Aspen Technology Inc (NASDAQ:AZPN) stock rose 2.60% (As on November 7, 11:45:04 AM UTC-4, Source: Google Finance) though the company posted lower than expected results for the first quarter of FY 24. Annual contract value (“ACV”) was $897.6 million at the end of the first quarter of fiscal 2024, increasing 10.9% year over year and 1.4% quarter over quarter. Operating cash flow was $17.0 million for the first quarter of fiscal 2024, compared to $5.1 million in the first quarter of fiscal 2023. Free cash flow was $16.0 million for the first quarter of fiscal 2024, compared to $3.7 million in the first quarter of fiscal 2023.
Moreover, License and solutions revenue, which represents the portion of a term license agreement allocated to the initial license and Open Systems International, Inc. (OSI) revenue where software, hardware and professional services are recognized as one performance obligation, was $148.6 million in the first quarter of fiscal 2024, compared to $160.2 million in the first quarter of fiscal 2023. Maintenance revenue was $85.0 million in the first quarter of fiscal 2024, compared to $78.4 million in the first quarter of fiscal 2023. Services and other revenue was $15.7 million in the first quarter of fiscal 2024, compared to $12.2 million in the first quarter of fiscal 2023.
AZPN in the first quarter of FY 24 has reported the adjusted earnings per share of $1.16, missing the analysts’ estimates for the adjusted earnings per share of $1.41, according to Zacks Investment Research. The company had reported the adjusted revenue to $249.3 million in the first quarter of FY 24, missing the analysts’ estimates for revenue of $258.3 million. Non-GAAP net income was $74.9 million in the first quarter of fiscal 2024 compared to non-GAAP net income of $142.0 million, in the first quarter of fiscal 2023. AspenTech had cash and cash equivalents of $120.5 million as of September 30, 2023, compared to $241.2 million as of June 30, 2023. The decrease in cash and cash equivalents was due to the impact of share repurchase activity under AspenTech’s $300.0 million share repurchase authorization in the first quarter of fiscal 2024.
Aspen Technology expects full-year earnings to be $6.57 per share, with revenue expected to be $1.12 billion.
On the other hand, the company has announced a newly expanded relationship with OMV Group to help accelerate the international integrated oil and gas company’s energy transition initiatives and its path to achieving net zero targets. The first stage joint digital initiatives will focus on renewables optimization, unlocking industrial data, and developing a simplified integration across the company’s supply chain.