ANSYS Inc (NASDAQ:ANSS) stock rose 1.35% (As on February 20, 11:19:55 AM UTC-4, Source: Google Finance) after the company beat analysts’ estimates for fourth-quarter revenue and profit, indicating strength in demand for its artificial intelligence-based tools and engineering software solutions. Last month, the European Commission approved Ansys’ takeover by chip design software maker Synopsys, with conditions to the $35 billion cash-and-stock deal announced in January 2024. To relieve competition concerns resulting from the deal, the commission said both companies have agreed to divest Synopsys’ optics and photonics software and Ansys’ PowerArtist software. Ansys agreed to sell PowerArtist — a tool used to analyze and reduce power to enable power-efficient design — to electronic equipment maker Keysight Technologies this January. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. For the fourth quarter, the company delivered non-GAAP operating profit margin of 53.3%. Operating cash flows generated was of $258.0 million and unlevered operating cash flows of $266.8 million and Annual contract value (ACV) was of $1,094.6 million.
Moreover, the Company has reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.
ANSS in the fourth quarter of FY 24 has reported the adjusted earnings per share of $4.44, beating the analysts’ estimates for the adjusted earnings per share of $3.93. The company had reported the adjusted revenue growth of 10 percent to $882.2 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $863.5 million, according to data compiled by LSEG.
Meanwhile, the company has expanded partnership with Concepts NREC by integrating CFD analysis software into blade design software for an end-to-end workflow that speeds time-to-market. Integrating CFX into AxCent enables designers to quickly evaluate machine performance with increased predictive accuracy — shortening design cycles and improving performance for applications including compressors, turbines, pumps, fans, and turbochargers. The new technology integration enables Ansys customers using Concept NREC’s design tool to easily obtain machine performance results from the CFX solver within the same interface. Looking ahead, Ansys and Concepts NREC plan to expand integration capabilities to include a broader variety of fluids in addition to features that will enable users to capture the system’s evolving dynamic behavior.