BusinessWire

Aspen Technology Announces Financial Results for the Fourth Quarter and Fiscal 2020

BEDFORD, Mass.--(BUSINESS WIRE)--Aspen Technology, Inc. (NASDAQ: AZPN), the asset optimization software company, today announced financial results for its fourth quarter of fiscal year 2020 ended June 30, 2020.


“AspenTech delivered solid fourth quarter results that exceeded expectations in the midst of unprecedented economic conditions,” said Antonio Pietri, President and Chief Executive Officer of Aspen Technology. “Customers in our core markets continued to make significant investments in AspenTech products despite the challenges facing their own businesses. Companies in the process and other capital intensive industries increasingly recognize that investing in digitalization initiatives is essential to long-term financial and operational success and we believe we are well-positioned to benefit from this trend.”

Pietri continued, “We are furthering our commitment to our customers through today’s announcement of the new AIoT Hub and our investment in the next generation of hybrid modeling software capabilities, planned for release in the coming months. We intend to introduce contextual artificial intelligence into our core products to enable better informed and more accurate decisions to improve the operating performance of assets. We are confident that these innovations will further extend the value AspenTech delivers for its customers.”

Fourth Quarter and Fiscal Year 2020 Recent Business Highlights

  • Annual spend, which the company defines as the annualized value of all term license and maintenance contracts at the end of the quarter, was approximately $593 million at the end of the fourth quarter of fiscal 2020, which increased 9.6% compared to the fourth quarter of fiscal 2019 and 3.1% sequentially.
  • AspenTech repurchased approximately 1.3 million shares of its common stock for $150 million in fiscal year 2020.

Summary of Fourth Quarter Fiscal Year 2020 Financial Results

AspenTech’s total revenue of $199.3 million included:

  • License revenue, which represents the portion of a term license agreement allocated to the initial license, was $147.2 million in the fourth quarter of fiscal 2020, compared to $148.5 million in the fourth quarter of fiscal 2019.
  • Maintenance revenue, which represents the portion of the term license agreement related to on-going support and the right to future product enhancements, was $45.7 million in the fourth quarter of fiscal 2020, compared to $39.5 million in the fourth quarter of fiscal 2019.
  • Services and other revenue was $6.4 million in the fourth quarter of fiscal 2020, compared to $7.8 million in the fourth quarter of fiscal 2019.

For the quarter ended June 30, 2020, AspenTech reported income from operations of $113.7 million, compared to income from operations of $111.2 million for the quarter ended June 30, 2019.

Net income was $97.6 million for the quarter ended June 30, 2020, leading to net income per share of $1.43, compared to net income per share of $1.49 in the same period last fiscal year.

Non-GAAP income from operations, was $122.9 million for the fourth quarter of fiscal 2020, compared to non-GAAP income from operations of $119.9 million in the same period last fiscal year. Non-GAAP net income was $104.9 million, or $1.54 per share, for the fourth quarter of fiscal 2020, compared to non-GAAP net income of $110.7 million, or $1.59 per share, in the same period last fiscal year. These non-GAAP results add back the impact of stock-based compensation expense, amortization of intangibles and acquisition-related fees. A reconciliation of GAAP to non-GAAP results is presented in the financial tables included in this press release.

AspenTech had cash and cash equivalents of $287.8 million and total borrowings, net of debt issuance costs, of $427.5 million at June 30, 2020.

During the fourth quarter, the company generated $99.7 million in cash flow from operations and $99.5 million in free cash flow. Free cash flow is calculated as net cash provided by operating activities adjusted for the net impact of: purchases of property, equipment and leasehold improvements; payments for capitalized computer software development costs, and other nonrecurring items, such as acquisition-related payments.

Summary of Fiscal Year 2020 Financial Results

AspenTech’s total revenue of $590.2 million decreased 1.0% from $598.3 million for fiscal year 2019.

  • License revenue, was $377.2 million, a decrease from $404.1 million for fiscal year 2019.
  • Maintenance revenue, was $179.8 million, an increase from $165.4 million for fiscal year 2019.
  • Services and other revenue was $33.2 million, an increase from $28.8 million for fiscal year 2019.

For the fiscal year ended June 30, 2020, AspenTech reported income from operations of $248.8 million, compared to income from operations of $282.8 million for fiscal year 2019.

Net income was $225.7 million for the fiscal year ended June 30, 2020, leading to net income per share of $3.28, compared to net income per share of $3.71 for fiscal year 2019.

Non-GAAP income from operations was $287.0 million for fiscal year 2020, compared to non-GAAP income from operations of $316.3 million for fiscal year 2019. Non-GAAP net income was $255.9 million, or $3.72 per share, for fiscal year 2020, compared to non-GAAP net income of $289.2 million, or $4.09 per share, for fiscal year 2019.

For the fiscal year ended June 30, 2020, the company generated $243.3 million in cash flow from operations and $243.1 million in free cash flow.

Business Outlook

Based on information as of today, August 12, 2020, Aspen Technology is issuing the following guidance for fiscal year 2020:

  • Annual spend growth of 6-9% year-over-year
  • Free cash flow of $260 to $270 million
  • Total bookings of $770 to $850 million
  • Total revenue of $704 to $754 million
  • GAAP total expense of $372 to $377 million
  • Non-GAAP total expense of $330 to $335 million
  • GAAP operating income of $332 to $377 million
  • Non-GAAP operating income of $374 to $420 million
  • GAAP net income of $290 to $327 million
  • Non-GAAP net income of $324 to $360 million
  • GAAP net income per share of $4.29 to $4.83
  • Non-GAAP net income per share of $4.78 to $5.32

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 our actual results to differ materially from these forward-looking statements.

AspenTech has not reconciled its expectations as to non-GAAP operating income and non-GAAP net income per share to their most directly comparable GAAP measure because certain items are out of AspenTech’s control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP total expenses, non-GAAP operating income and non-GAAP net income per share is not available without unreasonable effort.

Use of Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures” under the rules of the U.S. Securities and Exchange Commission. 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 Aspen Technology’s business. As the result of adoption of new licensing models, management believes that a number of Aspen Technology’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 Aspen Technology’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 Aspen Technology’s business performance. None of these non-GAAP metrics should be considered as an alternative to any measure of financial performance calculated in accordance with GAAP.

Conference Call and Webcast

Aspen Technology will host a conference call and webcast today, August 12, 2020, at 4:30 p.m. (Eastern Time), to discuss the company's financial results for the fourth quarter and fiscal year 2020 as well as the company’s business outlook. The live dial-in number is (866) 471-3828 or (678) 509-7573, conference ID code 8084773. Interested parties may also listen to a live webcast of the call by logging on to the Investor Relations section of Aspen Technology’s website, http://ir.aspentech.com/events-and-presentations, and clicking on the “webcast” link. A replay of the call will be archived on Aspen Technology’s website and will also be available via telephone at (855) 859-2056 or (404) 537-3406, conference ID code 8084773, through August 19, 2020.

About Aspen Technology

Aspen Technology (AspenTech) is a global leader in asset optimization software. Its solutions address complex, industrial environments where it is critical to optimize the asset design, operation and maintenance lifecycle. AspenTech uniquely combines decades of process modeling expertise with artificial intelligence. Its purpose-built software platform automates knowledge work and builds sustainable competitive advantage by delivering high returns over the entire asset lifecycle. As a result, companies in capital-intensive industries can maximize uptime and push the limits of performance, running their assets safer, greener, longer and faster. Visit AspenTech.com to find out more.

Forward-Looking Statements

The second and third paragraphs of this press release as well as the Business Outlook section contain forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may vary significantly from AspenTech’s expectations based on a number of risks and uncertainties, including, without limitation: delays or reductions in demand for AspenTech solutions due to the COVID-19 pandemic; AspenTech’s failure to increase usage and product adoption of aspenONE offerings or grow the aspenONE APM business, and failure to continue to provide innovative, market-leading solutions; the demand for, or usage of, aspenONE software declines for any reason, including declines due to adverse changes in the process or other capital-intensive industries and due to the drop in demand for oil due to the COVID-19 pandemic, compounded by the excess supply arising from producers’ failure to agree on production cuts; unfavorable economic and market conditions or a lessening demand in the market for asset process optimization software, including due to the significant drop in oil prices arising from drop in demand due to the COVID-19 pandemic and producers’ failure to agree on production cuts; risks of foreign operations or transacting business with customers outside the United States; risks of competition and other risk factors described from time to time in AspenTech’s periodic reports filed with the Securities and Exchange Commission. AspenTech cannot guarantee any future results, levels of activity, performance, or achievements. AspenTech expressly disclaims any obligation to update forward-looking statements after the date of this press release.

© 2020 Aspen Technology, Inc. AspenTech, aspenONE, asset optimization and the Aspen leaf logo are trademarks of Aspen Technology, Inc. All rights reserved. All other trademarks are property of their respective owners.

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited in Thousands, Except per Share Data)

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Revenue:

 

 

 

 

 

 

 

License

$

147,226

 

 

$

148,506

 

 

$

377,155

 

 

$

404,122

 

Maintenance

45,719

 

 

39,481

 

 

179,813

 

 

165,436

 

Services and other

6,386

 

 

7,782

 

 

33,213

 

 

28,787

 

Total revenue

199,331

 

 

195,769

 

 

590,181

 

 

598,345

 

Cost of revenue:

 

 

 

 

 

 

 

License

1,691

 

 

1,918

 

 

7,241

 

 

7,060

 

Maintenance

4,909

 

 

4,967

 

 

19,248

 

 

19,208

 

Services and other

8,558

 

 

8,605

 

 

35,118

 

 

31,548

 

Total cost of revenue

15,158

 

 

15,490

 

 

61,607

 

 

57,816

 

Gross profit

184,173

 

 

180,279

 

 

528,574

 

 

540,529

 

Operating expenses:

 

 

 

 

 

 

 

Selling and marketing

28,440

 

 

30,842

 

 

114,486

 

 

111,374

 

Research and development

23,536

 

 

21,229

 

 

92,230

 

 

83,122

 

General and administrative

18,510

 

 

16,985

 

 

73,035

 

 

63,231

 

Total operating expenses

70,486

 

 

69,056

 

 

279,751

 

 

257,727

 

Income from operations

113,687

 

 

111,223

 

 

248,823

 

 

282,802

 

Interest income

8,081

 

 

7,068

 

 

32,658

 

 

28,457

 

Interest (expense)

(2,494

)

 

(2,405

)

 

(11,862

)

 

(8,733

)

Other income, net

1,419

 

 

1,149

 

 

1,202

 

 

664

 

Income before income taxes

120,693

 

 

117,035

 

 

270,821

 

 

303,190

 

Provision for income taxes

23,065

 

 

13,170

 

 

45,113

 

 

40,456

 

Net income

$

97,628

 

 

$

103,865

 

 

$

225,708

 

 

$

262,734

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

1.44

 

 

$

1.51

 

 

$

3.32

 

 

$

3.76

 

Diluted

$

1.43

 

 

$

1.49

 

 

$

3.28

 

 

$

3.71

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

67,634

 

 

68,839

 

 

68,000

 

 

69,925

 

Diluted

68,176

 

 

69,638

 

 

68,727

 

 

70,787

 

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited in Thousands, Except Share and Per Share Data)

 

June 30,
2020

 

June 30,
2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

287,796

 

 

$

71,926

 

Accounts receivable, net

55,750

 

 

47,784

 

Current contract assets

289,152

 

 

294,193

 

Prepaid expenses and other current assets

15,260

 

 

12,628

 

Prepaid income taxes

2,276

 

 

2,509

 

Total current assets

650,234

 

 

429,040

 

Property, equipment and leasehold improvements, net

5,963

 

 

7,234

 

Computer software development costs, net

928

 

 

1,306

 

Goodwill

137,055

 

 

78,383

 

Intangible assets, net

42,851

 

 

33,607

 

Non-current contract assets

328,379

 

 

325,510

 

Contract costs

28,614

 

 

24,982

 

Operating lease right-of-use assets

34,905

 

 

 

Deferred tax assets

1,735

 

 

1,669

 

Other non-current assets

1,838

 

 

1,334

 

Total assets

$

1,232,502

 

 

$

903,065

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,988

 

 

$

5,891

 

Accrued expenses and other current liabilities

43,556

 

 

54,594

 

Current operating lease liabilities

6,824

 

 

 

Income taxes payable

1,799

 

 

14,952

 

Current borrowings

135,163

 

 

220,000

 

Current deferred revenue

28,495

 

 

25,318

 

Total current liabilities

219,825

 

 

320,755

 

Non-current deferred revenue

7,953

 

 

19,573

 

Deferred income taxes

182,447

 

 

159,071

 

Non-current operating lease liabilities

33,088

 

 

 

Non-current borrowings, net

292,369

 

 

 

Other non-current liabilities

3,105

 

 

10,381

 

Commitments and contingencies (Note 17)

 

 

 

Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of June 30, 2020 and 2019
Issued and outstanding—none as of June 30, 2020 and 2019

 

 

 

Stockholders' equity:

 

 

 

Common stock, $0.10 par value—Authorized—210,000,000 shares
Issued—103,988,707 shares at June 30, 2020 and 103,642,292 shares at June 30, 2019
Outstanding—67,718,692 shares at June 30, 2020 and 68,624,566 shares at June 30, 2019

10,399

 

 

10,365

 

Additional paid-in capital

769,411

 

 

739,099

 

Retained earnings

1,485,692

 

 

1,259,984

 

Accumulated other comprehensive income

(5,288

)

 

336

 

Treasury stock, at cost— 36,270,015 shares of common stock at June 30, 2020 and 35,017,726 shares at June 30, 2019

(1,766,499

)

 

(1,616,499

)

Total stockholders' equity

493,715

 

 

393,285

 

Total liabilities and stockholders' equity

$

1,232,502

 

 

$

903,065

 

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited in Thousands)

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

97,628

 

 

$

103,865

 

 

$

225,708

 

 

$

262,734

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

2,522

 

 

2,080

 

 

9,550

 

 

8,143

 

Reduction in the carrying amount of right-of-use assets

2,105

 

 

 

 

8,623

 

 

 

Net foreign currency gains

(1,128

)

 

(1,274

)

 

(945

)

 

(1,251

)

Stock-based compensation

7,415

 

 

6,119

 

 

31,548

 

 

27,573

 

Deferred income taxes

22,225

 

 

23,008

 

 

21,843

 

 

(26,839

)

Provision for bad debts

1,864

 

 

171

 

 

5,255

 

 

645

 

Other non-cash operating activities

202

 

 

88

 

 

625

 

 

429

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

4,104

 

 

(2,443

)

 

(12,324

)

 

(6,626

)

Contract assets

(5,986

)

 

(31,925

)

 

2,270

 

 

(59,322

)

Contract costs

(2,048

)

 

(657

)

 

(3,570

)

 

(4,482

)

Lease liabilities

(2,197

)

 

 

 

(9,037

)

 

 

Prepaid expenses, prepaid income taxes, and other assets

(3,136

)

 

(2,612

)

 

(5,337

)

 

(2,411

)

Accounts payable, accrued expenses, income taxes payable and other liabilities

(2,610

)

 

(11,059

)

 

(23,362

)

 

21,921

 

Deferred revenue

(21,290

)

 

(184

)

 

(7,589

)

 

17,799

 

Net cash provided by operating activities

99,670

 

 

85,177

 

 

243,258

 

 

238,313

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property, equipment and leasehold improvements

(167

)

 

(230

)

 

(1,278

)

 

(436

)

Payments for business acquisitions, net of cash acquired

 

 

(6,098

)

 

(74,460

)

 

(6,098

)

Payments for equity method investments

(5

)

 

 

 

(324

)

 

 

Payments for capitalized computer software costs

 

 

(37

)

 

(141

)

 

(1,131

)

Net cash used in investing activities

(172

)

 

(6,365

)

 

(76,203

)

 

(7,665

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of shares of common stock

3,640

 

 

4,983

 

 

9,004

 

 

10,864

 

Repurchases of common stock

(1,811

)

 

(75,032

)

 

(152,432

)

 

(299,214

)

Payment of tax withholding obligations related to restricted stock

(1,921

)

 

(2,561

)

 

(10,167

)

 

(14,477

)

Deferred business acquisition payments

 

 

 

 

(4,600

)

 

(1,700

)

Proceeds from borrowings, net of repayments

4,000

 

 

 

 

219,163

 

 

50,000

 

Repayments of amounts borrowed

(8,000

)

 

 

 

(8,000

)

 

 

Payments of debt issuance costs

 

 

 

 

(3,533

)

 

 

Net cash provided by (used in) financing activities

(4,092

)

 

(72,610

)

 

49,435

 

 

(254,527

)

Effect of exchange rate changes on cash and cash equivalents

218

 

 

132

 

 

(620

)

 

(360

)

Increase (decrease) in cash and cash equivalents

95,624

 

 

6,334

 

 

215,870

 

 

(24,239

)

Cash and cash equivalents, beginning of year

192,172

 

 

65,592

 

 

71,926

 

 

96,165

 

Cash and cash equivalents, end of year

$

287,796

 

 

$

71,926

 

 

$

287,796

 

 

$

71,926

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

Income taxes paid, net

$

13,174

 

 

$

14,030

 

 

$

39,533

 

 

$

53,153

 

Interest paid

2,616

 

 

2,393

 

 

12,444

 

 

8,121

 

Supplemental disclosure of non-cash activities:

 

 

 

 

 

 

 

Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses

$

(10

)

 

$

94

 

 

$

(99

)

 

$

104

 

Change in repurchases of common stock included in accounts payable and accrued expenses

(1,811

)

 

(32

)

 

(2,432

)

 

786

 

Lease liabilities arising from obtaining right-of-use assets

2,387

 

 

 

 

14,013

 

 

 

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows

(Unaudited in Thousands, Except per Share Data)

 

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

 

2020

 

2019

Total expenses

 

 

 

 

 

 

 

 

GAAP total expenses (a)

 

$

85,644

 

 

$

84,546

 

 

$

341,358

 

 

$

315,543

 

Less:

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

(7,415

)

 

(6,119

)

 

(31,548

)

 

(27,573

)

Amortization of intangibles

 

(1,831

)

 

(1,153

)

 

(6,572

)

 

(4,533

)

Acquisition related fees

 

 

 

(1,430

)

 

(78

)

 

(1,438

)

 

 

 

 

 

 

 

 

 

Non-GAAP total expenses

 

$

76,398

 

 

$

75,844

 

 

$

303,160

 

 

$

281,999

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

GAAP income from operations

 

$

113,687

 

 

$

111,223

 

 

$

248,823

 

 

$

282,802

 

Plus:

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

7,415

 

 

6,119

 

 

31,548

 

 

27,573

 

Amortization of intangibles

 

1,831

 

 

1,153

 

 

6,572

 

 

4,533

 

Acquisition related fees

 

 

 

1,430

 

 

78

 

 

1,438

 

 

 

 

 

 

 

 

 

 

Non-GAAP income from operations

 

$

122,933

 

 

$

119,925

 

 

$

287,021

 

 

$

316,346

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

GAAP net income

 

$

97,628

 

 

$

103,865

 

 

$

225,708

 

 

$

262,734

 

Plus:

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

7,415

 

 

6,119

 

 

31,548

 

 

27,573

 

Amortization of intangibles

 

1,831

 

 

1,153

 

 

6,572

 

 

4,533

 

Acquisition related fees

 

 

 

1,430

 

 

78

 

 

1,438

 

Less:

 

 

 

 

 

 

 

 

Income tax effect on Non-GAAP items (c)

 

(1,942

)

 

(1,827

)

 

(8,022

)

 

(7,044

)

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

104,932

 

 

$

110,740

 

 

$

255,884

 

 

$

289,234

 

 

 

 

 

 

 

 

 

 

Diluted income per share

 

 

 

 

 

 

 

 

GAAP diluted income per share

 

$

1.43

 

 

$

1.49

 

 

$

3.28

 

 

$

3.71

 

Plus:

 

 

 

 

 

 

 

 

Stock-based compensation (b)

 

0.11

 

 

0.09

 

 

0.46

 

 

0.40

 

Amortization of intangibles

 

0.03

 

 

0.02

 

 

0.10

 

 

0.06

 

Acquisition related fees

 

 

 

0.02

 

 

 

 

0.02

 

Less:

 

 

 

 

 

 

 

 

Income tax effect on Non-GAAP items (c)

 

(0.03

)

 

(0.03

)

 

(0.12

)

 

(0.10

)

 

 

 

 

 

 

 

 

 

Non-GAAP diluted income per share

 

$

1.54

 

 

$

1.59

 

 

$

3.72

 

 

$

4.09

 

 

 

 

 

 

 

 

 

 

Shares used in computing Non-GAAP diluted income per share

 

68,176

 

 

69,638

 

 

68,727

 

 

70,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

 

2020

 

2019

Free Cash Flow

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

 

$

99,670

 

 

$

85,177

 

 

$

243,258

 

 

$

238,313

 

Purchase of property, equipment and leasehold improvements

 

(167

)

 

(230

)

 

(1,278

)

 

(436

)

Payments for capitalized computer software development costs

 

 

 

(37

)

 

(141

)

 

(1,131

)

Acquisition related payments

 

 

 

 

 

1,264

 

 

27

 

Free Cash Flow

 

$

99,503

 

 

$

84,910

 

 

$

243,103

 

 

$

236,773

 

 

 

 

 

 

 

 

 

 

(a) GAAP total expenses

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

 

2020

 

2019

Total costs of revenue

 

$

15,158

 

 

$

15,490

 

 

$

61,607

 

 

$

57,816

 

Total operating expenses

 

70,486

 

 

69,056

 

 

279,751

 

 

257,727

 

GAAP total expenses

 

$

85,644

 

 

$

84,546

 

 

$

341,358

 

 

$

315,543

 

 

 

 

 

 

 

 

 

 

(b) Stock-based compensation expense was as follows:

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

Twelve Months Ended
June 30,

 

 

2020

 

2019

 

2020

 

2019

Cost of maintenance

 

$

337

 

 

$

366

 

 

$

1,441

 

 

$

1,282

 

Cost of services and other

 

484

 

 

382

 

 

1,961

 

 

1,420

 

Selling and marketing

 

1,428

 

 

1,162

 

 

5,656

 

 

4,849

 

Research and development

 

2,113

 

 

1,472

 

 

8,306

 

 

6,923

 

General and administrative

 

3,053

 

 

2,737

 

 

14,184

 

 

13,099

 

Total stock-based compensation

 

$

7,415

 

 

$

6,119

 

 

$

31,548

 

 

$

27,573

 

(c) The income tax effect on non-GAAP items for the three and twelve months ended June 30, 2020 and 2019, respectively, is calculated utilizing the Company's statutory tax rate of 21 percent.

 


Contacts

Media Contact
Lucy Millington
Aspen Technology
+1 781-221-6419
lucy.millington@aspentech.com

Investor Contact
Brian Denyeau
ICR for Aspen Technology
+1 646-277-1251
brian.denyeau@icrinc.com