The **significant increase in cash** for Q1 2024 was driven by several factors. **Net cash provided by operating activities** increased due to higher customer receipts driven by ACV growth, which contributed positively to cash flow. Additionally, there was a **decrease in net cash used in investing activities**—primarily due to reduced acquisition-related cash outlays—which further supported the cash balance. Finally, **net cash used in financing activities** fell, mainly because of reduced stock repurchases, adding to the overall increase in cash. This combination of factors resulted in a jump from **$860,201 thousand** at the end of 2023 to **$1,050,509 thousand** in Q1 2024, an increase of **$190,308 thousand**.  **[0001013462-24-000015_anss-20240331.htm:2]** **[0001013462-24-000015_anss-20240331.htm:40]** **[0001013462-24-000015_anss-20240331.htm:41]** 

Why did cash increase so significantly in Q1 2024?

The **Q4 2023 short-term investments** were only **$189 thousand** (document  **[0001013462-24-000028_anss-20240930.htm:2]** ). The documents note that this figure represents a very slight increase of **$6 thousand** over the previous year—from **$183 thousand** in Q4 2022—but no detailed reasons for such a modest amount or the low level were provided (documents  **[0001013462-24-000007_anss-20231231.htm:119]** **[0001013462-24-000007_anss-20231231.htm:101]** ).

Why are short-term investments so low in Q4 2023?

The drop in accounts receivable in Q1 2024 was primarily driven by the **collection of outstanding receivables** and a reduction in the outstanding balances during the quarter. This resulted in a significant decline from **$864,526 thousand** at the end of Q4 2023 to **$650,044 thousand** in Q1 2024, with a positive cash flow impact of **$264,474 thousand** from these collections.  **[0001013462-24-000014_anssex991-pressrelease2024.htm:2]** **[0001013462-24-000015_anss-20240331.htm:2]** **[0001013462-24-000015_anss-20240331.htm:4]** 

What caused the drop in accounts receivable in Q1 2024?

14e14ae6ad75e9768837141ab31d37d118d0a6ab37f5eab85eb7c88d48be5376

The **Revenue - Software licenses** was notably high in **Q4 2023** due primarily to a substantial increase in **subscription lease revenue**, which grew by **23.1%** compared to Q4 2022. This boost was driven by a shift toward **time-based licenses**, where customers opted increasingly for multi-year and annual subscription models, along with a surge in larger contracts that incorporated longer-term subscriptions with higher upfront revenue recognition. Additionally, **favorable currency fluctuations** also contributed to the higher revenue figures.  **[0001013462-24-000006_anssex991-pressrelease2023.htm:2]** **[0001013462-24-000007_anss-20231231.htm:70]** **[0001013462-24-000006_anssex991-pressrelease2023.htm:4]** 

Why was Revenue - Software licenses so high in Q4 2023?

The surge in **Total Revenue** for **Q4 2023** was driven by several key factors. **Subscription lease revenue** saw strong growth, increasing by **23.1%**, while **Perpetual License Revenue** rose by **15.5%**. **Maintenance Revenue** also expanded by **8.2%** due to a solid existing customer base. Additionally, there was robust **geographic revenue growth**—particularly in regions like **Other EMEA** and **Asia-Pacific**—combined with a favorable **shift in revenue mix** toward indirect sales, and a minor yet positive **currency impact**. These elements together contributed to the overall **16.0%** year-over-year increase in revenue in **Q4 2023**.  **[0001013462-24-000006_anssex991-pressrelease2023.htm:3]** **[0001013462-24-000006_anssex991-pressrelease2023.htm:5]** **[0001013462-24-000006_anssex991-pressrelease2023.htm:2]** **[0001013462-24-000007_anss-20231231.htm:70]** **[0001013462-24-000006_anssex991-pressrelease2023.htm:4]** 

What drove the surge in Total Revenue in Q4 2023?

The drastic decline in Operating Income in Q1 2024 was primarily driven by **multiple factors**. First, there was a **decline in revenue** by **8.4%**, largely due to a significant drop in software license revenue (down **26.8%**) and service revenue (down **21.9%**) compared to Q1 2023. At the same time, **operating expenses increased by 12.9%**—with **SG&A expenses** rising by **16.5%** due to higher personnel costs and stock-based compensation, and **R&D expenses** growing by **7.0%** because of increased salaries and related costs. Additionally, adverse currency fluctuations reduced the GAAP operating income by **$3,398 thousand**, and there was an increase in amortization costs from **$5,181 thousand** to **$6,145 thousand**. These combined factors led to the significant drop in Operating Income, from **$127,695 thousand** in Q1 2023 to **$43,339 thousand** in Q1 2024.  **[0001013462-24-000014_anssex991-pressrelease2024.htm:3]** **[0001013462-24-000015_anss-20240331.htm:3]** **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]** **[0001013462-24-000014_anssex991-pressrelease2024.htm:2]** **[0001013462-24-000015_anss-20240331.htm:34]** 

Why did Operating Income drop so drastically in Q1 2024?

The steep decline in **Net Income** in **Q1 2024** was primarily driven by multiple factors, including a **revenue decrease** (an 8.4% drop from **$509,447 thousand** in Q1 2023 to **$466,605 thousand** in Q1 2024) and **increased operating expenses** (rising from **$314,100 thousand** in Q1 2023 to **$354,599 thousand** in Q1 2024) that significantly impacted profitability. Additionally, the **operating income** fell from **$127,695 thousand** to **$43,339 thousand**, and there was a notable increase in **stock-based compensation** expenses (from **$44,171 thousand** to **$58,664 thousand**) along with a rise in the **amortization of intangible assets** (from **$19,618 thousand** to **$22,484 thousand**), all of which contributed collectively to the substantial decline in net income.  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]** **[0001013462-24-000014_anssex991-pressrelease2024.htm:3]** **[0001013462-24-000015_anss-20240331.htm:3]** **[0001013462-24-000014_anssex991-pressrelease2024.htm:5]** 

What factors contributed to the steep decline in Net Income in Q1 2024?

EPS were significantly lower in Q1 2024 primarily due to a **65.4% decrease in net income** (from **$100.6 million** in Q1 2023 to **$34.8 million** in Q1 2024), an **8.4% decline in total revenue** (from **$509.4 million** to **$466.6 million**), and **increased operating expenses** (rising from **$314.1 million** to **$354.6 million**, which reduced operating income substantially).  **[0001013462-24-000014_anssex991-pressrelease2024.htm:1]** **[0001013462-24-000014_anssex991-pressrelease2024.htm:3]** **[0001013462-24-000015_anss-20240331.htm:3]** 

Why were EPS significantly lower in Q1 2024?

b9d30406dc5345486c9587ca1007a63936ca279b94812aa953a3032f1b16b61c

Revenue - Software licenses (USD, thousands)

Revenue - Maintenance and service (USD, thousands)

Total Revenue (USD, thousands)

Cost of Sales - Software licenses (USD, thousands)

Cost of Sales - Amortization (USD, thousands)

Cost of Sales - Maintenance and service (USD, thousands)

Total Cost of Sales (USD, thousands)

Gross Profit (USD, thousands)

Operating Expenses - Selling, general and administrative (USD, thousands)

Operating Expenses - Research and development (USD, thousands)

Operating Expenses - Amortization (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest Income (USD, thousands)

Interest Expense (USD, thousands)

Other (expense) income, net (USD, thousands)

Income before income tax provision (USD, thousands)

Income Tax Provision (USD, thousands)

Net Income (USD, thousands)

Earnings per share – basic (USD)

Weighted average shares – basic (thousands)

Earnings per share – diluted (USD)

Weighted average shares – diluted (thousands)

8658850384608b2e2b3feb38d0cf519d179b91cef1f3e8e7d09f8de3a7cb1d28

Cash and cash equivalents (USD, thousands)

Short-term investments (USD, thousands)

Accounts receivable (USD, thousands)

Other receivables and current assets (USD, thousands)

Total current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Goodwill (USD, thousands)

Other intangible assets, net (USD, thousands)

Other long-term assets (USD, thousands)

Deferred income taxes (USD, thousands)

Total long-term assets (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued bonuses and commissions (USD, thousands)

Accrued income taxes (USD, thousands)

Other accrued expenses and liabilities (USD, thousands)

Deferred revenue (USD, thousands)

Total current liabilities (USD, thousands)

Long-term operating lease liabilities (USD, thousands)

Long-term debt (USD, thousands)

Other long-term liabilities (USD, thousands)

Total long-term liabilities (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Retained earnings (USD, thousands)

Treasury stock, at cost (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Total stockholders' equity (USD, thousands)

Total liabilities and stockholders' equity (USD, thousands)

78050ce140352b046c5d00ff97d0a462d2068964520971ccb16d55040d845ad6

3a9d2076dd7f18350fd36b9fe7ea53ecacbefca1319915a799c94a54a0da61bc

16f54cdad9916a3fd1f2e5f0fc20f93b7ac9c77d30740eeccfd24745c0015d3d

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)

83faa54f303666e54dc59b40549d732be008135221d216328528302f9e16c1a9

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

Software Licenses

- Subscription Lease Licenses

- Lease Licenses

- Perpetual Licenses

Maintenance and Service

- Maintenance

- Service

Total Revenue

ed98d4c63f593527d510c5b044c7102350c56ede1a2ceb6e0887f4fd19dce9f5

f2da0827f642f2a88aa7f6863efe1a9a867d8ae1c25d0b7d18060342559b3acc

ANSYS (ANSS)

Financials