ANSYS Inc
NASDAQ:ANSS
ANSYS Inc
In the bustling realm of engineering and simulation, ANSYS Inc. stands as an invisible yet pivotal force driving the seamless design and innovation of countless everyday products. Founded in 1970 and headquartered in Canonsburg, Pennsylvania, ANSYS has carved out a niche on the frontier where physics-based simulation software meets complex problem-solving. The company's software is employed across diverse industries—from aerospace and automotive to electronics and energy—enabling engineers to visualize and test how products will perform under various conditions. Through its comprehensive suite of solutions, ANSYS offers an unprecedented ability to conduct simulations covering structural, thermal, fluid dynamics, and electromagnetic analysis, thus reducing the need for costly and time-consuming physical prototypes.
The financial engine of ANSYS is fueled by a robust subscription model that provides consistent and predictable revenue streams. Companies around the globe subscribe to ANSYS's software for design simulation, tapping into its powerful features to enhance product efficiency and reliability. By licensing these sophisticated tools, ANSYS not only profits from the cutting-edge software it provides but also offers invaluable technical support and training, further embedding itself into the workflows of its clients. As industries grow increasingly reliant on technology to create competitive advantages, ANSYS finds itself well-positioned to surf the wave of digital transformation, fostering innovation while solidifying its status as a cornerstone in the simulation software sector.
In the bustling realm of engineering and simulation, ANSYS Inc. stands as an invisible yet pivotal force driving the seamless design and innovation of countless everyday products. Founded in 1970 and headquartered in Canonsburg, Pennsylvania, ANSYS has carved out a niche on the frontier where physics-based simulation software meets complex problem-solving. The company's software is employed across diverse industries—from aerospace and automotive to electronics and energy—enabling engineers to visualize and test how products will perform under various conditions. Through its comprehensive suite of solutions, ANSYS offers an unprecedented ability to conduct simulations covering structural, thermal, fluid dynamics, and electromagnetic analysis, thus reducing the need for costly and time-consuming physical prototypes.
The financial engine of ANSYS is fueled by a robust subscription model that provides consistent and predictable revenue streams. Companies around the globe subscribe to ANSYS's software for design simulation, tapping into its powerful features to enhance product efficiency and reliability. By licensing these sophisticated tools, ANSYS not only profits from the cutting-edge software it provides but also offers invaluable technical support and training, further embedding itself into the workflows of its clients. As industries grow increasingly reliant on technology to create competitive advantages, ANSYS finds itself well-positioned to surf the wave of digital transformation, fostering innovation while solidifying its status as a cornerstone in the simulation software sector.
China Export Impact: Unexpected new US export restrictions and additional approval processes for sales to certain Chinese entities led to transaction delays and a $20 million Q3 headwind, causing ANSYS to miss ACV and revenue guidance.
ACV Growth: Despite the China disruption, ANSYS achieved double-digit ACV growth in Q3 (up 12% YoY), showing strong demand and resilience.
Guidance Raised: Full-year ACV and revenue guidance were operationally raised, though net increases were offset by China headwinds and currency impacts.
China Exposure: China represents about 5% of ACV. The company expects a muted growth contribution from China in both 2023 and 2024, with $25 million impact in 2023 and $10–30 million in 2024.
Strong Margins: Q3 gross margin was 91% and operating margin 34.1%, both above guidance due to lower expenses and investment timing.
Product & Market Strength: Automotive, aerospace & defense, and high-tech sectors drove results, with broad-based strength outside China.
AI Investments: New AI-enhanced products (AI Plus, semi-AI, ANSYS GPT) were announced, with pricing models still to be finalized.
