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Jun 30, 2023

Aspen Technology Q4 2023 Earnings Report

Announced financial results for the fourth quarter and fiscal year 2023.

Key Takeaways

Aspen Technology's Q4 2023 results showed strong performance with total revenue of $320.6 million. The company's ACV grew by 11.8% year-over-year. Non-GAAP EPS reached $2.13 per share. The company issued FY24 guidance, including revenue of at least $1.12 billion and non-GAAP EPS of at least $6.51.

ACV was $884.9 million at the end of fiscal 2023, an increase of 11.8% year over year and 3.5% quarter over quarter.

Total revenue was $320.6 million for the fourth quarter of fiscal 2023.

Net income was $27.3 million or $0.42 per diluted share in the fourth quarter of fiscal 2023.

Non-GAAP net income was $138.2 million, or $2.13 per share, for the fourth quarter of fiscal 2023.

Total Revenue
$321M
Previous year: $239M
+34.2%
EPS
$2.13
Previous year: $2.43
-12.3%
Annual Spend
$885M
Previous year: $674M
+31.3%
Gross Profit
$225M
Previous year: $168M
+34.1%
Cash and Equivalents
$241M
Previous year: $450M
-46.4%
Free Cash Flow
$111M
Previous year: $4.9M
+2173.2%
Total Assets
$14.5B
Previous year: $15B
-3.2%

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 revenue of at least $1.12 billion and Non-GAAP net income per share of at least $6.51.

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.
  • Non-GAAP operating income of at least $445 million.
  • GAAP net loss at or better than $7 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income