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Mar 31, 2024

Aspen Technology Q3 2024 Earnings Report

Aspen Technology's financial performance reflected cautious customer buying behavior experienced at the start of the new calendar year.

Key Takeaways

Aspen Technology reported a total revenue of $278.1 million for Q3 fiscal year 2024. The company's net income was $1.6 million, or $0.02 per diluted share, while non-GAAP net income was $108.7 million, or $1.70 per diluted share. ACV reached $936.1 million, representing a 9.5% year-over-year increase.

ACV was $936.1 million at the end of the third quarter of fiscal 2024, increasing 9.5% year over year and 2.4% quarter over quarter.

Cash flow from operations was $138.1 million for the third quarter of fiscal 2024, compared to $131.0 million in the third quarter of fiscal 2023.

Free cash flow was $137.0 million for the third quarter of fiscal 2024, compared to $129.3 million in the third quarter of fiscal 2023.

AspenTech repurchased 288,241 shares for $56.7 million under its share repurchase authorization.

Total Revenue
$278M
Previous year: $230M
+21.0%
EPS
$1.7
Previous year: $1.06
+60.4%
Annual Spend
$936M
Previous year: $855M
+9.5%
Gross Profit
$123M
Previous year: $225M
-45.1%
Cash and Equivalents
$178M
Previous year: $287M
-38.1%
Free Cash Flow
$137M
Previous year: $129M
+6.0%
Total Assets
$14.1B
Previous year: $14.6B
-3.1%

Aspen Technology

Aspen Technology

Aspen Technology Revenue by Segment

Forward Guidance

AspenTech is updating its fiscal 2024 guidance with total revenue of at least $1.10 billion and ACV growth of at least 9.0% year-over-year.

Positive Outlook

  • ACV growth of at least 9.0% year-over-year
  • GAAP operating cash flow of at least $349 million
  • Free cash flow of at least $340 million
  • Total bookings of at least $1.03 billion
  • Total revenue of at least $1.10 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 $121 million
  • Non-GAAP operating income of at least $425 million
  • GAAP net loss at or better than $29 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income