Ansys Q1 2025 Financial Results

Ansys, a global leader in engineering simulation software, has released its financial results for the first quarter of 2025. The report highlights significant growth in revenue and earnings, alongside notable corporate developments, including the pending acquisition by Synopsys.

Financial Highlights

For Q1 2025, Ansys reported a revenue of $504.9 million, marking an 8% increase from the $466.6 million reported in Q1 2024. On a constant currency basis, this represents a 10% growth. The company's GAAP diluted earnings per share (EPS) rose to $0.59 from $0.40 in the same period last year, while non-GAAP diluted EPS increased to $1.64 from $1.39.

Net income on a GAAP basis was $51.9 million, a 49.1% increase from the previous year's $34.8 million. The GAAP operating profit margin improved to 11.7% from 9.3%, and the non-GAAP operating profit margin rose to 33.5% from 32.2%.

Business and Operational Highlights

Ansys reported an Annual Contract Value (ACV) of $410.1 million, reflecting a modest growth of 0.7% from Q1 2024. Operating cash flows were robust at $398.9 million, a significant 41.1% increase from the previous year's $282.8 million. Unlevered operating cash flows also saw a substantial rise to $407.1 million from $292.7 million.

Geographically, the Americas contributed 45.6% of the total revenue, with a 10.4% year-over-year growth. The Asia-Pacific region showed the highest growth rate at 11.7%, contributing 30.8% to the total revenue.

Strategic Initiatives and Corporate Developments

In a major corporate development, Ansys is set to be acquired by Synopsys. The transaction, announced on January 15, 2024, has received clearances from several regulatory authorities, including the U.K. Competition and Markets Authority, Turkey Competition Authority, Japan Fair Trade Commission, Korea Fair Trade Commission, and Taiwan Fair Trade Commission. The acquisition is expected to close in the first half of 2025, pending remaining regulatory approvals and customary closing conditions.

Management's Perspective

Management expressed satisfaction with the Q1 2025 results, noting that the performance met the company's expectations. They highlighted the continued growth in revenue and profitability, as well as the successful progress in the pending acquisition by Synopsys. The company has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance due to the pending transaction.

Future Outlook

While Ansys has suspended its guidance due to the pending acquisition, the company continues to expect double-digit FY 2025 ACV growth. The management remains optimistic about the long-term benefits of the acquisition by Synopsys and the continued strength of Ansys' core business operations.

SEC Filing: ANSYS INC [ ANSS ] - 8-K - Apr. 30, 2025