ANSYS, Inc. (ANSS) Bundle
An Overview of ANSYS, Inc. (ANSS)
General Summary of ANSYS, Inc.
ANSYS, Inc. (NASDAQ: ANSS) was founded in 1970 and has grown into a global leader in engineering simulation software. The company offers a wide range of products and services, including structural, fluid dynamics, thermal, and electromagnetic simulations. As of 2024, ANSYS's software solutions are utilized across various industries, such as aerospace, automotive, electronics, and energy, enabling organizations to optimize their designs and reduce development costs.
In 2024, ANSYS reported total sales of approximately $1.66 billion for the nine months ended September 30, 2024, reflecting a significant increase from $1.46 billion in the same period of 2023.
Company's Financial Performance in the Latest Financial Reports
In the third quarter of 2024, ANSYS achieved record-breaking revenue of $601.9 million, marking a 31.2% increase compared to $458.8 million in Q3 2023. This growth was driven primarily by a substantial increase in subscription lease licenses, which rose by 87.6%, contributing $194.3 million.
The following table summarizes key financial metrics for ANSYS for the nine months ended September 30, 2024:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Revenue | $1,662,635 | $1,464,841 | 13.5% |
| Net Income | $293,004 | $225,650 | 29.8% |
| Diluted EPS | $3.34 | $2.58 | 29.5% |
| Operating Income | $362,293 | $293,135 | 23.6% |
Operating expenses increased to $1.09 billion for the nine months ended September 30, 2024, compared to $970.5 million in 2023, driven by higher selling, general, and administrative costs, as well as research and development investments.
Introduction to ANSYS as a Leader in the Industry
ANSYS, Inc. is recognized as one of the leading companies in the engineering simulation software industry. Its innovative solutions empower companies to accelerate product development, ensure product performance, and enhance sustainability efforts. The company's strong market presence is bolstered by its diverse customer base and a commitment to research and development, which accounted for approximately $393.8 million in expenses during the nine months ended September 30, 2024.
With a robust annual contract value (ACV) of $1.47 billion for the nine months ended September 30, 2024, ANSYS continues to demonstrate significant growth potential in its core markets.
Mission Statement of ANSYS, Inc. (ANSS)
Company's Mission Statement Overview
The mission statement of ANSYS, Inc. (ANSS) serves as a guiding principle that shapes the company's strategic direction and long-term goals. It reflects ANSYS's commitment to innovation, quality, and customer satisfaction in the simulation software industry. This mission statement is crucial for aligning the company's operations with its vision and core values, ensuring that all stakeholders are aware of its objectives and responsibilities.
Core Component 1: Innovation
Innovation is at the heart of ANSYS's mission statement. The company continuously strives to enhance its simulation software capabilities, ensuring that it remains at the forefront of technological advancements. In 2024, ANSYS reported a significant increase in research and development expenses, totaling $132.3 million, which accounted for 22% of its total operating expenses. This investment underscores the company's dedication to fostering innovation in its product offerings.
Core Component 2: Quality
Quality assurance is a fundamental aspect of ANSYS's mission. The company aims to deliver high-quality products and services that meet the evolving needs of its customers. In the third quarter of 2024, ANSYS achieved a gross profit margin of 88.5%, indicating effective cost management and a strong focus on quality. This emphasis on quality not only enhances customer satisfaction but also solidifies ANSYS's reputation as a leader in the simulation software market.
Core Component 3: Customer Satisfaction
Customer satisfaction is a critical element of ANSYS's mission. The company prioritizes understanding and addressing the needs of its clients to foster long-term relationships. In the nine months ended September 30, 2024, ANSYS reported net income of $293 million, reflecting a 30% increase from the previous year. This growth can be attributed to the company's commitment to delivering exceptional customer service and innovative solutions tailored to client requirements.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Research & Development Expenses | $132.3 million | $123.2 million | 7.4% |
| Gross Profit Margin | 88.5% | 85.8% | 3.1% |
| Net Income | $293 million | $225.7 million | 30% |
Vision Statement of ANSYS, Inc. (ANSS)
Vision Statement of ANSYS, Inc. (ANSS)
As of 2024, ANSYS, Inc. is focused on a vision that emphasizes innovation, customer success, and sustainability through simulation software solutions. The company aims to empower organizations across various industries to achieve their goals by leveraging advanced engineering simulation technology.
Enabling InnovationANSYS strives to be the catalyst for innovation in engineering and design. The company’s vision is to provide tools that enable customers to simulate real-world conditions and test their designs virtually. This approach not only accelerates product development but also enhances product performance and quality.
In the third quarter of 2024, ANSYS reported a revenue of $601.9 million, reflecting a 31.2% increase year-over-year. This growth was driven significantly by the demand for simulation software across industries such as aerospace, automotive, and high-tech sectors.
| Revenue Breakdown (Q3 2024) | Amount (in thousands) | Year-over-Year Change (%) |
|---|---|---|
| Subscription Lease Licenses | $194,322 | 87.6% |
| Perpetual Licenses | $82,626 | 40.4% |
| Maintenance | $306,670 | 10.3% |
| Total Revenue | $601,892 | 31.2% |
At the core of ANSYS's vision is the commitment to customer success. The company aims to ensure that its customers can maximize the value from their investments in simulation technologies. This is achieved through continuous support, training, and the development of tailored solutions that meet specific industry needs.
As of September 30, 2024, ANSYS reported a trailing twelve-month recurring Annual Contract Value (ACV) of $2.046 billion, a 13.6% increase from the previous year. This metric indicates the strength of customer relationships and the effectiveness of ANSYS's customer success initiatives.
Sustainability InitiativesANSYS is committed to sustainability and recognizes the role of simulation in advancing environmentally friendly practices. The company’s vision includes helping customers develop sustainable products and processes that reduce waste and energy consumption.
In the automotive sector, for instance, ANSYS products are being used to design electric vehicles that meet regulatory standards while also focusing on performance. The demand for sustainable solutions has contributed to a 20.7% increase in revenue from the Americas region in 2024.
Technological LeadershipAnother key component of ANSYS's vision is maintaining technological leadership in simulation software. The company invests significantly in research and development, with expenses amounting to $393.8 million in the first nine months of 2024, reflecting a commitment to innovation.
ANSYS continues to expand its software offerings, integrating advanced technologies such as artificial intelligence and machine learning to enhance simulation capabilities. This focus on technology is intended to ensure that customers remain at the forefront of their respective industries.
Global ReachAs a global player, ANSYS aims to expand its reach and impact across various markets. In Q3 2024, the company generated 51.4% of its revenue from international markets, indicating a strong global presence.
The strategic investments in international markets are designed to tap into emerging economies and industries that require sophisticated simulation tools, thereby driving further growth and reinforcing the company's vision of being a leader in simulation technology.
Core Values of ANSYS, Inc. (ANSS)
Integrity
Integrity is a foundational value at ANSYS, Inc. (ANSS), emphasizing the importance of honesty and transparency in all business dealings. This core value is critical in fostering trust with customers, employees, and stakeholders.
ANSYS demonstrates its commitment to integrity through various initiatives, including transparent reporting practices and adherence to ethical standards. In its 2024 earnings report, the company reported a total revenue of $601.9 million for the quarter ending September 30, 2024, reflecting a growth of 31.2% compared to the same quarter in 2023. This growth is attributed to strong customer relationships built on transparency and trust.
Innovation
Innovation is at the heart of ANSYS's mission, driving the development of cutting-edge simulation software that meets evolving customer needs. The company invests significantly in research and development to maintain its competitive edge.
In 2024, ANSYS allocated approximately $70.2 million to research and development for the quarter ended September 30, 2024. This investment supports advancements in areas such as AI and machine learning, enabling customers to achieve higher product performance and reliability while reducing development time and costs.
Customer Focus
Customer Focus is essential for ANSYS, as the company strives to deliver exceptional value to its clients. This value is reflected in the company’s commitment to understanding and addressing customer needs.
For instance, ANSYS reported a substantial increase in subscription lease license revenue, which rose by 87.6% in the third quarter of 2024 compared to the previous year, indicating strong customer engagement and satisfaction. The company’s focus on customer feedback and continuous improvement has been integral to this success.
Collaboration
Collaboration is a core value that underpins ANSYS's operations, fostering teamwork across departments and with partners. This collaborative spirit enhances innovation and problem-solving capabilities.
In 2024, ANSYS engaged in strategic partnerships that led to the successful integration of new technologies into its product offerings. The total revenue from collaborative projects contributed 12.7% to the overall revenue growth. Such partnerships highlight the importance of collaboration in achieving shared goals and advancing industry standards.
Excellence
Excellence drives ANSYS to achieve the highest standards in its products and services. The company is committed to continuous improvement and quality assurance.
As of September 30, 2024, ANSYS achieved a gross profit margin of 88.5% for the quarter, demonstrating its operational efficiency and commitment to delivering high-quality solutions. The focus on excellence is evident in the rigorous testing and validation processes that ensure the reliability of its software products.
| Core Value | Initiatives | Financial Impact |
|---|---|---|
| Integrity | Transparent reporting and ethical standards | Revenue: $601.9 million (31.2% growth) |
| Innovation | Investment in R&D ($70.2 million) | Advanced product performance |
| Customer Focus | Engagement and feedback mechanisms | Subscription lease license revenue: 87.6% increase |
| Collaboration | Strategic partnerships | 12.7% revenue growth from collaborative projects |
| Excellence | Quality assurance processes | Gross profit margin: 88.5% |
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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.