March 1, 2024

BEDFORD, Mass.–(BUSINESS WIRE)–Aspen Technology, Inc. (AspenTech) (NASDAQ: AZPN), a global leader in industrial software, today announced financial results for its second quarter in fiscal 2024, ended December 31, 2023.

“AspenTech had a solid second quarter with strong demand for our products and solutions,” commented Antonio Pietri, President and Chief Executive Officer of AspenTech. “We continue to see numerous growth opportunities in asset-intensive industries as they navigate the energy transition and focus on efficiencies and sustainability use cases. In particular, with DGM, we are uniquely positioned to capitalize on the unprecedented investment cycle to expand and upgrade the grid globally.”

“We continue to see resilient demand and meaningful pipeline growth across most end markets as we move into the second half of our fiscal year. We remain confident in our outlook for fiscal 2024, and we are reaffirming our ACV growth target of at least 11.5 percent,” concluded Pietri.

Second Quarter Fiscal Year 2024 Recent Business Highlights

  • Annual contract value1 (“ACV”) was $914.1 million at the end of the second quarter of fiscal 2024, increasing 9.6% year over year and 1.8% quarter over quarter. This result reflects the delay of a customer agreement that was scheduled to renew in the second quarter of fiscal 2024 and reduced ACV growth by approximately 0.6 points. AspenTech now expects this customer renewal to close in the third quarter of fiscal 2024, with a corresponding benefit to ACV growth.
  • Cash flow from operations was $29.8 million for the second quarter of fiscal 2024, compared to $49.5 million in the second quarter of fiscal 2023.
  • Free cash flow2 was $29.2 million for the second quarter of fiscal 2024, compared to $47.8 million in the second quarter of fiscal 2023.

Summary of Second Quarter Fiscal Year 2024 Financial Results

AspenTech’s total revenue was $257.2 million in the second 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 Open Systems International, Inc. (OSI) revenue where software, hardware and professional services are recognized as one performance obligation, was $152.5 million in the second quarter of fiscal 2024, compared to $149.8 million in the second 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 $85.1 million in the second quarter of fiscal 2024, compared to $78.6 million in the second quarter of fiscal 2023.
  • Services and other revenue, which represents the portion of customer agreements related to professional services and training services, was $19.6 million in the second quarter of fiscal 2024, compared to $14.4 million in the second quarter of fiscal 2023.

Loss from operations was $49.2 million in the second quarter of fiscal 2024, compared to $59.4 million in the second quarter of fiscal 2023. Non-GAAP income from operations was $88.7 million in the second quarter of fiscal 2024, compared to $86.6 million in the second quarter of fiscal 2023. A reconciliation of GAAP to non-GAAP results is presented in the financial tables included in this press release.

Net loss was $21.5 million, or $0.34 per diluted share, in the second quarter of fiscal 2024, compared to $66.2 million, or $1.02 per diluted share, in the second quarter of fiscal 2023. AspenTech has increased amortization of intangible assets following the close of its transaction with Emerson Electric Co. 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 $87.8 million, or $1.37 per diluted share, in the second quarter of fiscal 2024, compared to $22.8 million, or $0.35 per diluted share, in the second quarter of fiscal 2023. The year-over-year increase in non-GAAP net income was mainly due to the change in approach to computing AspenTech’s tax provision, which initially occurred in the second quarter of fiscal 2023.

AspenTech had cash and cash equivalents of $130.8 million as of December 31, 2023, compared to $241.2 million as of June 30, 2023. The decrease in cash and cash equivalents during this period was due to the impact of share repurchase activity under AspenTech’s $300.0 million share repurchase authorization (the “share repurchase authorization”) in the first half of fiscal 2024. Please see below for an update on the share repurchase authorization. Under its revolving credit facility, AspenTech had no borrowings and $197.4 million available as of December 31, 2023.

AspenTech generated $29.8 million in cash flow from operations and $29.2 million in free cash flow2 in the second quarter of fiscal 2024, compared to $49.5 million in cash flow from operations and $47.8 million in free cash flow2 in the second quarter of fiscal 2023. The difference in free cash flow2 results between periods was mainly due to the variability of contract cycle renewals and billings between quarters as well as higher expenses and cash tax in the second quarter of fiscal 2024.

Recent Developments

Appointment of Interim Chief Financial Officer

Effective January 1, 2024, Christopher Stagno was appointed to the position of Senior Vice President, Interim Chief Financial Officer of AspenTech, while AspenTech searches for a new permanent Chief Financial Officer following Chantelle Breithaupt’s previously announced resignation from the role, effective December 31, 2023. Mr. Stagno is an experienced financial executive with deep knowledge of AspenTech’s business and over 25 years of leadership in finance, including at various software companies.

Share Repurchase Authorization Update

AspenTech repurchased 375,041 shares for $72.1 million under its $300.0 million share repurchase authorization, announced on August 1, 2023, in the second quarter of fiscal 2024. As of December 31, 2023, a total of 954,839 shares had been repurchased under the share repurchase authorization for $186.3 million, with the total remaining value being $113.7 million.

Fiscal Year 2024 Business Outlook

Based on information as of today, February 6, 2024, AspenTech is reaffirming its fiscal 2024 guidance and increasing its Non-GAAP net income per share guidance by $0.02 to reflect the impact of share repurchase activity in the second quarter of fiscal 2024. AspenTech’s fiscal 2024 guidance is as follows.

  • ACV1 growth of at least 11.5% year-over-year
  • GAAP operating cash flow of at least $378 million
  • Free cash flow2 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 $6.59

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, February 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, 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/.

AspenTech has provided an earnings presentation for its second 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

  1. 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.
  2. 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 our 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, our guidance for fiscal 2024, our expectations regarding cash collections, closing of customer renewals and completion of our share repurchase authorization. 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 Russia-Ukraine war and the Israeli-Hamas conflict; as well as economic and currency conditions, market demand (including related to the pandemic and 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

(Dollars and Shares in Thousands, Except per share data)

Revenue:

 

 

 

 

 

 

 

License and solutions

$

152,463

 

 

$

149,843

 

 

$

301,111

 

 

$

310,068

 

Maintenance

 

85,056

 

 

 

78,628

 

 

 

170,024

 

 

 

156,994

 

Services and other

 

19,644

 

 

 

14,367

 

 

 

35,336

 

 

 

26,595

 

Total revenue

 

257,163

 

 

 

242,838

 

 

 

506,471

 

 

 

493,657

 

Cost of revenue:

 

 

 

 

 

 

 

License and solutions

 

67,326

 

 

 

70,833

 

 

 

138,903

 

 

 

140,346

 

Maintenance

 

10,647

 

 

 

9,567

 

 

 

20,848

 

 

 

18,784

 

Services and other

 

16,960

 

 

 

12,698

 

 

 

33,242

 

 

 

25,098

 

Total cost of revenue

 

94,933

 

 

 

93,098

 

 

 

192,993

 

 

 

184,228

 

Gross profit

 

162,230

 

 

 

149,740

 

 

 

313,478

 

 

 

309,429

 

Operating expenses:

 

 

 

 

 

 

 

Selling and marketing

 

122,240

 

 

 

117,951

 

 

 

244,618

 

 

 

236,225

 

Research and development

 

53,145

 

 

 

49,954

 

 

 

106,821

 

 

 

99,695

 

General and administrative

 

36,088

 

 

 

41,230

 

 

 

71,494

 

 

 

84,086

 

Total operating expenses

 

211,473

 

 

 

209,135

 

 

 

422,933

 

 

 

420,006

 

Loss from operations

 

(49,243

)

 

 

(59,395

)

 

 

(109,455

)

 

 

(110,577

)

Other (expense) income, net

 

(199

)

 

 

38,643

 

 

 

(6,029

)

 

 

(19,989

)

Interest income, net

 

12,283

 

 

 

4,120

 

 

 

26,333

 

 

 

9,143

 

Loss before benefit for income taxes

 

(37,159

)

 

 

(16,632

)

 

 

(89,151

)

 

 

(121,423

)

(Benefit) provision for income taxes

 

(15,659

)

 

 

49,565

 

 

 

(33,126

)

 

 

(43,982

)

Net loss

$

(21,500

)

 

$

(66,197

)

 

$

(56,025

)

 

$

(77,441

)

Net loss per common share:

 

 

 

 

 

 

 

Basic

$

(0.34

)

 

$

(1.02

)

 

$

(0.88

)

 

$

(1.20

)

Diluted

$

(0.34

)

 

$

(1.02

)

 

$

(0.88

)

 

$

(1.20

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

63,699

 

 

 

64,621

 

 

 

64,009

 

 

 

64,538

 

Diluted

 

63,699

 

 

 

64,621

 

 

 

64,009

 

 

 

64,538

 

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

December 31, 2023

 

June 30, 2023

 

 

 

 

 

(Dollars in Thousands, Except Share Data)

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

130,753

 

 

$

241,209

 

Accounts receivable, net

 

129,837

 

 

 

122,789

 

Current contract assets, net

 

357,847

 

 

 

367,539

 

Prepaid expenses and other current assets

 

26,314

 

 

 

27,728

 

Receivables from related parties

 

61,479

 

 

 

62,375

 

Prepaid income taxes

 

3,021

 

 

 

11,424

 

Total current assets

 

709,251

 

 

 

833,064

 

Property, equipment and leasehold improvements, net

 

16,756

 

 

 

18,670

 

Goodwill

 

8,329,997

 

 

 

8,330,811

 

Intangible assets, net

 

4,428,636

 

 

 

4,659,657

 

Non-current contract assets, net

 

606,318

 

 

 

536,104

 

Contract costs

 

18,971

 

 

 

15,992

 

Operating lease right-of-use assets

 

97,035

 

 

 

67,642

 

Deferred income tax assets

 

11,392

 

 

 

10,638

 

Other non-current assets

 

9,488

 

 

 

13,474

 

Total assets

$

14,227,844

 

 

$

14,486,052

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

16,517

 

 

$

20,299

 

Accrued expenses and other current liabilities

 

81,059

 

 

 

99,526

 

Due to related parties

 

96,087

 

 

 

22,019

 

Current operating lease liabilities

 

13,810

 

 

 

12,928

 

Income taxes payable

 

28,988

 

 

 

46,205

 

Current contract liabilities

 

135,522

 

 

 

151,450

 

Total current liabilities

 

371,983

 

 

 

352,427

 

Non-current contract liabilities

 

35,036

 

 

 

30,103

 

Deferred income tax liabilities

 

867,927

 

 

 

957,911

 

Non-current operating lease liabilities

 

83,812

 

 

 

55,442

 

Other non-current liabilities

 

20,013

 

 

 

19,240

 

Stockholders’ equity:

 

 

 

Common stock, $0.0001 par value

 

Authorized—600,000,000 shares

Issued— 65,170,178 and 64,952,868 shares

Outstanding— 63,620,668 and 64,465,242 shares

 

6

 

 

6

 

Additional paid-in capital

 

13,241,067

 

 

 

13,194,028

 

Accumulated deficit

 

(97,416

)

 

 

(41,391

)

Accumulated other comprehensive (loss) income

 

(3,895

)

 

 

2,436

 

Treasury stock, at cost — 1,549,510 and 487,626 shares of common stock

 

(290,689

)

 

 

(84,150

)

Total stockholders’ equity

 

12,849,073

 

 

 

13,070,929

 

Total liabilities and stockholders’ equity

$

14,227,844

 

 

$

14,486,052

 

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

(Dollars in Thousands)

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(21,500

)

 

$

(66,197

)

 

$

(56,025

)

 

$

(77,441

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

123,167

 

 

 

122,556

 

 

 

246,386

 

 

 

245,102

 

Reduction in the carrying amount of right-of-use assets

 

3,370

 

 

 

3,271

 

 

 

6,932

 

 

 

6,562

 

Net foreign currency losses (gains)

 

274

 

 

 

(3,588

)

 

 

6,168

 

 

 

4,744

 

Stock-based compensation

 

16,211

 

 

 

23,441

 

 

 

32,910

 

 

 

41,177

 

Deferred income taxes

 

(43,130

)

 

 

(35,946

)

 

 

(94,210

)

 

 

(106,384

)

Provision for uncollectible receivables

 

1,597

 

 

 

(381

)

 

 

3,385

 

 

 

3,228

 

Other non-cash operating activities

 

(648

)

 

 

(3,820

)

 

 

(629

)

 

 

(593

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(40,126

)

 

 

(41,700

)

 

 

(10,709

)

 

 

(33,691

)

Contract assets

 

(33,864

)

 

 

(9,507

)

 

 

(57,926

)

 

 

(77,864

)

Contract costs

 

(1,896

)

 

 

(96

)

 

 

(3,059

)

 

 

(3,547

)

Lease liabilities

 

(3,338

)

 

 

(4,949

)

 

 

(7,108

)

 

 

(6,609

)

Prepaid expenses, prepaid income taxes, and other assets

 

(584

)

 

 

81,184

 

 

 

(17,606

)

 

 

34,177

 

Liability from foreign currency forward contract

 

 

 

 

(34,940

)

 

 

 

 

 

15,319

 

Accounts payable, accrued expenses, income taxes payable and other liabilities

 

4,523

 

 

 

11,983

 

 

 

9,258

 

 

 

(1,490

)

Contract liabilities

 

25,771

 

 

 

8,223

 

 

 

(10,959

)

 

 

11,922

 

Net cash provided by operating activities

 

29,827

 

 

 

49,534

 

 

 

46,808

 

 

 

54,612

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property, equipment and leasehold improvements

 

(500

)

 

 

(1,523

)

 

 

(1,437

)

 

 

(2,844

)

Payments for business acquisitions, net of cash acquired

 

 

 

 

 

 

 

(8,273

)

 

 

(74,947

)

Payments for equity method investments

 

(423

)

 

 

(465

)

 

 

(521

)

 

 

(465

)

Payments for capitalized computer software development costs

 

(131

)

 

 

(230

)

 

 

(131

)

 

 

(329

)

Payments for asset acquisitions

 

 

 

 

 

 

(12,500

)

 

 

 

Net cash used in investing activities

 

(1,054

)

 

 

(2,218

)

 

 

(22,862

)

 

 

(78,585

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of shares of common stock

 

4,635

 

 

 

17,135

 

 

 

7,920

 

 

 

25,605

 

Repurchases of common stock

 

(72,105

)

 

 

 

 

 

(186,329

)

 

 

 

Payment of tax withholding obligations related to restricted stock

 

(11,905

)

 

 

(8,276

)

 

 

(13,843

)

 

 

(11,698

)

Deferred business acquisition payments

 

 

 

 

 

 

 

 

 

 

(1,363

)

Repayments of amounts borrowed under term loan

 

 

 

 

(6,000

)

 

 

 

 

 

(12,000

)

Net transfers from Parent Company

 

64,865

 

 

 

17,426

 

 

 

68,755

 

 

 

29,872

 

Payments of debt issuance costs

 

 

 

 

 

 

 

 

 

 

(2,375

)

Net cash (used in) provided by financing activities

 

(14,510

)

 

 

20,285

 

 

 

(123,497

)

 

 

28,041

 

Effect of exchange rate changes on cash and cash equivalents

 

(4,050

)

 

 

(3,970

)

 

 

(10,905

)

 

 

(7,705

)

Increase (decrease) in cash and cash equivalents

 

10,213

 

 

 

63,631

 

 

 

(110,456

)

 

 

(3,637

)

Cash and cash equivalents, beginning of period

 

120,540

 

 

 

382,457

 

 

 

241,209

 

 

 

449,725

 

Cash and cash equivalents, end of period

$

130,753

 

 

$

446,088

 

 

$

130,753

 

 

$

446,088

 

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars and Shares in Thousands, Except per Share Data)

Total expenses

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total expenses (a)

$

306,406

 

$

302,233

 

$

615,926

 

$

604,234

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

(16,211

)

 

(23,441

)

 

(32,910

)

 

(41,177

)

Amortization of intangibles (c)

 

(121,565

)

 

(121,161

)

 

(243,152

)

 

(242,321

)

Acquisition and integration planning related fees

 

(125

)

 

(1,411

)

 

130

 

 

(6,269

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP total expenses

$

168,505

 

$

156,220

 

$

339,994

 

$

314,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

$

(49,243

)

$

(59,395

)

$

(109,455

)

$

(110,577

)

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

16,211

 

 

23,441

 

 

32,910

 

 

41,177

 

Amortization of intangibles (c)

 

121,565

 

 

121,161

 

 

243,152

 

 

242,321

 

Acquisition and integration planning related fees

 

125

 

 

1,411

 

 

(130

)

 

6,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income from operations

$

88,658

 

$

86,618

 

$

166,477

 

$

179,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

$

(21,500

)

$

(66,197

)

$

(56,025

)

$

(77,441

)

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

16,211

 

 

23,441

 

 

32,910

 

 

41,177

 

Amortization of intangibles (c)

 

121,565

 

 

121,161

 

 

243,152

 

 

242,321

 

Acquisition and integration planning related fees

 

125

 

 

1,411

 

 

(130

)

 

6,269

 

Unrealized (gain) loss on foreign currency forward contract

 

 

 

(34,940

)

 

 

 

15,319

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect on Non-GAAP items (d)

 

(28,636

)

 

(22,075

)

 

(57,257

)

 

(62,591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

$

87,765

 

$

22,801

 

$

162,650

 

$

165,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (loss) income per share

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted loss per share

$

(0.34

)

$

(1.02

)

$

(0.88

)

$

(1.20

)

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

0.25

 

 

0.36

 

 

0.51

 

 

0.64

 

Amortization of intangibles (c)

 

1.90

 

 

1.87

 

 

3.78

 

 

3.75

 

Acquisition and integration planning related fees

 

 

 

0.02

 

 

 

 

0.10

 

Unrealized loss on foreign currency forward contract

 

 

 

(0.54

)

 

 

 

0.24

 

Impact of diluted shares

 

0.01

 

 

 

 

0.01

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect on Non-GAAP items (d)

 

(0.45

)

 

(0.34

)

 

(0.89

)

 

(0.97

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted income per share

$

1.37

 

$

0.35

 

$

2.53

 

$

2.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing Non-GAAP diluted income per share

 

64,008

 

 

64,621

 

 

64,343

 

 

64,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Free Cash Flow (2)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities (GAAP)

$

29,827

 

$

49,534

 

$

46,808

 

$

54,612

 

Purchases of property, equipment and leasehold improvements

 

(500

)

 

(1,523

)

 

(1,437

)

 

(2,844

)

Payments for capitalized computer software development costs

 

(131

)

 

(230

)

 

(131

)

 

(329

)

Free cash flow (2) (non-GAAP)

$

29,196

 

$

47,781

 

$

45,240

 

$

51,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) GAAP total expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Total costs of revenue

$

94,933

 

$

93,098

 

$

192,993

 

$

184,228

 

Total operating expenses

 

211,473

 

 

209,135

 

 

422,933

 

 

420,006

 

GAAP total expenses

$

306,406

 

$

302,233

 

$

615,926

 

$

604,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b) Stock-based compensation expense was as follows:

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cost of license and solutions

$

602

 

$

1,200

 

$

1,282

 

$

1,919

 

Cost of maintenance

 

729

 

 

474

 

 

1,217

 

 

1,035

 

Cost of services and other

 

360

 

 

428

 

 

858

 

 

858

 

Selling and marketing

 

2,707

 

 

3,826

 

 

5,649

 

 

7,191

 

Research and development

 

3,719

 

 

4,240

 

 

8,272

 

 

7,858

 

General and administrative

 

8,094

 

 

13,273

 

 

15,632

 

 

22,316

 

Total stock-based compensation

$

16,211

 

$

23,441

 

$

32,910

 

$

41,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c) Amortization of intangible assets was as follows:

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cost of license and solutions

$

48,035

 

$

47,671

 

$

96,070

 

$

95,342

 

Selling and marketing

 

73,530

 

 

73,490

 

 

147,082

 

 

146,979

 

Total amortization of intangible assets

$

121,565

 

$

121,161

 

$

243,152

 

$

242,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(d) The income tax effect on non-GAAP items for the three months ended September 30, 2023 and 2022, respectively, is calculated utilizing the Company’s combined US federal and state statutory tax rate as following:

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

U.S. Statutory Rate

 

21.79

%

 

21.79

%

 

21.79

%

 

21.79

%

Contacts

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

ir@aspentech.com

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The post Aspen Technology Announces Financial Results for the Second Quarter of Fiscal 2024 appeared first on Daily Host News.

Aspen Technology Announces Financial Results for the Second Quarter of Fiscal 2024 first appeared on Web and IT News.

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