ANSYS, INC. Details related to our financial guidance, including assumptions, are included in our prepared remarks document.
/ Key Highlights - Q3 2023
GAAP and non-GAAP revenue of
GAAP diluted earnings per share of
GAAP operating profit margin of 15.2% and non-GAAP operating profit margin of 34.1%
Operating cash flows of
Annual contract value (ACV) of
Deferred revenue and backlog of
Incremental restrictions for export to
Reaffirm long-term outlook from 2022 to 2025 of 12% constant currency ACV growth, including tuck-in M&A, and
In the context of broader
'
Nicole Anasenes, Ansys CFO, stated, 'Our ability to deliver double-digit ACV constant currency growth in Q3, despite the disruption from changes required for export compliance, is a testament to the resilience of our business model. Our highly recurring business model, significant base of renewal business, market-leading simulation portfolio and deep customer relationships create a strong financial foundation and contribute to unwavering demand for our product. Despite the disruption in Q3, our results year-to-date are strong with ACV growth of 12% in constant currency. With our double-digit performance year-to-date and the continued strong pipeline and momentum in our business, we are confident in our ability to achieve our short- and long-term guidance.'
The non-GAAP financial results highlighted, and the non-GAAP financial outlook for 2023 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures for the three and nine months ended
/ Financial Results
GAAP and non-GAAP results are as follows:
GAAP Non-GAAP
(in millions, except per share data and percentages) Q3 QTD
2023 Q3 QTD
2022 % Change Q3 QTD
2023 Q3 QTD
2022 % Change
Revenue$ 458.8 $ 472.5 (3)%$ 458.8 $ 473.7 (3)%
Net income$ 55.5 $ 96.0 (42)%$ 122.9 $ 154.7 (21)%
Diluted earnings per share$ 0.64 $ 1.10 (42)%$ 1.41 $ 1.77 (20)%
Operating profit margin 15.2 % 26.1 % 34.1 % 41.0 %
GAAP Non-GAAP
(in millions, except per share data and percentages) Q3 YTD
2023 Q3 YTD
2022 % Change Q3 YTD
2023 Q3 YTD
2022 % Change
Revenue$ 1,464.8 $ 1,371.4 7%$ 1,464.8 $ 1,378.2 6%
Net income$ 225.7 $ 265.8 (15)%$ 424.0 $ 428.5 (1)%
Diluted earnings per share$ 2.58 $ 3.04 (15)%$ 4.85 $ 4.90 (1)%
Operating profit margin 20.0 % 24.2 % 36.8 % 38.9 %
/ Other Performance Metrics
(in millions, except percentages) Q3 QTD
2023 Q3 QTD
2022 % Change % Change in
Constant
Currency
ACV$ 457.5 $ 409.3 12% 10%
Operating cash flows$ 160.8 $ 127.2 26%
Unlevered operating cash flows$ 170.6 $ 132.0 29%
(in millions, except percentages) Q3 YTD
2023 Q3 YTD
2022 % Change % Change in
Constant
Currency
ACV$ 1,345.3 $ 1,213.7 11% 12%
Operating cash flows$ 484.4 $ 457.0 6%
Unlevered operating cash flows$ 512.3 $ 467.0 10%
ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making and in setting sales targets used for compensation. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following:
the annualized value of maintenance and subscription 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.
When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of
Example 1: For purposes of calculating ACV, a
Example 2: For purposes of calculating ACV, a
Example 3: A perpetual license valued at
/ Management's 2023 Financial Outlook
The Company's fourth quarter and updated FY 2023 revenue, diluted earnings per share and ACV guidance is provided below. The 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 stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.
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 additional information regarding the Company's financial guidance, including its assumptions regarding overall business dynamics.
/ Fourth Quarter and Fiscal Year 2023 Guidance
The Company currently expects the following for the fourth quarter ending
(in millions, except percentages and per share data) GAAP Non-GAAP
Revenue$769.2 -$819.2 $769.2 -$819.2
Revenue Growth Rate 10.8% - 18.0% 10.7% - 17.9%
Revenue Growth Rate - Constant Currency 11.6% - 18.9% 11.5% - 18.8%
Diluted earnings per share$2.72 -$3.18 $3.48 -$3.89
(in millions, except percentages) Other Financial
Metrics
ACV$897.8 -$942.8
ACV Growth Rate 9.8% - 15.3%
ACV Growth Rate - Constant Currency 10.5% - 16.2%
The Company currently expects the following for the fiscal year ending
(in millions, except percentages and per share data) GAAP Non-GAAP
Revenue$2,234.0 -$2,284.0 $2,234.0 -$2,284.0
Revenue Growth Rate 8.2% - 10.6% 7.8% - 10.2%
Revenue Growth Rate - Constant Currency 8.8% - 11.3% 8.4% - 10.9%
Diluted earnings per share$5.31 -$5.77 $8.34 -$8.75
(in millions, except percentages) Other Financial
Metrics
ACV$2,243.0 -$2,288.0
ACV Growth Rate 10.4% - 12.6%
ACV Growth Rate - Constant Currency 11.0% - 13.3%
Unlevered operating cash flows$705.0 -$735.0
Our FY 2023 guidance is inclusive of
In the context of broader
For the full year 2023 guidance, we expect these incremental restrictions and processes to be a
Despite these challenges, we are seeing operational momentum in the rest of our business and as a result are increasing ACV, revenue, diluted earnings per share and unlevered operating cash flows. The updated full year 2023 guidance reflects this incremental operational performance offset by
The underlying foundation of our business remains strong and we continue to see momentum. The below chart captures the drivers of the update to our guidance since August:
(in millions, except per share data) Mid-point of
Guidance in
August Incremental
Operational
Performance* Reduction
due to
Export Restrictions
and
Processes November
mid-point of
Guidance at
August
Exchange
Rates Currency
Fluctuations November
mid-point of
Guidance at
Current
Exchange
Rates
ACV$2,308 $11 ($25 )$2,294 ($28 )$2,266
Revenue$2,292 $15 ($25 )$2,282 ($23 )$2,259
Diluted earnings per share$8.64 $0.25 ($0.21 )$8.68 ($0.13 )$8.55
Unlevered operating cash flows$724 $10 ($7 )$727 ($7 )$720
*Incremental operational performance captures changes to our results and outlook, excluding the impact of fluctuations from exchange rates and of incremental
/ Fiscal Year 2024 Comments
As we look to the future, the updated export restrictions and incremental processes will also mute
/ Conference Call Information
To participate in the live conference call, dial 855-239-2942 (US) or 412-542-4124 (
/ GAAP Financial Statements
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)September 30, 2023 December 31, 2022
ASSETS:
Cash & short-term investments$ 639,513 $ 614,574
Accounts receivable, net 673,973 760,287
Goodwill 3,769,321 3,658,267
Other intangibles, net 849,205 809,183
Other assets 741,508 845,634
Total assets$ 6,673,520 $ 6,687,945
LIABILITIES & STOCKHOLDERS' EQUITY:
Current deferred revenue$ 349,668 $ 413,989
Long-term debt 753,812 753,574
Other liabilities 563,240 654,531
Stockholders' equity 5,006,800 4,865,851
Total liabilities & stockholders' equity$ 6,673,520 $ 6,687,945
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
(in thousands, except per share data)September 30 ,
2023 September 30,
2022September 30 ,
2023 September 30,
2022
Revenue:
Software licenses$ 162,422 $ 208,906 $ 586,471 $ 575,332
Maintenance and service 296,373 263,605 878,370 796,106
Total revenue 458,795 472,511 1,464,841 1,371,438
Cost of sales:
Software licenses 8,692 8,425 29,095 25,370
Amortization 20,707 17,281 60,404 51,947
Maintenance and service 35,858 36,261 111,750 111,897
Total cost of sales 65,257 61,967 201,249 189,214
Gross profit 393,538 410,544 1,263,592 1,182,224
Operating expenses:
Selling, general and administrative 194,552 175,283 585,278 515,421
Research and development 123,223 108,056 368,581 322,271
Amortization 5,947 3,821 16,598 11,975
Total operating expenses 323,722 287,160 970,457 849,667
Operating income 69,816 123,384 293,135 332,557
Interest income 4,909 1,345 12,389 2,141
Interest expense (12,276 ) (6,092 ) (34,594 ) (13,668 )
Other income (expense), net 96 (656 ) (3,564 ) (2,126 )
Income before income tax provision 62,545 117,981 267,366 318,904
Income tax provision 7,043 22,006 41,716 53,141
Net income$ 55,502 $ 95,975 $ 225,650 $ 265,763
Earnings per share - basic
Earnings per share$ 0.64 $ 1.10 $ 2.60 $ 3.05
Weighted average shares 86,817 87,063 86,814 87,062
Earnings per share - diluted:
Earnings per share$ 0.64 $ 1.10 $ 2.58 $ 3.04
Weighted average shares 87,381 87,418 87,335 87,496
/ Reconciliations of GAAP to Non-GAAP Measures (Unaudited)
Three Months Ended
(in thousands, except percentages and per share data) Revenue Gross Profit % Operating
Income % Net Income EPS -
Diluted1
Total GAAP$ 458,795 $ 393,538 85.8 %$ 69,816 15.2 %$ 55,502 $ 0.64
Stock-based compensation expense - 3,568 0.8 % 58,061 12.7 % 58,061 0.66
Excess payroll taxes related to stock-based awards - 3 - % 241 0.1 % 241 -
Amortization of intangible assets from acquisitions - 20,707 4.5 % 26,654 5.8 % 26,654 0.31
Expenses related to business combinations - - - % 1,465 0.3 % 1,465 0.02
Adjustment for income tax effect - - - % - - % (19,026 ) (0.22 )
Total non-GAAP$ 458,795 $ 417,816 91.1 %$ 156,237 34.1 %$ 122,897 $ 1.41
1 Diluted weighted average shares were 87,381.
Three Months Ended
(in thousands, except percentages and per share data) Revenue Gross Profit % Operating
Income % Net Income EPS -
Diluted1
Total GAAP$ 472,511 $ 410,544 86.9 %$ 123,384 26.1 %$ 95,975 $ 1.10
Acquisition accounting for deferred revenue 1,162 1,162 - % 1,162 0.2 % 1,162 0.01
Stock-based compensation expense - 2,621 0.5 % 46,970 9.9 % 46,970 0.55
Excess payroll taxes related to stock-based awards - 37 - % 260 0.1 % 260 -
Amortization of intangible assets from acquisitions - 17,281 3.7 % 21,102 4.4 % 21,102 0.24
Expenses related to business combinations - - - % 1,210 0.3 % 1,210 0.01
Adjustment for income tax effect - - - % - - % (11,958 ) (0.14 )
Total non-GAAP$ 473,673 $ 431,645 91.1 %$ 194,088 41.0 %$ 154,721 $ 1.77
1 Diluted weighted average shares were 87,418.
Nine Months Ended
(in thousands, except percentages and per share data) Revenue Gross Profit % Operating
Income % Net Income EPS -
Diluted1
Total GAAP$ 1,464,841 $ 1,263,592 86.3 %$ 293,135 20.0 %$ 225,650 $ 2.58
Stock-based compensation expense - 9,924 0.6 % 158,533 10.7 % 158,533 1.81
Excess payroll taxes related to stock-based awards - 303 - % 5,270 0.4 % 5,270 0.06
Amortization of intangible assets from acquisitions - 60,404 4.2 % 77,002 5.3 % 77,002 0.88
Expenses related to business combinations - - - % 5,758 0.4 % 5,758 0.07
Adjustment for income tax effect - - - % - - % (48,222 ) (0.55 )
Total non-GAAP$ 1,464,841 $ 1,334,223 91.1 %$ 539,698 36.8 %$ 423,991 $ 4.85
1 Diluted weighted average shares were 87,335.
Nine Months Ended
(in thousands, except percentages and per share data) Revenue Gross Profit % Operating
Income % Net Income EPS -
Diluted1
Total GAAP$ 1,371,438 $ 1,182,224 86.2 %$ 332,557 24.2 %$ 265,763 $ 3.04
Acquisition accounting for deferred revenue 6,758 6,758 0.1 % 6,758 0.3 % 6,758 0.08
Stock-based compensation expense - 7,448 0.5 % 122,119 8.9 % 122,119 1.40
Excess payroll taxes related to stock-based awards - 481 - % 5,530 0.5 % 5,530 0.06
Amortization of intangible assets from acquisitions - 51,947 3.8 % 63,922 4.6 % 63,922 0.73
Expenses related to business combinations - - - % 5,376 0.4 % 5,376 0.06
Adjustment for income tax effect - - - % - - % (40,929 ) (0.47 )
Total non-GAAP$ 1,378,196 $ 1,248,858 90.6 %$ 536,262 38.9 %$ 428,539 $ 4.90
1 Diluted weighted average shares were 87,496.
Three Months Ended Nine Months Ended
(in thousands)September 30 ,
2023 September 30,
2022September 30 ,
2023 September 30,
2022
Net cash provided by operating activities$ 160,768 $ 127,151 $ 484,400 $ 457,031
Cash paid for interest 11,948 5,894 33,795 12,192
Tax benefit (2,091 ) (1,061 ) (5,914 ) (2,195 )
Unlevered operating cash flows$ 170,625 $ 131,984 $ 512,281 $ 467,028
Reconciliation of Forward-Looking Guidance
Quarter Ending
Earnings Per Share
Diluted
U.S. GAAP expectation$2.72 -$3.18
Exclusions before tax:
Acquisition-related amortization$0.30 -$0.31
Stock-based compensation and related excess payroll tax$0.64 -$0.69
Expenses related to business combinations$0.01
Adjustment for income tax effect ($0.24 ) - ($0.25 )
Non-GAAP expectation$3.48 -$3.89
Reconciliation of Forward-Looking Guidance
Year Ending
Earnings Per Share
Diluted
U.S. GAAP expectation$5.31 -$5.77
Exclusions before tax:
Acquisition-related amortization$1.18 -$1.19
Stock-based compensation and related excess payroll tax$2.51 -$2.57
Expenses related to business combinations$0.08
Adjustment for income tax effect ($0.79 ) - ($0.81 )
Non-GAAP expectation$8.34 -$8.75
(in millions) Unlevered Operating Cash
Flows
Net cash provided by operating activities$667.0 -$697.0
Cash paid for interest$46.1
Tax benefit ($8.1 )
Unlevered operating cash flows$705.0 -$735.0
/ Use of Non-GAAP Measures
We provide non-GAAP revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.
We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.
While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:
Acquisition accounting for deferred revenue. Historically, we have consummated acquisitions in order to support our strategic and other business objectives. Under prior accounting guidance, a fair value provision resulted in acquired deferred revenue that was often recorded on the opening balance sheet at an amount that was lower than the historical carrying value. Although this fair value provision has no impact on our business or cash flow, it adversely impacts our reported GAAP revenue in the reporting periods following an acquisition. In 2022, we adopted accounting guidance which eliminates the fair value provision that resulted in the deferred revenue adjustment on a prospective basis. In order to provide investors with financial information that facilitates comparison of both historical and future results, we have historically provided non-GAAP financial measures which exclude the impact of the acquisition accounting adjustment for acquisitions prior to the adoption of the new guidance in 2022. The 2022 non-GAAP financial measures presented in this document include the adjustment to exclude the income statement effects of acquisition accounting adjustments to deferred revenue from business combinations closed prior to 2022. There is no adjustment included for 2023 as the impact is not material.
Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.
Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. This non-GAAP adjustment also includes excess payroll tax expense related to stock-based compensation. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our board of directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager's performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors' operating results.
Expenses related to business combinations. We incur expenses for professional services rendered in connection with business combinations, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors' operating results.
Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.
Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.
Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:
GAAP Reporting Measure Non-GAAP Reporting Measure
Revenue Non-GAAP Revenue
Gross Profit Non-GAAP Gross Profit
Gross Profit Margin Non-GAAP Gross Profit Margin
Operating Income Non-GAAP Operating Income
Operating Profit Margin Non-GAAP Operating Profit Margin
Net Income Non-GAAP Net Income
Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
Operating Cash Flows Unlevered Operating Cash Flows
Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2023 results for entities whose functional currency is a currency other than the
/ About Ansys
Our Mission: Powering Innovation that Drives Human Advancement
When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with
/ Forward-Looking Information
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.
Forward-looking statements use words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'likely,' 'may,' 'outlook,' 'plan,' 'predict,' 'project,' 'should,' 'target,' or other words of similar meaning. Forward-looking statements include those about market opportunity, including our total addressable market. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:
adverse conditions in the macroeconomic environment, including high inflation, recessionary conditions and volatility in equity and foreign exchange markets; political, economic and regulatory uncertainties in the countries and regions in which we operate;
impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to
impacts resulting from the conflict between
constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
our ability to timely recruit and retain key personnel in a highly competitive labor market for skilled personnel, including potential financial impacts of wage inflation;
declines in our customers' businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers' liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers' acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
increased volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure and misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
our ability and our channel partners' ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry's rapidly changing technology; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of the transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
investments in global sales and marketing organizations and global business infrastructure; and dependence on our channel partners for the distribution of our products;
current and potential future impacts of a global health crisis, natural disaster or catastrophe, and the actions taken to address these events by our customers, suppliers, regulatory authorities and our business, on the global economy and consolidated financial statements, and other public health and safety risks; and government actions or mandates;
operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-
plans for future capital spending; the extent of corporate benefits from such spending including with respect to customer relationship management; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
our ability to execute on our strategies related to environmental, social, and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
other risks and uncertainties described in our reports filed from time to time with the
Visit https://investors.ansys.com for more information.
ANSS-F
Contact:
Investors:Kelsey DeBriyn
724.820.3927
kelsey.debriyn@ansys.com
Media:Mary Kate Joyce
724.820.4368
marykate.joyce@ansys.com
(C) 2023 Electronic News Publishing, source
