PITTSBURGH, May 6, 2021 — ANSYS, Inc. reported first quarter 2021 GAAP and non-GAAP revenue growth of 19% and 20% in reported currency, respectively, or 16% and 17% in constant currency, respectively, when compared to the first quarter of 2020. For the first quarter of 2021, the Company reported diluted earnings per share of $0.82 and $1.12 on a GAAP and non-GAAP basis, respectively, compared to $0.53 and $0.83 on a GAAP and non-GAAP basis, respectively, for the first quarter of 2020.

Key Highlights – Q1 2021

• GAAP revenue of $363.2 million and non-GAAP revenue of $372.1 million
• GAAP diluted earnings per share of $0.82 and non-GAAP diluted earnings per share of $1.12
• GAAP operating profit margin of 13.8% and non-GAAP operating profit margin of 33.5%
• Operating cash flows of $171.1 million
• Annual contract value (ACV) of $319.4 million
• Deferred revenue and backlog of $936.5 million at March 31, 2021

“Ansys achieved excellent results for the first quarter, delivering double-digit revenue and earnings growth. The underlying strength in our business, coupled with the strategic role we play in enabling and advancing our customers’ digital transformation, gives us continued confidence in our ability to execute against our goals,” said Ajei Gopal, Ansys President and CEO.

Nicole Anasenes, Ansys CFO, stated, “Our first quarter results represent a strong start to the year, continuing the outstanding performance from Q4 of last year. We saw strong channel and small- and medium-sized account performance for the second quarter in a row, contributing to both ACV and revenue growth. We are optimistic about the positive indicators we saw in Q1 and the strength of our current pipeline. We are raising our full year 2021 guidance across all guidance metrics: ACV, revenue, EPS and operating cash flow.”

Financial Results

Ansys’ first quarter 2021 and 2020 financial results are presented below. The 2021 and 2020 non-GAAP results exclude the income statement effects of the acquisition accounting adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, and transaction expenses related to business combinations.

GAAP and non-GAAP results are as follows:

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2021 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three months ended March 31, 2021 and 2020, and for the 2021 financial outlook, can be found in the condensed financial information included in this release.

Other Performance Metrics

 

ACV is a metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. ACV is composed of the following:

• the annualized value of maintenance and lease contracts with start dates or anniversary dates during the period, plus
• the value of perpetual license contracts with start dates during the period, plus
• the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
• the value of work performed during the period on fixed-deliverable services contracts.

Management’s 2021 Financial Outlook

The Company’s second quarter and fiscal year 2021 revenue and diluted earnings per share guidance is provided below. The Company is also providing its fiscal year 2021 guidance for ACV and operating cash flows. The revenue and diluted earnings per share guidance is provided on both a GAAP and non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets and acquisition-related transaction expenses.

The financial guidance below reflects the Company’s current estimates of the adverse impacts of the global pandemic and trade restrictions. This guidance is based on the Company’s evaluation of factual information it has determined to be relevant and the application of certain assumptions made by the Company. Please refer to the Company’s prepared remarks document for essential additional information regarding the Company’s financial guidance, including its assumptions regarding overall business dynamics and the economic impacts of COVID-19 and trade restrictions.

Second Quarter 2021 Guidance

The Company currently expects the following for the quarter ending June 30, 2021:

Fiscal Year 2021 Guidance

The Company currently expects the following for the fiscal year ending December 31, 2021:

The difference between the GAAP and non-GAAP revenue guidance presented above is a result of the expected impact of the application of the fair value provisions applicable to the accounting for business combinations in the amount of $5.3 million for the second quarter and $19.3 million for FY 2021.

The FY 2021 revenue and ACV guidance assumes an incremental headwind of approximately $14 million from currency relative to our guidance initiated in February. This currency headwind had an approximately $0.06 per share impact on FY 2021 earnings per share guidance and an approximately $5 million impact on FY 2021 operating cash flow guidance.

The Q2 and FY 2021 earnings per share guidance includes a gain of approximately $15.1 million, or $0.14 per share, related to a change in the value of an equity investment. This gain will not affect the Company’s revenue, operating income or cash flows.