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ANSS Nasdaq· ANSYS Inc.
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ANSS Nasdaq· ANSYS Inc.
Earnings report Q4 2023

ANSS Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

ANSS reported total revenue of $2.27 billion for the year ended December 31, 2023, representing a significant increase compared to $2.07 billion in the previous year. This growth was primarily driven by strong performance in both software licenses and maintenance and service segments. Software licenses revenue increased from $989 million to $1.09 billion, while maintenance and service revenue rose from $1.08 billion to $1.18 billion.

Strengths

ANSS demonstrated robust revenue growth in the latest quarter, driven by solid performance in its software licenses and maintenance and service segments. The increase in software licenses revenue can be attributed to the company's ability to attract new customers and expand its market share. ANSS's engineering simulation software and services are widely used across various industries, which has contributed to its strong revenue growth.

Challenges

While ANSS achieved strong revenue growth, it also faced challenges in managing its cost of sales. The cost of sales increased from $251 million to $271 million, primarily due to higher amortization expenses. This indicates that ANSS may need to focus on optimizing its cost structure to improve profitability.

Noteworthy

ANSS reported a gross profit of $1.99 billion, reflecting a healthy gross margin of 88%. The company's operating income also increased from $593 million to $626 million, indicating improved operational efficiency. Additionally, ANSS experienced a significant increase in interest income, which rose from $5.7 million to $19.6 million.

Summary

ANSS delivered strong revenue growth in the latest quarter, driven by solid performance in its software licenses and maintenance and service segments. The company's ability to attract new customers and expand its market share has contributed to its success. However, ANSS needs to address the challenges associated with managing its cost of sales to improve profitability. Overall, ANSS's financial performance in the latest quarter demonstrates its position as a leading provider of engineering simulation software and services.

Source documents

Form 10-K  filed on Feb 21, 2024
112 pages scanned

Reference data

Company financials Q4 revenue 805M
Analyst estimates Q4 EPS beat by 210.67%
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