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Dec 31, 2024

ANSYS Q4 2024 Earnings Report

ANSYS reported strong Q4 2024 results with revenue growth and improved profitability.

Key Takeaways

ANSYS delivered a solid Q4 2024, achieving a 9.6% YoY revenue increase to $882.17M and a 12.7% YoY rise in non-GAAP EPS. The company maintained a high gross margin of 91.8% and reported a 14.6% YoY ACV growth, demonstrating strong customer demand.

Revenue grew 9.6% YoY to $882.17M.

Net income increased 2.9% YoY to $282.69M.

Non-GAAP EPS rose 12.7% YoY to $4.44.

Annual Contract Value (ACV) grew 14.6% YoY to $1.09B.

Total Revenue
$882M
Previous year: $805M
+9.6%
EPS
$4.44
Previous year: $3.94
+12.7%
ACV
$1.09B
Previous year: $955M
+14.6%
Gross Profit
$809M
Previous year: $735M
+10.1%
Cash and Equivalents
$1.5B
Previous year: $860M
+74.1%
Total Assets
$8.05B
Previous year: $7.32B
+9.9%

ANSYS

ANSYS

Forward Guidance

ANSYS expects continued strong ACV growth and stable profitability in FY 2025, supported by robust demand for its simulation solutions.

Positive Outlook

  • Expected double-digit ACV growth in FY 2025.
  • Strong demand for simulation solutions driving revenue growth.
  • High renewal rates supporting recurring revenue.
  • Ongoing cost efficiency initiatives maintaining profitability.
  • Pending acquisition by Synopsys expected to bring strategic synergies.

Challenges Ahead

  • Macroeconomic uncertainty may impact customer budgets.
  • Foreign exchange fluctuations could affect revenue growth.
  • Regulatory approvals for the Synopsys acquisition still pending.
  • Slight decline in operating margin YoY.
  • Competitive pressures in the simulation software market.