Executive Summary

Q4 2024 delivered strong seasonality: revenue $882.2M (+11% cc) and non-GAAP EPS $4.44, with GAAP operating margin at 40.3% and non-GAAP at 53.3% .
ACV reached $1.095B (+16% cc YoY), contributing 43% of FY ACV; direct channel mix rose to 79.7% of revenue, signaling robust large-account execution .
Geography mixed: Americas +11.5% YoY, Germany +24.2% cc, while Japan declined 11.1% cc; FX was a headwind to revenue and operating income .
Guidance suspended due to pending Synopsys acquisition, though management expects double-digit FY 2025 ACV growth; regulatory approvals progressed (EC conditional clearance, UK CMA provisional acceptance, SAMR filing accepted) — key stock catalysts into H1’25 .

What Went Well and What Went Wrong

What Went Well

Large-deal momentum and seasonality: Q4 ACV $1,094.6M (+16% cc) with 43% of FY ACV; management: “The Company expects double-digit FY 2025 ACV growth.”
Margin excellence: GAAP gross margin 91.8% and non-GAAP 94.6%; GAAP operating margin 40.3%, non-GAAP 53.3% in Q4, highlighting operating leverage in peak quarter .
Direct channel strength: direct revenue increased to 79.7% of total in Q4 (from 74.5%), consistent with enterprise-led wins and multi-year activity .

What Went Wrong

FX headwinds: adverse currency impacts on Q4 revenue (-$11.8M) and operating income (GAAP -$9.1M; non-GAAP -$9.1M) .
Japan softness: Q4 APAC down slightly overall, driven by Japan (-11.1% cc YoY), tempering global breadth .
Guidance absent: quarterly/annual guidance and long-term outlook suspended amid the Synopsys transaction, reducing near-term visibility .

Financial Results

Quarterly progression (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Thousands)	594,138	601,892	882,174
GAAP Diluted EPS ($)	1.48	1.46	3.21
Non-GAAP Diluted EPS ($)	2.50	2.58	4.44
GAAP Gross Margin (%)	88.3%	88.5%	91.8%
GAAP Operating Margin (%)	26.5%	26.8%	40.3%
ACV ($USD Thousands)	520,545	540,527	1,094,552
Operating Cash Flows ($USD Thousands)	80,713	174,237	257,973

Year-over-year comparison (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
Revenue ($USD Thousands)	805,108	882,174
GAAP Diluted EPS ($)	3.14	3.21
Non-GAAP Diluted EPS ($)	3.94	4.44
GAAP Gross Margin (%)	91.3%	91.8%
GAAP Operating Margin (%)	41.4%	40.3%
ACV ($USD Thousands)	955,161	1,094,552
Operating Cash Flows ($USD Thousands)	232,722	257,973
Direct Revenue (% of Total)	74.5%	79.7%
Indirect Revenue (% of Total)	25.5%	20.3%

Revenue breakdown by license type (Q4)

License Type	Q4 2023 ($USD Thousands)	Q4 2024 ($USD Thousands)	% of Total (Q4 2023)	% of Total (Q4 2024)
Subscription Lease	399,556	441,120	49.6%	50.0%
Perpetual	102,721	102,295	12.8%	11.6%
Maintenance	283,130	319,381	35.2%	36.2%
Service	19,701	19,378	2.4%	2.2%
Total	805,108	882,174	—	—

Revenue breakdown by geography (Q4)

Geography	Q4 2023 ($USD Thousands)	Q4 2024 ($USD Thousands)	% of Total (Q4 2023)	% of Total (Q4 2024)	YoY cc Change
Americas	410,681	457,752	51.0%	51.9%	+11.5%
Germany	81,828	98,527	10.2%	11.2%	+24.2%
Other EMEA	155,023	170,541	19.3%	19.3%	+12.2%
EMEA Total	236,851	269,068	29.4%	30.5%	+16.3%
Japan	61,243	52,294	7.6%	5.9%	-11.1%
Other APAC	96,333	103,060	12.0%	11.7%	+10.1%
APAC Total	157,576	155,354	19.6%	17.6%	+1.8%
Total	805,108	882,174	—	—	—

KPIs: Deferred revenue and backlog

Metric ($USD Thousands)	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Current Deferred Revenue	457,514	427,188	504,527
Current Backlog	439,879	475,604	524,617
Total Current DR + Backlog	897,393	902,792	1,029,144
Long-Term Deferred Revenue	22,240	24,150	31,778
Long-Term Backlog	552,951	536,855	657,345
Total Long-Term DR + Backlog	575,191	561,005	689,123
Total DR + Backlog	1,472,584	1,463,797	1,718,267

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly and Annual Guidance	Ongoing from Q4 2024	Historically provided	Suspended due to pending Synopsys transaction	Suspended
Long-term Outlook (2022–2025)	Multi-year	Provided at 2022 Investor Update	Suspended	Suspended
ACV Growth	FY 2025	n/a	“Double-digit FY 2025 ACV growth” expected	New qualitative outlook

Notes: Company explicitly “no longer provides quarterly or annual guidance” during the Synopsys transaction process .

Earnings Call Themes & Trends

Company suspended earnings calls; no Q4 call transcript or Q&A was held . Themes tracked via quarterly results press releases.

Topic	Q2 2024 (Previous Mentions)	Q3 2024 (Previous Mentions)	Q4 2024 (Current Period)	Trend
Large multi-year deal activity	Two multi-year contracts totaling $210M booked in Americas; drove revenue	Closed $88M high-tech contract in Americas; strengthened multi-year lease growth	Seasonality + strong enterprise execution with direct mix at 79.7%	Strengthening enterprise mix
Subscription lease momentum	Q2 subscription lease +61.9% YoY; 36.8% of revenue	Q3 subscription lease +87.6% YoY; 32.3% of revenue	Q4 subscription lease +12.1% cc; 50.0% of revenue	Sustained; seasonally elevated in Q4
Geography divergence	Americas +47.3% cc; Japan -11.3% cc	Americas +40.4% cc; APAC +35.1% cc	Americas +11.5%; Germany +24.2% cc; Japan -11.1% cc	Mixed; Japan headwind
FX impact	Adverse FX on revenue (-$9.8M in Q2)	Minimal Q3 revenue FX (+$0.1M); OI headwind	Adverse FX on revenue (-$11.8M), OI (-$9.1M)	Continued headwind
M&A/regulatory (Synopsys)	Shareholder approval; H1’25 closing anticipated	Continued approvals; H1’25 closing anticipated	EC conditional clearance; UK CMA provisional acceptance; SAMR filing accepted; H1’25 closing anticipated	Progressing toward close

Management Commentary

“The Company expects double-digit FY 2025 ACV growth.” (Q4 press release) .
“In light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.” .
Transaction update: EC conditional clearance; UK CMA provisionally accepted remedies; SAMR filing accepted; closing anticipated in H1 2025, subject to approvals and customary conditions .

Q&A Highlights

No Q4 earnings call was held; calls are suspended during the Synopsys transaction. Therefore, no Q&A or live guidance clarifications were provided .

Estimates Context

S&P Global consensus estimates for ANSS Q4 2024 were unavailable through our SPGI mapping at this time; as a result, we cannot provide beat/miss vs Street for revenue/EPS. We will update if the SPGI mapping becomes available.
Implication: Given strong Q4 seasonality and non-GAAP EPS uplift, sell-side estimates for FY 2025 may revisit ACV growth assumptions, but directional color remains limited without formal guidance .
Disclaimer: Consensus data not retrieved due to SPGI mapping limitations; values would be retrieved from S&P Global if available.

Key Takeaways for Investors

Q4 seasonality was intact with robust margins and ACV concentration (43% of FY ACV), underscoring durable enterprise demand and pricing power .
Mix shift toward direct channel (79.7%) and subscription lease (50% of Q4 revenue) indicates ongoing model transition favorable to ACV and cash generation .
Americas and Germany strength offset Japan weakness; monitor FX headwinds and regional mix into FY 2025 .
Backlog and deferred revenue rose to $1.718B (+$245M vs Sep’24), supporting forward revenue visibility despite suspended guidance .
Transaction catalyst: Continued regulatory progress points to potential H1’25 close with Synopsys; deal dynamics likely dominate near-term stock reaction .
Non-GAAP EPS benefits from adjustments (stock-based comp, amortization, transaction costs, tax normalization), with reconciliations provided; investors should track underlying cash metrics (unlevered OCF $266.8M in Q4) for quality of earnings .
Without formal guidance, focus on execution signals: direct mix, large-deal flow, ACV trajectory, and geographic balance to gauge FY 2025 set-up .

ANSYS INC (ANSS)·Q4 2024 Earnings Summary