ANSYS Reports 31.2% Revenue Growth to $601.9M in Q3, 13.5% to $1.66B in Nine Months

ANSYS, Inc. reported significant financial growth in its latest 10-Q filing for the quarter and nine months ended September 30, 2024. Total revenue for the third quarter reached $601.9 million, marking a 31.2% increase from $458.8 million in the same period of 2023. For the nine months, revenue rose to $1.66 billion, up 13.5% from $1.46 billion year-over-year. This growth was driven by strong performance in subscription lease licenses, which surged 87.6% to $194.3 million, and software licenses, which increased 70.5% to $276.9 million.

Gross profit for the third quarter was $532.8 million, compared to $393.5 million in the prior year, reflecting a gross margin of 88.5%. Operating income also saw a substantial increase, reaching $161.5 million for the quarter, up from $69.8 million in 2023. For the nine-month period, operating income was $362.3 million, a 23.6% increase from $293.1 million in the previous year. Net income for the third quarter was $128.2 million, compared to $55.5 million in the same quarter of 2023, while net income for the nine months was $293.0 million, up from $225.7 million.

Earnings per share (EPS) reflected this growth, with diluted EPS for the third quarter increasing to $1.46 from $0.64, and for the nine months, it rose to $3.34 from $2.58. The company’s cash and cash equivalents as of September 30, 2024, stood at $1.25 billion, a significant increase from $860.2 million at the end of 2023.

Strategically, ANSYS is pursuing growth through acquisitions, including a pending agreement with Synopsys, Inc., expected to close in the first half of 2025, pending regulatory approvals. The company also completed the acquisition of DYNAmore in January 2023 for $140.8 million. However, a planned strategic equity investment in Humanetics for $300 million was terminated in July 2024 due to regulatory issues.

Operating expenses increased, primarily due to higher salaries, acquisition-related costs, and stock-based compensation. Selling, general, and administrative expenses for the third quarter were $233.1 million, up from $32.9 million in the same period last year. Research and development expenses also rose, reflecting the company's commitment to innovation and product development.

Overall, ANSYS's financial performance demonstrates robust growth across key metrics, supported by strategic investments and a focus on expanding its product offerings in the engineering simulation software market.