ASC 606 - First Quarter 2018
- GAAP revenue of $282.9 million and non-GAAP revenue of $283.3 million
- GAAP diluted earnings per share of $0.98 and non-GAAP diluted earnings per share of $1.20
- GAAP operating profit margin of 33.6% and non-GAAP operating profit margin of 45.0%
- Deferred revenue and backlog of $595.0 million at March 31, 2018
ASC 605 - First Quarter 2018 (as if previous revenue recognition guidance was in effect)
- GAAP revenue of $284.6 million and non-GAAP revenue of $285.2 million
- GAAP diluted earnings per share of $1.00 and non-GAAP diluted earnings per share of $1.22
- GAAP operating profit margin of 34.0% and non-GAAP operating profit margin of 45.3%
- Deferred revenue and backlog of $841.7 million at March 31, 2018, an increase of 29% over Q1 2017
- 10% constant currency increase in Q1 2018 ACV
- Operating cash flows of $132.4 million
- Repurchased 0.8 million shares in the first quarter at an average price of $157.11
Note: We adopted ASC 606 on January 1, 2018, which impacted our financial results, including the categorization and geographic allocation of revenue. For comparability purposes and unless otherwise specified, the amounts included in the commentary below refer to results under ASC 605 as if previous revenue recognition guidance was in effect.
PITTSBURGH, May 02, 2018 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported first quarter 2018 GAAP and non-GAAP revenue growth of 12%, or 7% in constant currency. Recurring revenue, which comprises lease license and annual maintenance revenue, totaled 78% of revenue for the first quarter on both a GAAP and non-GAAP basis. For the first quarter, the Company reported growth in diluted earnings per share of 37% on both a GAAP and non-GAAP basis.
Ajei Gopal, ANSYS President and CEO, commented, “The ANSYS Pervasive Simulation strategy and the strength of our portfolio continue to drive strong demand for our products and solutions. Our focus on execution is also paying off, and we are off to a strong start in 2018, delivering record revenue and earnings per share, both of which were above the high end of our guidance. During Q1, we had 30 customers each with combined orders over $1 million, including the signing of the largest deal in the Company’s history, a $50 million three-year contract. We continued to see improvement within our European operations, which grew 9% in constant currency, including double-digit revenue growth in Germany, France and the United Kingdom. We also announced the acquisition of OPTIS, a leader in optical simulation. The transaction will add another physics to our multi-physics portfolio, and enhance our product offerings for autonomous vehicles."
Maria Shields, ANSYS CFO, stated, “The investments we are making in the business are yielding measurable results, with our deferred revenue and backlog reaching a record level of $841.7 million, a 29% increase over Q1 2017. Our annual contract value (ACV) grew 10% in constant currency in Q1 2018 as compared to Q1 2017 and we reported record cash flows from operations of $132.4 million for the quarter. Both of these metrics are indicative of the current and longer-term health of the business. We also continued to return capital to stockholders in the form of share repurchases during Q1, purchasing 0.8 million shares.”
ANSYS' first quarter 2018 and 2017 financial results are presented below. The 2018 and 2017 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, acquisition-related transaction costs, restructuring charges and the measurement-period adjustment related to the 2017 Tax Cuts and Jobs Act.
GAAP and non-GAAP results under ASC 606:
|(in millions, except percentages and per share data)||Q1 2018||Q1 2018|
|Earnings per share||$||0.98||$||1.20|
|Operating profit margin||33.6||%||45.0||%|
GAAP and non-GAAP results under ASC 605:
|(in millions, except percentages and per share data)||Q1 2018||Q1 2017||% Change||Q1 2018||Q1 2017||% Change|
|Earnings per share||$||1.00||$||0.73||37||%||$||1.22||$||0.89||37||%|
|Operating profit margin||34.0||%||33.7||%||45.3||%||46.4||%|
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2018 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three months ended March 31, 2018 and 2017, and for the 2018 financial outlook, are included in the condensed financial information included in this release.