ANSYS, Inc. (NASDAQ:ANSS) stock rallies 10.20% (As on February 23, 11:33:54 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Operating cash flows were $174.0 million and $631.0 million for the fourth quarter and FY 2022, respectively, compared to $101.7 million and $549.5 million for the fourth quarter and FY 2021, respectively. The company reported fourth quarter annual contract value (ACV) of $818.0 million, an increase of 8% and 13% in reported and constant currency, respectively, when compared to the fourth quarter of 2021. In FY 2022, ACV performance was fueled by the strong growth in subscription leases, which grew 18% or 24% in constant currency. Subscription lease ACV crossed over $1.0 billion to $1.2 billion in FY 2022 or 57% of the total ACV. The company achieved double-digit constant currency ACV growth in the fourth quarter. All geographies and industries saw growth, including double-digit increases in aerospace & defense (A&D) and automotive.

Moreover, the Americas and EMEA drove double-digit ACV growth in the A&D industry, where we expanded opportunities by aligning with key government programs and internal customer priorities. Digital transformation remains a key initiative we are well-poised to support. Seven-figure and eight-figure sales to American aerospace companies bolstered growth in the Americas. In both instances, the companies further invested in the DME solution and have been increasing utilization of the core solvers, driving an increase in the number of the products, users and computations performed.  Multiple seven-figure sales to defense organizations contributed to growth in EMEA, including one that featured a standardization on the flagship solvers in addition to an HPC component that the company projects will allow it to triple its computations over the next three years.

ANSS in the fourth quarter of FY 22 has reported the adjusted earnings per share of $3.09, beating the analysts’ estimates for the adjusted earnings per share of $2.79, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6 percent to $694.7 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $646.4 billion. Cash and short-term investments totaled $614.6 million as of December 31, 2022, of which 53% was held domestically. Capital expenditures totaled $9.1 million and $24.4 million for the fourth quarter and FY 2022, respectively. The company is currently planning capital expenditures in the range of $28.0 – $38.0 million for FY 2023.