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Sep 30, 2023
ANSYS Q3 2023 Earnings Report
ANSYS reported a decrease in revenue but a double-digit growth in ACV, impacted by export restrictions to China.
Key Takeaways
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.
ANSYS
ANSYS
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.