Executive Summary

Q2 revenue accelerated to $594.1M (+19.6% YoY; +21.6% cc), driven by two multi‑year Americas mega‑deals totaling ~$210M; GAAP EPS $1.48 and non‑GAAP EPS $2.50, with material operating margin expansion YoY .
Mix and region were favorable: subscription lease revenue +61.9% YoY; Americas +47.2% YoY; while Japan and Germany were headwinds; ACV grew 6.6% YoY (+9.3% cc) to $520.5M .
Management reiterated expectation for double‑digit ACV and revenue growth in 2H24; FY24 ACV expected to grow double‑digit; deferred revenue + backlog reached $1.394B at 6/30/24 .
No guidance and no earnings call due to pending Synopsys acquisition (shareholders approved; anticipated close 1H25); stock catalysts shift to execution on large deals, ACV trajectory in 2H, and M&A milestones .

What Went Well and What Went Wrong

Mega‑deal execution: “The increase in revenue was driven by two multi‑year contracts with a combined value of $210 million…booked during the second quarter in the Americas region,” powering +47% Americas revenue growth YoY .
Mix quality and profitability: Subscription lease revenue rose 61.9% YoY; non‑GAAP operating margin expanded to 44.9% from 36.4% YoY; GAAP operating margin rose to 26.5% from 19.3% .
Strategic product momentum in semis/AI/cloud:
- “This collaboration supports the fidelity of our Ansys multiphysics signoff platform…” (Samsung 2nm certification) — John Lee, VP & GM .
- “With Ansys Access on Microsoft Azure…keeping deployment costs low…opens the door for increased productivity” — Shane Emswiler, SVP Products .

Regional softness: Japan revenue fell 21.9% YoY; Germany down 10.8% YoY; Asia‑Pacific in aggregate declined 7.4% YoY in Q2 .
Perpetual and services pressure: Perpetual license revenue declined 7.5% YoY; services declined 5.2% YoY in Q2 .
Currency and transparency: FX was a modest headwind (e.g., Q2 revenue -$9.8M impact vs 2023 rates), and management has suspended quarterly guidance and calls pending the Synopsys transaction, limiting visibility .

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($M)	$496.6	$466.6	$594.1
GAAP Diluted EPS ($)	$0.80	$0.40	$1.48
Non-GAAP Diluted EPS ($)	$1.60	$1.39	$2.50
GAAP Gross Margin (%)	86.2%	85.3%	88.3%
GAAP Operating Margin (%)	19.3%	9.3%	26.5%
Non-GAAP Operating Margin (%)	36.4%	32.2%	44.9%
ACV ($M)	$488.3	$407.4	$520.5
Operating Cash Flow ($M)	$62.9	$282.8	$80.7

Note: Q/Q OCF seasonality is significant due to contract timing .

License Type	Q2 2023 ($M)	Q2 2024 ($M)	YoY %
Subscription Lease	$135.0	$218.6	61.9%
Perpetual	$69.9	$64.6	(7.5%)
Maintenance	$273.7	$293.8	7.4%
Service	$18.0	$17.1	(5.2%)
Total	$496.6	$594.1	19.6%

Geography	Q2 2023 ($M)	Q2 2024 ($M)	YoY %
Americas	$220.4	$324.4	47.2%
Germany	$40.7	$36.3	(10.8%)
Other EMEA	$85.6	$94.5	10.5%
EMEA Total	$126.2	$130.8	3.6%
Japan	$62.7	$49.0	(21.9%)
Other APAC	$87.3	$90.0	3.1%
APAC Total	$150.0	$138.9	(7.4%)
Total	$496.6	$594.1	19.6%

KPI	6/30/2023	3/31/2024	6/30/2024
Deferred Rev + Backlog ($M)	$1,295.8	$1,369.5	$1,394.0
Current Deferred Rev ($M)	$374.4	$433.2	$423.8
Current Backlog ($M)	$435.8	$433.1	$438.2
Long-term Deferred Rev ($M)	$22.1	$21.4	$22.1
Long-term Backlog ($M)	$463.5	$481.7	$509.9

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance (Revenue, EPS, etc.)	FY 2024	Suspended (pending Synopsys)	Suspended (pending Synopsys)	Maintained suspension
Qualitative Outlook	2H 2024	Expect variable quarterly growth; Q1 lowest; 2H acceleration; FY24 ACV double‑digit	Expect double‑digit ACV and revenue growth in 2H; FY24 ACV double‑digit	Reiterated

(No Q2 earnings call was held; themes derived from prior quarter releases and Q2 product/transaction releases.)

Topic	Previous Mentions (Q4’23 and Q1’24)	Current Period (Q2’24)	Trend
AI/Technology initiatives	Strong EDA/simulation positioning; no specific AI product cited in Q4 release -; Q1 reiterated 2H acceleration but no AI product callouts	Launched/advanced offerings: Ansys Access on Microsoft Azure for HPC cloud; Samsung 2nm (SF2Z) certification; Intel Foundry USMAG alliance; ongoing AnsysGPT rollout	Improving product momentum
Macro/FX	FX modest headwind; volatility risk highlighted	Q2 FX headwind to revenue of ~$9.8M vs 2023 rates; macro risks reiterated -	Slight headwind
Regional trends	Q4: broad strength; Q1: APAC +6% YoY, Americas down on tough comp	Q2: Americas +47% YoY on mega‑deals; Japan/Germany softness	Mixed: Americas strong; Japan/Germany weak
Regulatory/Legal (M&A)	Synopsys acquisition announced; guidance and calls suspended -	Shareholders approved; expected close 1H25; guidance/calls remain suspended	Steady toward close
R&D execution	Q4 R&D $126.3M	Q2 R&D $132.6M (up YoY), continued investment	Continued investment

“The increase in revenue was driven by two multi‑year contracts with a combined value of $210 million…in the Americas region.” (Q2 release commentary) .
“This collaboration supports the fidelity of our Ansys multiphysics signoff platform and exemplifies Ansys’ commitment to powering the best user experience for our joint customers.” — John Lee, VP & GM (Samsung 2nm certification) .
“With Ansys Access on Microsoft Azure…keeping deployment costs low. This reduction in administrative and financial obligations opens the door for increased productivity and ultimately, more innovation.” — Shane Emswiler, SVP Products .
“Ansys’ deep background in physics simulation addresses the very advanced requirements of military and aerospace products.” — John Lee (Intel Foundry USMAG) .

No Q2 earnings call or Q&A was held due to the pending Synopsys transaction; Ansys has suspended quarterly conference calls .

S&P Global consensus estimates for Q2 2024 were unavailable via our data connection for ANSS at this time; as a result, we cannot quantify beats/misses vs consensus in this report. Values retrieved from S&P Global (consensus) were unavailable due to a mapping issue.

Execution on large, multi‑year enterprise deals is the key near‑term driver; Q2’s two mega‑deals (~$210M combined) explain the outsized Americas growth and revenue acceleration .
Mix shift toward subscription leases (+61.9% YoY) and higher non‑GAAP operating margin (44.9%) underscore durable unit economics as customers consolidate on Ansys platforms .
ACV momentum (Q2 +6.6% YoY; +9.3% cc) and deferred revenue + backlog ($1.394B) provide solid forward revenue visibility into 2H, aligning with reiterated double‑digit 2H growth commentary .
Regional divergence bears watching: outsized strength in Americas offset weakness in Japan and Germany; monitor renewal patterns and macro/FX in these markets .
Continued product/eco‑system wins in semis and cloud (Samsung 2nm certification, Intel Foundry USMAG, Azure deployment) reinforce competitive moat in AI/HPC workloads .
No guidance or earnings calls constrains visibility; near‑term stock moves likely tied to 2H ACV/revenue cadence and regulatory milestones on the Synopsys deal (expected close 1H25) .
Currency remains a modest headwind; magnitude manageable but worth factoring into 2H comparables .