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Sep 30, 2023

Aspen Technology Q1 2024 Earnings Report

Aspen Technology reported solid results with double-digit ACV growth driven by strong demand across most markets.

Key Takeaways

Aspen Technology's Q1 2024 financial results showed a total revenue of $249.3 million. The company experienced a net loss of $34.5 million, or $0.54 per diluted share, while non-GAAP net income was $74.9 million, or $1.16 per share. ACV grew by 10.9% year-over-year, reaching $897.6 million.

ACV reached $897.6 million, a 10.9% increase year-over-year.

Operating cash flow was $17.0 million, up from $5.1 million in the previous year.

Free cash flow was $16.0 million, compared to $3.7 million in the previous year.

The company reiterates its fiscal year 2024 guidance.

Total Revenue
$249M
Previous year: $251M
-0.6%
EPS
$1.16
Previous year: $2.2
-47.3%
Annual Spend
$898M
Previous year: $809M
+10.9%
Gross Profit
$151M
Previous year: $150M
+1.0%
Cash and Equivalents
$121M
Previous year: $382M
-68.5%
Free Cash Flow
$16M
Previous year: $3.76M
+326.0%
Total Assets
$14.2B
Previous year: $15B
-4.9%

Aspen Technology

Aspen Technology

Aspen Technology Revenue by Segment

Forward Guidance

AspenTech is issuing the following guidance for fiscal year 2024: ACV growth of at least 11.5% year-over-year, GAAP operating cash flow of at least $378 million, Free cash flow of at least $360 million, Total bookings of at least $1.04 billion, Total revenue of at least $1.12 billion, GAAP total expense of approximately $1.22 billion, Non-GAAP total expense of approximately $675 million, GAAP operating loss at or better than $100 million, Non-GAAP operating income of at least $445 million, GAAP net loss at or better than $7 million, Non-GAAP net income of at least $424 million, GAAP net loss per share at or better than $0.11, Non-GAAP net income per share of at least $6.57.

Positive Outlook

  • ACV growth of at least 11.5% year-over-year
  • GAAP operating cash flow of at least $378 million
  • Free cash flow of at least $360 million
  • Total bookings of at least $1.04 billion
  • Total revenue of at least $1.12 billion

Challenges Ahead

  • GAAP total expense of approximately $1.22 billion
  • Non-GAAP total expense of approximately $675 million
  • GAAP operating loss at or better than $100 million
  • GAAP net loss at or better than $7 million
  • GAAP net loss per share at or better than $0.11

Revenue & Expenses

Visualization of income flow from segment revenue to net income