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Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2024
Antonio Pietri, President and Chief Executive Officer of AspenTech, commented, "Our third quarter performance and updated outlook for fiscal 2024 reflects the more cautious customer buying behavior we experienced at the start of the new calendar year. While this dynamic is expected to weigh on ACV growth in the near-term, the continued health and expansion of our pipeline gives us confidence in the underlying growth opportunity for AspenTech."
"AspenTech remains well positioned to support customers in their efforts to capitalize on the long-term investment trends of global decarbonization, electrification, and the transition to a new energy system. The opportunity for further collaboration and co-innovation in these areas was on full display last week at our biennial user conference, OPTIMIZE 24. Now, more than ever, our customers are being asked to meet the world's increasing demand for resources in a sustainable manner, and AspenTech is providing the solutions to make this a reality," concluded Pietri.
Third Quarter Fiscal Year 2024 Recent Business Highlights
Annual contract value(1) ("ACV") was $936.1 million at the end of the third quarter of fiscal 2024, increasing 9.5% year over year and 2.4% quarter over quarter. Cash flow from operations was $138.1 million for the third quarter of fiscal 2024, compared to $131.0 million in the third quarter of fiscal 2023. Free cash flow(2)was $137.0 million for the third quarter of fiscal 2024, compared to $129.3 million in the third quarter of fiscal 2023. A reconciliation of GAAP to non-GAAP results is presented in the financial tables included in this press release.
Summary of Third Quarter Fiscal Year 2024 Financial Results
AspenTech's total revenue was $278.1 million in the third 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 Digital Grid Management ("DGM") revenue where software, hardware and professional services are recognized as one performance obligation, was $169.5 million in the third quarter of fiscal 2024, compared to $136.3 million in the third 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 $86.3 million in the third quarter of fiscal 2024, compared to $77.3 million in the third quarter of fiscal 2023. Services and other revenue, which represents the portion of customer agreements related to professional services and training services, was $22.4 million in the third quarter of fiscal 2024, compared to $16.3 million in the third quarter of fiscal 2023.
Loss from operations was $19.3 million in the third quarter of fiscal 2024, compared to $78.5 million in the third quarter of fiscal 2023. Non-GAAP income from operations was $116.3 million in the third quarter of fiscal 2024, compared to $66.8 million in the third quarter of fiscal 2023. The year-over-year improvement in loss from operations was mainly due to a higher mix of license and solutions revenue, in addition to one-time expense savings, lower stock-based compensation and a continuing focus on driving efficiencies.
Net income was $1.6 million, or $0.02 per diluted share, in the third quarter of fiscal 2024, compared to net loss of $57.6 million, or $0.89 per diluted share, in the third quarter of fiscal 2023. AspenTech has increased amortization of intangible assets following the close of its transaction with Emerson Electric Co. ("Emerson"). 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 $108.7 million, or $1.70 per diluted share, in the third quarter of fiscal 2024, compared to $69.1 million, or $1.06 per diluted share, in the third quarter of fiscal 2023. The year-over-year increase in non-GAAP net income was mainly due to revenue growth combined with strong operating leverage.
AspenTech had cash and cash equivalents of $177.6 million as of March 31, 2024, compared to $241.2 million as of June 30, 2023. The decrease in cash and cash equivalents during this period primarily was due to the impact of share repurchase activity under AspenTech's $300.0 million share repurchase authorization (the "share repurchase authorization") during fiscal 2024. Please see below for an update on the share repurchase authorization. Under its revolving credit facility, AspenTech had no borrowings and $197.7 million available as of March 31, 2024.
AspenTech generated $138.1 million in cash flow from operations and $137.0 million in free cash flow(2) in the third quarter of fiscal 2024, compared to $131.0 million in cash flow from operations and $129.3 million in free cash flow(2) in the third quarter of fiscal 2023.
Recent Developments
Appointment of Chief Financial Officer
AspenTech today announced the appointment of David Baker to the position of Senior Vice President, Chief Financial Officer of the Company, effective June 3, 2024. Mr. Baker previously was employed by Emerson for over 27 years. Mr. Baker brings to the role deep financial acumen, operational expertise, and significant senior financial leadership experience from his prior roles at Emerson, including Vice President, Financial Planning, where he led the financial planning and analysis function for Emerson since March 2023, Vice President and Chief Financial Officer, Automation Solutions, from November 2018 to February 2023, and Vice President and Chief Financial Officer, Measurement and Analytical, from July 2013 to November 2018. Mr. Baker holds an M.B.A. in Operations Management from the University of Minnesota and a B.A. in Accounting from the University of Northern Iowa.
Appointment of Director of the Board
AspenTech's Board of Directors (the "Board") elected David Henshall as a director of the Board, effective April 26, 2024. Mr. Henshall most recently served as Chief Executive Officer at Citrix Systems, Inc., a leading multinational provider of cloud computing and virtualization technology, where he held executive roles for nearly twenty years. An experienced public company board director, Mr. Henshall actively serves as the Chairman of the board of directors of Everbridge, Inc., is a member of the board of directors of HashiCorp, Inc. and Feedzai, Inc, and is a former member of the boards of directors of New Relic, Inc. and LogMeIn, Inc. He holds a M.B.A. from Santa Clara University and a B.A. in Business Administration from the University of Arizona.
Share Repurchase Authorization Update
AspenTech repurchased 288,241 shares for $56.7 million under its $300.0 million share repurchase authorization, announced on August 1, 2023, in the third quarter of fiscal 2024. As of March 31, 2024, a total of 1,243,080 shares had been repurchased under the share repurchase authorization for $243.1 million, with the total remaining value being $56.9 million.
Fiscal Year 2024 Business Outlook
Based on information as of today, May 7, 2024, AspenTech is updating its fiscal 2024 guidance.
ACV(1) growth of at least 9.0% year-over-year GAAP operating cash flow of at least $349 million Free cash flow(2) of at least $340 million Total bookings of at least $1.03 billion Total revenue of at least $1.10 billion GAAP total expense of approximately $1.22 billion Non-GAAP total expense of approximately $675 million GAAP operating loss at or better than $121 million Non-GAAP operating income of at least $425 million GAAP net loss at or better than $29 million Non-GAAP net income of at least $403 million GAAP net loss per share at or better than $0.45 Non-GAAP net income per share of at least $6.29
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, May 7, 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, http://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 third 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. 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.
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 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.
(C) 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 March 31, Nine Months Ended March 31,
------------------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------------------
2024 2023 2024 2023
----------------------------------------------- ----------------------------------------------- ------------------------------------------------ ------------------------------------------------
(Dollars and Shares in Thousands, Except per share data)
Revenue:
$ 169,467 $ 136,292 $ 470,578 $ 446,360
License and solutions
86,256 77,283 256,280 234,277
Maintenance
22,383 16,303 57,719 42,898
Services and other
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
278,106 229,878 784,577 723,535
Total revenue
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
Cost of revenue:
65,550 68,980 204,453 209,326
License and solutions
8,344 9,020 29,192 27,804
Maintenance
19,048 15,799 52,290 40,897
Services and other
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
92,942 93,799 285,935 278,027
Total cost of revenue
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
185,164 136,079 498,642 445,508
Gross profit
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
Operating expenses:
121,303 120,035 365,921 356,260
Selling and marketing
49,334 54,046 156,155 153,741
Research and development
33,821 40,471 105,315 124,557
General and administrative
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
204,458 214,552 627,391 634,558
Total operating expenses
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
Loss from operations (19,294 ) (78,473 ) (128,749 ) (189,050 )
Other expense, net (1,988 ) (13,281 ) (8,017 ) (33,270 )
Interest income, net 13,723 9,969 40,056 19,112
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
Loss before benefit for income taxes (7,559 ) (81,785 ) (96,710 ) (203,208 )
Benefit for income taxes (9,115 ) (24,150 ) (42,241 ) (68,132 )
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
Net income (loss) $ 1,556 $ (57,635 ) $ (54,469 ) $ (135,076 )
==================== ======= ==================== ==================== ======= ==================== ==================== ======== ==================== ==================== ======== ====================
Net income (loss) per common share:
$ 0.02 $ (0.89 ) $ (0.85 ) $ (2.09 )
Basic
$ 0.02 $ (0.89 ) $ (0.85 ) $ (2.09 )
Diluted
Weighted average shares outstanding:
63,508 64,796 63,844 64,622
Basic
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2024 June 30, 2023
------------------------------------------------------ --------------------------------------------------
(Dollars in Thousands, Except Share Data)
ASSETS
Current assets:
$ 177,592 $ 241,209
Cash and cash equivalents
140,469 122,789
Accounts receivable, net
378,914 367,539
Current contract assets, net
28,697 27,728
Prepaid expenses and other current assets
69,097 62,375
Receivables from related parties
-- 11,424
Prepaid income taxes
-------------------- -------------- -------------------- -------------------- ---------- --------------------
794,769 833,064
Total current assets
-------------------- -------------- -------------------- -------------------- ---------- --------------------
Property, equipment and leasehold improvements, net 16,414 18,670
Goodwill 8,329,499 8,330,811
Intangible assets, net 4,306,689 4,659,657
Non-current contract assets, net 528,282 536,104
Contract costs 21,049 15,992
Operating lease right-of-use assets 94,353 67,642
Deferred income tax assets 9,843 10,638
Other non-current assets 8,529 13,474
-------------------- -------------- -------------------- -------------------- ---------- --------------------
$ 14,109,427 $ 14,486,052
Total assets
==================== ============== ==================== ==================== ========== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
$ 9,876 $ 20,299
Accounts payable
81,842 99,526
Accrued expenses and other current liabilities
67,954 22,019
Due to related parties
13,698 12,928
Current operating lease liabilities
33,999 46,205
Income taxes payable
134,910 151,450
Current contract liabilities
-------------------- -------------- -------------------- -------------------- ---------- --------------------
342,279 352,427
Total current liabilities
-------------------- -------------- -------------------- -------------------- ---------- --------------------
Non-current contract liabilities 33,042 30,103
Deferred income tax liabilities 822,197 957,911
Non-current operating lease liabilities 81,361 55,442
Other non-current liabilities 19,726 19,240
Stockholders' equity:
7 6
Common stock, $0.0001 par value
Authorized--600,000,000 shares
Issued-- 65,255,754 and 64,952,868 shares
Outstanding-- 63,418,003 and 64,465,242 shares
13,259,100 13,194,028
Additional paid-in capital
(95,860 ) (41,391 )
Accumulated deficit
(4,999 ) 2,436
Accumulated other comprehensive (loss) income
(347,426 ) (84,150 )
Treasury stock, at cost -- 1,837,751 and 487,626 shares of common stock
-------------------- -------------- -------------------- -------------------- ---------- --------------------
12,810,822 13,070,929
Total stockholders' equity
-------------------- -------------- -------------------- -------------------- ---------- --------------------
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, Nine Months Ended March 31,
-------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------
2024 2023 2024 2023
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
(Dollars in Thousands)
Cash flows from operating activities:
Net income (loss) $ 1,556 $ (57,635 ) $ (54,469 ) $ (135,076 )
Adjustments to reconcile net loss to net cash provided by operating activities:
123,408 123,165 369,794 368,266
Depreciation and amortization
4,380 3,901 11,312 10,463
Reduction in the carrying amount of right-of-use assets
2,070 (1,033 ) 8,238 3,711
Net foreign currency losses (gains)
-- (10,821 ) -- (10,821 )
Realized gain on settlement of foreign currency forward contracts
12,907 22,843 45,817 64,020
Stock-based compensation
(44,260 ) (49,661 ) (138,470 ) (156,046 )
Deferred income taxes
5,884 716 9,269 3,944
Provision for uncollectible receivables
1,435 1,698 805 1,108
Other non-cash operating activities
Changes in assets and liabilities:
(12,214 ) 22,630 (22,923 ) (11,060 )
Accounts receivable
55,024 67,192 (2,902 ) (10,672 )
Contract assets
(2,145 ) (1,810 ) (5,204 ) (5,357 )
Contract costs
(4,173 ) (3,694 ) (11,281 ) (10,303 )
Lease liabilities
162 (6,536 ) (17,444 ) 27,641
Prepaid expenses, prepaid income taxes, and other assets
-- 25,135 -- 40,454
Liability from foreign currency forward contract
(3,286 ) (10,548 ) 5,972 (12,038 )
Accounts payable, accrued expenses, income taxes payable and other liabilities
(2,605 ) 5,494 (13,564 ) 17,416
Contract liabilities
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
138,143 131,036 184,950 185,650
Net cash provided by operating activities
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from investing activities:
(1,142 ) (1,671 ) (2,579 ) (4,515 )
Purchases of property, equipment and leasehold improvements
-- 10,821 -- 10,821
Proceeds from settlement of foreign currency forward contracts
-- 2,449 (8,273 ) (72,498 )
Payments for business acquisitions, net of cash acquired
249 (211 ) (272 ) (676 )
Payments for equity method investments
-- (18 ) (131 ) (347 )
Payments for capitalized computer software development costs
-- -- (12,500 ) --
Payments for asset acquisitions
-- (1,000 ) -- (1,000 )
Purchase of other assets
-------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(893 ) 10,370 (23,755 ) (68,215 )
Net cash (used in) provided by investing activities
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from financing activities:
7,294 5,937 15,214 31,542
Issuance of shares of common stock
(56,737 ) -- (243,066 ) --
Repurchases of common stock
(3,167 ) (2,708 ) (17,010 ) (14,406 )
Payment of tax withholding obligations related to restricted stock
-- -- -- (1,363 )
Deferred business acquisition payments
-- (264,000 ) -- (276,000 )
Repayments of amounts borrowed under term loan
(36,197 ) (35,621 ) 32,558 (5,749 )
Net transfers from (to) Parent Company
-- -- -- (2,375 )
Payments of debt issuance costs
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(88,807 ) (296,392 ) (212,304 ) (268,351 )
Net cash used in financing activities
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Effect of exchange rate changes on cash and cash equivalents (1,604 ) (4,366 ) (12,508 ) (12,073 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Increase (decrease) in cash and cash equivalents 46,839 (159,352 ) (63,617 ) (162,989 )
Cash and cash equivalents, beginning of period 130,753 446,088 241,209 449,725
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows
(Unaudited)
Three Months Ended March 31, Nine Months Ended March 31,
-------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------
2024 2023 2024 2023
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
(Dollars and Shares in Thousands, Except per Share Data)
Total expenses
------------------------------------------------------------
GAAP total expenses (a) $ 297,400 $ 308,351 $ 913,326 $ 912,585
Less:
(12,907 ) (22,843 ) (45,817 ) (64,020 )
Stock-based compensation (b)
(121,749 ) (121,639 ) (364,901 ) (363,960 )
Amortization of intangibles (c)
(945 ) (761 ) (815 ) (7,030 )
Acquisition and integration planning related fees
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Non-GAAP total expenses $ 161,799 $ 163,108 $ 501,793 $ 477,575
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(Loss) income from operations
------------------------------------------------------------
GAAP loss from operations $ (19,294 ) $ (78,473 ) $ (128,749 ) $ (189,050 )
Plus:
12,907 22,843 45,817 64,020
Stock-based compensation (b)
121,749 121,639 364,901 363,960
Amortization of intangibles (c)
945 761 815 7,030
Acquisition and integration planning related fees
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Non-GAAP income from operations $ 116,307 $ 66,770 $ 282,784 $ 245,960
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income (loss)
------------------------------------------------------------
GAAP net income (loss) $ 1,556 $ (57,635 ) $ (54,469 ) $ (135,076 )
Plus:
12,907 22,843 45,817 64,020
Stock-based compensation (b)
121,749 121,639 364,901 363,960
Amortization of intangibles (c)
945 761 815 7,030
Acquisition and integration planning related fees
-- 25,135 -- 40,454
Unrealized loss on foreign currency forward contract
-- (10,821 ) -- (10,821 )
Realized gain on foreign currency forward contract
Less:
(28,422 ) (32,776 ) (85,680 ) (95,666 )
Income tax effect on Non-GAAP items (d)
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Non-GAAP net income $ 108,735 $ 69,146 $ 271,384 $ 233,901
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Diluted income (loss) per share
------------------------------------------------------------
GAAP diluted income (loss) per share $ 0.02 $ (0.89 ) $ (0.85 ) $ (2.09 )
Plus:
0.20 0.35 0.71 0.98
Stock-based compensation (b)
1.91 1.87 5.68 5.59
Amortization of intangibles (c)
0.02 0.01 0.01 0.11
Acquisition and integration planning related fees
-- 0.39 -- 0.62
Unrealized loss on foreign currency forward contract
-- (0.17 ) -- (0.17 )
Realized gain on foreign currency forward contract
-- -- 0.01 0.02
Impact of diluted shares
Less:
(0.45 ) (0.50 ) (1.33 ) (1.47 )
Income tax effect on Non-GAAP items (d)
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Non-GAAP diluted income per share $ 1.70 $ 1.06 $ 4.23 $ 3.59
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Shares used in computing Non-GAAP diluted income per share 63,802 65,195 64,187 65,125
Three Months Ended March 31, Nine Months Ended March 31,
-------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------
2024 2023 2024 2023
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Free Cash Flow (2)
------------------------------------------------------------
Net cash provided by operating activities (GAAP) $ 138,143 $ 131,036 $ 184,950 $ 185,650
Purchases of property, equipment and leasehold improvements (1,142 ) (1,671 ) (2,579 ) (4,515 )
Payments for capitalized computer software development costs -- (18 ) (131 ) (347 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Free cash flow (2) (non-GAAP) $ 137,001 $ 129,347