Company Initiates Q1 and FY 2020 Outlook

Key Highlights - Q4 2019

• GAAP revenue of $486.2 million and non-GAAP revenue of $492.5 million
• GAAP diluted earnings per share of $1.91 and non-GAAP diluted earnings per share of $2.24
• GAAP operating profit margin of 38.2% and non-GAAP operating profit margin of 48.0%
• Operating cash flows of $139.5 million
• Annual contract value (ACV) growth of 13% in constant currency

Key Highlights - FY 2019

• GAAP revenue of $1,515.9 million and non-GAAP revenue of $1,528.4 million
• GAAP diluted earnings per share of $5.25 and non-GAAP diluted earnings per share of $6.58
• GAAP operating profit margin of 34.0% and non-GAAP operating profit margin of 45.3%
• Operating cash flows of $499.9 million
• ACV growth of 12% in constant currency
• Deferred revenue and backlog of $870.7 million at December 31, 2019, an increase of 32% over December 31, 2018

PITTSBURGH, Feb. 26, 2020 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2019 GAAP and non-GAAP revenue growth of 17% and 18%, respectively, or 18% for each in constant currency. For FY 2019, GAAP and non-GAAP revenue growth was 17%, or 19% in constant currency. For the fourth quarter, the Company reported growth in diluted earnings per share of 7% and 5% on a GAAP and non-GAAP basis, respectively. For FY 2019, the Company reported growth in diluted earnings per share of 8% and 10% on a GAAP and non-GAAP basis, respectively.

Ajei Gopal, Ansys President & CEO, stated, “Q4 was an outstanding quarter concluding a stellar 2019. We grew double digits across revenue and ACV for the quarter and the year, and I am confident we are tracking towards our 2022 objective of $2 billion in ACV. Our strong execution is a solid testament to the underlying momentum in our business and I am proud of the numerous milestones we accomplished in 2019. We extended our market and technology leadership and differentiated our multiphysics product portfolio both organically, as well as through strategic acquisitions, and expanded our partner ecosystem. Our vision of making simulation pervasive across the product lifecycle is resonating with customers and partners and we believe we are in the early innings of transformative growth and driving long-term value creation in 2020 and beyond.”

Maria Shields, Ansys CFO, stated, “Q4 capped a very strong year and demonstrated the strength of our business model. We set new company records across key financial metrics including our Q4 and full year 2019 revenue, ACV, earnings and operating cash flows. We also grew our deferred revenue and backlog, setting a new year-end record at $871 million, an increase of 32% over 2018. To deliver on both our near-term and longer-term growth objectives, we continue to invest in our core products, high-growth adjacent markets and digital transformation initiatives to scale our business. Our leadership in the simulation market continues to strengthen, giving us increasing confidence in our ability to achieve our 2022 long-term targets. In December 2019, we were added to the prestigious NASDAQ-100 Index, marking another important milestone for Ansys as we look ahead into 2020 and celebrate our fifty-year heritage of technology innovation and product excellence.”

Financial Results

Ansys' fourth quarter and FY 2019 and 2018 financial results are presented below. The 2019 and 2018 non-GAAP results exclude the income statement effects of the acquisition accounting adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, transaction costs related to business combinations, and adjustments related to the transition tax associated with the Tax Cuts and Jobs Act.

GAAP and non-GAAP results are as follows: