ANSYS Q1 Earnings & Revenues Miss Estimates, Increase Y/Y, Stock Falls

ANSYS, Inc. ANSS reported first-quarter 2025 earnings of $1.64 per share, which missed the Zacks Consensus Estimate by 6.3%. The bottom line, however, increased 18% year over year.Revenues of $504.9 million missed the Zacks Consensus Estimate by 4.6%. The top line grew 8.2% year over year on a reported basis and 9.9% on a constant currency (cc) basis. The rise was driven by solid growth in maintenance, service and subscription lease revenues.In January 2024, Ansys and Synopsys announced a $35 billion acquisition deal, under which Ansys shareholders will receive $197 in cash and 0.3450 Synopsys shares per ANSS share. On Oct. 9, 2024, the Israeli Competition Authority granted unconditional clearance.The deal has received regulatory clearance from the U.K. Competition and Markets Authority (Phase 1 with conditions), Turkey, Japan, Korea and Taiwan. Approvals from other jurisdictions are still pending. The deal is expected to close in the first half of 2025. Due to the pending acquisition, Ansys has suspended its earnings calls and guidance.Shares of ANSS fell 2.8% in the after-market trading on April 30, 2025. In the past year, shares have gained 2.4% compared with the Zacks Computer - Software industry's growth of 6.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Image Source: Zacks Investment ResearchANSS’ Quarter in DetailSubscription lease revenues (19.2% of total revenues) were up 4% year over year at cc to $96.9 million. Perpetual licenses revenues (12.5%) were down 2.9% at cc to $63 million.Maintenance revenues (64.2%) climbed 13.9% year over year at cc to $324.4 million. Service revenues (4.1%) were up 22.5% at cc to $20.4 million.ANSYS, Inc. Price and Consensus ANSYS, Inc. price-consensus-chart | ANSYS, Inc. QuoteDirect and indirect channels contributed 69.1% and 30.9%, respectively, to total revenues. ACV grew 0.7% year over year to $410 million. The figure was up 2.3% at cc.On a regional basis, the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 45.6%, 23.5% and 30.8% to revenues, respectively. Revenues from the Americas were up 10.5% year over year at cc to $230.4 million. EMEA revenues were up 2.6% at cc to $118.9 million. Revenues from the Asia-Pacific increased 15% at cc to $155.7 million.Total deferred revenues and backlog was $1,627.7 million, up 18.9% year over year.Operating Details of ANSSNon-GAAP gross margin was up 30 basis points (bps) on a year-over-year basis to 91.2%.Total operating expenses jumped 5.3% year over year to $373.4 million, primarily due to increased selling, general and administrative and research and development expenses.Non-GAAP operating margin increased 130 bps to 33.5% from 32.2% in the prior-year quarter.ANSS’ Balance Sheet & Cash FlowAs of March 31, 2025, cash and short-term investments amounted to $1.8 billion compared with $1.5 billion as of Dec. 31, 2024.As of March 31, 2025, the company’s long-term debt was $754.3 million, which marked a slight increase from the level of Dec. 31, 2024.In the quarter under review, cash from operations increased 41% to $398.9 million from $282.8 million in the prior-year quarter.Zacks Rank of ANSSANSS currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other Computer Software CompaniesCadence Design Systems CDNS reported first-quarter 2025 non-GAAP earnings per share (EPS) of $1.57, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 34.2% year over year, exceeding management’s guided range of $1.46-$1.52. Revenues of $1.242 billion topped the Zacks Consensus Estimate by 0.3% and increased 23% year over year. CDNS’s top line was driven by broad-based demand for its solutions amid robust design activity.In the past year, shares of CDNS have increased 7.7%.SAP SE SAP reported first-quarter 2025 non-IFRS EPS of €1.44 ($1.51), which increased 79% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.39. Driven by momentum in the cloud business, SAP reported total revenues on a non-IFRS basis of €9.01 billion ($9.48 billion), which increased 12.1% year over year (up 11% at constant currency or cc). The Zacks Consensus estimate was pegged at $9.78 billion.In the past six months, shares of SAP have increased 25.5%.Simulations Plus, Inc. SLP second-quarter fiscal 2025 adjusted earnings of 31 cents per share, which fell 3% year over year. However, the figure surpassed the Zacks Consensus Estimate of 25 cents per share. Quarterly revenues jumped 23% year over year to $22.4 million, driven by increasing momentum across its software and services business segments. The growing uptake of its flagship solutions, including GastroPlus, MonolixSuite and ADMET Predictor, fueled the top-line expansion.In the past six months, shares of SLP have increased 25%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP): Free Stock Analysis Report Simulations Plus, Inc. (SLP): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report ANSYS, Inc. (ANSS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks