Advanced Computing in the Age of AI | Monday, June 14, 2021

Ansys Announces Q1 2021 Financial Results with Record Q1 ACV, Revenue and Operating Cash Flow 

PITTSBURGH, May 6, 2021 -- ANSYS, Inc. reported first quarter 2021 GAAP and non-GAAP revenue growth of 19% and 20% in reported currency, respectively, or 16% and 17% in constant currency, respectively, when compared to the first quarter of 2020. For the first quarter of 2021, the Company reported diluted earnings per share of $0.82 and $1.12 on a GAAP and non-GAAP basis, respectively, compared to $0.53 and $0.83 on a GAAP and non-GAAP basis, respectively, for the first quarter of 2020.

Key Highlights - Q1 2021

  • GAAP revenue of $363.2 million and non-GAAP revenue of $372.1 million
  • GAAP diluted earnings per share of $0.82 and non-GAAP diluted earnings per share of $1.12
  • GAAP operating profit margin of 13.8% and non-GAAP operating profit margin of 33.5%
  • Operating cash flows of $171.1 million
  • Annual contract value (ACV) of $319.4 million
  • Deferred revenue and backlog of $936.5 million at March 31, 2021

“Ansys achieved excellent results for the first quarter, delivering double-digit revenue and earnings growth. The underlying strength in our business, coupled with the strategic role we play in enabling and advancing our customers’ digital transformation, gives us continued confidence in our ability to execute against our goals,” said Ajei Gopal, Ansys President and CEO.

Nicole Anasenes, Ansys CFO, stated, “Our first quarter results represent a strong start to the year, continuing the outstanding performance from Q4 of last year. We saw strong channel and small- and medium-sized account performance for the second quarter in a row, contributing to both ACV and revenue growth. We are optimistic about the positive indicators we saw in Q1 and the strength of our current pipeline. We are raising our full year 2021 guidance across all guidance metrics: ACV, revenue, EPS and operating cash flow.”

Financial Results

Ansys' first quarter 2021 and 2020 financial results are presented below. The 2021 and 2020 non-GAAP results exclude the income statement effects of the acquisition accounting adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, and transaction expenses related to business combinations.

GAAP and non-GAAP results are as follows:

GAAP Non-GAAP
(in millions, except percentages and per share data) Q1 2021 Q1 2020 % Change Q1 2021 Q1 2020 % Change
Revenue $ 363.2 $ 305.0 19 % $ 372.1 $ 308.9 20 %
Net income $ 72.4 $ 46.1 57 % $ 98.9 $ 72.3 37 %
Diluted earnings per share $ 0.82 $ 0.53 55 % $ 1.12 $ 0.83 35 %
Operating profit margin 13.8 % 11.2 % 33.5 % 29.3 %

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2021 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three months ended March 31, 2021 and 2020, and for the 2021 financial outlook, can be found in the condensed financial information included in this release.

Other Performance Metrics

(in millions, except percentages) Q1 2021 Q1 2020 % Change % Change in Constant Currency
ACV $ 319.4 $ 301.1 6 % 3 %
Operating cash flows $ 171.1 $ 147.4 16 %

 

ACV is a metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. ACV is composed of the following:

  • the annualized value of maintenance and lease contracts with start dates or anniversary dates during the period, plus
  • the value of perpetual license contracts with start dates during the period, plus
  • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
  • the value of work performed during the period on fixed-deliverable services contracts.

Management's 2021 Financial Outlook

The Company's second quarter and fiscal year 2021 revenue and diluted earnings per share guidance is provided below. The Company is also providing its fiscal year 2021 guidance for ACV and operating cash flows. The revenue and diluted earnings per share guidance is provided on both a GAAP and non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets and acquisition-related transaction expenses.

The financial guidance below reflects the Company's current estimates of the adverse impacts of the global pandemic and trade restrictions. This guidance is based on the Company's evaluation of factual information it has determined to be relevant and the application of certain assumptions made by the Company. Please refer to the Company's prepared remarks document for essential additional information regarding the Company's financial guidance, including its assumptions regarding overall business dynamics and the economic impacts of COVID-19 and trade restrictions.

Second Quarter 2021 Guidance

The Company currently expects the following for the quarter ending June 30, 2021:

(in millions, except per share data) GAAP Non-GAAP
Revenue $409.7 - $439.7 $415.0 - $445.0
Diluted earnings per share $0.82 - $1.10 $1.43 - $1.67

Fiscal Year 2021 Guidance

The Company currently expects the following for the fiscal year ending December 31, 2021:

(in millions, except per share data) GAAP Non-GAAP
Revenue $1,790.7 - $1,855.7 $1,810.0 - $1,875.0
Diluted earnings per share $4.62 - $5.16 $6.69 - $7.10

The difference between the GAAP and non-GAAP revenue guidance presented above is a result of the expected impact of the application of the fair value provisions applicable to the accounting for business combinations in the amount of $5.3 million for the second quarter and $19.3 million for FY 2021.

The FY 2021 revenue and ACV guidance assumes an incremental headwind of approximately $14 million from currency relative to our guidance initiated in February. This currency headwind had an approximately $0.06 per share impact on FY 2021 earnings per share guidance and an approximately $5 million impact on FY 2021 operating cash flow guidance.

The Q2 and FY 2021 earnings per share guidance includes a gain of approximately $15.1 million, or $0.14 per share, related to a change in the value of an equity investment. This gain will not affect the Company’s revenue, operating income or cash flows.

(in millions) Other Financial Metrics
ACV $1,760.0 - $1,825.0
Operating cash flows $480.0 - $520.0

 

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands) March 31,
2021
December 31,
2020
ASSETS:
Cash & short-term investments $ 987,943  $ 913,151
Accounts receivable, net 394,289  537,564
Goodwill 3,036,783  3,038,306
Other intangibles, net 677,357  694,865
Other assets 721,656  756,704
Total assets $ 5,818,028  $ 5,940,590
LIABILITIES & STOCKHOLDERS' EQUITY:
Current deferred revenue $ 366,596  $ 372,061
Long-term debt 793,515  798,118
Other liabilities 545,948  672,539
Stockholders' equity 4,111,969  4,097,872
Total liabilities & stockholders' equity $ 5,818,028  $ 5,940,590

 

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
  Three Months Ended
(in thousands, except per share data) March 31,
2021
March 31,
2020
Revenue:
Software licenses $ 132,604  $ 87,830
Maintenance and service 230,622  217,155
Total revenue 363,226  304,985
Cost of sales:
Software licenses 7,606  4,926
Amortization 14,949  9,552
Maintenance and service 39,548  35,638
Total cost of sales 62,103  50,116
Gross profit 301,123  254,869
Operating expenses:
Selling, general and administrative 146,215  130,522
Research and development 100,479  86,112
Amortization 4,407  4,162
Total operating expenses 251,101  220,796
Operating income 50,022  34,073
Interest income 517  2,775
Interest expense (3,315 ) (3,651 )
Other income, net 399  127
Income before income tax benefit 47,623  33,324
Income tax benefit (24,775 ) (12,740 )
Net income $ 72,398  $ 46,064
Earnings per share – basic:
Earnings per share $ 0.83  $ 0.54
Weighted average shares 86,808  85,798
Earnings per share – diluted:
Earnings per share $ 0.82  $ 0.53
Weighted average shares 87,986  87,369

Click here for the full announcement.

About Ansys

If you've ever seen a rocket launch, flown on an airplane, driven a car, used a computer, touched a mobile device, crossed a bridge or put on wearable technology, chances are you've used a product where Ansys software played a critical role in its creation. Ansys is the global leader in engineering simulation. Through our strategy of Pervasive Engineering Simulation, we help the world's most innovative companies deliver radically better products to their customers. By offering the best and broadest portfolio of engineering simulation software, we help them solve the most complex design challenges and create products limited only by imagination. Founded in 1970, Ansys is headquartered south of Pittsburgh, Pennsylvania, U.S.A. Visit https://www.ansys.com for more information.


Source: Ansys 

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