NASDAQ$ANSS

ANSYS · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

ANSYS reported a decrease in revenue but a double-digit growth in ACV, impacted by export restrictions to China.

ANSYS reported Q3 2023 financial results with a decrease in revenue and earnings per share compared to the same period last year, but highlighted double-digit growth in ACV. The company's performance was negatively impacted by new export restrictions and approval processes related to sales to certain Chinese entities.

  • GAAP and non-GAAP revenue reached $458.8 million.
  • GAAP diluted earnings per share stood at $0.64, while non-GAAP diluted earnings per share was $1.41.
  • ACV was $457.5 million, reflecting double-digit growth.
  • Export restrictions to China negatively impacted revenue and ACV by $20.0 million.

Headline financials

Total Revenue

$459M

Previous: $474M-3.1%
EPS (adj)

$1.41

Previous: $1.77-20.3%
Annual Contract Value

$458M

Previous: $409M+11.8%
Capital Expenditures

-$4.5M

No prior period
Free Cash Flow

$171M

No prior period
Net Income

$55.5M

Previous: $96M-42.2%
Operating Income

$69.8M

Previous: $123M-43.4%
Gross Profit

$394M

Previous: $411M-4.1%
Cash & Equivalents

$640M

Previous: $633M+1.1%
Total Assets

$6.67B

Previous: $6.16B+8.3%
R&D Expense

$123M

No prior period
Stock-Based Comp

$58.1M

Previous: $47M+23.6%

Revenue & EPS history

ANSYS · Revenue · Quarterly

$459M

Q3 2023-3.1%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

ANSYS · $232M total across 1 segment · Q2 2021

  • Maintenance
    $232M

Forward guidance

The Company expects revenue between $769.2 million and $819.2 million, and diluted earnings per share between $2.72 and $3.18 for the fourth quarter ending December 31, 2023.

Tailwinds

  • Revenue is expected to be between $769.2 million and $819.2 million.
  • Revenue Growth Rate is expected to be between 10.8 % and 18.0 %.
  • Revenue Growth Rate — Constant Currency is expected to be between 11.6 % and 18.9 %.
  • Diluted earnings per share is expected to be between $2.72 and $3.18.
  • ACV is expected to be between $897.8 million and $942.8 million.

Headwinds

  • Incremental export restrictions and processes will mute Ansys's ACV and revenue growth in China in 2024.
  • The new restrictions and processes have led to an elongated transaction cycle with certain prospects
  • In some situations, could result in a loss of business.
  • Meaningful U.S. Dollar strengthening in exchange rates has created continued headwinds.
  • The guidance also assumes incremental adverse impacts from currency, primarily driven by substantial fluctuations in the Euro and Japanese Yen exchange rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+13.0%

Q2 2012

Best reaction

-9.9%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025
Q1 2025-0.7%+0.3%+2.8%
Q4 2025+1.1%-1.9%-3.7%
Q3 2025+9.6%+6.8%+6.3%
Q2 2024+1.8%-2.5%+5.6%
Q1 2024-3.2%-1.1%-2.4%
Q4 2023+2.5%+1.3%+5.2%
Q3 2023-1.9%+1.0%+5.5%
Q2 2023-9.3%-8.9%-5.2%
Q1 2023-1.9%-4.7%+5.2%
Q4 2022+10.9%+11.2%+18.8%
Q3 2022-3.3%+1.0%+17.0%
Q2 2022+6.0%+2.3%-11.5%
Q1 2022-2.6%-11.0%-7.4%
Q4 2021+4.5%+7.0%+1.9%
Q3 2021+6.7%+5.7%+0.3%
Q2 2021+0.7%+0.3%-0.6%
Q1 2021-5.1%
Q4 2020-9.9%
Q3 2020+3.9%
Q2 2020+2.1%
Q1 2020-0.6%
Q4 2019-8.4%
Q3 2019+3.3%
Q2 2019+1.5%
Q1 2019-2.3%
Q4 2018+1.4%
Q3 2018+11.0%
Q2 2018-0.3%
Q1 2018-0.1%
Q4 2017-4.1%
Q3 2017+8.8%
Q2 2017-5.3%
Q1 2017+7.8%
Q4 2016+2.5%
Q3 2016-6.6%
Q2 2016+5.0%
Q1 2016-5.9%
Q4 2015-2.9%
Q3 2015-4.3%
Q2 2015-2.4%
Q1 2015-1.2%
Q4 2014-0.4%
Q3 2014+1.2%
Q2 2014+2.7%
Q1 2014-3.0%
Q4 2013-1.1%
Q3 2013-5.2%
Q2 2013+12.0%
Q1 2013-6.7%
Q4 2012+2.0%
Q3 2012-3.6%
Q2 2012+13.0%
Q1 2012+2.2%
Q4 2011-3.3%
Q3 2011+6.7%
Q2 2011-0.9%
Q1 2010-0.7%
Q1 2011-0.5%
Q4 2008+4.1%
Q4 2010+4.1%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010-5.1%
Q2 2009-5.1%
Q4 2009-5.1%

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