Aspen Technology, Inc. ("AspenTech" or the "Company") (NASDAQ:
AZPN), a global leader in industrial software, today announced
financial results for its fourth quarter and fiscal year ended June
30, 2024.
“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 at the end of
fiscal 2024, increasing 9.4% year over year and 3.5% quarter over
quarter. This amount does not reflect the impact of the write-off
related to the suspension of commercial activities in Russia
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 in ACV1 (the “Write-Off”),
effective as of the end of fiscal 2024. Please see Recent
Developments below for additional commentary. ACV1 was $932.9
million as of June 30, 2024, after reflecting the impact of the
Write-Off. ACV1 increased 10.0% year over year in fiscal 2024 when
adjusting to exclude Russia-based ACV1 in both fiscal 2023 and
fiscal 2024.
- Cash flow from operations was $339.9 million in fiscal 2024,
increasing 13.6% year over year. Free cash flow2 was $335.3 million
in fiscal 2024, increasing 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 for fiscal 2025. AspenTech
completed its previously announced $300.0 million share repurchase
authorization (the "Fiscal 2024 Share Repurchase Authorization") in
the fourth quarter of fiscal 2024. Please see Recent Developments
below for additional commentary.
Summary of Fourth Quarter and Fiscal Year 2024 Financial
Results
AspenTech’s total revenue was $342.9 million for the fourth
quarter of fiscal 2024 and included the following:
- 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 in the fourth quarter of
fiscal 2024, compared to $222.8 million in the fourth quarter of
fiscal 2023.
- Maintenance revenue, which represents the portion of
customer agreements related to ongoing support and the right to
future product enhancements, was $89.2 million in the fourth
quarter of fiscal 2024, compared to $82.6 million in the fourth
quarter of fiscal 2023.
- Services and other revenue, which represents the portion
of customer agreements related to professional services and
training services, was $22.7 million in the fourth quarter of
fiscal 2024, compared to $15.2 million in the fourth quarter of
fiscal 2023.
Income from operations was $39.2 million in the fourth quarter
of fiscal 2024, compared to $6.0 million in the fourth quarter of
fiscal 2023. Non-GAAP income from operations was $173.4 million in
the fourth quarter of fiscal 2024, compared to $148.9 million in
the fourth quarter of fiscal 2023. The year-over-year improvement
in income from operations was mainly due to lower operating
expenses and stock-based compensation.
Net income was $44.7 million, or $0.70 per diluted share, in the
fourth quarter of fiscal 2024, compared to $27.3 million, or $0.42
per diluted share, in the fourth quarter of fiscal 2023. AspenTech
has increased amortization of intangible assets following the close
of its transaction with Emerson Electric Co. (”Emerson”) in May of
2022. AspenTech expects its amortization of intangible assets to
remain at higher levels for the next several years as the related
asset balance is amortized over the respective expected useful
lives of the intangible assets.
Non-GAAP net income was $150.7 million, or $2.37 per diluted
share, in the fourth quarter of fiscal 2024, compared to $138.2
million, or $2.13 per diluted share, in the fourth quarter of
fiscal 2023. The year-over-year increase in non-GAAP net income was
mainly due to revenue growth combined with strong operating
leverage.
AspenTech had cash and cash equivalents of $237.0 million as of
June 30, 2024, compared to $241.2 million as of June 30, 2023. The
decrease in cash and cash equivalents during this period was
primarily due to the impact of share repurchase activity under the
Fiscal 2024 Share Repurchase Authorization. Under its revolving
credit facility, AspenTech had no borrowings and $195.1 million
available as of June 30, 2024. Please see Recent Developments below
for updates on the Fiscal 2024 Share Repurchase Authorization and
credit facility.
AspenTech generated $154.9 million in cash flow from operations
and $153.0 million in free cash flow2 in the fourth quarter of
fiscal 2024, compared to $113.6 million in cash flow from
operations and $111.5 million in free cash flow2 in the fourth
quarter of fiscal 2023.
Recent Developments
Russia Business Exit
In June 2024, the United States government announced new
expanded sanctions that will prohibit certain commercial activities
with customers in Russia. These expanded restrictions impact the
sale, service, maintenance, and support (such as bug fixes and
updates) of enterprise management software and design and
manufacturing software in the Russian market. As a result, the
Company recently suspended all commercial activities in Russia.
This includes the discontinuation of the following activities: all
commercial discussions with customers, initiating and/or processing
renewals, providing proposals to customers or selling products or
services to customers.
As a result of the sanctions and the decision to exit Russia,
the Company has written-off certain assets that are related to
operations in Russia and recorded a reduction of $35.5 million in
Russia-based ACV1. ACV1 was $932.9 million as of June 30, 2024,
after including the impact of the Write-Off. The impact of the
additional sanctions was treated as a modification to existing
contracts with customers in Russia in accordance with ASC Topic
606, Revenue from Contracts with Customers. The aggregate impact of
the contract modification resulted in the reversal of $5.5 million
of revenue in the fourth quarter of fiscal 2024. The remaining net
accounts receivable balance associated with customers in Russia as
of June 30, 2024, is not material. The Company also now classifies
cash balances that are both held in Russia and in excess of what is
estimated to be required to wind down operations in Russia in
fiscal 2025 as restricted cash due to current restrictions
impacting the Company’s ability to transfer funds from bank
accounts located in Russia to other countries. As of June 30, 2024,
the Company's restricted cash held in Russia was $11.5 million,
which is included within other non-current assets on the Company's
consolidated balance sheets.
Restructuring Charge
The Company implemented a workforce reduction of approximately
5% in the first quarter of fiscal 2025 as it continues to seek
additional opportunities to streamline expenses and increase
efficiencies. As a result, the Company expects to record
restructuring expenses consisting primarily of severance expenses,
one-time benefits and other contract termination costs during
fiscal 2025. The Company is still assessing the full impact of
these restructuring activities and currently estimates that the
total restructuring expenses for fiscal 2025 for the recent
workforce reductions will be between $7.0 million and $9.0 million.
The Company expects the majority of these expenses to occur in the
first quarter of fiscal 2025.
Share Repurchase Updates
AspenTech repurchased 277,913 shares for $56.9 million under its
Fiscal 2024 Share Repurchase Authorization in the fourth quarter of
fiscal 2024. As of June 30, 2024, the Company had completed its
Fiscal 2024 Share Repurchase Authorization, repurchasing 1,520,993
shares in total in fiscal 2024. AspenTech's Board of Directors has
approved a new share repurchase authorization, pursuant to which an
aggregate amount of up to $100.0 million of its outstanding shares
of common stock may be repurchased by the Company in fiscal
2025.
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 $200.0 million, which includes a
$40.0 million sub-facility for letters of credit, to replace the
Company’s previous revolving credit facility. The proceeds of the
Credit Facility may be used for working capital and general
corporate purposes. The Credit Facility is scheduled to terminate
on June 27, 2029.
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 $932.9 million as of June 30, 2024, which reflects the impact of
the Write-Off.
- 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
Russia and the scope, duration and ultimate impact of the
Israeli-Hamas conflict; as well as economic and currency
conditions, market demand (including adverse changes in the process
or other capital-intensive industries, such as materially reduced
spending budgets due to oil and gas price declines and volatility),
pricing, protection of intellectual property, cybersecurity,
natural disasters, tariffs, sanctions, competitive and
technological factors, and inflation; and others, as set forth in
AspenTech’s most recent Annual Report on Form 10-K and subsequent
reports filed with the U.S. Securities and Exchange Commission (the
“SEC”). The outlook contained herein represents AspenTech’s
expectation for its consolidated results, other than as noted
herein.
© 2024 Aspen Technology, Inc. AspenTech, aspenONE, asset
optimization and the Aspen leaf logo are trademarks of Aspen
Technology, Inc. All rights reserved. All other trademarks not
owned by AspenTech are property of their respective owners.
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)
Three Months Ended June
30,
Year Ended June
30,
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)
June 30,
2024
2023
(Dollars in Thousands, Except
Share Data)
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, $0.0001 par
value—Authorized—600,000,000 shares
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 June
30,
Year Ended June
30,
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 June
30,
Year Ended June
30,
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 June
30,
Year Ended June
30,
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 June
30,
Year Ended June
30,
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 June
30,
Year Ended June
30,
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 June
30,
Year Ended June
30,
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 June
30,
Year Ended June 30,
Nine Months Ended June
30,
2024
2023
2024
2023
U.S. statutory rate
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
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