Engineering simulation software provider Ansys (NASDAQ:ANSS) fell short of analysts' expectations in Q3 FY2023, with revenue down 2.9% year on year to $458.8 million. Next quarter's outlook also missed expectations with revenue guided to $794.2 million at the midpoint, or 3.56% below analysts' estimates. Turning to EPS, ANSYS made a GAAP profit of $0.64 per share, down from its profit of $1.10 per share in the same quarter last year.
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ANSYS (ANSS) Q3 FY2023 Highlights:
- Revenue: $458.8 million vs analyst estimates of $466.7 million (1.7% miss)
- EPS (non-GAAP): $1.41 vs analyst estimates of $1.27 (11.2% beat)
- Revenue Guidance for Q4 2023 is $794.2 million at the midpoint, below analyst estimates of $823.6 million
- Gross Margin (GAAP): 85.8%, down from 90.5% in the same quarter last year
Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.
Design SoftwareThe demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
Sales GrowthAs you can see below, ANSYS's revenue growth has been unimpressive over the last two years, growing from $441.2 million in Q3 FY2021 to $458.8 million this quarter.
This quarter, ANSYS's revenue was down 2.9% year on year, which might disappointment some shareholders.
Next quarter's guidance suggests that ANSYS is expecting revenue to grow 14.4% year on year to $794.2 million, improving on the 5.86% year-on-year increase it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 13.4% over the next 12 months before the earnings results announcement.
Key Takeaways from ANSYS's Q3 Results With a market capitalization of $24.2 billion and more than $639.5 million in cash on hand, ANSYS can continue prioritizing growth.
Ansys' revenue missed expectations and its revenue guidance for next quarter also missed Wall Street's estimates. Overall, this was a difficult quarter for ANSYS. The company is down 10.2% on the results and currently trades at $249.98 per share.
The author has no position in any of the stocks mentioned in this report.
