ANSYS Inc

Analysis

Business Description

ANSYS Inc (Ansys) develops and markets simulation engineering software and services.

The company generates revenue from two sources: Software Licenses; and Maintenance and Service.

Geographically, the company has a business presence across North America, Europe, the Middle East and Africa and Asia-Pacific.

R&D Overview

R&D arm of Ansys focuses on the development of new technologies to enhance the productivity and provide better engineering simulation solution to customers, which enables them to integrate into enterprise-wide product lifecycle management (PLM) systems. As of December 2020, the company employed 1,800 people in R&D activities. In FY2020, the company incurred expenses of US$355.4 million on R&D, which as a percentage of revenue, stood at 21.1%.

Business Segments
Overview

Comprises of revenue generated from Maintenance and Services provided across the globe.

Performance

Reported revenue of US$900.5 million for FY2020, which grew 10.3% YoY, and recorded a CAGR of 12.1% during 2018-20. The segment accounted for 53.6% of the company's revenue in FY2020.

In FY2020, Maintenance category accounted for 93.3% of the segment’s revenue, followed by Services (6.7%).

Growth in revenue was due to 10.5% increase in maintenance revenue owing to the maintenance contract sold with the new perpetual licenses. Service revenue also increased 7.5% as a result of increase in focus on service offering, which provides on-site mentorship on simulation best practices, training and expanding simulation adoption.

Inventore veritatis
Overview

Comprises of revenue generated from Lease licenses and Perpetual licenses.

Performance

Reported revenue of US$780.8 million for FY2020, which grew 11.6% YoY, and recorded a CAGR of 16.4% during 2018-20. The segment accounted for 46.4% of the company's revenue in FY2020.

In FY2020, Lease Licenses category accounted for 64% of the segment’s revenue, followed by Perpetual Licenses (36%).

Growth in revenue was due to 23.2% in lease revenue as a result of an increase in multiyear lease contracts.

Geographical Segments
Performance

Reported revenue of US$71.2 million for FY2020, which grew 3.9% YoY, and recorded a CAGR of 2.6% during 2018-20. The segment accounted for 4.2% of the company's revenue in FY2020.

Inventore veritatis
Performance

Reported revenue of US$160.8 million for FY2020, which grew 1.3% YoY, and recorded a CAGR of 7% during 2018-20. The segment accounted for 9.6% of the company's revenue in FY2020.

Performance

Reported revenue of US$183.1 million for FY2020, which grew 13% YoY, and recorded a CAGR of 12% during 2018-20. The segment accounted for 10.9% of the company's revenue in FY2020.

Performance

Reported revenue of US$236.7 million for FY2020, which grew 12.1% YoY, and recorded a CAGR of 10.7% during 2018-20. Other EMEA accounted for 14.1% of the company's revenue in FY2020.

Performance

Reported revenue of US$177.8 million for FY2020, which decreased 5% YoY, and recorded a CAGR of 3.2% during 2018-20. Other international accounted for 10.6% of the company's revenue in FY2020.

Performance

Reported revenue of US$74.9 million for FY2020, which decreased 16.9% YoY, and recorded a CAGR of 1.5% during 2018-20. The segment accounted for 4.5% of the company's revenue in FY2020.

Performance

Reported revenue of US$776.7 million for FY2020, which grew 21.8% YoY, and recorded a CAGR of 23.9% during 2018-20. The segment accounted for 46.2% of the company's revenue in FY2020.