Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal 2023
- Strong financial results with double-digit ACV growth and increased annual spend
- Board approves new $300 million share repurchase authorization
- Decreased income from operations and net income due to elevated amortization of intangible assets
- Termination of share sale agreement to acquire Micromine
“The fourth quarter was a strong finish to an important year and showed benefits from our transformation efforts and learnings in fiscal 2023. We delivered a full year of double-digit ACV growth, ending above the midpoint of our guidance range. Demand in most of our end markets and geographies was strong in the quarter and throughout the year. This performance, during an unpredictable macro environment, validates the mission criticality of AspenTech solutions to our customers’ operations and strategic priorities,” said Antonio Pietri, President and Chief Executive Officer of AspenTech.
Fiscal Year 2023 Recent Business Highlights
-
Annual Contract Value1 ("ACV") was
$884.9 million 11.8% year over year and3.5% quarter over quarter. -
Annual Spend for Heritage AspenTech2 was
$730.9 million 8.5% year over year and2.7% quarter over quarter. -
Operating cash flow was
$299.2 million -
Free cash flow3 was
$292.3 million -
AspenTech Board of Directors approved new
$300.0 million $100.0 million
Summary of Fourth Quarter and Fiscal Year 2023 Financial Results4, 5
AspenTech’s total revenue was
-
License and solutions revenue, which represents the portion of a term license agreement allocated to the initial license and Open Systems International, Inc. (OSI) revenue where software and professional services are recognized as one performance obligation, was
$222.8 million $179.3 million -
Maintenance revenue, which represents the portion of customer agreements related to ongoing support and the right to future product enhancements, was
$82.6 million $50.2 million -
Services and other revenue was
$15.2 million $9.5 million
Income from operations was
Net income was
Non-GAAP income from operations was
As of June 30, 2023, AspenTech had cash and cash equivalents of
During the fourth quarter, AspenTech generated
Recent Developments
Micromine Transaction Update
AspenTech, in collaboration with Potentia, Micromine’s majority owner, has terminated its share sale agreement to acquire Micromine. AspenTech and Potentia were waiting to secure a final Russian regulatory approval as a condition to closing the transaction. As this process continued, the timing and requirements necessary to get this approval became increasingly unclear. This lack of clarity on the potential for, and timing of, a successful review led AspenTech and Potentia to this mutual course of action. AspenTech will not be paying any termination fee as part of this arrangement.
Share Repurchase Programs Update
AspenTech announced today that its Board of Directors has approved a new share repurchase authorization, through which the Company may repurchase up to
Fiscal Year 2024 Business Outlook
Based on information as of today, August 1, 2023, AspenTech is issuing the following guidance for fiscal 2024.
-
ACV1 growth of at least
11.5% year-over-year. -
GAAP operating cash flow of at least
$378 million -
Free cash flow3 of at least
$360 million -
Total bookings of at least
$1.04 billion -
Total revenue of at least
$1.12 billion -
GAAP total expense of approximately
$1.22 billion -
Non-GAAP total expense of approximately
$675 million -
GAAP operating loss at or better than
$100 million -
Non-GAAP operating income of at least
$445 million -
GAAP net loss at or better than
$7 million -
Non-GAAP net income of at least
$424 million -
GAAP net loss per share at or better than
$0.11 -
Non-GAAP net income per share of at least
$6.51
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 1, 2023, 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 following registration link. To avoid delays, we encourage participants 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/.
Expanded Earnings Presentation
AspenTech has provided an expanded earnings presentation for its fourth quarter and fiscal 2023. The Company asks that shareholders refer to this presentation in conjunction with today’s conference call, which can be found at ir.aspentech.com.
Footnotes
- AspenTech defines ACV as the estimate of the annual value of our portfolio of term license and software maintenance and support, or 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 our business.
- AspenTech defines Annual Spend for Heritage AspenTech as the annualized value of all term license and SMS contracts at the end of the quarter for the businesses other than OSI and Subsurface Science and Engineering (SSE). AspenTech will no longer disclose its Annual Spend metric starting in the first quarter of fiscal year 2024.
- Effective January 1, 2023, we no longer exclude acquisition and integration planning related payments from our computation of free cash flow. Free cash flow for all prior periods presented has been revised to the current period computation.
- As a result of the transaction between AspenTech and Emerson Electric Co. (“Emerson”), EmerSubCX, the subsidiary Emerson created as part of the transaction, became the surviving entity when the transaction closed on May 16, 2022. The comparable three-month period shown in the financial statements for fiscal 2022 reflects the full quarter results of the OSI and SSE businesses that were contributed to new AspenTech and the results of Heritage AspenTech for the period from May 16, 2022 to June 30, 2022. In addition, in conjunction with the closing of the transaction, EmerSubCX adjusted its fiscal year end from September 30 to June 30 to align with Heritage AspenTech’s fiscal year end. As a result, the financial results for fiscal 2022 are for the nine months from October 1, 2021 to June 30, 2022 and include the nine-month results of the OSI and SSE businesses Emerson contributed to new AspenTech and the results of Heritage AspenTech for the period from May 16, 2022 to June 30, 2022.
- Prior period financial information throughout this press release has been revised to conform with the current period presentation.
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 our unique combination of deep domain expertise and innovation, customers in capital-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, our guidance for fiscal 2024, our expectations regarding cash collections and completion of our accelerated share repurchase program. 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 our transaction with Emerson Electric Co.; risks resulting from our status as a controlled company; the scope, duration and ultimate impacts of the COVID-19 pandemic and the
© 2023 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
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. None of these non-GAAP metrics should be considered as an alternative to any measure of financial performance calculated in accordance with GAAP.
| ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (Unaudited in Thousands, Except per Share Data) |
||||||||||||
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
| Revenue: | ||||||||||||
| License and solutions | $ |
222,825 |
|
$ |
179,260 |
|
$ |
669,185 |
|
$ |
278,589 |
|
| Maintenance |
|
82,634 |
|
|
50,201 |
|
|
316,911 |
|
|
103,786 |
|
| Services and other |
|
15,184 |
|
|
9,459 |
|
|
58,082 |
|
|
22,921 |
|
| Total revenue |
|
320,643 |
|
|
238,920 |
|
|
1,044,178 |
|
|
405,296 |
|
| Cost of revenue: | ||||||||||||
| License and solutions |
|
70,238 |
|
|
56,491 |
|
|
279,564 |
|
|
125,258 |
|
| Maintenance |
|
8,846 |
|
|
6,660 |
|
|
36,650 |
|
|
15,030 |
|
| Services and other |
|
16,478 |
|
|
7,867 |
|
|
57,375 |
|
|
16,108 |
|
| Total cost of revenue |
|
95,562 |
|
|
71,018 |
|
|
373,589 |
|
|
156,396 |
|
| Gross profit |
|
225,081 |
|
|
167,902 |
|
|
670,589 |
|
|
248,900 |
|
| Operating expenses: | ||||||||||||
| Selling and marketing |
|
126,396 |
|
|
71,569 |
|
|
482,656 |
|
|
108,463 |
|
| Research and development |
|
55,606 |
|
|
33,440 |
|
|
209,347 |
|
|
64,285 |
|
| General and administrative |
|
37,094 |
|
|
23,703 |
|
|
161,651 |
|
|
39,878 |
|
| Restructuring costs |
|
— |
|
|
36 |
|
|
— |
|
|
117 |
|
| Total operating expenses |
|
219,096 |
|
|
128,748 |
|
|
853,654 |
|
|
212,743 |
|
| Income (loss) from operations |
|
5,985 |
|
|
39,154 |
|
|
(183,065 |
) |
|
36,157 |
|
| Other income (expense), net |
|
3,850 |
|
|
4,414 |
|
|
(29,418 |
) |
|
310 |
|
| Interest income, net |
|
12,807 |
|
|
3,542 |
|
|
31,917 |
|
|
3,494 |
|
| Income (loss) before provision for income taxes |
|
22,642 |
|
|
47,110 |
|
|
(180,566 |
) |
|
39,961 |
|
| (Benefit) for income taxes |
|
(4,674 |
) |
|
(10,076 |
) |
|
(72,806 |
) |
|
(13,185 |
) |
| Net income (loss) | $ |
27,316 |
|
$ |
57,186 |
|
$ |
(107,760 |
) |
$ |
53,146 |
|
| Net income (loss) per common share: | ||||||||||||
| Basic | $ |
0.42 |
|
$ |
1.14 |
|
$ |
(1.67 |
) |
$ |
1.30 |
|
| Diluted | $ |
0.42 |
|
$ |
1.13 |
|
$ |
(1.67 |
) |
$ |
1.30 |
|
| Weighted average shares outstanding: | ||||||||||||
| Basic |
|
64,614 |
|
|
50,179 |
|
|
64,621 |
|
|
40,931 |
|
| Diluted |
|
64,943 |
|
|
50,406 |
|
|
64,621 |
|
|
41,008 |
|
| ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED AND COMBINED BALANCE SHEETS (Unaudited in Thousands, Except Share and Per Share Data) |
||||||
| June 30, | ||||||
|
2023 |
|
|
2022 |
|
|
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ |
241,209 |
|
$ |
449,725 |
|
| Accounts receivable, net |
|
122,789 |
|
|
111,027 |
|
| Current contract assets, net |
|
367,539 |
|
|
428,833 |
|
| Prepaid expenses and other current assets |
|
27,728 |
|
|
23,461 |
|
| Receivables from related parties |
|
62,375 |
|
|
16,941 |
|
| Prepaid income taxes |
|
11,424 |
|
|
17,503 |
|
| Total current assets |
|
833,064 |
|
|
1,047,490 |
|
| Property, equipment and leasehold improvements, net |
|
18,670 |
|
|
17,148 |
|
| Goodwill |
|
8,330,811 |
|
|
8,266,809 |
|
| Intangible assets, net |
|
4,659,657 |
|
|
5,112,781 |
|
| Non-current contract assets, net |
|
536,104 |
|
|
428,232 |
|
| Contract costs |
|
15,992 |
|
|
5,473 |
|
| Operating lease right-of-use assets |
|
67,642 |
|
|
78,286 |
|
| Deferred tax assets |
|
10,638 |
|
|
4,937 |
|
| Other non-current assets |
|
13,474 |
|
|
8,766 |
|
| Total assets | $ |
14,486,052 |
|
$ |
14,969,922 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ |
20,299 |
|
$ |
21,416 |
|
| Accrued expenses and other current liabilities |
|
99,526 |
|
|
90,123 |
|
| Due to related parties |
|
22,019 |
|
|
4,111 |
|
| Current operating lease liabilities |
|
12,928 |
|
|
7,191 |
|
| Income taxes payable |
|
46,205 |
|
|
6,768 |
|
| Current borrowings |
|
— |
|
|
28,000 |
|
| Current contract liabilities |
|
151,450 |
|
|
143,327 |
|
| Total current liabilities |
|
352,427 |
|
|
300,936 |
|
| Non-current contract liabilities |
|
30,103 |
|
|
21,081 |
|
| Deferred income tax liabilities |
|
957,911 |
|
|
1,145,408 |
|
| Non-current operating lease liabilities |
|
55,442 |
|
|
71,933 |
|
| Non-current borrowings, net |
|
— |
|
|
245,647 |
|
| Other non-current liabilities |
|
19,240 |
|
|
15,560 |
|
| Stockholders’ equity: | ||||||
| Common stock, 0.0001 par value—Authorized—600,000,000 shares Issued— 64,952,868 shares at June 30, 2023 and 64,425,378 shares at June 30, 2022 Outstanding— 64,465,242 shares at June 30, 2023 and 64,425,378 shares at June 30, 2022 |
|
6 |
|
|
6 |
|
| Additional paid-in capital |
|
13,194,028 |
|
|
13,107,570 |
|
| (Accumulated deficit) retained earnings |
|
(41,391 |
) |
|
66,369 |
|
| Accumulated other comprehensive income (loss) |
|
2,436 |
|
|
(4,588 |
) |
| Treasury stock, at cost- 487,626 shares of common stock at June 30, 2023 and none at June 30, 2022 |
|
(84,150 |
) |
|
— |
|
| Total stockholders’ equity |
|
13,070,929 |
|
|
13,169,357 |
|
| Total liabilities and stockholders’ equity | $ |
14,486,052 |
|
$ |
14,969,922 |
|
| ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Unaudited in Thousands) |
||||||||||||
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
| Cash flows from operating activities: | ||||||||||||
| Net income (loss) | $ |
27,316 |
|
$ |
57,186 |
|
$ |
(107,760 |
) |
$ |
53,146 |
|
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
| Depreciation and amortization |
|
123,153 |
|
|
73,015 |
|
|
491,419 |
|
|
119,930 |
|
| Reduction in the carrying amount of right-of-use assets |
|
3,406 |
|
|
3,387 |
|
|
13,869 |
|
|
5,915 |
|
| Net foreign currency losses (gains) |
|
368 |
|
|
(4,533 |
) |
|
4,079 |
|
|
(306 |
) |
| Net realized loss on settlement of foreign currency forward contracts |
|
36,997 |
|
|
— |
|
|
26,176 |
|
|
— |
|
| Stock-based compensation |
|
20,830 |
|
|
14,786 |
|
|
84,850 |
|
|
15,763 |
|
| Deferred income taxes |
|
(36,880 |
) |
|
(72,865 |
) |
|
(192,926 |
) |
|
(79,021 |
) |
| Provision for uncollectible receivables |
|
3,883 |
|
|
(54 |
) |
|
7,827 |
|
|
794 |
|
| Other non-cash operating activities |
|
(1,336 |
) |
|
123 |
|
|
(228 |
) |
|
228 |
|
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable |
|
(14,478 |
) |
|
13,206 |
|
|
(25,538 |
) |
|
11,204 |
|
| Contract assets |
|
(10,986 |
) |
|
(68,129 |
) |
|
(21,658 |
) |
|
(78,122 |
) |
| Contract costs |
|
(4,808 |
) |
|
(4,992 |
) |
|
(10,165 |
) |
|
(4,992 |
) |
| Lease liabilities |
|
(3,352 |
) |
|
(2,833 |
) |
|
(13,655 |
) |
|
(5,558 |
) |
| Prepaid expenses, prepaid income taxes, and other assets |
|
(20,016 |
) |
|
(6,303 |
) |
|
7,625 |
|
|
(8,776 |
) |
| Liability from foreign currency forward contract |
|
(40,454 |
) |
|
— |
|
|
— |
|
|
— |
|
| Accounts payable, accrued expenses, income taxes payable and other liabilities |
|
30,353 |
|
|
(18,280 |
) |
|
18,315 |
|
|
(23,674 |
) |
| Contract liabilities |
|
(437 |
) |
|
15,942 |
|
|
16,979 |
|
|
22,431 |
|
| Net cash provided by (used in) operating activities |
|
113,559 |
|
|
(344 |
) |
|
299,209 |
|
|
28,962 |
|
| Cash flows from investing activities: | ||||||||||||
| Purchase of property, equipment and leasehold improvements |
|
(2,062 |
) |
|
(982 |
) |
|
(6,577 |
) |
|
(2,263 |
) |
| Proceeds from sale of property and equipment |
|
— |
|
|
36 |
|
|
— |
|
|
91 |
|
| Net payments for settlement of foreign currency forward contracts |
|
(36,997 |
) |
|
— |
|
|
(26,176 |
) |
|
— |
|
| Payments for business acquisitions, net of cash acquired |
|
— |
|
|
(5,571,931 |
) |
|
(72,498 |
) |
|
(5,571,931 |
) |
| Payments for equity method investments |
|
(24 |
) |
|
(24 |
) |
|
(700 |
) |
|
(24 |
) |
| Payments for capitalized computer software development costs |
|
(19 |
) |
|
(508 |
) |
|
(366 |
) |
|
(508 |
) |
| Purchase of other assets |
|
— |
|
|
(553 |
) |
|
(1,000 |
) |
|
(553 |
) |
| Net cash (used in) investing activities |
|
(39,102 |
) |
|
(5,573,962 |
) |
|
(107,317 |
) |
|
(5,575,188 |
) |
| Cash flows from financing activities: | ||||||||||||
| Issuance of shares of common stock |
|
5,194 |
|
|
5,701 |
|
|
36,736 |
|
|
5,702 |
|
| Repurchases of common stock |
|
(100,000 |
) |
|
— |
|
|
(100,000 |
) |
|
— |
|
| Payment of tax withholding obligations related to restricted stock |
|
(6,430 |
) |
|
(1,676 |
) |
|
(20,836 |
) |
|
(1,676 |
) |
| Deferred business acquisition payments |
|
— |
|
|
(1,200 |
) |
|
(1,363 |
) |
|
(1,200 |
) |
| Repayments of amounts borrowed under term loan |
|
— |
|
|
(6,000 |
) |
|
(276,000 |
) |
|
(6,000 |
) |
| Net transfers (to) from Parent Company |
|
(14,184 |
) |
|
6,004,439 |
|
|
(19,933 |
) |
|
5,971,995 |
|
| Payments of debt issuance costs |
|
— |
|
|
— |
|
|
(2,375 |
) |
|
— |
|
| Net cash (used in) provided by financing activities |
|
(115,420 |
) |
|
6,001,264 |
|
|
(383,771 |
) |
|
5,968,821 |
|
| Effect of exchange rate changes on cash and cash equivalents |
|
(4,564 |
) |
|
2,405 |
|
|
(16,637 |
) |
|
1,417 |
|
| (Decrease) increase in cash and cash equivalents |
|
(45,527 |
) |
|
429,363 |
|
|
(208,516 |
) |
|
424,012 |
|
| Cash and cash equivalents, beginning of period |
|
286,736 |
|
|
20,362 |
|
|
449,725 |
|
|
25,713 |
|
| Cash and cash equivalents, end of period | $ |
241,209 |
|
$ |
449,725 |
|
$ |
241,209 |
|
$ |
449,725 |
|
| ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows (Unaudited in Thousands, Except per Share Data) |
||||||||||||
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
| Total expenses | ||||||||||||
| GAAP total expenses (a) | $ |
314,658 |
|
$ |
199,766 |
|
$ |
1,227,243 |
|
$ |
369,139 |
|
| Less: | ||||||||||||
| Stock-based compensation (b) |
|
(20,830 |
) |
|
(14,786 |
) |
|
(84,850 |
) |
|
(15,763 |
) |
| Amortization of intangibles (c) |
|
(121,526 |
) |
|
(71,342 |
) |
|
(485,486 |
) |
|
(116,743 |
) |
| Acquisition and integration planning related fees |
|
(526 |
) |
|
(3,749 |
) |
|
(7,556 |
) |
|
(3,749 |
) |
| Non-GAAP total expenses | $ |
171,776 |
|
$ |
109,889 |
|
$ |
649,351 |
|
$ |
232,884 |
|
| Income from operations | ||||||||||||
| GAAP income (loss) from operations | $ |
5,985 |
|
$ |
39,154 |
|
$ |
(183,065 |
) |
$ |
36,157 |
|
| Plus: | ||||||||||||
| Stock-based compensation (b) |
|
20,830 |
|
|
14,786 |
|
|
84,850 |
|
|
15,763 |
|
| Amortization of intangibles (c) |
|
121,526 |
|
|
71,342 |
|
|
485,486 |
|
|
116,743 |
|
| Acquisition and integration planning related fees |
|
526 |
|
|
3,749 |
|
|
7,556 |
|
|
3,749 |
|
| Non-GAAP income from operations | $ |
148,867 |
|
$ |
129,031 |
|
$ |
394,827 |
|
$ |
172,412 |
|
| Net income | ||||||||||||
| GAAP net income (loss) | $ |
27,316 |
|
$ |
57,186 |
|
$ |
(107,760 |
) |
$ |
53,146 |
|
| Plus (less): | ||||||||||||
| Stock-based compensation (b) |
|
20,830 |
|
|
14,786 |
|
|
84,850 |
|
|
15,763 |
|
| Amortization of intangibles (c) |
|
121,526 |
|
|
71,342 |
|
|
485,486 |
|
|
116,743 |
|
| Acquisition and integration planning related fees |
|
526 |
|
|
3,749 |
|
|
7,556 |
|
|
3,749 |
|
| Unrealized (gain) on foreign currency forward contract |
|
(40,454 |
) |
|
— |
|
|
— |
|
|
— |
|
| Realized loss on foreign currency forward contract |
|
36,997 |
|
|
— |
|
|
26,176 |
|
|
— |
|
| Less: | ||||||||||||
| Income tax effect on Non-GAAP items (d) |
|
(28,565 |
) |
|
(18,295 |
) |
|
(124,231 |
) |
|
(28,316 |
) |
| Non-GAAP net income | $ |
138,176 |
|
$ |
128,768 |
|
$ |
372,077 |
|
$ |
161,085 |
|
| Diluted income per share | ||||||||||||
| GAAP diluted income (loss) per share | $ |
0.42 |
|
$ |
1.13 |
|
$ |
(1.67 |
) |
$ |
1.30 |
|
| Plus (less): | ||||||||||||
| Stock-based compensation (b) |
|
0.32 |
|
|
0.29 |
|
|
1.30 |
|
|
0.38 |
|
| Amortization of intangibles (c) |
|
1.87 |
|
|
1.42 |
|
|
7.46 |
|
|
2.85 |
|
| Acquisition and integration planning related fees |
|
0.01 |
|
|
0.07 |
|
|
0.12 |
|
|
0.09 |
|
| Unrealized (gain) on foreign currency forward contract |
|
(0.62 |
) |
|
— |
|
|
— |
|
|
— |
|
| Realized loss on foreign currency forward contract |
|
0.57 |
|
|
— |
|
|
0.40 |
|
|
— |
|
| Impact of diluted shares |
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
| Less: | ||||||||||||
| Income tax effect on Non-GAAP items (d) |
|
(0.44 |
) |
|
(0.36 |
) |
|
(1.91 |
) |
|
(0.69 |
) |
| Non-GAAP diluted income per share | $ |
2.13 |
|
$ |
2.55 |
|
$ |
5.72 |
|
$ |
3.93 |
|
| Shares used in computing Non-GAAP diluted income per share |
|
64,943 |
|
|
50,406 |
|
|
65,094 |
|
|
41,008 |
|
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
| Free Cash Flow (6) | ||||||||||||
| Net cash provided by (used in) operating activities (GAAP) | $ |
113,559 |
|
$ |
(344 |
) |
$ |
299,209 |
|
$ |
28,962 |
|
| Purchases of property, equipment and leasehold improvements |
|
(2,062 |
) |
|
(982 |
) |
|
(6,577 |
) |
|
(2,263 |
) |
| Payments for capitalized computer software development costs |
|
(19 |
) |
|
(508 |
) |
|
(366 |
) |
|
(508 |
) |
| Free cash flow (non-GAAP) | $ |
111,478 |
|
$ |
(1,834 |
) |
$ |
292,266 |
|
$ |
26,191 |
|
| (6) Effective January 1, 2023, we no longer exclude acquisition and integration planning related payments from our computation of free cash flow. Free cash flow for all prior periods presented has been revised to the current period computation methodology. |
| (a) GAAP total expenses |
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||
2023 |
2022 |
2023 |
2022 |
|||||
| Total costs of revenue | $ |
95,562 |
$ |
71,018 |
$ |
373,589 |
$ |
156,396 |
| Total operating expenses |
|
219,096 |
|
128,748 |
|
853,654 |
|
212,743 |
| GAAP total expenses | $ |
314,658 |
$ |
199,766 |
$ |
1,227,243 |
$ |
369,139 |
| (b) Stock-based compensation expense was as follows: | ||||||||
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||
2023 |
2022 |
2023 |
2022 |
|||||
| Cost of license and solutions | $ |
813 |
$ |
1,351 |
$ |
3,565 |
$ |
1,351 |
| Cost of maintenance |
|
431 |
|
344 |
|
1,893 |
|
344 |
| Cost of services and other |
|
538 |
|
282 |
|
1,995 |
|
282 |
| Selling and marketing |
|
5,316 |
|
2,850 |
|
16,202 |
|
2,850 |
| Research and development |
|
7,959 |
|
3,507 |
|
21,790 |
|
3,507 |
| General and administrative |
|
5,773 |
|
6,452 |
|
39,405 |
|
7,429 |
| Total stock-based compensation | $ |
20,830 |
$ |
14,786 |
$ |
84,850 |
$ |
15,763 |
| (c) Amortization of intangible assets was as follows:(7) | ||||||||
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||||||
2023 |
2022 |
2023 |
2022 |
|||||
| Cost of license and solutions | $ |
48,035 |
$ |
30,068 |
$ |
191,412 |
$ |
56,453 |
| Selling and marketing |
|
73,491 |
|
41,274 |
|
294,074 |
|
60,290 |
| Total amortization of intangible assets | $ |
121,526 |
$ |
71,342 |
$ |
485,486 |
$ |
116,743 |
| (7) Amortization of intangible assets for the three and nine months ended June 30, 2022 has been updated to reflect the amounts as presented in our Form 10-KT for our fiscal 2022. |
| (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:(8) | ||||
| Three Months Ended June 30, |
Year Ended June 30, |
Nine Months Ended June 30, |
||
2023 |
2022 |
2023 |
2022 |
|
21.79 % |
21.79 % |
21.79 % |
21.79 % |
|
| (8) The income tax effect on non-GAAP items for the three and nine months ended June 30, 2022 has been updated to conform to the current methodology of calculating the income tax effect on non-GAAP items. | ||||
| ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES Reconciliation of Forward-Looking Guidance (Unaudited in Thousands, Except per Share Data) |
||||||
| Twelve Months Ended June 30, 2024 (9) | ||||||
| Guidance - Total expenses | ||||||
| GAAP expectation - total expenses | $ |
1,220,000 |
|
|||
| Less: | ||||||
| Stock-based compensation |
|
(59,000 |
) |
|||
| Amortization of intangibles |
|
(486,000 |
) |
|||
| Non-GAAP expectation - total expenses | $ |
675,000 |
|
|||
| Guidance - Income from operations | ||||||
| GAAP expectation - (loss) from operations | $ |
(100,000 |
) |
|||
| Plus: | ||||||
| Stock-based compensation |
|
59,000 |
|
|||
| Amortization of intangibles |
|
486,000 |
|
|||
| Non-GAAP expectation - income from operations | $ |
445,000 |
|
|||
| Guidance - Net income and diluted income per share | ||||||
| GAAP expectation - net (loss) and diluted (loss) per share | $ |
(7,000 |
) |
$ |
(0.11 |
) |
| Plus (less): | ||||||
| Stock-based compensation |
|
59,000 |
|
|||
| Amortization of intangibles |
|
486,000 |
|
|||
| Less: | ||||||
| Income tax effect on Non-GAAP items (10) |
|
(114,000 |
) |
|||
| Non-GAAP expectation - net income and diluted income per share | $ |
424,000 |
|
$ |
6.51 |
|
| Shares used in computing guidance for Non-GAAP diluted income per share |
|
65,100 |
|
|||
| Guidance - Free Cash Flow (11) | ||||||
| GAAP expectation - Net cash provided by operating activities | $ |
378,000 |
|
|||
| Less: | ||||||
| Purchases of property, equipment and leasehold improvements |
|
(17,500 |
) |
|||
| Payments for capitalized computer software development costs |
|
(500 |
) |
|||
| Free cash flow expectation (non-GAAP) | $ |
360,000 |
|
|||
| (9) Rounded amounts used, except per share data. | ||
| (10) The income tax effect on non-GAAP items for the twelve months ended June 30, 2024 is calculated utilizing the Company’s statutory tax rate of 21.79 percent. | ||
| (11) Free cash flow guidance has been updated to reflect a change in methodology to calculate free cash flow and does not represent a change in management's expectations. Effective January 1, 2023, we no longer exclude acquisition and integration planning related payments from our computation of free cash flow. We have updated our guidance computation for free cash flow to reflect that such payments are no longer excluded from free cash flow. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230801756683/en/
Media Contact
Len Dieterle
Aspen Technology
+1 781-221-4291
len.dieterle@aspentech.com
Investor Contact
Brian Denyeau
ICR for Aspen Technology
+1 646-277-1251
brian.denyeau@icrinc.com
Source: Aspen Technology, Inc.
