Third Quarter 2017
- GAAP revenue of $275.6 million and non-GAAP revenue of $276.8 million
- GAAP diluted earnings per share of $0.85 and non-GAAP diluted earnings per share of $1.05
- GAAP operating profit margin of 38.5% and non-GAAP operating profit margin of 48.7%
- Operating cash flows of $88.9 million for the quarter and $327.0 million for the first nine months
Other Highlights
- Deferred revenue and backlog of $669.3 million at September 30, 2017, an increase of 38% over Q3 2016
PITTSBURGH, Nov. 01, 2017 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported third quarter 2017 GAAP and non-GAAP revenue growth of 12% in constant currency. Recurring revenue, which is comprised of lease license and annual maintenance revenue, grew by double digits in constant currency and totaled 75% of revenue for the third quarter on both a GAAP and non-GAAP basis. The Company also reported 9% and 11% growth in diluted earnings per share on a GAAP and non-GAAP basis, respectively.
Ajei Gopal, ANSYS President and CEO, commented, “The ANSYS strategy of Pervasive Simulation is resonating with our customers and partners. We continue to build new and expand existing relationships with customers around the world. During Q3, we closed 25 seven-figure deals, including a three-year deal of over $45 million, the largest in the Company’s history. Our focus on sales execution has resulted in another quarter of excellent financial performance. Our third quarter success was led by double-digit revenue growth in both North America and Asia-Pacific. We also saw improved performance in Europe, which rose 5% in constant currency. Overall, our results demonstrate the continued progress we are making toward achieving our goal of sustainable, double-digit top line growth by 2020.”
Maria Shields, ANSYS CFO, stated, “Our Q3 financial results are validation that our continued focus on execution and disciplined investing in our business is yielding measurable results. The strong business performance exceeded the high end of our expectations as evidenced by double-digit growth in revenue, non-GAAP EPS, and deferred revenue and backlog. Our operating margin and earnings results were both well above the high end of our guidance, driven primarily by the overperformance in revenue. Due to our increased confidence in the fourth quarter, as well as the overperformance in the third quarter, we are raising our Q4 and FY 2017 revenue guidance by $6 million and $20 million at the midpoint, respectively.”
Financial Results
ANSYS' third quarter and year-to-date 2017 and 2016 financial results are presented below. The 2017 and 2016 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets and acquisition-related transaction costs. The 2017 non-GAAP results also exclude restructuring charges.
GAAP and non-GAAP results:
| GAAP | Non-GAAP | ||||||||||||||||||||
| (in millions, except percentages and per share data) | Q3 2017 | Q3 2016 |
%
Change | Q3 2017 | Q3 2016 |
%
Change | |||||||||||||||
| Revenue | $ | 275.6 | $ | 245.9 | 12% | $ | 276.8 | $ | 245.9 | 13% | |||||||||||
| Net income | $ | 73.6 | $ | 69.6 | 6% | $ | 91.3 | $ | 84.2 | 8% | |||||||||||
| Earnings per share | $ | 0.85 | $ | 0.78 | 9% | $ | 1.05 | $ | 0.95 | 11% | |||||||||||
| Operating profit margin | 38.5 | % | 40.7 | % | 48.7 | % | 49.6 | % | |||||||||||||
| Operating cash flow | $ | 88.9 | $ | 84.4 | 5% | ||||||||||||||||
| GAAP | Non-GAAP | ||||||||||||||||||||
| (in millions, except percentages and per share data) |
YTD
2017 |
YTD
2016 |
%
Change |
YTD
2017 |
YTD
2016 |
%
Change | |||||||||||||||
| Revenue | $ | 792.9 | $ | 717.8 | 10% | $ | 794.7 | $ | 717.9 | 11% | |||||||||||
| Net income | $ | 206.7 | $ | 195.7 | 6% | $ | 255.1 | $ | 236.8 | 8% | |||||||||||
| Earnings per share | $ | 2.38 | $ | 2.19 | 9% | $ | 2.94 | $ | 2.65 | 11% | |||||||||||
| Operating profit margin | 36.6 | % | 38.9 | % | 47.8 | % | 47.7 | % | |||||||||||||
| Operating cash flow | $ | 327.0 | $ | 266.8 | 23% | ||||||||||||||||
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2017 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three and nine months ended September 30, 2017 and 2016, and for the 2017 financial outlook, are included in the condensed financial information included in this release.
