Aspen Technology Inc (AZPN, Financial), a global leader in industrial software, announced its financial results for the first quarter of fiscal 2024 on November 6, 2023. The company reported solid results with a 10.9% year-over-year increase in Annual Contract Value (ACV), reaching $897.6 million. This growth was driven by strong demand across most markets.
Financial Highlights
Aspen Technology's total revenue for the first quarter of fiscal 2024 was $249.3 million. The company's license and solutions revenue was $148.6 million, compared to $160.2 million in the first quarter of fiscal 2023. Maintenance revenue increased to $85.0 million from $78.4 million in the same period last year. Services and other revenue also saw an increase, reaching $15.7 million compared to $12.2 million in the first quarter of fiscal 2023.
However, the company reported a loss from operations of $60.2 million in the first quarter of fiscal 2024, compared to a loss from operations of $51.2 million in the first quarter of fiscal 2023. The net loss for the quarter was $34.5 million, or $0.54 per diluted share, compared to a net loss of $11.2 million, or $0.17 per diluted share, in the first quarter of fiscal 2023.
Improved Cash Flow
Despite the net loss, Aspen Technology reported a significant improvement in its cash flow. The company's operating cash flow for the first quarter of fiscal 2024 was $17.0 million, compared to $5.1 million in the first quarter of fiscal 2023. Free cash flow also saw a substantial increase, reaching $16.0 million for the first quarter of fiscal 2024, compared to $3.7 million in the first quarter of fiscal 2023.
Looking Ahead
Aspen Technology remains confident in its business outlook and reiterated its guidance for fiscal 2024. The company expects ACV growth of at least 11.5% year-over-year, GAAP operating cash flow of at least $378 million, and free cash flow of at least $360 million. The company also expects total bookings of at least $1.04 billion and total revenue of at least $1.12 billion.
Despite the challenges, Aspen Technology is focused on execution and expansion in fiscal 2024. The company aims to help its customers run their assets safer, greener, longer, and faster through its expanded portfolio and greater market reach.
Explore the complete 8-K earnings release (here) from Aspen Technology Inc for further details.