Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

158258fc49d80b6aea1f159c8a953d3e83fd8360e6d8bebb0ec7f441f3c35570

70e60e3f1f67d7517666d944ef3c19f25fa54461f87cad2960b0baf62fbaf175

| Metric                           | Q1 2023 | Q2 2023 | Q3 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------------|---------|---------|---------|---------|---------|---------|
| ACV (Actual)                     | **399,407** **[0001013462-23-000028_anss-20230331.htm:19]** | **488,349** **[0001013462-23-000046_anss-20230630.htm:20]** | **457,549** **[0001013462-23-000055_anss-20230930.htm:24]** | **407,405** **[0001013462-24-000015_anss-20240331.htm:23]** | **520,545** **[0001013462-24-000024_anss-20240630.htm:23]** | **540,527** **[0001013462-24-000028_anss-20240930.htm:23]** |
| ACV (Constant Currency)          | **411,001** **[0001013462-23-000028_anss-20230331.htm:19]** | **492,749** **[0001013462-23-000046_anss-20230630.htm:20]** | **451,779** **[0001013462-23-000055_anss-20230930.htm:24]** | **410,433** **[0001013462-24-000015_anss-20240331.htm:23]** | N/A     | **538,963** **[0001013462-24-000028_anss-20240930.htm:23]** |
| Recurring ACV                    | **1,713,249** **[0001013462-23-000028_anss-20230331.htm:19]** | **1,749,886** **[0001013462-23-000046_anss-20230630.htm:20]** | **1,804,517** **[0001013462-23-000055_anss-20230930.htm:24]** | **1,944,685** **[0001013462-24-000015_anss-20240331.htm:23]** | **1,993,296** **[0001013462-24-000024_anss-20240630.htm:23]** | **2,046,306** **[0001013462-24-000028_anss-20240930.htm:23]** |

55c8d3fc891aa1edc7c2a709bc9c8bbd30fa369190dfffb70b6e535dfc9023f1

| Metric [Unit: Thousand USD] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Subscription Lease**      | **324,688**  **[0001013462-23-000012_anssex992-preparedremarks2.htm:6]**  | **147,922**  **[0001013462-23-000027_anssex992-preparedremarks2.htm:4]**  | **134,999**  **[0001013462-23-000045_anssex992-preparedremarks2.htm:7]**  | **103,600**  **[0001013462-23-000054_anssex992-preparedremarks2.htm:7]**  | N/A | **94,800**  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]**  | **218,589**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:2]**  | **194,322**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:2]**  |
| **Perpetual Licenses**      | **88,958**  **[0001013462-23-000012_anssex992-preparedremarks2.htm:6]**  | **71,230**  **[0001013462-23-000027_anssex992-preparedremarks2.htm:4]**  | **69,898**  **[0001013462-23-000045_anssex992-preparedremarks2.htm:7]**  | **58,800**  **[0001013462-23-000054_anssex992-preparedremarks2.htm:7]**  | N/A | **65,521**  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]**  | **64,643**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:2]**  | **82,626**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:2]**  |
| **Software Licenses Total** | N/A     | N/A     | N/A     | **162,422**  **[0001013462-23-000054_anssex991-pressrelease2023.htm:6]**  | **502,277**  **[0001013462-24-000006_anssex991-pressrelease2023.htm:5]**  | N/A     | **283,232**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:4]**  | **276,948**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:4]**  |
| **Maintenance**             | **261,691**  **[0001013462-23-000012_anssex992-preparedremarks2.htm:6]**  | **268,593**  **[0001013462-23-000027_anssex992-preparedremarks2.htm:4]**  | **273,692**  **[0001013462-23-000045_anssex992-preparedremarks2.htm:7]**  | **278,100**  **[0001013462-23-000054_anssex992-preparedremarks2.htm:7]**  | N/A | **289,340**  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]**  | **293,826**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:2]**  | **306,670**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:2]**  |
| **Service**                 | **18,778**  **[0001013462-23-000012_anssex992-preparedremarks2.htm:6]**  | **21,702**  **[0001013462-23-000027_anssex992-preparedremarks2.htm:4]**  | **18,010**  **[0001013462-23-000045_anssex992-preparedremarks2.htm:7]**  | **18,300**  **[0001013462-23-000054_anssex992-preparedremarks2.htm:7]**  | N/A | **16,944**  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]**  | **17,080**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:2]**  | **18,274**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:2]**  |
| **Maintenance and Service Total** | N/A | N/A | N/A | **296,373**  **[0001013462-23-000054_anssex991-pressrelease2023.htm:6]**  | **302,831**  **[0001013462-24-000006_anssex991-pressrelease2023.htm:5]**  | N/A | **310,906**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:4]**  | **324,944**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:4]**  |
| **Total Revenue**           | **694,115**  **[0001013462-23-000012_anssex992-preparedremarks2.htm:6]**  | **509,447**  **[0001013462-23-000027_anssex992-preparedremarks2.htm:4]**  | **496,599**  **[0001013462-23-000045_anssex992-preparedremarks2.htm:7]**  | **458,795**  **[0001013462-23-000054_anssex991-pressrelease2023.htm:6]**  | **805,108**  **[0001013462-24-000006_anssex991-pressrelease2023.htm:5]**  | **466,605**  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]**  | **594,138**  **[0001013462-24-000023_anssex991-pressrelease2024.htm:4]**  | **601,892**  **[0001013462-24-000027_anssex991-pressrelease2024.htm:4]**  |

8c069f37047a2a0c077cdd3b6a78fd8a90de516588df4aa889b85f0ebe92bba9

44ada9ace4855824dc12363efa8c255b763acad72f11c5bbad3206a224a2fcfc

8e02394f6fcf3a99219cddd426bb4f0be86c2da4a369b1e764a101ebbc299eb9

ANSYS, Inc. is a company that develops and globally markets engineering simulation software and services, which are widely used by engineers, designers, researchers, and students across a broad spectrum of industries, including high-tech, aerospace and defense, automotive, energy, industrial equipment, materials and chemicals, consumer products, healthcare, and construction **[0001013462-24-000028_anss-20240930.htm:18]** **[0001013462-24-000015_anss-20240331.htm:18]**. The company's software allows customers to analyze and evaluate the behavior of physical products in a virtual environment, eliminating the need for physical prototypes **[ANSS_3369003_1]**. ANSYS operates as one segment and distributes its products through a hybrid model of direct sales offices and a global network of independent resellers and distributors **[0001013462-24-000028_anss-20240930.htm:18]** **[0001013462-24-000015_anss-20240331.htm:18]**.

1. **High-Tech and Semiconductor** - Provides simulation solutions that help in designing and optimizing electronic components and systems, crucial for the high-tech and semiconductor industries.
2. **Aerospace and Defense** - Offers simulation tools that assist in the development and testing of aerospace and defense technologies, ensuring safety and performance.
3. **Automotive and Ground Transportation** - Delivers simulation software that supports the design and innovation of automotive and ground transportation systems, enhancing efficiency and reliability.
4. **Energy** - Supplies simulation products that aid in the exploration, production, and management of energy resources, focusing on sustainability and efficiency.
5. **Industrial Equipment** - Provides solutions for the design and analysis of industrial machinery and equipment, improving productivity and reducing costs.
6. **Materials and Chemicals** - Offers simulation tools for the development and testing of new materials and chemical processes, driving innovation and safety.
7. **Consumer Products** - Delivers software that helps in the design and optimization of consumer goods, enhancing product quality and user experience.
8. **Healthcare** - Provides simulation solutions that assist in the development of medical devices and healthcare technologies, ensuring safety and effectiveness.
9. **Construction** - Supplies tools for the simulation and analysis of construction projects, improving design accuracy and project management.

68f4289f60b3c49f5a946135205a253cbdf8602f1437087ac6db785e98d98f2f

1. Can you provide more details on how the additional export restrictions and incremental approval processes for prospects in China will impact your growth in 2024, and what specific strategies are you implementing to mitigate these effects?
2. Despite stating that China represents only a small portion of your overall business, why did the updated export restrictions significantly impact your Q3 results, and do you anticipate similar risks in other regions?
3. With the shift towards subscription leases in your business model, how is this trend affecting your revenue recognition and long-term financial performance, especially in light of recent challenges?
4. Given your emphasis on the automotive industry, how are you preparing for potential headwinds in this sector, such as supply chain disruptions or market volatility, and what impact could this have on your growth projections?
5. You've reaffirmed your long-term outlook of 12% constant currency ACV growth, including tuck-in M&A; considering the current challenges, particularly in China, what gives you confidence in achieving these targets, and are there contingency plans in place?

7ac3043c8584803d57d64cb00f69a4a35945135d575e169e86c7a0b594ff2097

ACV (Actual)

ACV (Constant Currency)

Recurring ACV

b3812dc5d67a3e48be4852f66ec02c560a9dcf9a87ca4416ee514ba0ef0d0e8b

Software Licenses

- Subscription Lease Licenses

- Lease Licenses

- Perpetual Licenses

Maintenance and Service

- Maintenance

- Service

Total Revenue

a3da283d2cc515a26fe5b549850e5ab216338fccb38a4742265da63f8d385683

| Name          | Position                                             | Start Date        | Short Bio                                                                                                                                                                                                 |
|---------------|------------------------------------------------------|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ajei S. Gopal | President and Chief Executive Officer                | 2017              | Ajei S. Gopal has served as the President and Chief Executive Officer of Ansys since 2017. He joined Ansys as President and COO in 2016 and was an independent director on the Ansys Board from 2011 to 2016  **[0001104659-24-045818_tm2328737d4_def14a.htm:45]** **[0001104659-24-045818_tm2328737d4_def14a.htm:27]** **[0001193125-23-082128_d426247ddef14a.htm:23]** .                        |
| Rachel Pyles  | Senior Vice President and Chief Financial Officer    | February 22, 2024 | Rachel Pyles has served as Senior Vice President and Chief Financial Officer of Ansys since February 22, 2024. She was previously Vice President, Strategic Finance at Ansys and held senior roles at FIS and Worldpay  **[0001104659-24-045818_tm2328737d4_def14a.htm:45]** **[0001140361-24-020334_ny20025601x1_defm14a.htm:258]** .                  |
| Shane Emswiler| Senior Vice President, Products                      | 2020              | Shane Emswiler has served as Senior Vice President of Products since 2020. He was previously SVP and General Manager of the Physics business units and VP of mechanical, fluids, and electronics business units at Ansys  **[0001104659-24-045818_tm2328737d4_def14a.htm:45]** **[0001193125-23-082128_d426247ddef14a.htm:41]** .               |
| Walt Hearn    | Senior Vice President of Worldwide Sales and Customer Excellence | February 2023     | Walt Hearn has served as Senior Vice President of Worldwide Sales and Customer Excellence since February 2023. He has held various sales leadership roles at Ansys since 2007, including VP of Sales for America and Israel  **[0001104659-24-045818_tm2328737d4_def14a.htm:45]** **[0001193125-23-082128_d426247ddef14a.htm:41]** .           |
| Janet Lee     | Senior Vice President, General Counsel and Secretary | February 2023     | Janet Lee has served as Senior Vice President, General Counsel and Secretary since February 2023. She was previously VP, General Counsel and Secretary at Ansys and held legal roles at HERE Technologies and Nokia Corporation  **[0001104659-24-045818_tm2328737d4_def14a.htm:45]** **[0001193125-23-082128_d426247ddef14a.htm:41]** **[0001193125-23-071438_d426247dpre14a.htm:40]** .     |

3a40543b231af12edcfd94eb4439ceb11d0800ffa47fb4fa4af9ded4f299ac0e

| Program Details            | Program 1          |
|----------------------------|--------------------|
| Approval Date              | N/A                |
| End Date/Duration          | N/A                |
| Total additional amount    | N/A                |
| Remaining authorization amount | **1.1 million shares**  **[0001013462-24-000028_anss-20240930.htm:16]** **[0001013462-24-000028_anss-20240930.htm:44]**  |
| Details                    | **650 thousand shares were repurchased at an average price of $302.34 per share, with a total cost of $196.5 million**  **[0001013462-24-000028_anss-20240930.htm:16]** **[0001013462-24-000028_anss-20240930.htm:44]**  |

6a7855fa7723b2c81efe783e2fddd0ce060f24ce43ace055a7671cf0079a0118

25d199eb82de6919a54cfc7efe8575c8ab15ce38aa939049db04a7b16a2ef122

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002  **[0001013462-24-000007_anss-20231231.htm:99]**  | Present  | Current auditor   |

b0e831d933dc2dff6048e17de5408828cf29d1bedb2ee06dca6fb9412d1f4406

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $601.9M vs. $458.8M, +31% YoY  **[0001013462-24-000028_anss-20240930.htm:3]** **[0001013462-23-000055_anss-20230930.htm:7]**   
- Software Licenses: $276.9M vs. $162.4M, +**71%** YoY  **[0001013462-24-000028_anss-20240930.htm:3]** **[0001013462-23-000055_anss-20230930.htm:7]**   
- Subscription Lease Licenses: $194.3M vs. $103.6M, +**88%** YoY  **[0001013462-24-000028_anss-20240930.htm:29]** **[0001013462-23-000055_anss-20230930.htm:7]**   
- Maintenance & Service: $324.9M vs. $296.4M, +10% YoY  **[0001013462-24-000028_anss-20240930.htm:3]** **[0001013462-23-000055_anss-20230930.htm:7]**   
- United States: $292.4M vs. $204.8M, +43% YoY  **[0001013462-24-000028_anss-20240930.htm:16]** **[0001013462-23-000055_anss-20230930.htm:16]**   
- China & Hong Kong: $34.5M vs. $19.5M, +**77%** YoY  **[0001013462-24-000028_anss-20240930.htm:16]** **[0001013462-23-000055_anss-20230930.htm:16]**   
- Net Income: $128.2M vs. $55.5M, +**131%** YoY  **[0001013462-24-000028_anss-20240930.htm:3]** **[0001013462-24-000028_anss-20240930.htm:4]** **[0001013462-24-000028_anss-20240930.htm:2]** **[0001013462-23-000055_anss-20230930.htm:3]** **[0001013462-23-000055_anss-20230930.htm:5]** **[0001013462-23-000055_anss-20230930.htm:4]** **[0001013462-23-000055_anss-20230930.htm:2]** **[0001013462-23-000055_anss-20230930.htm:16]** **[0001013462-23-000055_anss-20230930.htm:7]**   
- EPS (Diluted): $1.46 vs. $0.63, +**132%** YoY  **[0001013462-24-000028_anss-20240930.htm:3]** **[0001013462-24-000028_anss-20240930.htm:4]** **[0001013462-24-000028_anss-20240930.htm:2]** **[0001013462-23-000055_anss-20230930.htm:3]** **[0001013462-23-000055_anss-20230930.htm:5]** **[0001013462-23-000055_anss-20230930.htm:4]** **[0001013462-23-000055_anss-20230930.htm:2]** **[0001013462-23-000055_anss-20230930.htm:16]** **[0001013462-23-000055_anss-20230930.htm:7]**   

b7b2b76682876502ac610945efa1a0f36f4167932261d80f49d82db26513a4a1

Number of employees (count)

Annual Contract Value (actual) (USD thousands)

Annual Contract Value (constant currency) (USD thousands)

Recurring ACV (USD thousands)

Backlog - Total (USD thousands)

Backlog - Current (USD thousands)

Backlog - Long-Term (USD thousands)

8395bfddd6ecf8cec710255114a9afc17a92ace5c924fbef472f089ffbbba436

1. **China Export Controls Impact**  
   **Q:** How did export controls affect your China business?  
   **A:** ANSYS faced new export restrictions from the U.S. Department of Commerce, leading to delayed transactions and a **$25 million impact** on ACV and revenue for 2023, with about **one-third as lost business and two-thirds as timing shifts**.  **[ANSS_3363822_9]**  The company expects a **$10 million to $30 million headwind** in 2024 due to these controls.  **[ANSS_3363822_9]** 

2. **2024 Growth Outlook**  
   **Q:** Can you discuss your 2024 growth expectations?  
   **A:** Despite the China headwinds, ANSYS expects to achieve **10% constant currency ACV growth** in 2024.  **[ANSS_3363822_9]**  The strong year-to-date performance and robust pipeline give the company confidence in meeting its long-term objectives.  **[ANSS_3363822_9]** **[ANSS_3363822_10]** 

3. **AI Product Contribution**  
   **Q:** How will AI products impact future growth?  
   **A:** ANSYS is introducing new AI-enhanced products like **ANSYS GPT**, **AI Plus**, and **Semi-AI**.  **[ANSS_3363822_17]**  These offerings will augment simulation capabilities and are expected to contribute to growth, with pricing details being finalized.  **[ANSS_3363822_10]** **[ANSS_3363822_17]** 

4. **Automotive Industry Performance**  
   **Q:** How is the auto segment performing amid industry challenges?  
   **A:** Demand in the automotive sector remains strong, driven by electrification and autonomy R&D efforts.  **[ANSS_3363822_13]**  The business is design-driven rather than manufacturing-driven, making it resilient to disruptions like strikes.  **[ANSS_3363822_13]** 

5. **International Performance**  
   **Q:** Was there any weakness in international markets like Germany?  
   **A:** The apparent revenue weakness in Germany was due to accounting changes from ASC 606.  **[ANSS_3363822_18]**  On an ACV basis, EMEA showed good growth, with strong performance in high-tech, aerospace and defense, and industrial equipment industries.  **[ANSS_3363822_18]** 

6. **Revenue Types Affected**  
   **Q:** Were perpetual or lease revenues impacted by China issues?  
   **A:** Both perpetual and lease revenues were affected by the export controls in China.  **[ANSS_3363822_12]** 

7. **Other Companies Affected**  
   **Q:** Were other companies impacted by similar controls?  
   **A:** ANSYS is not aware of which other companies were approached by the Commerce Department, as these discussions are private.  **[ANSS_3363822_11]** **[ANSS_3363822_16]** 

7fd23085a5a3fac083ae1cdb92410e000521dc1f16ae516273f14639b4902a17

- **New U.S. export restrictions have led to delays and potential loss of business for ANSYS in China**, impacting their ability to close certain deals in Q3 and muting growth in China for 2023 and 2024  **[ANSS_3363822_7]** .
- **ANSYS expects a significant financial impact from these restrictions**, estimating a **$25 million** impact on ACV and revenue in 2023, and a **$10 million to $30 million** impact in 2024, which may affect overall growth targets  **[ANSS_3363822_6]** **[ANSS_3363822_19]** .
- **Additional vetting processes create latency in transaction approvals**, potentially putting ANSYS at a competitive disadvantage, especially since it's unclear if other companies are facing similar restrictions, suggesting ANSYS might be uniquely affected  **[ANSS_3363822_15]** **[ANSS_3363822_11]** .

92cd7f3c80eca4bda817fffa1460ac70401162e4cceba6e1e7f77ecd60de121d

- ANSYS delivered a strong quarter marked by **double-digit growth in ACV**, despite challenges due to **additional export restrictions** impacting sales to China.  **[ANSS_3363822_7]**
- The company continues to see **robust and broad-based demand** for its technologies and products, and is **confident in its ability to execute** against its short- and long-term objectives.  **[ANSS_3363822_7]**
- ANSYS is maintaining its **long-term outlook from 2022 to 2025** of **12% constant currency ACV growth**, including **$3 billion of cumulative unlevered operating cash flow**, demonstrating confidence in future growth despite current headwinds.  **[ANSS_3363822_19]**

6353d9506aa3420e97e8334557159a1942cf539d76b05fda97f81f65d4271d8b

ANSYS Inc (ANSS)

Financials