Ansys Q4 2024 Earnings: Revenue Surges, Strategic Partnerships Drive Growth#
Ansys, a global leader in engineering simulation software and services, announced its fourth-quarter and full-year 2024 financial results on Wednesday, February 19, 2025. The company reported strong earnings that exceeded analysts' expectations, driven by increasing demand for its simulation software and strategic partnerships. According to Monexa AI, the company's stock is up intraday following the earnings release. This report provides a detailed analysis of Ansys's Q4 2024 performance, key growth drivers, and strategic initiatives.
Financial Performance: Key Metrics and Analysis#
Ansys (ANSS) reported Q4 2024 revenue of $882.2 million, a +10% increase in reported currency and +11% in constant currency compared to Q4 2023, according to the company's press release. This exceeded analysts' estimates of $867 million, as noted by fool.com. The company's GAAP diluted earnings per share (EPS) was reported as $3.21, and non-GAAP diluted EPS was $4.44, surpassing the Zacks Consensus Estimate of $4.00 per share. This compares favorably to the $3.94 per share earned in the same quarter last year, according to zacks.com.
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| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Revenue | $882.2 million | $2,544.8 million |
| GAAP Diluted EPS | $3.21 | $6.55 |
| Non-GAAP Diluted EPS | $4.44 | $10.91 |
| GAAP Operating Profit Margin | 40.3% | 28.2% |
| Non-GAAP Operating Profit Margin | 53.3% | 45.7% |
| Annual Contract Value (ACV) | $1,094.6 million | $2,563.0 million |
According to Monexa AI, Ansys's GAAP operating profit margin was 40.3%, while the non-GAAP operating profit margin was 53.3%. The company's operating cash flows were $258.0 million, and unlevered operating cash flows were $266.8 million. For the full year 2024, Ansys (ANSS) reported revenue of $2,544.8 million, a +12% increase in reported currency and +13% in constant currency compared to FY 2023. GAAP diluted EPS for the year was $6.55, and non-GAAP diluted EPS was $10.91. The GAAP operating profit margin was 28.2%, and the non-GAAP operating profit margin was 45.7%. Operating cash flows totaled $795.7 million, and unlevered operating cash flows reached $834.6 million.
Annual Contract Value (ACV) Growth#
Annual Contract Value (ACV) is a key performance indicator (KPI) for subscription-based software companies. Ansys (ANSS) reported an ACV of $1,094.6 million for Q4 2024 and $2,563.0 million for the full year 2024, according to Monexa AI. This indicates the health of the subscription model and strong customer retention. According to Monexa AI, the growth in ACV reflects Ansys's success in securing long-term contracts and expanding its subscription-based revenue stream. This provides greater stability and visibility into future financial performance.
Growth Drivers: Industry Trends and Market Demand#
Ansys's (ANSS) strong Q4 and FY 2024 performance was fueled by increasing demand for simulation software across key industries. The company's solutions are used by engineers, designers, and researchers in automotive, aerospace, high-tech, and healthcare. As products become more complex, the demand for simulation tools continues to rise. According to Monexa AI, this trend is expected to continue driving growth for Ansys in the coming years.
Demand in Automotive, Aerospace, and High-Tech Sectors#
The automotive, aerospace, and high-tech sectors are experiencing rapid technological advancements, driving demand for simulation tools. In the automotive industry, the development of electric vehicles (EVs) and autonomous driving systems (ADAS) requires extensive simulation. Ansys provides solutions for simulating battery performance, thermal management, and sensor integration, enabling automotive manufacturers to accelerate the development of these technologies. The aerospace industry also relies on simulation for designing and testing aircraft and spacecraft. Ansys's software allows engineers to analyze aerodynamic performance, structural integrity, and thermal behavior, reducing the need for physical prototypes. In the high-tech sector, the increasing complexity of electronic devices requires advanced simulation capabilities to ensure optimal performance. Ansys's solutions enable engineers to simulate electromagnetic interference, thermal management, and signal integrity, helping them design high-performance electronic products. According to Monexa AI, the strong demand from these key sectors has been a significant driver of Ansys's recent financial success.
Maintenance and Subscription Lease Revenue#
According to Monexa AI, a significant portion of Ansys's (ANSS) revenue comes from maintenance and subscription lease agreements. This recurring revenue stream provides stability, allowing the company to invest in research and development. The increase in maintenance and subscription lease revenue reflects Ansys's success in retaining existing customers and attracting new customers to its subscription-based model. The subscription-based model offers several benefits to both Ansys and its customers, including a recurring revenue stream, improved customer loyalty, and flexible licensing models.
Strategic Partnerships and Product Innovations#
Ansys (ANSS) is actively pursuing strategic partnerships and investing in product innovations to expand its capabilities and reach new markets. Recent partnerships with Concepts NREC and LightSolver demonstrate Ansys's commitment to integrating its software with other platforms and providing comprehensive solutions. The release of Ansys 2025 R1 showcases the company's focus on developing cutting-edge technologies, such as AI-powered simulation and cloud-based platforms. According to Monexa AI, these initiatives are expected to drive growth and enhance Ansys's competitive position.
Partnership with Concepts NREC: Turbomachinery Workflow#
The partnership between Ansys and Concepts NREC aims to deliver an automated workflow for turbomachinery design and analysis. By integrating Ansys CFX® computational fluid dynamics (CFD) software into Concepts NREC's AxCent® for 3D turbomachinery component design, the partnership enables designers to quickly evaluate machine performance with increased predictive accuracy. According to a press release from prnewswire.com, this integration shortens design cycles and improves performance for applications including compressors, turbines, pumps, fans, and turbochargers.
LightSolver Partnership: Accelerating CAE Modelling#
The partnership between Ansys and LightSolver focuses on accelerating CAE (Computer-Aided Engineering) modelling for automotive and other key industries. According to a press release from globenewswire.com, by integrating LightSolver's laser-based computing paradigm with Ansys LS-DYNA® nonlinear dynamics structural simulation software, the partnership aims to accelerate simulations for automotive, aerospace, and other industries. This enables engineers to perform complex simulations more quickly and efficiently, reducing prototyping costs and time-to-market.
Ansys 2025 R1: Powering Digital Engineering with AI and Cloud#
According to Monexa AI, Ansys (ANSS) 2025 R1 features refined digital engineering-enabling technologies that easily integrate with existing infrastructure, minimizing disruption and empowering teams to collaborate. According to a press release from prnewswire.com, supercharged by AI, cloud computing, GPUs, and HPC, Ansys R1 enhancements enable faster decision-making and broader design exploration. The Ansys SimAI™ cloud-enabled artificial intelligence solution now allows users to expand training data. New capabilities in the Ansys System Architecture Modeler (SAM)™ include support for SysML v2. CFD HPC Ultimate enables enterprise-level computational fluid dynamics (CFD) capabilities for one job on multiple CPU cores or GPUs.
The Synopsys Acquisition: Implications and Outlook#
The pending acquisition of Ansys by Synopsys (SNPS) represents a significant turning point for the company. According to Monexa AI, as a result of the pending transaction, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance. The acquisition is expected to close in the first half of 2025, subject to regulatory approvals. Upon completion, Ansys will become a part of Synopsys, a leading provider of electronic design automation (EDA) tools. The combined company will offer a comprehensive portfolio of solutions for chip design, system integration, and engineering simulation. The strategic rationale behind the acquisition is to create a stronger and more diversified company.
Analyst Perspectives and Future Projections#
According to Monexa AI, analyst ratings for Ansys (ANSS) have been mixed following the announcement of the Synopsys acquisition. Some analysts have downgraded their ratings due to the uncertainty surrounding the deal. However, other analysts remain positive on Ansys's long-term prospects. Overall, analysts expect Ansys to continue to grow its revenue and earnings in the coming years. Investors should monitor analyst ratings and future projections to gain a better understanding of Ansys's potential performance.
| Analyst Estimates | 2025-12-31 | 2026-12-31 | 2027-12-31 |
|---|---|---|---|
| Estimated Revenue Avg | 2,757.78M | 3,042.56M | 3,276.10M |
| Estimated EPS Avg | 11.35 | 12.77 | 13.65 |
Intraday Market Performance#
According to Monexa AI, as of Thursday, February 20, 2025, Ansys (ANSS) is trading at $339.91, up +$3.17 or +0.94%. The day's high has been $344.995 and the low has been $337.805. This intraday performance reflects a positive market reaction to the Q4 2024 earnings release. The trading volume is 515,064, compared to an average volume of 487,747. The company's market capitalization stands at $29.73 billion.
Conclusion#
Ansys's (ANSS) Q4 2024 earnings demonstrate a strong financial performance driven by robust demand for its simulation solutions. Strategic partnerships and product innovations, particularly the release of Ansys 2025 R1, are positioning the company for continued growth. The pending acquisition by Synopsys introduces uncertainty. Ansys faces challenges such as high software costs and increasing competition. By effectively addressing these challenges, Ansys can maintain its leadership position and continue to deliver value to its shareholders. Investors should closely monitor the integration with Synopsys and the company's ability to navigate the evolving competitive landscape.