | 40.4% |
| Maintenance Revenue | $306.7 million | $278.1 million | 10.3% |
Key Business Metrics
ANSYS utilizes various key performance metrics to assess its operational efficiency and business growth. One such metric is the Annual Contract Value (ACV), which for the three months ended September 30, 2024, was reported at $540.5 million, reflecting an 18.1% increase from the previous year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Annual Contract Value (ACV) | $540.5 million | $457.5 million | 18.1% |
Market Position and Strategy
ANSYS is strategically positioned in the engineering simulation software market, focusing on sectors such as aerospace, automotive, and high-tech. The company has been investing significantly in research and development, with R&D expenses amounting to $132.3 million in Q3 2024, representing 22% of total revenue. This investment underlines their commitment to innovation and maintaining competitive advantage.
International Revenue Breakdown
The company’s revenue is diversified geographically, with international revenue constituting 51.4% of total revenue in Q3 2024, compared to 55.4% in Q3 2023. This shift indicates a growing domestic market presence, which accounted for 48.6% of total revenue in Q3 2024.
| Region | Q3 2024 Revenue (%) | Q3 2023 Revenue (%) |
|---|---|---|
| International | 51.4% | 55.4% |
| Domestic | 48.6% | 44.6% |
Conclusion of Financial Performance
For the nine months ended September 30, 2024, ANSYS reported a net income of $293.0 million, with diluted earnings per share of $3.34, up from $2.58 in the same period of 2023, reflecting a strong operational performance and effective cost management.
| Financial Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Net Income | $293.0 million | $225.7 million | 30.0% |
| Diluted EPS | $3.34 | $2.58 | 29.5% |
How ANSYS, Inc. (ANSS) Works
Business Overview
ANSYS, Inc. develops and markets engineering simulation software and services used across various industries such as aerospace, automotive, energy, and healthcare. The company operates as a single segment with a focus on providing comprehensive simulation solutions that integrate multiple technologies.
Revenue Streams
ANSYS generates revenue primarily through software licenses, maintenance, and services. The following table summarizes the revenue breakdown for the three and nine months ended September 30, 2024 and 2023:
| Revenue Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Subscription Lease Licenses | $194,322 | $103,573 | $507,711 | $386,494 |
| Perpetual Licenses | $82,626 | $58,849 | $212,790 | $199,977 |
| Software Licenses | $276,948 | $162,422 | $720,501 | $586,471 |
| Maintenance | $306,670 | $278,108 | $889,836 | $820,393 |
| Service | $18,274 | $18,265 | $52,298 | $57,977 |
| Total Revenue | $601,892 | $458,795 | $1,662,635 | $1,464,841 |
Financial Performance
For the nine months ended September 30, 2024, ANSYS reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Gross Profit | $1,455,504 | $1,263,592 |
| Operating Income | $362,293 | $293,135 |
| Net Income | $293,004 | $225,650 |
| EPS - Diluted | $3.34 | $2.58 |
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Selling, General and Administrative | $681,331 | $585,278 |
| Research and Development | $393,755 | $368,581 |
| Total Operating Expenses | $1,093,211 | $970,457 |
Cash Flow and Financial Position
As of September 30, 2024, ANSYS reported cash and cash equivalents of $1,246,057,000, an increase from $639,342,000 reported at the end of September 2023. The company had $755.0 million in borrowings under a term loan with no outstanding borrowings under its revolving loan facility.
Deferred Revenue and Backlog
The deferred revenue and backlog as of September 30, 2024, were as follows:
| Type | Current (in thousands) | Long-Term (in thousands) |
|---|---|---|
| Deferred Revenue | $427,188 | $24,150 |
| Backlog | $475,604 | $536,855 |
Stock Performance
As of September 30, 2024, ANSYS had 95,267,000 shares outstanding. The company did not conduct any share repurchases in 2024, with 1.1 million shares remaining available for repurchase under its stock repurchase program.
Geographic Revenue Distribution
Revenue by geographic area for the three months ended September 30, 2024, is detailed below:
| Geographic Area | Revenue (in thousands) |
|---|---|
| United States | $292,364 |
| Japan | $46,737 |
| Germany | $38,717 |
| China and Hong Kong | $34,516 |
| South Korea | $29,193 |
| Other EMEA | $98,303 |
| Other International | $62,062 |
| Total Revenue | $601,892 |
Impact of Currency Fluctuations
For the three months ended September 30, 2024, the impact of currency fluctuations on revenue was a net increase of $133,000, while the nine-month impact was a decrease of $13,576,000, reflecting the fluctuations of the U.S. Dollar against foreign currencies.
How ANSYS, Inc. (ANSS) Makes Money
Revenue Streams
ANSYS generates revenue primarily through the following streams:
- Subscription lease licenses
- Perpetual licenses
- Maintenance services
- Software licenses
- Consulting services
Revenue Breakdown
For the nine months ended September 30, 2024, ANSYS reported total revenue of $1,662,635,000, reflecting a 13.5% increase compared to the same period in 2023. The breakdown of revenue is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Subscription lease licenses | $507,711 | $386,494 | 31.4% |
| Perpetual licenses | $212,790 | $199,977 | 6.4% |
| Software licenses | $720,501 | $586,471 | 22.9% |
| Maintenance | $889,836 | $820,393 | 8.5% |
| Service | $52,298 | $57,977 | (9.8%) |
Subscription Lease Licenses
Subscription lease licenses have shown significant growth, with revenue reaching $194,322,000 for the quarter ended September 30, 2024, up from $103,573,000 in the same quarter of 2023, marking an increase of 87.6%. This growth is primarily due to increased sales to existing customers.
Perpetual Licenses
Perpetual license revenue also increased, reaching $82,626,000 for the quarter ended September 30, 2024, a 40.4% increase from $58,849,000 in the prior year. The growth can be attributed to a 49.5% increase in average deal size.
Maintenance Revenue
The maintenance revenue for the quarter was $306,670,000, up from $278,108,000 in the same quarter of 2023, reflecting a growth of 10.3%. This increase is correlated with prior license sales, driven by the existing customer base.
Operating Income and Expenses
For the nine months ended September 30, 2024, ANSYS reported operating income of $362,293,000, or 21.8% of revenue. Operating expenses totaled $1,093,211,000, which included:
| Expense Type | Amount (in thousands) | % of Revenue |
|---|---|---|
| Selling, General and Administrative | $681,331 | 41.0% |
| Research and Development | $393,755 | 23.7% |
| Amortization | $18,125 | 1.1% |
| Total Operating Expenses | $1,093,211 | 65.8% |
Net Income
Net income for the nine months ended September 30, 2024, was $293,004,000, or $3.34 per diluted share, compared to $225,650,000, or $2.58 per diluted share in the same period of 2023, representing a year-over-year increase of 29.5%.
Interest Income and Expense
Interest income for the nine months ended September 30, 2024, was $36,495,000, compared to $12,389,000 in the same period of 2023. Interest expense increased to $36,925,000 from $34,594,000 in the prior year.
Deferred Revenue and Backlog
As of September 30, 2024, deferred revenue totaled $451,338,000, with a backlog of $1,012,459,000. This reflects commitments from customers for future services and licenses.
Geographic Revenue Distribution
The geographic distribution of revenue is as follows for the quarter ended September 30, 2024:
| Region | Revenue (in thousands) |
|---|---|
| United States | $292,364 |
| Japan | $46,737 |
| Germany | $38,717 |
| China and Hong Kong | $34,516 |
| South Korea | $29,193 |
| Other EMEA | $98,303 |
| Other International | $62,062 |
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Resources:
- ANSYS, Inc. (ANSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ANSYS, Inc. (ANSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ANSYS, Inc. (ANSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.