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Mar 31, 2023
Aspen Technology Q3 2023 Earnings Report
AspenTech's Q3 performance was highlighted by a return to double-digit ACV growth, driven by ongoing strength in several of key markets.
Key Takeaways
Aspen Technology reported a return to double-digit ACV growth in the third quarter of fiscal year 2023, driven by strength in key markets. The company's integration and transformation initiatives have combined OSI, SSE, and heritage AspenTech, positioning AspenTech for long-term growth and profitability.
Annual contract value increased 11.2% compared to the third quarter of fiscal 2022.
Annual spend for heritage AspenTech increased 8.6% compared to the third quarter of fiscal 2022.
The company reported a net loss of $57.6 million, or $0.89 per share.
AspenTech generated $131.0 million in cash flow from operations and $129.3 million in free cash flow.
Aspen Technology
Aspen Technology
Aspen Technology Revenue by Segment
Revenue by Segment
License and Solutions Revenue
CapyFin.comMaintenance Revenue
CapyFin.comServices and Other Revenue
CapyFin.com Forward Guidance
AspenTech is issuing the following guidance for fiscal year 2023. Please note this guidance does not include any contribution from the acquisition of Micromine, which is pending final regulatory approval.
Positive Outlook
- Annual Contract Value (“ACV”) growth of 11.0-12.0% year-over-year.
- GAAP operating cash flow of at least $324 million
- Free cash flow1 of at least $315 million
- Total revenue of $1.04 to $1.06 billion
- Non-GAAP net income of $372 to $385 million
Challenges Ahead
- GAAP total expense of $1,219 to $1,224 million
- Non-GAAP total expense of $642 to $647 million
- GAAP operating loss of $179 to $164 million
- Non-GAAP operating income of $398 to $413 million
- GAAP net loss of $110 to $97 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income