•
Dec 31, 2022

Aspen Technology Q2 2023 Earnings Report

AspenTech's second quarter results reflected continued, strong end market demand and the benefit of the addition of the OSI and SSE businesses to heritage AspenTech.

Key Takeaways

Aspen Technology announced financial results for its second-quarter fiscal 2023, ended December 31, 2022. Total revenue was $242.8 million. Net loss was $66.2 million, or $1.02 per share. Non-GAAP net income was $22.8 million, or $0.35 per share.

Annual contract value was $833.7 million, an 8.7% increase compared to the second quarter of fiscal 2022.

Annual spend for heritage AspenTech was $697.5 million, a 9.0% increase compared to the second quarter of fiscal 2022.

Total revenue was $242.8 million.

Free cash flow was $53.1 million.

Total Revenue
$243M
Previous year: $171M
+41.7%
EPS
$0.35
Previous year: $1.2
-70.8%
Annual Spend
$834M
Previous year: $767M
+8.7%
Gross Profit
$136M
Previous year: $156M
-13.0%
Cash and Equivalents
$446M
Previous year: $27.7M
+1513.3%
Free Cash Flow
$53.1M
Previous year: -$27.4M
-294.0%
Total Assets
$14.9B

Aspen Technology

Aspen Technology

Aspen Technology Revenue by Segment

Forward Guidance

AspenTech is issuing the following guidance for fiscal year 2023. Please note this guidance does not include any contribution from the pending acquisition of Micromine, which is expected to close as soon as the remaining regulatory approval is obtained.

Positive Outlook

  • Annual Contract Value (“ACV”) growth of 10.5-13.5% year-over-year.
  • Free cash flow of $347 to $362 million
  • Total bookings of $1.07 to $1.17 billion
  • Total revenue of $1.14 to $1.20 billion
  • Non-GAAP operating income of $503 to $555 million

Challenges Ahead

  • GAAP total expense of $1.207 to $1.217 billion
  • Non-GAAP total expense of $637 to $647 million
  • GAAP operating loss of $67 million to $15 million
  • GAAP net loss of $7.5 million to net income of $32.5 million
  • GAAP net loss per share of $0.11 to income per share of $0.49

Revenue & Expenses

Visualization of income flow from segment revenue to net income