Ansys net worth is an intriguing topic in the world of engineering software. In 2024, understanding how this firm maintains strong revenue streams through diverse channels is essential.
Today, I’m diving into the financial performance of Ansys, including the impact of major contracts and the Synopsys acquisition agreement. Let’s explore how this powerhouse continues to grow and innovate, maintaining its status among successful firms.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Ansys |
| Full Name | ANSYS, Inc. |
| Industry | Engineering Software |
| Traded as | NASDAQ: ANSS |
| ISIN | N/A |
| Founded | 1970 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Pittsburgh, Pennsylvania |
| Chief Executive Officer | Ajei Gopal (from Wikipedia) |
| Number of Employees | 6,200 |
| Market Cap | $28.41 Billion |
| Total Assets | $7.32 Billion |
| Total Equity | $5.59 Billion |
| Revenue | $1,060.7 Million |
| Net Income | $164.8 Million (GAAP) |
What is the Net Worth/Market Cap Of Ansys in 2024?
Ansys has a market cap of $28.41 billion as of September 2024, making it a significant player in the engineering software industry.
Comparatively, Ansys sits in an influential position, competing with some of the most notable firms worldwide.
Below are several companies related to Ansys that help provide a broader context to its valuation:
- Synopsys
- NASDAQ
- Autodesk
- Dassault Systèmes
- Altair
- Siemens Digital Industries
- Autodesk
- MathWorks
- PTC
- Bentley Systems
If you’re interested in learning more about the world’s most affluent companies, click here for an in-depth exploration.
Financial Performance Overview
Key Revenue Streams of the Firm
Ansys‘s financial health in 2024 is strongly supported by its varied revenue streams.
The subscription and licensing revenue play a crucial role, where the subscription lease model has contributed $218.6 million (Q2 2024), showing a 61.9% increase compared to Q2 2023.
Additionally, maintenance and service contracts accounted for $293.8 million, making up a significant part of the total revenue in Q2.
This combination of subscription lease, maintenance, and services offers steady cash flow, enabling the company to secure sustained growth.
Impact of Major Contracts on Revenue
Major contracts have significantly impacted Ansys’s performance. The firm secured two multi-year contracts worth a combined $210 million, one in the automotive sector and the other in the high-tech industry.
These contracts, which were booked in the Americas region, have contributed immensely to the firm’s revenue, bolstering the growth rate seen in Q2.
The high-tech sector, in particular, has proven to be a pivotal area for growth, driving revenue and reinforcing Ansys’s stability.
Regional Contributions to Revenue
The firm’s financial growth has also been boosted by regional performance. The Americas lead the way, generating $324.4 million (Q2 2024), a 47.2% increase from the previous year.
Meanwhile, the EMEA region contributed $130.8 million, reflecting steady growth of 3.6%. In contrast, the Asia-Pacific saw a dip, especially in Japan, which fell by 21.9%, though other parts of Asia-Pacific grew moderately by 5.4%.
These geographic variations show the diverse nature of the firm’s market and its ability to adapt to different regions.
Revenue by Product and Service Types
Ansys has successfully diversified its product portfolio to boost its revenue base. Subscription leases have grown sharply, contributing 36.8% of total revenue, while perpetual licenses fell to 10.9% of total revenue in Q2 2024.
The shift from perpetual to subscription-based models aligns with industry trends, focusing on recurring revenue for long-term sustainability.
Service contracts, although smaller, still hold importance, bringing in $17.1 million. Each type of product and service offers unique financial stability, allowing Ansys to balance growth with resilience.
Financial Effects of the Synopsys Acquisition Agreement
The proposed acquisition agreement with Synopsys, anticipated to be completed in 2025, is poised to reshape Ansys’s revenue and financial performance.
With this definitive agreement, there’s expected growth in terms of synergies and product offerings.
This move not only adds value to shareholders but also strengthens the firm’s financial stability by expanding its reach and diversifying its offerings.
The acquisition is a calculated approach to broaden their market and add new capabilities in engineering simulation software.
Operational Cash Flow and Its Role in Sustaining Revenue Growth
Ansys has shown excellent operational cash flow management. For the first half of 2024, operating cash flow stood at $363.5 million, and the unlevered operating cash flow reached $383.3 million.
These numbers highlight how effectively Ansys can manage its day-to-day operations while also freeing up capital for further investment in R&D and other critical growth areas.
Cash flow stability is a crucial factor in maintaining consistent revenue growth, and Ansys’s numbers in 2024 reflect that well.
Revenue Growth from Different Industries
Diving into industry contributions, the high-tech sector was the largest contributor to Ansys’s revenue, accounting for 30% of the total trailing twelve-month ACV for Q2 2024.
Aerospace and defense came next, with a 22% share, followed by automotive, contributing 19%. These sectors are not just consistent revenue generators but also represent areas where Ansys’s technology continues to make significant impacts.
A focus on these industries positions the company strategically for sustained revenue growth.
Deferred Revenue and Backlog Contributions
The deferred revenue and backlog stood at $1.39 billion as of June 30, 2024. This is a key indicator of the company’s future financial health, ensuring stable revenues for upcoming quarters.
The deferred revenues reflect not only payments received in advance but also long-term customer commitments, which provide predictability to Ansys’s financial performance.
This backlog is essential in ensuring financial stability amidst fluctuations in market dynamics.
Key Factors Influencing Revenue Stability and Growth
There are several elements influencing Ansys’s revenue stability. Currency fluctuations, for instance, have had an adverse effect of $13.2 million on the reported ACV for Q2 2024.
Moreover, stock-based compensation expenses and costs associated with business combinations have also been key financial factors.
While they are necessary parts of operational growth, these factors slightly reduce the firm’s overall profit margins. Understanding these influences helps paint a complete picture of the company’s financial journey in 2024.
Analysis of Revenue Trends Over Recent Quarters
Analyzing recent financial trends, Ansys’s revenue has increased from $496.6 million in Q2 2023 to $594.1 million in Q2 2024, representing a growth of 19.6%.
This improvement is attributed to significant contract bookings, operational efficiency, and strong performance in high-growth sectors.
Comparing quarter-to-quarter trends provides insight into how the company continues to adapt and grow amid changing economic and industry conditions.
FAQs About Ansys
How has Ansys’s revenue grown in recent years?
Ansys’s revenue increased significantly from $496.6 million in Q2 2023 to $594.1 million in Q2 2024, reflecting a growth rate of 19.6%. This growth can be attributed to new contracts and strong performance across key sectors.
What are the key regions contributing to Ansys’s revenue?
The Americas are the largest contributor, accounting for 54.6% of revenue in Q2 2024. EMEA and Asia-Pacific regions also contribute, with varying growth trends across individual countries.
What role does the Synopsys acquisition play in Ansys’s financials?
The acquisition of Ansys by Synopsys, set to complete in 2025, is expected to significantly enhance its revenue and broaden the market reach by leveraging both companies’ strengths in engineering software.
How does Ansys derive its revenue from services?
Ansys earns revenue through subscription leases, perpetual licenses, and service contracts. Subscription leases contributed 36.8% of revenue, while maintenance and service contracts added $293.8 million in Q2 2024.
What are the current deferred revenue figures for Ansys?
The deferred revenue and backlog totaled $1.39 billion as of June 30, 2024. This figure reflects future financial commitments and ensures predictable income for the coming quarters.
Conclusion
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