More earnings-apalooza: ANSYS, Trimble and FARO

May 1, 2019 | Hot Topics

Sorry – no unifying theme for this afternoon’s earnings announcements from ANSYS, Trimble and FARO. ANSYS is the CAE powerhouse; Trimble makes design, measurement and other software used in the construction, mining, trucking and similar industries. Both provide critical solutions to the greater PLMish universe and both did really, really well in Q1, continuing the earnings streak that started last week. FARO, maker of measurement systems and software used in manufacturing and AEC, did less well as it was hit by currency effects and slowing in demand from manufacturing customers.

First, ANSYS. I took a quick look at what the markets are expecting, and found that the consensus revenue estimate (in other words, the average of all who prognosticate) is $306 million, up 7%. Forget the specific number; more interesting is that ANSYS beat the consensus revenue estimate 88% of the time. Hmm …

Anyhow, ANSYS reported GAAP revenue of $317 million, up 12%. Software license revenue was $123 million, up 12%, while maintenance and service, combined, totaled $194 million, also up 12%. If you’re keeping track, ANSYS just beat another revenue consensus.

A couple of other factoids: ANSYS’ lease license revenue grew 45% in constant currencies (cc), because of an increase in multi-year contracts; maintenance revenue grew 15% cc; and services revenue grew 46% as customers work to adopt and integrate more of the ANSYS suite. Direct sales continued strong, accounting for 71% of Q1 revenue.

Ajei Gopal, ANSYS CEO, said the company is “off to an excellent start to 2019, delivering double-digit growth in both software license and total revenue. The ANSYS strategy is working. Driven by our vision of Pervasive Simulation, the strength of our portfolio and our excellent relationships with customers, we continue to see tremendous demand for our products and solutions.”

ANSYS will hold its earnings call tomorrow morning. More after that.

Trimble‘s earnings call is in just a few minutes, so this preview will be brief. The company reported first quarter GAAP revenue of $802 million, up 8% but missing the consensus revenue figure by $7 million. Product revenue was $488 million, down 2% as more buyers transitioned to subscriptions; subs revenue was $154 million, up 33%.

All of the following are non-GAAP: The Buildings and Infrastructure business reported revenue of $295 million, up a whopping 30%, but Geospatial revenue was down 8% to $161 million. Resources and Utilities revenue was $160 million, flat, while Transportation revenue was $189 million, up 3%.

Trimble CEO Steve Berglund, said that the first quarter results “met expectations despite trade uncertainties and lower growth in China. Our recurring revenue demonstrated significant growth in our end-user markets and our ongoing transition to higher subscription content remains on course.”

More on what happened in China and why the built assets business did so well after the company gives more details on its call.

And, lastly, FARO also reported a less awesome first quarter, with revenue up 1% to $94 million. The company says foreign exchange rates lowered reported revenue by about $4.0 million/4%. Growth in service revenue and product sales to the construction/BIM vertical offset declines in product sales to the manufacturing segment.