RAISES FY 2018 EPS GUIDANCE
RAISES FY 2018 REVENUE GUIDANCE IN CONSTANT CURRENCY
ASC 606 - Second Quarter 2018
- GAAP revenue of $305.9 million and non-GAAP revenue of $308.9 million
- GAAP diluted earnings per share of $1.08 and non-GAAP diluted earnings per share of $1.35
- GAAP operating profit margin of 35.5% and non-GAAP operating profit margin of 47.3%
- Deferred revenue and backlog of $586.9 million at June 30, 2018
ASC 605 - Second Quarter 2018 (as if previous revenue recognition guidance was in effect)
- GAAP revenue of $294.0 million and non-GAAP revenue of $298.9 million
- GAAP diluted earnings per share of $0.96 and non-GAAP diluted earnings per share of $1.24
- GAAP operating profit margin of 32.9% and non-GAAP operating profit margin of 45.5%
- Deferred revenue and backlog of $816.1 million at June 30, 2018, an increase of 24% over Q2 2017
The second quarter GAAP and non-GAAP revenue, GAAP and non-GAAP diluted earnings per share, and deferred revenue and backlog all represent new second quarter records under ASC 605.
Other Highlights
- ACV growth of 8% and 10% in constant currency for Q2 2018 and YTD 2018, respectively
- Operating cash flows of $111.1 million and $243.5 million for Q2 2018 and YTD 2018, respectively
Note: We adopted ASC 606 on January 1, 2018, which impacted our financial results, including the categorization and geographic allocation of revenue. For comparability purposes and unless otherwise specified, the amounts included in the commentary below refer to results under ASC 605 as if previous revenue recognition guidance was in effect.
PITTSBURGH, Pa., Aug. 06, 2018 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ: ANSS), today reported second quarter 2018 GAAP and non-GAAP revenue growth of 11% and 13%, respectively, or 9% and 10%, respectively, in constant currency. Recurring revenue, which comprises lease license and annual maintenance revenue, totaled 76% of revenue for the second quarter on both a GAAP and non-GAAP basis. For the second quarter, the Company reported growth in diluted earnings per share of 20% and 25% on a GAAP and non-GAAP basis, respectively.
Ajei Gopal, ANSYS President and CEO, commented, “We delivered another strong quarter with double-digit revenue growth. The momentum in our business clearly continued into Q2 and we are excited about the results we are yielding from our focused execution. We are making progress in extending our reach and broadening our footprint throughout the entire product lifecycle."
Gopal further stated, "During Q2, we announced the release of ANSYS® 19.1, which builds upon our industry-leading product portfolio, helping customers accelerate innovation and design products more efficiently. We are also very excited about our innovative, new partnerships with global leaders SAP and PTC. SAP is embedding our digital twin technology into their new product, SAP Predictive Engineering Insights enabled by ANSYS. PTC is integrating ANSYS Discovery LiveTM within their Creo® 3D CAD software, bringing real-time simulation into the modeling environment for designers."
Maria Shields, ANSYS CFO, stated, “The Q2 and first half 2018 results are validation that the investments we are making, combined with our operational focus, are paying off. Our earnings reached record levels and exceeded the high end of our guidance for the second quarter, and our deferred revenue and backlog increased 24% over Q2 2017. Our recent acquisition of OPTIS contributed $6.6 million to non-GAAP revenue during the two months since the closing of the acquisition and we are pleased with the early progress we've made in integrating the OPTIS employees and operations into our business. We will continue to strategically invest in our business as we progress toward our stated goals.”
Financial Results
ANSYS' second quarter and year-to-date 2018 and 2017 financial results are presented below. The 2018 and 2017 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, acquisition-related transaction costs, restructuring charges and measurement-period adjustments related to the 2017 Tax Cuts and Jobs Act.
GAAP and non-GAAP results under ASC 606:
| GAAP | Non-GAAP | ||||||
| (in millions, except percentages and per share data) | Q2 2018 | Q2 2018 | |||||
| Revenue | $ | 305.9 | $ | 308.9 | |||
| Net income | $ | 92.6 | $ | 115.8 | |||
| Earnings per share | $ | 1.08 | $ | 1.35 | |||
| Operating profit margin | 35.5 | % | 47.3 | % | |||
| GAAP | Non-GAAP | ||||||
| (in millions, except percentages and per share data) | YTD 2018 | YTD 2018 | |||||
| Revenue | $ | 588.8 | $ | 592.1 | |||
| Net income | $ | 176.9 | $ | 218.9 | |||
| Earnings per share | $ | 2.06 | $ | 2.54 | |||
| Operating profit margin | 34.6 | % | 46.2 | % | |||
