Company Increases FY 2018 Guidance for Revenue (ASC 606), EPS and Operating Cash Flow

ASC 606 - Third Quarter 2018

• GAAP revenue of $289.4 million and non-GAAP revenue of $293.0 million
• GAAP diluted earnings per share of $1.04 and non-GAAP diluted earnings per share of $1.31
• GAAP operating profit margin of 32.1% and non-GAAP operating profit margin of 44.0%
• Deferred revenue and backlog of $544.7 million at September 30, 2018

ASC 605 - Third Quarter 2018 (as if previous revenue recognition guidance was in effect)

• GAAP revenue of $302.0 million and non-GAAP revenue of $307.9 million
• GAAP diluted earnings per share of $1.16 and non-GAAP diluted earnings per share of $1.46
• GAAP operating profit margin of 35.0% and non-GAAP operating profit margin of 46.7%
• Deferred revenue and backlog of $761.6 million at September 30, 2018, an increase of 14% over Q3 2017

Other Highlights

• ACV growth of 13% and 11% in constant currency for Q3 2018 and the nine months ended September 30, 2018 (YTD), respectively
• Operating cash flows of $110.0 million and $353.5 million for Q3 2018 and YTD 2018, respectively
• Repurchased 0.4 million shares in the third quarter at an average price of $176.58 and 1.2 million shares in the first nine months at an average price of $164.14

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 the previous revenue recognition guidance was still in effect.

PITTSBURGH, Nov. 07, 2018 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ: ANSS), today reported third quarter 2018 GAAP and non-GAAP revenue growth of 10% and 11%, respectively, or 10% and 12%, respectively, in constant currency. Recurring revenue, which comprises lease license and annual maintenance revenue, totaled 77% of revenue for the third quarter on both a GAAP and non-GAAP basis. For the third quarter, the Company reported growth in diluted earnings per share of 36% and 39% on a GAAP and non-GAAP basis, respectively.

Ajei Gopal, ANSYS President and CEO, commented, “Q3 was a record-breaking quarter for ANSYS as we delivered double-digit growth across revenue, EPS and ACV. The digital revolution is driving customers to transform their product development processes to achieve greater agility, innovation and cost synergies, and ANSYS’ simulation solutions are enabling customers to achieve these seemingly divergent objectives with increased functionality and usability across our entire product portfolio. Our strategy of Pervasive Simulation is working."

Gopal added, "We continue to invest to deliver advanced capabilities, such as our newly available, patent-pending Mosaic meshing technology designed to provide a significant improvement in our fluids workflow and user experience. In the third quarter, we extended our technology leadership with the release of ANSYS 19.2, which incorporates the technology from our recent OPTIS acquisition and reflects the integration of ANSYS VRXPERIENCE and ANSYS SPEOS into our portfolio. Importantly, in an ever-evolving industry, we remain committed to improving the way customers experience our technology by providing them with new, modern workflow advancements that enhance the quality and speed of their simulations."

Maria Shields, ANSYS CFO, stated, “Our continued focus on execution and disciplined approach to investment drove another quarter of record financial results across all key financial metrics. We are pleased with our strong performance through the first nine months of 2018 and, looking ahead, remain confident in our ability to continue driving momentum in our business. This is evidenced by our increased outlook for full year 2018 revenue (ASC 606), EPS and operating cash flow.”

Financial Results

ANSYS' third 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: