AspenTech is cautious about F2022, citing end-market uncertainty
We still have to hear from Autodesk, but there’s been a lot of AECish earnings news over the last few weeks. This post starts a modest series as we try to catch up on those results.
AspenTech reported results for its fiscal fourth quarter, 2021 last week. Total revenue of $198 million in DQ4, down 2% from a year ago. License revenue was $145 million, down 3%; maintenance revenue was $46 million, basically flat when compared to a year earlier, and services and other revenue was $7 million, up 9%.
For the year, total revenue was up 19% to $709 million, license revenue was up 28%, maintenance was up 4% and services and other revenue was down 18%.
Looking ahead, CEO Antonio Pietri said that he is “optimistic about the long-term opportunity for AspenTech. The need for our customers to operate their assets safely, sustainably, reliably and profitably has never been greater … We are confident in our ability to return to double-digit annual spend growth over time as economic conditions and industry budgets normalize.” The company sees fiscal 2022 total revenue of $702 million to $737 million, which is up just $10 million from final 2021 at the midpoint.
Why the slowdown in FQ4 from earlier in the year? And why the modest guidance for fiscal 2022? One word: Covid. And the uncertainty it creates among AspenTech’s customers when it comes to spending precious cash. AspenTech expects its visibility to improve when new budgets are set in the calendar fourth quarter. By then, AspenTech hopes, its customers will have a clearer view of reopening, consumer spending, and the timing of an eventual recovery.
Lots more detail here on AspenTech’s investor website.
Next up, Bentley. Yup. Alphabetical order.