Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal 2024
Aspen Technology (NASDAQ: AZPN) reported financial results for Q4 and fiscal year ended June 30, 2024. The company achieved significant growth with Annual Contract Value (ACV) reaching $968.4M, up 9.4% YoY. Excluding Russia-based ACV, ACV grew by 10% YoY. Revenue for Q4 was $342.9M; License and solutions revenue increased to $231M, and maintenance revenue rose to $89.2M. Net income for Q4 was $44.7M ($0.70 per share). Free cash flow for fiscal year was $335.3M, up 14.7% YoY. Share repurchase authorization of up to $100M was approved for fiscal 2025. The company ceased all commercial activities in Russia, resulting in a $35.5M ACV write-off. Fiscal 2025 guidance includes 9% ACV growth and estimated total revenue of $1.19B.
Aspen Technology (NASDAQ: AZPN) ha riportato i risultati finanziari per il quarto trimestre e l'anno fiscale terminato il 30 giugno 2024. L'azienda ha registrato una crescita significativa, con un valore annuale dei contratti (ACV) che ha raggiunto $968,4 milioni, in aumento del 9,4% rispetto all'anno precedente. Escludendo l'ACV proveniente dalla Russia, l'ACV è aumentato del 10% su base annua. I ricavi del quarto trimestre sono stati di $342,9 milioni; i ricavi per licenze e soluzioni sono aumentati a $231 milioni, e i ricavi per manutenzione sono saliti a $89,2 milioni. L'utile netto per il quarto trimestre è stato di $44,7 milioni ($0,70 per azione). Il flusso di cassa libero per l'anno fiscale è stato di $335,3 milioni, in crescita del 14,7% rispetto all'anno precedente. È stata approvata un'autorizzazione per riacquisto azioni fino a $100 milioni per l'anno fiscale 2025. L'azienda ha cessato tutte le attività commerciali in Russia, comportando un write-off dell'ACV di $35,5 milioni. Le previsioni per l'anno fiscale 2025 includono una crescita dell'ACV del 9% e un ricavo totale stimato di $1,19 miliardi.
Aspen Technology (NASDAQ: AZPN) reportó los resultados financieros del cuarto trimestre y del año fiscal que terminó el 30 de junio de 2024. La compañía logró un crecimiento significativo, con un Valor Anual de Contratos (ACV) que alcanzó los $968.4 millones, un aumento del 9.4% interanual. Excluyendo el ACV de Rusia, el ACV creció un 10% en comparación con el año anterior. Los ingresos del cuarto trimestre fueron de $342.9 millones; los ingresos por licencias y soluciones aumentaron a $231 millones, y los ingresos por mantenimiento subieron a $89.2 millones. La ganancia neta para el cuarto trimestre fue de $44.7 millones ($0.70 por acción). El flujo de efectivo libre para el año fiscal fue de $335.3 millones, un aumento del 14.7% interanual. Se aprobó una autorización de recompra de acciones de hasta $100 millones para el año fiscal 2025. La empresa cesó todas sus actividades comerciales en Rusia, lo que resultó en una baja de ACV de $35.5 millones. Las proyecciones para el año fiscal 2025 incluyen un crecimiento del ACV del 9% y un ingreso total estimado de $1.19 mil millones.
Aspen Technology (NASDAQ: AZPN)는 2024년 6月 30일에 종료된 4분기 및 재무 연도의 재무 결과를 보고했습니다. 이 회사는 연간 계약 가치(ACV)가 9억 6,840만 달러에 도달하여 전년 대비 9.4% 성장하는 등 중요한 성장을 이루었습니다. 러시아 기반 ACV를 제외할 경우, ACV는 전년 대비 10% 성장했습니다. 4분기 수익은 3억 4,290만 달러였으며; 라이센스 및 솔루션 수익은 2억 3,100만 달러로 증가했으며, 유지보수 수익은 8920만 달러로 상승했습니다. 4분기 순이익은 4470만 달러($0.70 per share)였습니다. 재무 연도의 자유 현금 흐름은 3억 3,530만 달러로, 전년 대비 14.7% 증가했습니다. 2025 회계연도에 대한 자사주 매입 승인은 최대 1억 달러로 승인되었습니다. 회사는 러시아에서 모든 상업 활동을 중단하였으며, 이로 인해 3억 5,500만 달러의 ACV 손실이 발생했습니다. 2025 회계연도 가이던스에는 9% ACV 성장과 11억 9,000만 달러의 총 수익이 포함됩니다.
Aspen Technology (NASDAQ: AZPN) a publié les résultats financiers du quatrième trimestre et de l'exercice clos le 30 juin 2024. L'entreprise a réalisé une croissance significative, avec une valeur annuelle des contrats (ACV) atteignant 968,4 millions de dollars, en hausse de 9,4 % par rapport à l'année précédente. En excluant l'ACV basé en Russie, l'ACV a augmenté de 10 % d'une année sur l'autre. Les revenus pour le quatrième trimestre ont été de 342,9 millions de dollars ; les revenus de licences et de solutions ont augmenté à 231 millions de dollars, et les revenus de maintenance ont grimpé à 89,2 millions de dollars. Le résultat net pour le quatrième trimestre s'élevait à 44,7 millions de dollars (0,70 dollar par action). Le flux de trésorerie libre pour l'exercice était de 335,3 millions de dollars, en hausse de 14,7 % par rapport à l'année précédente. Une autorisation de rachat d'actions jusqu'à 100 millions de dollars a été approuvée pour l'exercice 2025. La société a cessé toutes ses activités commerciales en Russie, entraînant un amortissement de l'ACV de 35,5 millions de dollars. Les prévisions pour l'exercice 2025 incluent une croissance de 9 % de l'ACV et un chiffre d'affaires total estimé à 1,19 milliard de dollars.
Aspen Technology (NASDAQ: AZPN) hat die Finanzzahlen für das vierte Quartal und das am 30. Juni 2024 endende Geschäftsjahr veröffentlicht. Das Unternehmen erzielte ein signifikantes Wachstum, wobei der Jahresvertragswert (ACV) 968,4 Millionen US-Dollar erreichte, ein Anstieg von 9,4% im Vergleich zum Vorjahr. Ohne das auf Russland basierende ACV wuchs das ACV um 10% im Jahresvergleich. Die Umsätze für das vierte Quartal beliefen sich auf 342,9 Millionen US-Dollar; die Umsätze aus Lizenzen und Lösungen stiegen auf 231 Millionen US-Dollar, und die Wartungsumsätze erhöhten sich auf 89,2 Millionen US-Dollar. Der Nettoergebnis für das vierte Quartal betrug 44,7 Millionen US-Dollar (0,70 US-Dollar pro Aktie). Der freie Cashflow für das Geschäftsjahr belief sich auf 335,3 Millionen US-Dollar, was einem Anstieg von 14,7% im Vergleich zum Vorjahr entspricht. Eine Genehmigung für den Aktienrückkauf von bis zu 100 Millionen US-Dollar wurde für das Geschäftsjahr 2025 genehmigt. Das Unternehmen hat alle kommerziellen Aktivitäten in Russland eingestellt, was zu einem ACV-Abschreiber von 35,5 Millionen US-Dollar führte. Die Prognose für das Geschäftsjahr 2025 umfasst ein ACV-Wachstum von 9% und einen geschätzten Gesamtumsatz von 1,19 Milliarden US-Dollar.
- Annual Contract Value (ACV) increased 9.4% YoY to $968.4M.
- Free cash flow rose 14.7% YoY to $335.3M.
- Q4 revenue increased to $342.9M.
- $231M in License and solutions revenue for Q4.
- $89.2M in maintenance revenue for Q4.
- Net income for Q4 was $44.7M ($0.70 per share).
- New share repurchase authorization of up to $100M for fiscal 2025.
- Suspension of commercial activities in Russia led to a $35.5M ACV write-off.
AspenTech's Q4 and FY2024 results show strong performance despite challenges. Key highlights:
- ACV grew
9.4% YoY to$968.4 million , excluding a$35.5 million write-off due to Russia exit - Revenue increased to
$342.9 million in Q4 - Non-GAAP income from operations rose to
$173.4 million in Q4 - Free cash flow grew
14.7% YoY to$335.3 million for FY2024
The company's diversification strategy, particularly in utilities, is paying off. However, the Russia exit and planned workforce reduction signal caution. FY2025 guidance of
AspenTech's results reflect resilience in a challenging macro environment. The
The
AspenTech's exit from Russia due to expanded U.S. sanctions is a significant development with legal and financial implications:
- Write-off of
$35.5 million in Russia-based ACV $5.5 million revenue reversal in Q4 FY2024$11.5 million restricted cash in Russia
This proactive compliance with sanctions mitigates legal risks but impacts short-term financials. The new credit facility provides financial flexibility, while the share repurchase program may help offset EPS impact. The planned restructuring, while potentially reducing legal exposure, must be carefully managed to avoid labor law issues.
“AspenTech’s fourth quarter results reflected excellent execution across all areas of our business,” commented Antonio Pietri, President and Chief Executive Officer of AspenTech. “The strong performance of our DGM suite in the full year was a great demonstration of the significant growth opportunities in the utilities market and the benefit of our diversified end-market exposure.”
“In fiscal 2025, we are targeting another year of solid ACV growth, even as we manage through a dynamic macro environment. At the same time, we are focused on driving toward best-in-class profitability and plan to continue enhancing our productivity and efficiency. We believe this attractive combination of top-line growth and margin expansion can deliver significant value for our shareholders,” concluded Pietri.
Fiscal Year 2024 and Recent Business Highlights
-
Annual Contract Value1 ("ACV") was
$968.4 million 9.4% year over year and3.5% quarter over quarter. This amount does not reflect the impact of the write-off related to the suspension of commercial activities inRussia described immediately below. -
AspenTech has suspended all commercial activities in
Russia following the recent announcement of expanded sanctions in the country. In connection with this decision, the Company has written-off approximately$35.5 million $932.9 million 10.0% year over year in fiscal 2024 when adjusting to excludeRussia -based ACV1 in both fiscal 2023 and fiscal 2024. -
Cash flow from operations was
$339.9 million 13.6% year over year. Free cash flow2 was$335.3 million 14.7% year over year. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release. -
AspenTech's Board of Directors has approved a share repurchase authorization of up to
$100.0 million $300.0 million
Summary of Fourth Quarter and Fiscal Year 2024 Financial Results
AspenTech’s total revenue was
-
License and solutions revenue, which represents the portion of a term license agreement allocated to the initial license and Digital Grid Management ("DGM") revenue where software, hardware and professional services are recognized as one performance obligation, was
$231.0 million $222.8 million -
Maintenance revenue, which represents the portion of customer agreements related to ongoing support and the right to future product enhancements, was
$89.2 million $82.6 million -
Services and other revenue, which represents the portion of customer agreements related to professional services and training services, was
$22.7 million $15.2 million
Income from operations was
Net income was
Non-GAAP net income was
AspenTech had cash and cash equivalents of
AspenTech generated
Recent Developments
Russia Business Exit
In June 2024,
As a result of the sanctions and the decision to exit
Restructuring Charge
The Company implemented a workforce reduction of approximately
Share Repurchase Updates
AspenTech repurchased 277,913 shares for
Credit Agreement Renewal
On June 27, 2024 (the "Closing Date"), AspenTech entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”), with the lenders and issuing banks party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement provides for a new revolving credit facility (the “Credit Facility”) with initial commitments in an aggregate principal amount of
On the Closing Date, in connection with the entry into the Credit Agreement as described above, the Company terminated the then-existing Amended and Restated Credit Agreement, dated as of December 23, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the Closing Date) with the lenders party thereto, the initial issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent.
Fiscal Year 2025 Business Outlook
Based on information as of today, August 6, 2024, AspenTech is issuing the following guidance for fiscal 2025. Please note that the Company’s fiscal 2025 ACV1 guidance is based on an ACV1 balance of
-
ACV1 growth of ~
9.0% year-over-year -
GAAP operating cash flow of
~ $357 million -
Free cash flow2 of
~ $340 million -
Total bookings of
~ $1.17 billion -
Total revenue of
~ $1.19 billion -
GAAP total expense of
~ $1.21 billion -
Non-GAAP total expense of
~ $675 million -
GAAP operating loss of
~ $24 million -
Non-GAAP operating income of
~ $514 million -
GAAP net income of
~ $52 million -
Non-GAAP net income of
~ $478 million -
GAAP net income per share of
~ $0.81 -
Non-GAAP net income per share of
~ $7.47
These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause AspenTech’s actual results to differ materially from these forward-looking statements.
Conference Call and Webcast
AspenTech will host a conference call and webcast presentation on Tuesday, August 6, 2024, at 4:30 p.m. ET to discuss its financial results, business outlook, and related corporate and financial matters. A live webcast of the call will be available on AspenTech’s Investor Relations website, http://ir.aspentech.com, via its “Webcasts” page. To access the call by phone, please use the registration link. To avoid delays, participants are encouraged to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast also will be available for a limited time at http://ir.aspentech.com/.
AspenTech has provided an earnings presentation for its fourth quarter of fiscal 2024. AspenTech asks that shareholders refer to this presentation in conjunction with the conference call, which can be found at ir.aspentech.com.
Footnotes
- AspenTech defines ACV as the estimate of the annual value of portfolio of term license and software maintenance and support ("SMS") contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy term license agreements, which have become an immaterial part of the Company's business.
- Free cash flow is a non-GAAP metric that is calculated as net cash provided by operating activities adjusted for the net impact of purchases of property, equipment and leasehold improvements and payments for capitalized computer software development costs. Effective January 1, 2023, AspenTech no longer excludes acquisition and integration planning related payments from its computation of free cash flow. Free cash flow for all prior periods presented has been revised to the current period computation.
About AspenTech
Aspen Technology, Inc. (NASDAQ: AZPN) is a global software leader helping industries at the forefront of the world’s dual challenge meet the increasing demand for resources from a rapidly growing population in a profitable and sustainable manner. AspenTech solutions address complex environments where it is critical to optimize the asset design, operation and maintenance lifecycle. Through AspenTech's unique combination of deep domain expertise and innovation, customers in asset-intensive industries can run their assets safer, greener, longer and faster to improve their operational excellence. To learn more, visit AspenTech.com.
Forward-Looking Statements
Statements in this press release that are not strictly historical may be “forward-looking” statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties, and AspenTech undertakes no obligation to update any such statements to reflect later developments. These forward-looking statements include, but are not limited to, AspenTech's guidance for fiscal 2025, expectations regarding cash collections, and completion of the new share repurchase authorization announced for fiscal 2025. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “strategy,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “opportunity” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These risks and uncertainties include, without limitation: the failure to realize the anticipated benefits of the transaction with Emerson; risks resulting from the Company's status as a controlled company; the suspension of commercial activities in
© 2024 Aspen Technology, Inc. AspenTech, aspenONE, asset optimization and the
Use of Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures” under the rules of the SEC. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.
Management considers both GAAP and non-GAAP financial results in managing AspenTech’s business. As the result of adoption of new licensing models, management believes that a number of AspenTech’s performance indicators based on GAAP, including revenue, gross profit, operating income and net income, should be viewed in conjunction with certain non-GAAP and other business measures in assessing AspenTech’s performance, growth and financial condition. Accordingly, management utilizes a number of non-GAAP and other business metrics, including the non-GAAP metrics set forth in this press release, to track AspenTech’s business performance.
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||
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|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars and Shares in Thousands, Except per Share Data) |
||||||||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
License and solutions |
$ |
230,996 |
|
|
$ |
222,825 |
|
|
$ |
701,574 |
|
|
$ |
669,185 |
|
Maintenance |
|
89,171 |
|
|
|
82,634 |
|
|
|
345,451 |
|
|
|
316,911 |
|
Services and other |
|
22,738 |
|
|
|
15,184 |
|
|
|
80,457 |
|
|
|
58,082 |
|
Total revenue |
|
342,905 |
|
|
|
320,643 |
|
|
|
1,127,482 |
|
|
|
1,044,178 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
License and solutions |
|
65,838 |
|
|
|
70,238 |
|
|
|
270,291 |
|
|
|
279,564 |
|
Maintenance |
|
11,003 |
|
|
|
8,846 |
|
|
|
40,195 |
|
|
|
36,650 |
|
Services and other |
|
19,800 |
|
|
|
16,478 |
|
|
|
72,090 |
|
|
|
57,375 |
|
Total cost of revenue |
|
96,641 |
|
|
|
95,562 |
|
|
|
382,576 |
|
|
|
373,589 |
|
Gross profit |
|
246,264 |
|
|
|
225,081 |
|
|
|
744,906 |
|
|
|
670,589 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling and marketing |
|
124,846 |
|
|
|
126,396 |
|
|
|
490,767 |
|
|
|
482,656 |
|
Research and development |
|
49,959 |
|
|
|
55,606 |
|
|
|
206,114 |
|
|
|
209,347 |
|
General and administrative |
|
32,250 |
|
|
|
37,094 |
|
|
|
137,565 |
|
|
|
161,651 |
|
Total operating expenses |
|
207,055 |
|
|
|
219,096 |
|
|
|
834,446 |
|
|
|
853,654 |
|
Income (loss) from operations |
|
39,209 |
|
|
|
5,985 |
|
|
|
(89,540 |
) |
|
|
(183,065 |
) |
Other (expense) income, net |
|
(461 |
) |
|
|
3,850 |
|
|
|
(8,478 |
) |
|
|
(29,418 |
) |
Interest income, net |
|
14,127 |
|
|
|
12,807 |
|
|
|
54,183 |
|
|
|
31,917 |
|
Income (loss) before provision (benefit) for income taxes |
|
52,875 |
|
|
|
22,642 |
|
|
|
(43,835 |
) |
|
|
(180,566 |
) |
Provision (benefit) for income taxes |
|
8,177 |
|
|
|
(4,674 |
) |
|
|
(34,064 |
) |
|
|
(72,806 |
) |
Net income (loss) |
$ |
44,698 |
|
|
$ |
27,316 |
|
|
$ |
(9,771 |
) |
|
$ |
(107,760 |
) |
Net income (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.71 |
|
|
$ |
0.42 |
|
|
$ |
(0.15 |
) |
|
$ |
(1.67 |
) |
Diluted |
$ |
0.70 |
|
|
$ |
0.42 |
|
|
$ |
(0.15 |
) |
|
$ |
(1.67 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
63,308 |
|
|
|
64,614 |
|
|
|
63,711 |
|
|
|
64,621 |
|
Diluted |
|
63,619 |
|
|
|
64,943 |
|
|
|
63,711 |
|
|
|
64,621 |
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED AND COMBINED BALANCE SHEETS (Unaudited) |
|||||||
|
|
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|
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|
June 30, |
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|
2024 |
|
2023 |
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|
(Dollars in Thousands, Except Share Data) |
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ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
236,970 |
|
|
$ |
241,209 |
|
Accounts receivable, net |
|
115,533 |
|
|
|
122,789 |
|
Current contract assets, net |
|
409,177 |
|
|
|
367,539 |
|
Prepaid expenses and other current assets |
|
27,441 |
|
|
|
27,728 |
|
Receivables from related parties |
|
78,483 |
|
|
|
62,375 |
|
Prepaid income taxes |
|
8,462 |
|
|
|
11,424 |
|
Total current assets |
|
876,066 |
|
|
|
833,064 |
|
Property, equipment and leasehold improvements, net |
|
17,389 |
|
|
|
18,670 |
|
Goodwill |
|
8,328,201 |
|
|
|
8,330,811 |
|
Intangible assets, net |
|
4,184,750 |
|
|
|
4,659,657 |
|
Non-current contract assets, net |
|
515,106 |
|
|
|
536,104 |
|
Contract costs |
|
24,903 |
|
|
|
15,992 |
|
Operating lease right-of-use assets |
|
96,034 |
|
|
|
67,642 |
|
Deferred income tax assets |
|
6,989 |
|
|
|
10,638 |
|
Other non-current assets |
|
22,269 |
|
|
|
13,474 |
|
Total assets |
$ |
14,071,707 |
|
|
$ |
14,486,052 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
8,099 |
|
|
$ |
20,299 |
|
Accrued expenses and other current liabilities |
|
100,167 |
|
|
|
99,526 |
|
Due to related parties |
|
47,449 |
|
|
|
22,019 |
|
Current operating lease liabilities |
|
13,125 |
|
|
|
12,928 |
|
Income taxes payable |
|
44,249 |
|
|
|
46,205 |
|
Current contract liabilities |
|
124,312 |
|
|
|
151,450 |
|
Total current liabilities |
|
337,401 |
|
|
|
352,427 |
|
Non-current contract liabilities |
|
27,512 |
|
|
|
30,103 |
|
Deferred income tax liabilities |
|
790,687 |
|
|
|
957,911 |
|
Non-current operating lease liabilities |
|
84,875 |
|
|
|
55,442 |
|
Other non-current liabilities |
|
18,377 |
|
|
|
19,240 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, Issued— 65,367,159 and 64,952,868 shares Outstanding— 63,251,495 and 64,465,242 shares |
|
7 |
|
|
|
6 |
|
Additional paid-in capital |
|
13,277,851 |
|
|
|
13,194,028 |
|
Accumulated deficit |
|
(51,162 |
) |
|
|
(41,391 |
) |
Accumulated other comprehensive (loss) income |
|
(7,261 |
) |
|
|
2,436 |
|
Treasury stock, at cost- 2,115,664 and 487,626 shares of common stock |
|
(406,580 |
) |
|
|
(84,150 |
) |
Total stockholders’ equity |
|
12,812,855 |
|
|
|
13,070,929 |
|
Total liabilities and stockholders’ equity |
$ |
14,071,707 |
|
|
$ |
14,486,052 |
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars and Shares in Thousands, Except per Share Data) |
||||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
44,698 |
|
|
$ |
27,316 |
|
|
$ |
(9,771 |
) |
|
$ |
(107,760 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
123,215 |
|
|
|
123,153 |
|
|
|
493,009 |
|
|
|
491,419 |
|
Reduction in the carrying amount of right-of-use assets |
|
4,761 |
|
|
|
3,406 |
|
|
|
16,073 |
|
|
|
13,869 |
|
Net foreign currency losses |
|
904 |
|
|
|
368 |
|
|
|
9,142 |
|
|
|
4,079 |
|
Net realized loss on settlement of foreign currency forward contracts |
|
— |
|
|
|
36,997 |
|
|
|
— |
|
|
|
26,176 |
|
Stock-based compensation |
|
11,494 |
|
|
|
20,830 |
|
|
|
57,311 |
|
|
|
84,850 |
|
Deferred income taxes |
|
(28,872 |
) |
|
|
(36,880 |
) |
|
|
(167,342 |
) |
|
|
(192,926 |
) |
Provision for uncollectible receivables |
|
(3,031 |
) |
|
|
3,883 |
|
|
|
6,238 |
|
|
|
7,827 |
|
Other non-cash operating activities |
|
32 |
|
|
|
(1,336 |
) |
|
|
837 |
|
|
|
(228 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
27,841 |
|
|
|
(14,478 |
) |
|
|
4,918 |
|
|
|
(25,538 |
) |
Contract assets |
|
(19,442 |
) |
|
|
(10,986 |
) |
|
|
(22,344 |
) |
|
|
(21,658 |
) |
Contract costs |
|
(3,982 |
) |
|
|
(4,808 |
) |
|
|
(9,186 |
) |
|
|
(10,165 |
) |
Lease liabilities |
|
(4,214 |
) |
|
|
(3,352 |
) |
|
|
(15,495 |
) |
|
|
(13,655 |
) |
Prepaid expenses, prepaid income taxes, and other assets |
|
(22,865 |
) |
|
|
(20,016 |
) |
|
|
(40,309 |
) |
|
|
7,625 |
|
Liability from foreign currency forward contract |
|
— |
|
|
|
(40,454 |
) |
|
|
— |
|
|
|
— |
|
Accounts payable, accrued expenses, income taxes payable and other liabilities |
|
40,504 |
|
|
|
30,353 |
|
|
|
46,476 |
|
|
|
18,315 |
|
Contract liabilities |
|
(16,107 |
) |
|
|
(437 |
) |
|
|
(29,671 |
) |
|
|
16,979 |
|
Net cash provided by operating activities |
|
154,936 |
|
|
|
113,559 |
|
|
|
339,886 |
|
|
|
299,209 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Purchase of property, equipment and leasehold improvements |
|
(1,853 |
) |
|
|
(2,062 |
) |
|
|
(4,432 |
) |
|
|
(6,577 |
) |
Net payments for settlement of foreign currency forward contracts |
|
— |
|
|
|
(36,997 |
) |
|
|
— |
|
|
|
(26,176 |
) |
Payments for business acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(8,273 |
) |
|
|
(72,498 |
) |
Payments for equity method investments |
|
(46 |
) |
|
|
(24 |
) |
|
|
(318 |
) |
|
|
(700 |
) |
Payments for capitalized computer software development costs |
|
(52 |
) |
|
|
(19 |
) |
|
|
(183 |
) |
|
|
(366 |
) |
Payments for asset acquisitions |
|
— |
|
|
|
— |
|
|
|
(12,500 |
) |
|
|
— |
|
Purchase of other assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,000 |
) |
Net cash used in investing activities |
|
(1,951 |
) |
|
|
(39,102 |
) |
|
|
(25,706 |
) |
|
|
(107,317 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Issuance of shares of common stock |
|
10,593 |
|
|
|
5,194 |
|
|
|
25,807 |
|
|
|
36,736 |
|
Repurchases of common stock |
|
(56,934 |
) |
|
|
(100,000 |
) |
|
|
(300,000 |
) |
|
|
(100,000 |
) |
Payment of tax withholding obligations related to restricted stock |
|
(3,370 |
) |
|
|
(6,430 |
) |
|
|
(20,380 |
) |
|
|
(20,836 |
) |
Deferred business acquisition payments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,363 |
) |
Repayments of amounts borrowed under term loan |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(276,000 |
) |
Net transfers (to) from Parent Company |
|
(30,550 |
) |
|
|
(14,184 |
) |
|
|
2,008 |
|
|
|
(19,933 |
) |
Payments of debt issuance costs |
|
(1,708 |
) |
|
|
— |
|
|
|
(1,708 |
) |
|
|
(2,375 |
) |
Net cash used in financing activities |
|
(81,969 |
) |
|
|
(115,420 |
) |
|
|
(294,273 |
) |
|
|
(383,771 |
) |
Effect of exchange rate changes on cash and cash equivalents and |
|
(140 |
) |
|
|
(4,564 |
) |
|
|
(12,648 |
) |
|
|
(16,637 |
) |
Increase (decrease) in cash and cash equivalents |
|
70,876 |
|
|
|
(45,527 |
) |
|
|
7,259 |
|
|
|
(208,516 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
177,592 |
|
|
|
286,736 |
|
|
|
241,209 |
|
|
|
449,725 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
248,468 |
|
|
$ |
241,209 |
|
|
$ |
248,468 |
|
|
$ |
241,209 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
$ |
236,970 |
|
|
$ |
241,209 |
|
|
$ |
236,970 |
|
|
$ |
241,209 |
|
Restricted cash in other non-current assets |
|
11,498 |
|
|
|
— |
|
|
|
11,498 |
|
|
|
— |
|
Total cash, cash equivalents and restricted cash |
$ |
248,468 |
|
|
$ |
241,209 |
|
|
$ |
248,468 |
|
|
$ |
241,209 |
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows (Unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars and Shares in Thousands, Except per Share Data) |
|||||||||||||||
Total expenses |
|
|
|
|
|
|
|
|||||||||
GAAP total expenses (a) |
$ |
303,696 |
|
|
$ |
314,658 |
|
|
$ |
1,217,022 |
|
|
$ |
1,227,243 |
|
|
Less: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation (b) |
|
(11,494 |
) |
|
|
(20,830 |
) |
|
|
(57,311 |
) |
|
|
(84,850 |
) |
|
Amortization of intangibles (c) |
|
(121,589 |
) |
|
|
(121,526 |
) |
|
|
(486,490 |
) |
|
|
(485,486 |
) |
|
Acquisition and integration planning related fees |
|
(1,131 |
) |
|
|
(526 |
) |
|
|
(1,947 |
) |
|
|
(7,556 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP total expenses |
$ |
169,482 |
|
|
$ |
171,776 |
|
|
$ |
671,274 |
|
|
$ |
649,351 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from operations |
|
|
|
|
|
|
|
|||||||||
GAAP income (loss) from operations |
$ |
39,209 |
|
|
$ |
5,985 |
|
|
$ |
(89,540 |
) |
|
$ |
(183,065 |
) |
|
Plus: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation (b) |
|
11,494 |
|
|
|
20,830 |
|
|
|
57,311 |
|
|
|
84,850 |
|
|
Amortization of intangibles (c) |
|
121,589 |
|
|
|
121,526 |
|
|
|
486,490 |
|
|
|
485,486 |
|
|
Acquisition and integration planning related fees |
|
1,131 |
|
|
|
526 |
|
|
|
1,947 |
|
|
|
7,556 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP income from operations |
$ |
173,423 |
|
|
$ |
148,867 |
|
|
$ |
456,208 |
|
|
$ |
394,827 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
|
|
|
|
|
|
|
|||||||||
GAAP net income (loss) |
$ |
44,698 |
|
|
$ |
27,316 |
|
|
$ |
(9,771 |
) |
|
$ |
(107,760 |
) |
|
Plus: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation (b) |
|
11,494 |
|
|
|
20,830 |
|
|
|
57,311 |
|
|
|
84,850 |
|
|
Amortization of intangibles (c) |
|
121,589 |
|
|
|
121,526 |
|
|
|
486,490 |
|
|
|
485,486 |
|
|
Acquisition and integration planning related fees |
|
1,131 |
|
|
|
526 |
|
|
|
1,947 |
|
|
|
7,556 |
|
|
Realized loss on foreign currency forward contract |
|
— |
|
|
|
36,997 |
|
|
|
— |
|
|
|
26,176 |
|
|
Less: |
|
|
|
|
|
|
|
|||||||||
Income tax effect on Non-GAAP items (d) |
|
(28,243 |
) |
|
|
(28,565 |
) |
|
|
(113,923 |
) |
|
|
(124,231 |
) |
|
Unrealized gain on foreign currency forward contract |
|
— |
|
|
|
(40,454 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net income |
$ |
150,669 |
|
|
$ |
138,176 |
|
|
$ |
422,054 |
|
|
$ |
372,077 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted income (loss) per share |
|
|
|
|
|
|
|
|||||||||
GAAP diluted income (loss) per share |
$ |
0.70 |
|
|
$ |
0.42 |
|
|
$ |
(0.15 |
) |
|
$ |
(1.67 |
) |
|
Plus: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation (b) |
|
0.18 |
|
|
|
0.32 |
|
|
|
0.89 |
|
|
|
1.30 |
|
|
Amortization of intangibles (c) |
|
1.91 |
|
|
|
1.87 |
|
|
|
7.59 |
|
|
|
7.46 |
|
|
Acquisition and integration planning related fees |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.12 |
|
|
Realized loss on foreign currency forward contract |
|
— |
|
|
|
0.57 |
|
|
|
— |
|
|
|
0.40 |
|
|
Impact of diluted shares |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
Less: |
|
|
|
|
|
|
|
|||||||||
Income tax effect on Non-GAAP items (d) |
|
(0.44 |
) |
|
|
(0.44 |
) |
|
|
(1.78 |
) |
|
|
(1.91 |
) |
|
Unrealized gain on foreign currency forward contract |
|
— |
|
|
|
(0.62 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP diluted income per share |
$ |
2.37 |
|
|
$ |
2.13 |
|
|
$ |
6.59 |
|
|
$ |
5.72 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Shares used in computing diluted income per share |
|
63,619 |
|
|
|
64,943 |
|
|
|
64,060 |
|
|
|
65,094 |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in Thousands) |
|||||||||||||||
Free Cash Flow (2) |
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities (GAAP) |
$ |
154,936 |
|
|
$ |
113,559 |
|
|
$ |
339,886 |
|
|
$ |
299,209 |
|
|
Purchases of property, equipment and leasehold improvements |
|
(1,853 |
) |
|
|
(2,062 |
) |
|
|
(4,432 |
) |
|
|
(6,577 |
) |
|
Payments for capitalized computer software development costs |
|
(52 |
) |
|
|
(19 |
) |
|
|
(183 |
) |
|
|
(366 |
) |
|
Free cash flow (2) (non-GAAP) |
$ |
153,031 |
|
|
$ |
111,478 |
|
|
$ |
335,271 |
|
|
$ |
292,266 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(a) GAAP total expenses |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in Thousands) |
|||||||||||||||
Total costs of revenue |
$ |
96,641 |
|
|
$ |
95,562 |
|
|
$ |
382,576 |
|
|
$ |
373,589 |
|
|
Total operating expenses |
|
207,055 |
|
|
|
219,096 |
|
|
|
834,446 |
|
|
|
853,654 |
|
|
GAAP total expenses |
$ |
303,696 |
|
|
$ |
314,658 |
|
|
$ |
1,217,022 |
|
|
$ |
1,227,243 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(b) Stock-based compensation expense was as follows: |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in Thousands) |
|||||||||||||||
Cost of license and solutions |
$ |
312 |
|
|
$ |
813 |
|
|
$ |
2,116 |
|
|
$ |
3,565 |
|
|
Cost of maintenance |
|
642 |
|
|
|
431 |
|
|
|
2,526 |
|
|
|
1,893 |
|
|
Cost of services and other |
|
856 |
|
|
|
538 |
|
|
|
2,445 |
|
|
|
1,995 |
|
|
Selling and marketing |
|
2,256 |
|
|
|
5,316 |
|
|
|
10,368 |
|
|
|
16,202 |
|
|
Research and development |
|
2,574 |
|
|
|
7,959 |
|
|
|
14,189 |
|
|
|
21,790 |
|
|
General and administrative |
|
4,854 |
|
|
|
5,773 |
|
|
|
25,667 |
|
|
|
39,405 |
|
|
Total stock-based compensation |
$ |
11,494 |
|
|
$ |
20,830 |
|
|
$ |
57,311 |
|
|
$ |
84,850 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(c) Amortization of intangible assets was as follows: |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in Thousands) |
|||||||||||||||
Cost of license and solutions |
$ |
48,202 |
|
|
$ |
48,035 |
|
|
$ |
192,586 |
|
|
$ |
191,412 |
|
|
Selling and marketing |
|
73,387 |
|
|
|
73,491 |
|
|
|
293,904 |
|
|
|
294,074 |
|
|
Total amortization of intangible assets |
$ |
121,589 |
|
|
$ |
121,526 |
|
|
$ |
486,490 |
|
|
$ |
485,486 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(d) The income tax effect on non-GAAP items is calculated utilizing the Company's combined US federal and state statutory tax rate as follows: |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended
|
|
Year Ended
|
|
Nine Months
|
|||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
|
21.79 |
% |
|
|
21.79 |
% |
|
|
21.79 |
% |
|
|
21.79 |
% |
|
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES Reconciliation of Forward-Looking Guidance (Unaudited) |
||||||
|
|
|
|
|||
|
Twelve Months Ended June 30, 2025 (3) |
|||||
|
(Dollars in Thousands, Except Share Data) |
|||||
Guidance - Total expenses |
|
|
|
|||
GAAP expectation - total expenses |
$ |
1,213,000 |
|
|
|
|
Less: |
|
|
|
|||
Stock-based compensation |
|
(56,000 |
) |
|
|
|
Amortization of intangibles |
|
(474,000 |
) |
|
|
|
Restructuring (4) |
|
(8,000 |
) |
|
|
|
|
|
|
|
|||
Non-GAAP expectation - total expenses |
$ |
675,000 |
|
|
|
|
|
|
|
|
|||
Guidance - Income from operations |
|
|
|
|||
GAAP expectation - loss from operations |
$ |
(24,000 |
) |
|
|
|
Plus: |
|
|
|
|||
Stock-based compensation |
|
56,000 |
|
|
|
|
Amortization of intangibles |
|
474,000 |
|
|
|
|
Restructuring (4) |
|
8,000 |
|
|
|
|
|
|
|
|
|||
Non-GAAP expectation - income from operations |
$ |
514,000 |
|
|
|
|
|
|
|
|
|||
Guidance - Net income and diluted income per share |
|
|
|
|||
GAAP expectation - net income and diluted income per share |
$ |
52,000 |
|
|
$ |
0.81 |
Plus: |
|
|
|
|||
Stock-based compensation |
|
56,000 |
|
|
|
|
Amortization of intangibles |
|
474,000 |
|
|
|
|
Restructuring (4) |
|
8,000 |
|
|
|
|
Less: |
|
|
|
|||
Income tax effect on Non-GAAP items (5) |
|
(112,000 |
) |
|
|
|
|
|
|
|
|||
Non-GAAP expectation - net income and diluted income per share |
$ |
478,000 |
|
|
$ |
7.47 |
|
|
|
|
|||
Shares used in computing guidance for diluted income per share |
|
64,000 |
|
|
|
|
|
|
|
|
|||
Guidance - Free Cash Flow (2) |
|
|
|
|||
GAAP expectation - Net cash provided by operating activities |
$ |
357,000 |
|
|
|
|
Less: |
|
|
|
|||
Purchases of property, equipment and leasehold improvements |
|
(17,000 |
) |
|
|
|
|
|
|
|
|||
Free cash flow expectation (non-GAAP) |
$ |
340,000 |
|
|
|
|
|
|
|
||||
(3) Rounded amounts used, except per share data. |
||||||
(4) The Company uses the midpoint of its estimated fiscal 2025 total restructuring expense range to reconcile its fiscal 2025 guidance. |
||||||
(5) The income tax effect on non-GAAP items for the twelve months ended June 30, 2025 is calculated utilizing the Company’s statutory tax rate of 21.79 percent. |
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806640135/en/
Media Contact
Len Dieterle
Aspen Technology
+1 781-221-4291
len.dieterle@aspentech.com
Investor Contact
William Dyke
Aspen Technology
+1 781-221-5571
ir@aspentech.com
Source: Aspen Technology, Inc.
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