ANSYS Reports 12.1% Revenue Growth to $2.54 Billion for Fiscal Year 2024

ANSYS, Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $2.54 billion, a 12.1% increase from $2.27 billion in 2023. The growth was primarily driven by a 20.7% rise in subscription lease license revenue, which amounted to $948.8 million, and a 9.6% increase in maintenance revenue, totaling $1.21 billion. The company's net income also saw a significant increase, rising to $575.7 million from $500.4 million in the previous year, resulting in diluted earnings per share of $6.55, up from $5.73.

Compared to the previous fiscal period, ANSYS experienced notable changes in its operational metrics. The company’s total operating expenses increased to $1.55 billion, up from $1.37 billion in 2023, largely due to higher personnel costs and acquisition-related expenses associated with the ongoing merger agreement with Synopsys, which is expected to close in the first half of 2025. The merger will see ANSYS become a wholly owned subsidiary of Synopsys, with shareholders receiving a combination of cash and stock in the transaction.

In terms of strategic developments, ANSYS has been actively investing in its product portfolio, focusing on enhancing its simulation software capabilities across various industries, including aerospace, automotive, and healthcare. The company has also entered into a definitive agreement to sell its PowerArtist RTL business to Keysight Technologies as part of the merger preparations. This divestiture is not expected to materially impact ANSYS's financial results. The company continues to emphasize its strategy of "Pervasive Insights," aiming to broaden the accessibility and application of its simulation technologies.

Operationally, ANSYS reported a total employee count of 6,500 as of December 31, 2024, an increase from 6,200 in the previous year. The company serves over 2,600 university customers across 91 countries, reflecting its commitment to education and simulation accessibility. The annual contract value (ACV) also grew to $2.56 billion, indicating a strong demand for its products and services. Geographic revenue distribution showed that international sales accounted for 50.8% of total revenue, with the Americas leading at 49.2%.

Looking ahead, ANSYS remains optimistic about its growth trajectory, driven by increasing demand for simulation software amid trends such as electrification, digital transformation, and sustainability. However, the company acknowledges potential risks, including macroeconomic uncertainties and regulatory challenges related to the Synopsys merger. The management cautions that actual results may differ from forward-looking statements due to these risks and uncertainties, emphasizing the importance of strategic execution and market adaptability in achieving its long-term objectives.