Company Initiates Q3 2020 Outlook
Increases Guidance to Reflect Currency Changes, Improved Cash Flow and Q2 EPS Overachievement
Details related to our financial guidance, including assumptions and economic impacts of COVID-19, are detailed in our prepared remarks document.
Key Highlights - Q2 2020
- GAAP revenue of $385.7 million and non-GAAP revenue of $389.7 million
- GAAP diluted earnings per share of $1.11 and non-GAAP diluted earnings per share of $1.55
- GAAP operating profit margin of 29.3% and non-GAAP operating profit margin of 42.9%
- Operating cash flows of $131.6 million
- Deferred revenue and backlog of $846.5 million at June 30, 2020
PITTSBURGH, Aug. 05, 2020 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ: ANSS), today reported second quarter 2020 GAAP and non-GAAP revenue growth of 5% in reported currency, or 5% and 6%, respectively, in constant currency. For the second quarter of 2020, the Company reported earnings per share of $1.11 and $1.55 on a GAAP and non-GAAP basis, respectively, compared to $1.28 and $1.61 on a GAAP and non-GAAP basis, respectively, for the second quarter of 2019.
“Q2 was a very strong quarter for Ansys, with revenue, operating margins and earnings exceeding the high end of our financial guidance. I’m excited that during the quarter we closed both the largest deal in our 50-year history as well as our largest sales agreement for new business. These results demonstrate the strength and resilience of our business and give us confidence for the future,” said Ajei Gopal, Ansys president and CEO.
Gopal further stated, “Our recent launch of Ansys 2020 Release 2 delivers enhanced functionality across the simulation portfolio to help customers generate larger, more complex designs easier and faster than ever. And we recently hosted Simulation World, the largest virtual simulation event ever held, to build excitement for those world-class products.”
“Our continued focus and ability to adjust our execution against the real-time operating realities of the current business environment yielded strong financial results. These reflect the resiliency of both our business model and our team. Our stronger than expected revenue performance drove operating margins and earnings that were also above the high end of our guidance. Our financial results included growth in both ACV and operating cash flows, while 83% of ACV was from recurring sources in the second quarter. We also reported a record second quarter balance of deferred revenue and backlog of $846 million, an increase of 18% over the second quarter of 2019. While we continue to plan for a challenging market environment in the near term, we remain confident that Ansys is very well positioned with a combination of a strong balance sheet, cash flow from operations and ample liquidity for our ongoing operations and to support future growth aspirations. As we look ahead into the second half of the year, we will continue to balance fiscal discipline with the need to continue to invest in our business to maintain our leadership and to pursue our strategy of making simulation pervasive," stated Maria Shields, chief financial officer of Ansys.
Ansys' second quarter and YTD 2020 and 2019 financial results are presented below. The 2020 and 2019 non-GAAP results exclude the income statement effects of the acquisition accounting adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, transaction expenses related to business combinations, and adjustments related to the transition tax associated with the Tax Cuts and Jobs Act.
GAAP and non-GAAP results are as follows:
|(in millions, except percentages and per share data)||
|Diluted earnings per share||$||1.11||$||1.28||(13||)||%||$||1.55||$||1.61||(4||)||%|
|Operating profit margin||29.3||%||34.9||%||42.9||%||45.6||%|