0001897982false00018979822024-02-062024-02-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

______________________

 FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  February 06, 2024
 
ASPEN TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
 
Delaware 001-41400 87-3100817
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
20 Crosby Drive,Bedford,MA 01730
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: (781) 221-6400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common stock, $0.0001 par value per shareAZPNNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 




 

Item 2.02.Results of Operations and Financial Condition.

On February 6, 2024, we issued a press release announcing financial results for the second quarter of fiscal year 2024, ended December 31, 2023. The full text of the press release issued in connection with this announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as expressly set forth by specific reference in such a filing.
Item 9.01Financial Statements and Exhibits.

(d)                                 Exhibits.
 


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 ASPEN TECHNOLOGY, INC.
  
   
 Date: February 6, 2024
By:/s/ Christopher Stagno
  Christopher Stagno
  Senior Vice President, Interim Chief Financial Officer
(Principal Financial Officer)





Exhibit 99.1
aspentechnologylogoa61.jpg

Contacts:     
Media Contact Investor Contact
Len Dieterle Brian Denyeau
Aspen Technology ICR for Aspen Technology
+1 781-221-4291 +1 646-277-1251
len.dieterle@aspentech.com ir@aspentech.com

Aspen Technology Announces Financial Results for the
Second Quarter of Fiscal 2024

Bedford, Mass. – February 6, 2024 - Aspen Technology, Inc. (AspenTech) (NASDAQ: AZPN), a global leader in industrial software, today announced financial results for its second quarter in fiscal 2024, ended December 31, 2023.
“AspenTech had a solid second quarter with strong demand for our products and solutions,” commented Antonio Pietri, President and Chief Executive Officer of AspenTech. “We continue to see numerous growth opportunities in asset-intensive industries as they navigate the energy transition and focus on efficiencies and sustainability use cases. In particular, with DGM, we are uniquely positioned to capitalize on the unprecedented investment cycle to expand and upgrade the grid globally.”

“We continue to see resilient demand and meaningful pipeline growth across most end markets as we move into the second half of our fiscal year. We remain confident in our outlook for fiscal 2024, and we are reaffirming our ACV growth target of at least 11.5 percent,” concluded Pietri.
Second Quarter Fiscal Year 2024 Recent Business Highlights    
•Annual contract value1 (“ACV”) was $914.1 million at the end of the second quarter of fiscal 2024, increasing 9.6% year over year and 1.8% quarter over quarter. This result reflects the delay of a customer agreement that was scheduled to renew in the second quarter of fiscal 2024 and reduced ACV growth by approximately 0.6 points. AspenTech now expects this customer renewal to close in the third quarter of fiscal 2024, with a corresponding benefit to ACV growth.
•Cash flow from operations was $29.8 million for the second quarter of fiscal 2024, compared to $49.5 million in the second quarter of fiscal 2023.
•Free cash flow2 was $29.2 million for the second quarter of fiscal 2024, compared to $47.8 million in the second quarter of fiscal 2023.
Summary of Second Quarter Fiscal Year 2024 Financial Results
AspenTech’s total revenue was $257.2 million in the second quarter of fiscal 2024 and included the following:
•License and solutions revenue, which represents the portion of a term license agreement allocated to the initial license and Open Systems International, Inc. (OSI) revenue where software, hardware and professional services are recognized as one performance obligation, was $152.5 million in the second quarter of fiscal 2024, compared to $149.8 million in the second quarter of fiscal 2023.
•Maintenance revenue, which represents the portion of customer agreements related to ongoing support and the right to future product enhancements, was $85.1 million in the second quarter of fiscal 2024, compared to $78.6 million in the second quarter of fiscal 2023.
•Services and other revenue, which represents the portion of customer agreements related to professional services and training services, was $19.6 million in the second quarter of fiscal 2024, compared to $14.4 million in the second quarter of fiscal 2023.


Loss from operations was $49.2 million in the second quarter of fiscal 2024, compared to $59.4 million in the second quarter of fiscal 2023. Non-GAAP income from operations was $88.7 million in the second quarter of fiscal 2024, compared to $86.6 million in the second quarter of fiscal 2023. A reconciliation of GAAP to non-GAAP results is presented in the financial tables included in this press release.
Net loss was $21.5 million, or $0.34 per diluted share, in the second quarter of fiscal 2024, compared to $66.2 million, or $1.02 per diluted share, in the second quarter of fiscal 2023. AspenTech has increased amortization of intangible assets following the close of its transaction with Emerson Electric Co. AspenTech expects its amortization of intangible assets to remain at higher levels for the next several years as the related asset balance is amortized over the respective expected useful lives of the intangible assets.
Non-GAAP net income was $87.8 million, or $1.37 per diluted share, in the second quarter of fiscal 2024, compared to $22.8 million, or $0.35 per diluted share, in the second quarter of fiscal 2023. The year-over-year increase in non-GAAP net income was mainly due to the change in approach to computing AspenTech’s tax provision, which initially occurred in the second quarter of fiscal 2023.
AspenTech had cash and cash equivalents of $130.8 million as of December 31, 2023, compared to $241.2 million as of June 30, 2023. The decrease in cash and cash equivalents during this period was due to the impact of share repurchase activity under AspenTech’s $300.0 million share repurchase authorization (the “share repurchase authorization”) in the first half of fiscal 2024. Please see below for an update on the share repurchase authorization. Under its revolving credit facility, AspenTech had no borrowings and $197.4 million available as of December 31, 2023.
AspenTech generated $29.8 million in cash flow from operations and $29.2 million in free cash flow2 in the second quarter of fiscal 2024, compared to $49.5 million in cash flow from operations and $47.8 million in free cash flow2 in the second quarter of fiscal 2023. The difference in free cash flow2 results between periods was mainly due to the variability of contract cycle renewals and billings between quarters as well as higher expenses and cash tax in the second quarter of fiscal 2024.
Recent Developments
Appointment of Interim Chief Financial Officer
Effective January 1, 2024, Christopher Stagno was appointed to the position of Senior Vice President, Interim Chief Financial Officer of AspenTech, while AspenTech searches for a new permanent Chief Financial Officer following Chantelle Breithaupt’s previously announced resignation from the role, effective December 31, 2023. Mr. Stagno is an experienced financial executive with deep knowledge of AspenTech’s business and over 25 years of leadership in finance, including at various software companies.
Share Repurchase Authorization Update
AspenTech repurchased 375,041 shares for $72.1 million under its $300.0 million share repurchase authorization, announced on August 1, 2023, in the second quarter of fiscal 2024. As of December 31, 2023, a total of 954,839 shares had been repurchased under the share repurchase authorization for $186.3 million, with the total remaining value being $113.7 million.
Fiscal Year 2024 Business Outlook
Based on information as of today, February 6, 2024, AspenTech is reaffirming its fiscal 2024 guidance and increasing its Non-GAAP net income per share guidance by $0.02 to reflect the impact of share repurchase activity in the second quarter of fiscal 2024. AspenTech’s fiscal 2024 guidance is as follows.
•ACV1 growth of at least 11.5% year-over-year
•GAAP operating cash flow of at least $378 million
•Free cash flow2 of at least $360 million
•Total bookings of at least $1.04 billion
•Total revenue of at least $1.12 billion
•GAAP total expense of approximately $1.22 billion
•Non-GAAP total expense of approximately $675 million


•GAAP operating loss at or better than $100 million
•Non-GAAP operating income of at least $445 million
•GAAP net loss at or better than $7 million
•Non-GAAP net income of at least $424 million
•GAAP net loss per share at or better than $0.11
•Non-GAAP net income per share of at least $6.59
These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause AspenTech’s actual results to differ materially from these forward-looking statements.
Conference Call and Webcast
AspenTech will host a conference call and webcast presentation on Tuesday, February 6, 2024, at 4:30 p.m. ET to discuss its financial results, business outlook, and related corporate and financial matters. A live webcast of the call will be available on AspenTech’s Investor Relations website, ir.aspentech.com, via its “Webcasts” page. To access the call by phone, please use the following registration link. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast also will be available for a limited time at http://ir.aspentech.com/.
AspenTech has provided an earnings presentation for its second quarter of fiscal 2024. AspenTech asks that shareholders refer to this presentation in conjunction with the conference call, which can be found at ir.aspentech.com.
Footnotes
1.AspenTech defines ACV as the estimate of the annual value of our portfolio of term license and software maintenance and support, or SMS, contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy term license agreements, which have become an immaterial part of our business.
2.Free cash flow is a non-GAAP metric that is calculated as net cash provided by operating activities adjusted for the net impact of purchases of property, equipment and leasehold improvements and payments for capitalized computer software development costs. Effective January 1, 2023, AspenTech no longer excludes acquisition and integration planning related payments from its computation of free cash flow. Free cash flow for all prior periods presented has been revised to the current period computation.
About AspenTech
Aspen Technology, Inc. (NASDAQ: AZPN) is a global software leader helping industries at the forefront of the world’s dual challenge meet the increasing demand for resources from a rapidly growing population in a profitable and sustainable manner. AspenTech solutions address complex environments where it is critical to optimize the asset design, operation and maintenance lifecycle. Through our unique combination of deep domain expertise and innovation, customers in asset-intensive industries can run their assets safer, greener, longer and faster to improve their operational excellence. To learn more, visit AspenTech.com.
Forward-Looking Statements
Statements in this press release that are not strictly historical may be “forward-looking” statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties, and AspenTech undertakes no obligation to update any such statements to reflect later developments. These forward-looking statements include, but are not limited to, our guidance for fiscal 2024, our expectations regarding cash collections, closing of customer renewals and completion of our share repurchase authorization. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “strategy,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “opportunity” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These risks and uncertainties include, without limitation: the failure to realize the anticipated benefits of our transaction with Emerson Electric Co.; risks resulting from our status as a controlled company; the scope, duration and ultimate impacts of the Russia-Ukraine war and the Israeli-Hamas conflict; as well as economic and currency conditions, market demand (including related to the pandemic and adverse changes in the process or other capital-intensive industries such as materially reduced spending budgets due to oil and gas price declines and volatility), pricing, protection of intellectual property, cybersecurity, natural disasters,


tariffs, sanctions, competitive and technological factors, and inflation; and others, as set forth in AspenTech’s most recent Annual Report on Form 10-K and subsequent reports filed with the U.S. Securities and Exchange Commission (the “SEC”). The outlook contained herein represents AspenTech’s expectation for its consolidated results, other than as noted herein.
© 2024 Aspen Technology, Inc. AspenTech, aspenONE, asset optimization and the Aspen leaf logo are trademarks of Aspen Technology, Inc. All rights reserved. All other trademarks not owned by AspenTech are property of their respective owners.
Use of Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures” under the rules of the SEC. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.
Management considers both GAAP and non-GAAP financial results in managing AspenTech’s business. As the result of adoption of new licensing models, management believes that a number of AspenTech’s performance indicators based on GAAP, including revenue, gross profit, operating income and net income, should be viewed in conjunction with certain non-GAAP and other business measures in assessing AspenTech’s performance, growth and financial condition. Accordingly, management utilizes a number of non-GAAP and other business metrics, including the non-GAAP metrics set forth in this press release, to track AspenTech’s business performance.


ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
(Dollars and Shares in Thousands, Except per share data)
Revenue:
License and solutions$152,463 $149,843 $301,111 $310,068 
Maintenance85,056 78,628 170,024 156,994 
Services and other19,644 14,367 35,336 26,595 
Total revenue257,163 242,838 506,471 493,657 
Cost of revenue:
License and solutions67,326 70,833 138,903 140,346 
Maintenance10,647 9,567 20,848 18,784 
Services and other16,960 12,698 33,242 25,098 
Total cost of revenue94,933 93,098 192,993 184,228 
Gross profit162,230 149,740 313,478 309,429 
Operating expenses:
Selling and marketing122,240 117,951 244,618 236,225 
Research and development53,145 49,954 106,821 99,695 
General and administrative36,088 41,230 71,494 84,086 
Total operating expenses211,473 209,135 422,933 420,006 
Loss from operations(49,243)(59,395)(109,455)(110,577)
Other (expense) income, net(199)38,643 (6,029)(19,989)
Interest income, net12,283 4,120 26,333 9,143 
Loss before benefit for income taxes(37,159)(16,632)(89,151)(121,423)
(Benefit) provision for income taxes(15,659)49,565 (33,126)(43,982)
Net loss$(21,500)$(66,197)$(56,025)$(77,441)
Net loss per common share:
Basic$(0.34)$(1.02)$(0.88)$(1.20)
Diluted$(0.34)$(1.02)$(0.88)$(1.20)
Weighted average shares outstanding:
Basic63,699 64,621 64,009 64,538 
Diluted63,699 64,621 64,009 64,538 


ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2023June 30, 2023
(Dollars in Thousands, Except Share Data)
ASSETS
Current assets:
Cash and cash equivalents$130,753 $241,209 
Accounts receivable, net129,837 122,789 
Current contract assets, net357,847 367,539 
Prepaid expenses and other current assets26,314 27,728 
Receivables from related parties61,479 62,375 
Prepaid income taxes3,021 11,424 
Total current assets709,251 833,064 
Property, equipment and leasehold improvements, net16,756 18,670 
Goodwill8,329,997 8,330,811 
Intangible assets, net4,428,636 4,659,657 
Non-current contract assets, net606,318 536,104 
Contract costs18,971 15,992 
Operating lease right-of-use assets97,035 67,642 
Deferred income tax assets11,392 10,638 
Other non-current assets9,488 13,474 
Total assets$14,227,844 $14,486,052 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$16,517 $20,299 
Accrued expenses and other current liabilities81,059 99,526 
Due to related parties96,087 22,019 
Current operating lease liabilities13,810 12,928 
Income taxes payable28,988 46,205 
Current contract liabilities135,522 151,450 
Total current liabilities371,983 352,427 
Non-current contract liabilities35,036 30,103 
Deferred income tax liabilities867,927 957,911 
Non-current operating lease liabilities83,812 55,442 
Other non-current liabilities20,013 19,240 
Stockholders’ equity:
Common stock, $0.0001 par value
Authorized—600,000,000 shares
Issued— 65,170,178 and 64,952,868 shares
Outstanding— 63,620,668 and 64,465,242 shares		6 6 
Additional paid-in capital13,241,067 13,194,028 
Accumulated deficit(97,416)(41,391)
Accumulated other comprehensive (loss) income(3,895)2,436 
Treasury stock, at cost — 1,549,510 and 487,626 shares of common stock(290,689)(84,150)
Total stockholders’ equity12,849,073 13,070,929 
Total liabilities and stockholders’ equity$14,227,844 $14,486,052 


ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
(Dollars in Thousands)
Cash flows from operating activities:
Net loss$(21,500)$(66,197)$(56,025)$(77,441)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization123,167 122,556 246,386 245,102 
Reduction in the carrying amount of right-of-use assets3,370 3,271 6,932 6,562 
Net foreign currency losses (gains)274 (3,588)6,168 4,744 
Stock-based compensation16,211 23,441 32,910 41,177 
Deferred income taxes(43,130)(35,946)(94,210)(106,384)
Provision for uncollectible receivables1,597 (381)3,385 3,228 
Other non-cash operating activities(648)(3,820)(629)(593)
Changes in assets and liabilities:
Accounts receivable(40,126)(41,700)(10,709)(33,691)
Contract assets(33,864)(9,507)(57,926)(77,864)
Contract costs(1,896)(96)(3,059)(3,547)
Lease liabilities(3,338)(4,949)(7,108)(6,609)
Prepaid expenses, prepaid income taxes, and other assets(584)81,184 (17,606)34,177 
Liability from foreign currency forward contract— (34,940)— 15,319 
Accounts payable, accrued expenses, income taxes payable and other liabilities4,523 11,983 9,258 (1,490)
Contract liabilities25,771 8,223 (10,959)11,922 
Net cash provided by operating activities29,827 49,534 46,808 54,612 
Cash flows from investing activities:
Purchases of property, equipment and leasehold improvements(500)(1,523)(1,437)(2,844)
Payments for business acquisitions, net of cash acquired— — (8,273)(74,947)
Payments for equity method investments(423)(465)(521)(465)
Payments for capitalized computer software development costs(131)(230)(131)(329)
Payments for asset acquisitions— — (12,500)— 
Net cash used in investing activities(1,054)(2,218)(22,862)(78,585)
Cash flows from financing activities:
Issuance of shares of common stock4,635 17,135 7,920 25,605 
Repurchases of common stock(72,105)— (186,329)— 
Payment of tax withholding obligations related to restricted stock(11,905)(8,276)(13,843)(11,698)
Deferred business acquisition payments— — — (1,363)
Repayments of amounts borrowed under term loan— (6,000)— (12,000)
Net transfers from Parent Company64,865 17,426 68,755 29,872 
Payments of debt issuance costs— — — (2,375)
Net cash (used in) provided by financing activities(14,510)20,285 (123,497)28,041 
Effect of exchange rate changes on cash and cash equivalents(4,050)(3,970)(10,905)(7,705)
Increase (decrease) in cash and cash equivalents10,213 63,631 (110,456)(3,637)
Cash and cash equivalents, beginning of period120,540 382,457 241,209 449,725 
Cash and cash equivalents, end of period$130,753 $446,088 $130,753 $446,088 


ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows
(Unaudited)
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
(Dollars and Shares in Thousands, Except per Share Data)
Total expenses
GAAP total expenses (a)$306,406 $302,233 $615,926 $604,234 
Less:
Stock-based compensation (b)(16,211)(23,441)(32,910)(41,177)
Amortization of intangibles (c)(121,565)(121,161)(243,152)(242,321)
Acquisition and integration planning related fees(125)(1,411)130 (6,269)
Non-GAAP total expenses$168,505 $156,220 $339,994 $314,467 
(Loss) income from operations
GAAP loss from operations$(49,243)$(59,395)$(109,455)$(110,577)
Plus:
Stock-based compensation (b)16,211 23,441 32,910 41,177 
Amortization of intangibles (c)121,565 121,161 243,152 242,321 
Acquisition and integration planning related fees125 1,411 (130)6,269 
Non-GAAP income from operations$88,658 $86,618 $166,477 $179,190 
Net (loss) income
GAAP net loss$(21,500)$(66,197)$(56,025)$(77,441)
Plus:
Stock-based compensation (b)16,211 23,441 32,910 41,177 
Amortization of intangibles (c)121,565 121,161 243,152 242,321 
Acquisition and integration planning related fees125 1,411 (130)6,269 
Unrealized (gain) loss on foreign currency forward contract— (34,940)— 15,319 
Less:
Income tax effect on Non-GAAP items (d)(28,636)(22,075)(57,257)(62,591)
Non-GAAP net income$87,765 $22,801 $162,650 $165,054 
Diluted (loss) income per share
GAAP diluted loss per share$(0.34)$(1.02)$(0.88)$(1.20)
Plus:
Stock-based compensation (b)0.25 0.36 0.51 0.64 
Amortization of intangibles (c)1.90 1.87 3.78 3.75 
Acquisition and integration planning related fees— 0.02 — 0.10 
Unrealized loss on foreign currency forward contract— (0.54)— 0.24 
Impact of diluted shares0.01 — 0.01 — 
Less:
Income tax effect on Non-GAAP items (d)(0.45)(0.34)(0.89)(0.97)
Non-GAAP diluted income per share$1.37 $0.35 $2.53 $2.56 
Shares used in computing Non-GAAP diluted income per share64,008 64,621 64,343 64,538 


Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
Free Cash Flow (2)
Net cash provided by operating activities (GAAP)$29,827 $49,534 $46,808 $54,612 
Purchases of property, equipment and leasehold improvements(500)(1,523)(1,437)(2,844)
Payments for capitalized computer software development costs(131)(230)(131)(329)
Free cash flow (2) (non-GAAP)
$29,196 $47,781 $45,240 $51,439 
(a) GAAP total expenses
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
Total costs of revenue$94,933 $93,098 $192,993 $184,228 
Total operating expenses211,473 209,135 422,933 420,006 
GAAP total expenses$306,406 $302,233 $615,926 $604,234 
(b) Stock-based compensation expense was as follows:
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
Cost of license and solutions$602 $1,200 $1,282 $1,919 
Cost of maintenance729 474 1,217 1,035 
Cost of services and other360 428 858 858 
Selling and marketing2,707 3,826 5,649 7,191 
Research and development3,719 4,240 8,272 7,858 
General and administrative8,094 13,273 15,632 22,316 
Total stock-based compensation$16,211 $23,441 $32,910 $41,177 
(c) Amortization of intangible assets was as follows:
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
Cost of license and solutions$48,035 $47,671 $96,070 $95,342 
Selling and marketing73,530 73,490 147,082 146,979 
Total amortization of intangible assets$121,565 $121,161 $243,152 $242,321 
(d) The income tax effect on non-GAAP items for the three months ended September 30, 2023 and 2022, respectively, is calculated utilizing the Company’s combined US federal and state statutory tax rate as following:
Three Months Ended December 31,Six Months Ended December 31,
2023202220232022
U.S. Statutory Rate 21.79 %21.79 %21.79 %21.79 %




ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
Reconciliation of Forward-Looking Guidance
(Unaudited Dollars in Thousands, Except per Share Data)
Twelve Months Ended June 30, 2024 (3)
Guidance - Total expenses
GAAP expectation - total expenses$1,220,000 
Less:
Stock-based compensation(59,000)
Amortization of intangible assets(486,000)
Non-GAAP expectation - total expenses$675,000 
Guidance - (Loss) income from operations
GAAP expectation - loss from operations$(100,000)
Plus:
Stock-based compensation59,000 
Amortization of intangible assets486,000 
Non-GAAP expectation - income from operations$445,000 
Guidance - Net (loss) income and diluted (loss) income per share
GAAP expectation - net loss and diluted loss per share$(7,000)$(0.11)
Plus:
Stock-based compensation59,000 
Amortization of intangible assets486,000 
Less:
Income tax effect on Non-GAAP items (4)
(114,000)
Non-GAAP expectation - net income and diluted income per share$424,000 $6.59 
Shares used in computing guidance for Non-GAAP diluted income per share64,300
Guidance - Free Cash Flow (2) (5)
GAAP expectation - net cash provided by operating activities$378,000 
Less:
Purchases of property, equipment and leasehold improvements(17,500)
Payments for capitalized computer software development costs(500)
Free cash flow expectation (non-GAAP)$360,000 
__________
(3) Rounded amount used, except per share data.
(4) The income tax effect on non-GAAP items for the twelve months ended June 30, 2024 is calculated utilizing the Company’s statutory tax rate of 21.79 percent.
(5) Free cash flow guidance has been updated to reflect the change in methodology to calculate free cash flow, as described in Footnote 2, and does not represent a change in management’s expectations.

v3.24.0.1
Cover Page
Feb. 06, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 06, 2024
Entity Registrant Name ASPEN TECHNOLOGY, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-41400
Entity Tax Identification Number 87-3100817
Entity Address, Address Line One 20 Crosby Drive,
Entity Address, City or Town Bedford,
Entity Address, State or Province MA
Entity Address, Postal Zip Code 01730
City Area Code 781
Local Phone Number 221-6400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $0.0001 par value per share
Trading Symbol AZPN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001897982
Amendment Flag false
Aspen Technology (NASDAQ:AZPN)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Aspen Technology Charts.
Aspen Technology (NASDAQ:AZPN)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Aspen Technology Charts.