ANSYS Inc (NASDAQ:ANSS) stock rose 4.10% (As on February 22, 11:25:05 AM UTC-4, Source: Google Finance) after the company beat Wall Street estimates for fourth-quarter revenue and profit, driven by growing demand for its engineering software solutions, used to make a range of products such as airplanes and tennis rackets. The results come more than a month after Synopsys, the largest maker of software used to design chips, said it would buy Ansys in a $35-billion cash-and-stock deal. The transaction with Synopsys, which forecast second-quarter revenue and profit above estimates, is expected to be completed in the first half of 2025. This strategic move is set to create a leader in silicon to systems design solutions, combining Synopsys’ semiconductor electronic design automation expertise with Ansys’ simulation portfolio. The Company has reported fourth quarter and FY 2023 ACV growth of 17% and 13% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2022. Net income was USD 274.76 million compared to USD 257.95 million a year ago.
ANSS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.94, beating the analysts’ estimates for the adjusted earnings per share of $3.71. The company had reported the adjusted revenue growth of 16 percent to $805.1 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $797.4 million, according to LSEG data. Deferred revenue and backlog were reported at $1,472.6 million as of December 31, 2023, underscoring the company’s solid financial position and future revenue potential.
On the other hand, Ansys, which partners with chip designer Nvidia, said that Rachel Pyles would replace Nicole Anasenes as its CFO, effective Feb. 22.
The company expects FY 2024 ACV to grow double-digit and the dollar value of ACV will continue to be highly skewed toward the fourth quarter of the year as has been the case in prior years. Additionally, 2024 quarterly ACV and revenue growth rates are expected to be variable across the quarters and are affected by the performance comparisons to 2023. As a result, ANSS expects Q1 2024 ACV and revenue results to be the lowest amongst the quarters with the expectation that we will see double-digit ACV and revenue growth the remaining quarters of the year.