Q2

Sou apaixonado por essa empresa.

Também. ((: E os resultados vêm numa crescente. Case MUITO interessante.

A ANSYS Inc. (NASDAQ: ANSS) divulgou seus resultados trimestrais na segunda-feira, 6 de agosto. A companhia informou US $ 1,35 EPS para o trimestre, superando a estimativa de consenso do mercado, que era de US $ 1,10, por US $ 0,25. A empresa teve uma receita de US $ 308,90 milhões no trimestre, ao passo que a estimativa de consenso era US $ 288,26 milhões. A ANSYS teve um retorno sobre o patrimônio líquido de 14,51% e uma margem líquida de 24,92%. A receita trimestral do negócio subiu 16,9% em relação ao mesmo trimestre do ano passado. Durante o mesmo trimestre no ano anterior, a empresa gerou US $ 0,99 EPS.

NASDAQ:ANSS - ANSYS Stock Price, News, Headlines & Rumors | MarketBeat

Ajei S. Gopal - ANSYS, Inc.

Thank you, Annette, and good morning, everyone. Q2 was an excellent quarter across all key metrics, which has led to an outstanding first half of 2018. In Q2, we delivered constant currency revenue growth of 10%, and our operating margins and EPS exceeded the high end of our guidance under both ASC 605 and ASC 606.

Our Q2 ASC 605 revenue and EPS are both second quarter records for ANSYS. Our deferred revenue and backlog increased 24% year-over-year to $816 million. Annualized contract value or ACV grew 10% in constant currency for the first half of the year. Both of these metrics are leading indicators of the robust health of our business.

Given our strong performance to date in 2018 and the strength of our pipeline going into the second half of the year, we are increasing our EPS guidance for the full year. Were also adjusting our revenue guidance to reflect an increase in our constant currency revenue outlook, but in the context of an adverse currency impact of about $15 million since we last provided guidance. Maria will provide more details in a few minutes.

Large deals helped to drive our success in the quarter with 35 customers recording orders of over $1 million, an increase of 25% over the second quarter of 2017. These customers tend to buy multiple products from the ANSYS portfolio and consistent with last quarter, over 75% of these customers purchase products from at least three of our product lines. Our largest customer this quarter had combined orders of over $30 million across four product lines.

Our success in engineering services in the context of our momentum with enterprise and strategic accounts is another highlight of this quarter. We reported Q2 and first half constant currency services revenue growth of 40% and 30%, respectively, albeit up a smaller denominator. This is evidence that we are succeeding in leveraging our world-class engineering services talent to drive customer adoption of our portfolio. This is a direct result of the focused and incremental investments we have made in our field engineering team and in our go-to-market strategy around this important class of customers.

I'm delighted with the performance of our North American business and with the ongoing recovery of our European business. Europe grew 11% and 10% in constant currency in Q2 and in the first half respectively, continuing the significant turnaround for that region. As we had planned, sales in Asia-Pacific are back-end loaded this year and hence APJ had a relatively slower growth for the quarter and the first half.

I'm excited that our key regions of China and Japan delivered solid revenue growth for the quarter. However, the slower pace of implementation of go-to-market changes in South Korea impacted performance in that country and some centralized purchasing of enterprise deals muted results in India. With an expanded pipeline of larger deals, the ongoing addition of incremental enterprise sales resources in the region and the completion of our go-to-market changes, we are optimistic about our Asia-Pacific performance in the second half of the year.

Representing about 24% of total revenue, our indirect channel is a key area of focus. During the first half of 2018, we added 11 new channel partners, including 8 in Europe. We also increased our Elite channel partners to 20 from an initial group of 5. Our channel partners' certification levels across our product portfolio has also increased and they continue to add sales capacity and technical resources and enhance their capabilities. From an industry perspective, automotive and high-tech continue to perform strongly, with notable wins driven by the rise in electronics and the push to autonomy and electrification.

We saw a wonderful example of the power of our electrification solution recently when our partner, Volkswagen Motorsport, shattered the time record at the Pikes Peak International Hill Climb by nearly 16 seconds using an all-electric racecar. ANSYS was very proud to be selected as Volkswagen Motorsport's strategic technology partner of choice for simulating the mission-critical aspects of the electric propulsion system and the overall car design.

I'm also excited that we continue to make advances in our Startup Program. Today we have over 500 innovative young companies from around the world using the power of ANSYS solutions to build their next-generation products and services. Now last year we described our vision of Pervasive Simulation where simulation becomes critical across the entire product life cycle.

Our core business relies on driving innovation into our flagship solutions of mechanical, fluids, electromagnetics, semiconductors and systems. ANSYS 19.1 released during Q2 bolters our leadership across all of our key physics. This comprehensive release features advances across our portfolio to improve reliability, performance, speed and overall user experience. These dramatic improvements are driving high-value multiphysics sales across the regions and the industries we serve.

For example, Eldor Corporation, a global manufacturing leader for automotive systems, expanded their adoption of ANSYS electronics and HPC solutions to support next-generation electric powertrain development. Extending their adoption of a multiphysics platform based on ANSYS structural, CFD and electromagnetic products enables Eldor to further ensure the reliability of their designs, while increasing simulation efficiency or critical to responding to this rapidly evolving market.

Multiphysics was a critical topic at June's DAC, the major semiconductor industry conference. We were excited to have dozens of customers share their best practices on how they use ANSYS solutions beyond the traditional signoff area, leveraging the power of multiphysics simulations, big data analytics, and chip package system co-analyses to tackle the challenges of 7 nanometers and 3D IC design, just to name a few. This new functionality will help them to innovate by exceeding their power, performance and area goals.

A great example of our customers' success was outlined in a press release yesterday with HiSilicon Technologies, a subsidiary of Huawei. They are relying on ANSYS' suite of semiconductor and electronics simulation solutions for power integrity and reliability signoff to address complex multiphysics challenges. These include on-chip thermal effects, aging, thermal-aware statistical electromigration budgeting, electrostatic discharge, as well as the creation of chip power models for simulating the entire package and system.

HiSilicon is using ANSYS RedHawk-SC, our next-generation system-on-chip power noise and reliability signoff solution to enable design success for all advanced process nodes, including 7 nanometer and 5 nanometer. Our successes with RedHawk-SC was also showcased at DAC. I'm excited that all of our 7-nanometer RedHawk customers are using or deploying RedHawk-SC for signoff of their most complex products and design. These designs are at the heart of innovations in artificial intelligence, autonomous vehicles, 5G, mobile devices and so on.
Our successes with RedHawk-SC go beyond the Tier-1 chip makers. We're seeing rapid adoption by a number of hardware startups focused on chip development for artificial intelligence. But to become truly pervasive, simulation must move beyond the product design phase and move upstream into ideation and downstream into operations.

ANSYS Discovery Live, which we introduced in Q1, provides instantaneous 3D simulation and direct geometry modeling to enable interactive design exploration and rapid product innovation. We saw early success with ANSYS Discovery Live with China Southern Power Grid, which provides electricity to over 250 million people. This Fortune Global 100 company is using Discovery Live for digital exploration, resulting in a 3x improvement in tower design times.

The company also signed a contract in Q2 to expand its ANSYS usage across physics, including structures, fluids, electromagnetics, as well as high-performance computing. This expansion also enables their design teams to collaborate across engineering disciplines using an integrated workflow based on the ANSYS Workbench platform.

Also in Q2, we announced an exciting new partnership with PTC. They are developing a differentiated solution for their customers that embed Discovery Live's simulation engine into their Creo 3D CAD offering. With the combined solution which removes the boundaries between CAD and simulation, engineers will be able to see the real-time results of simulation during the modeling process. This will enable them to rapidly make tradeoffs and design changes in their models.

With PTC's significant presence in the designer space, our partnership broadens our reach to design engineers around the world. Although there's no impact on our 2018 revenue while the solution is in development, early customer feedback has been overwhelmingly positive.

Simulation can also play a critical role demonstrated in product operations through the use of digital twins. While digital twin adoption is still in its early stages, we're seeing significant interest from customers. Many companies have challenges in maintaining assets that are in remote or hostile locations. And so it's no surprise that companies in mining, energy as well as construction sites with heavy machinery are early adopters of the Internet of Things and digital twin technology.

In Q2, we released ANSYS Twin Builder, the only solution that offers a packaged approach for digital twins, enabling engineers to quickly build, validate and deploy these digital representations of physical products. The open solution integrates with any industrial IoT platform and contains run-time deployment capabilities for constant monitoring of every individual asset used during operations. The solution empowers customers to perform diagnostics and troubleshooting, determine the ideal maintenance programs, optimize the performance of each asset, and generate insightful data to improve the next generation of products.
Our longtime customer Regal is a great digital twin success story. Regal is a leading manufacturer of electric motors, power generation and power transmission products serving markets worldwide. Regal leveraged ANSYS simulation to build a digital twin, enabling them to iterate on the design, optimizing both software and hardware. Their digital twin helped them understand the performance impact of design changes within minutes and validate that the new design met market requirements. Likewise, Regal leveraged ANSYS' mechanical, fluids, embedded software and systems tools to reduce the design time from six weeks down to a few days.

I'm also delighted that in Q2, we announced an innovative partnership with software giant SAP. They're embedding ANSYS' technology for digital twins into their extensive digital supply chain, manufacturing and asset management portfolio, introducing a new product called SAP Predictive Engineering Insights enabled by ANSYS. This new solution, which introduces ANSYS simulation to operations and asset managers, ties together engineering models, manufacturing details and operational insights, including financial information.

Connecting these diverse data sets enables businesses to evaluate the real-time working conditions of physical objects and remotely monitor products and assets, empowering them to quickly detect and fix issues if something goes wrong, as well as to make design improvements to future releases. This relationship is particularly exciting for ANSYS because of SAP's enterprise product portfolio and extensive customer reach. Now while we're not expecting any revenue for ANSYS in 2018 while our engineering teams are working on the new product, initial customer feedback from customers has been very positive.

And finally, on the product side, we're seeing strong interest and increased opportunities from our recent acquisition of OPTIS. As you may remember, OPTIS is the leading provider of physics-based simulation software for light, human vision and visualization. This best-in-class technology helps to extend our industry leadership and drive full portfolio sales, particularly in the automotive vertical.

The $30 million Q2 deal I mentioned earlier was with one of the world's leading automotive companies. And like many of our automotive customers, this company is facing mounting pressures to bring new, autonomous and electric vehicle technology to market as quickly as possible. This industry leader who's also a customer of OPTIS realized that further investment in ANSYS' flagship solutions, including electromagnetics and functional safety, will increase their simulation efficiency which is crucial to rapid innovation.
Now before I close, I want to give you an update on our Board of Directors. First, I would like to thank two of our longstanding board members, Brad Morley and Pat Zilvitis who retired earlier this year, for their many years of dedicated service. And I'd like to welcome to our board two accomplished executives with extensive experience at leading technology companies; Nicole Anasenes and Glenda Dorchak. Along with Dr. Alec Gallimore who joined the board in December, they bring a wealth of thought leadership and experience to our outstanding Board of Directors and we are very much looking forward to the value they will bring to our growing enterprise.

ANSYS (ANSS) Q2 2018 Results - Earnings Call Transcript | Seeking Alpha

Maria T. Shields - ANSYS, Inc.

Thank you, Ajei. Good morning, everyone. Ajei shared a few key highlights from our results. And now let me take a few minutes to add some additional commentary around our second quarter and first half financial performance. I will close my prepared remarks with an update on our outlook and key assumptions for Q3 and 2018.

Before I begin, I would like to remind everyone that during the first year of adoption of revenue recognition under ASC 606, we have been and will continue to provide financial results and outlook under both ASC 605 and ASC 606. Additionally, any comments that I make relative to growth rates will be comparing Q2 2018 to Q2 2017 results under ASC 605 and in constant currency. I will provide key financial metrics under both ASC 605 and ASC 606 and consistent with our standard practice, my comments will be in terms of non-GAAP, unless I state otherwise.

Our record Q2 results reflect continued strong momentum and execution across the business. Despite a stronger U.S. dollar that adversely affected our revenue by approximately $2 million as compared to our forecasted exchange rates, we posted revenue growth of 13% or 10% in constant currency. Operating margins and EPS were above the high end of our guidance under both ASC 605 and ASC 606. Our strong second quarter and first half performance give us confidence that we are on a path to continue to make progress against our strategic priorities and to deliver another year of record financial results in 2018.

Our key financial metrics for the quarter begin with Q2 constant currency ACV growth of 8% and 10% growth for the first half of the year. Second quarter revenue under ASC 605 and ASC 606 totaled $299 million and $309 million respectively, and include positive currency impacts of $6.8 million and $6.3 million as compared to last year.

The increase in software license sales combined with strong maintenance renewals contributed to our deferred revenue and backlog under ASC 605 of $816 million, representing a record Q2 high and a 24% increase over last years comparable balance. Deferred revenue and backlog under ASC 606 totaled $587 million.

Recurring revenue for the quarter under ASC 605 grew 11% in constant currency to a total of $228 million or 76% of total revenue. Under ASC 606, recurring revenue totaled $225 million or 73% of total revenue. Under either method, our growing base of recurring revenue gives us good insight and predictability into our future performance.

The strong top line performance helped to drive a second quarter gross margin of 90% under both accounting methods and an operating margin of 45.5% under ASC 605 and 47.3% under ASC 606. The Q2 operating margin was above the high end of the guidance ranges that we had previously provided. Margins were positively impacted by revenue results finishing at the upper end of our revenue guidance when factoring in the strengthening of the U.S. dollar beyond the currency ranges provided with our previous guidance, particularly against the euro and the British pound.

The ASC 606 revenue and margins were favorably impacted by the timing of deliverables under a single contract that yielded $12.5 million of revenue in the second quarter. This revenue was originally anticipated to be recorded in Q3 of this year. This is a good example of contracts that can cause the increased volatility that we expect in our ASC 606 results. We also experienced a slightly slower pace of hiring than we had planned for the quarter. These delays were partially attributable to OPTIS integration activities that have been taking place across the teams since the closing of the deal in early May.

We reported second quarter EPS of $1.24 under ASC 605 and $1.35 under ASC 606. With respect to taxes, our effective tax rate in Q2 was 22%, which was at the lower end of the range that we had guided coming into the quarter. Going forward, we have updated our estimates and expect our effective tax rate to be in the range of 19% to 21% for Q3 and 21% to 22% for the full year. This includes an anticipated non-recurring net tax benefit of approximately $5 million or $0.06 that we expect to record in Q3. This net benefit relates to certain subsidiary activities, including entity structuring, that are currently underway.

Our cash flow from operations totaled $111 million for the quarter and $244 million for the first half. We closed the quarter with a total of $696 million in cash and short-term investments, of which 76% is held domestically.

Now let me turn to the topic of guidance. We are initiating guidance for the third quarter and expect non-GAAP revenue under ASC 605 in the range of $302 million to $312 million, and non-GAAP EPS in the range of $1.25 to $1.31. Non-GAAP revenue under ASC 606 is in the range of $265 million to $285 million, and non-GAAP EPS in the range of $0.93 to $1.07.

For the full year, we are increasing our constant currency revenue guidance. But due to the movements in currency rates that I mentioned earlier, we are also revising our outlook to reflect the estimated negative $15 million impact on revenue due to currency in the second half of the year. We are also increasing our EPS outlook for the full year. This increase reflects the strong performance in the second quarter combined with our confidence in continued positive business momentum for the remainder of the year.

This translates into our updated outlook for 2018 of non-GAAP revenue under ASC 605 in a range of $1.223 billion to $1.245 billion or constant currency growth of 10% to 11% at the midpoint, and EPS in the range of $4.97 to $5.09. Non-GAAP revenue under ASC 606 is in the range of $1.210 billion to $1.250 billion, and non-GAAP EPS in the range of $4.87 to $5.14.

With respect to the contribution from the OPTIS business, our outlook remains largely in line with what we had communicated last quarter or a range of $25 million to $26 million of revenue for 2018. We're also updating our ACV outlook for 2018 to factor in the negative impacts from changes in currency rates since we last provided guidance.

Our revised outlook for ACV is a range of $1.252 billion to $1.282 billion. This represents constant currency ACV growth of 9% to 12% over the 2017 baseline or approximately 10% to 11% at the midpoint. We are also maintaining our outlook for operating cash flows other than a slight currency adjustment and narrowing of the range to $435 million to $470 million.

I would like to remind everyone that our outlook for operating cash flow in 2018 includes our current estimated adverse impact of approximately $12 million to $15 million related to the acceleration of income tax payments under ASC 606 that is associated with deferred revenue and backlog credited to retained earnings that will never be recognized as revenue in the company's financial statements.

For modeling purposes, we are expecting third quarter operating margins of 44% to 45% under ASC 605 and 37% to 40% under ASC 606. And for the full year, we expect operating margins of 44% to 45% under ASC 605 and 43% to 45% under ASC 606. Further details around specific currency rates and other key assumptions that have been factored into our outlook for Q3 and 2018 are contained in the prepared remarks document.

In summary, we delivered another solid quarter with strength across our key financial metrics: ACV, top line growth, operating margins, EPS, operating cash flows, and deferred revenue and backlog. The strong second quarter and first half performance give us confidence that our continued focus on execution and investing in the business combined with the ongoing growth in our recurring business, our strong customer relationships and healthy sales pipelines provide a solid foundation to continue to deliver on our 2018 goals, as well as our longer-term 2020 financial targets.

ANSYS (ANSS) Q2 2018 Results - Earnings Call Transcript | Seeking Alpha