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Jun 30, 2022

Aspen Technology Q4 2022 Earnings Report

Aspen Technology reported strong fourth quarter results, driven by annual spend growth in the heritage AspenTech business and overall demand improvement.

Key Takeaways

Aspen Technology's Q4 2022 results showed strong growth, with an 8.5% increase in annual spend for the heritage AspenTech business. The completion of the Emerson transaction was transformational, positioning the company to address the increasing global demand for resources in a sustainable manner.

AspenTech ended fiscal year 2022 with strong fourth quarter results.

Annual spend for heritage AspenTech increased 8.5% compared to the fourth quarter of fiscal 2021.

The transaction with Emerson was transformational for AspenTech.

New AspenTech is well positioned to help customers address the Dual Challenge.

Total Revenue
$239M
Previous year: $198M
+20.7%
EPS
$2.43
Previous year: $1.53
+58.8%
Annual Spend
$674M
Previous year: $62.1M
+985.2%
Gross Profit
$168M
Previous year: $121M
+38.6%
Cash and Equivalents
$450M
Previous year: $25.7M
+1649.0%
Free Cash Flow
$4.9M
Previous year: -$12.2M
-140.2%
Total Assets
$15B

Aspen Technology

Aspen Technology

Aspen Technology Revenue by Segment

Forward Guidance

AspenTech issued guidance for fiscal year 2023, which does not include any contribution from the pending acquisition of Micromine.

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 $1.186 to $1.196 billion
  • Non-GAAP total expense of $637 to $647 million
  • GAAP operating loss of $46 million to operating income of $6 million
  • GAAP net loss of $8 million to net income of $24 million
  • GAAP net loss per share of $0.12 to income per share of $0.36

Revenue & Expenses

Visualization of income flow from segment revenue to net income