ACV increased by 0.7% while constant currency ACV increased by 2.3%. The company expects double-digit fiscal year 2025 ACV growth. The current ACV growth was impacted by the timing of subscription lease license renewals.

The company has received clearances from multiple regulatory bodies, including the U.K. Competition and Markets Authority, for the proposed merger with Synopsys. This indicates progress towards completing the merger, which is expected to close in the first half of 2025.

As part of the regulatory approval process for the Synopsys merger, Ansys has entered into a definitive agreement to sell its PowerArtist RTL business to Keysight Technologies. This divestiture suggests a willingness to make concessions to secure regulatory approval for the larger merger.

Management highlights a continued focus on sales improvement activities, including sales hiring, pipeline building, productivity initiatives, and customer engagement activities. This indicates a proactive approach to driving revenue growth and improving sales performance.

The effective tax rate increased to 19.6% compared to 15.1% in the prior year. This increase was primarily due to a relative decrease in benefits related to stock-based compensation and research and development credits as compared to income before income tax provision.

The Chief Executive Officer and Chief Financial Officer have concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period. This provides assurance regarding the reliability of financial reporting.

The company acknowledges that the completion of the proposed transaction with Synopsys is subject to customary closing conditions, including regulatory approvals. This highlights the risk that the merger may be delayed or not completed, potentially impacting the company's future strategic direction.

The company identifies adverse conditions in the macroeconomic environment, including inflation and recessionary conditions, as well as political, economic, and regulatory uncertainties in various countries as potential risks. These factors could negatively impact customer demand and the company's financial performance.

The company acknowledges the risk of cybersecurity threats and data breaches, particularly with increased remote work and activity occurring from remote global off-site locations. These threats could disrupt operations, compromise data, and harm the company's reputation.

The report indicates that the engineering simulation software market is strong and growing, driven by customer needs for rapid innovation and cost efficiency. This positive market outlook supports the company's growth prospects.

Management states that the company addresses competition by focusing on expanding the breadth, depth, and quality of its software products, as well as investing in research and development. This indicates a commitment to maintaining a competitive edge through innovation.

The software business is characterized by long sales cycles, which increase the difficulty of predicting sales for any particular quarter. This highlights a challenge in forecasting revenue and managing investor expectations.

Operating expenses increased during the three months ended March 31, 2025, primarily due to increased personnel costs. This suggests potential pressure on profitability if revenue growth does not keep pace with expense increases.

The value and duration of multi-year subscription lease contracts significantly impact the recognition of revenue, leading to potential quarterly fluctuations. This highlights the importance of considering long-term contract trends rather than solely focusing on short-term results.

The company continues to focus on sales improvement activities across geographic regions, including sales hiring, pipeline building, productivity initiatives, and customer engagement activities. This indicates a proactive approach to improving operational efficiency and driving revenue growth.

The company has embraced five key technology pillars: numerics, high-performance computing (HPC), cloud, artificial intelligence (AI) and machine learning (ML), and digital engineering. Innovation across these pillars helps transform and modernize processes and techniques across the business.

The company's investments in AI capabilities across its simulation portfolio and technical support services enhance the customer experience, democratize and accelerate simulation, and unlock greater design exploration. This highlights the strategic importance of AI in the company's product development.

In high tech, customers are leveraging the company's solutions to optimize and analyze increasingly complex chip designs. Demand for leading-edge chip technologies remains strong as edge computing, Al and data centers proliferate.

Net cash used in investing activities decreased due to the purchase of an intangible asset in the first quarter of 2024. This suggests a shift in investment priorities compared to the previous year.

The company currently plans capital spending of $45.0 million to $55.0 million during fiscal year 2025. The level of spending will depend on various factors, including the growth of the business and general economic conditions.

Net cash used in financing activities increased due to decreased proceeds from shares issued for stock-based compensation and increased restricted stock withholding taxes paid in lieu of issuing shares. This suggests a change in equity-based compensation practices.

The 2022 Credit Agreement was amended to provide for an interest rate adjustment (Sustainability Rate Adjustment) based upon the achievement of certain environmental, social and governance key performance indicators (KPIs).

High-tech, aerospace & defense (A&D) and automotive continue to be the company's leading industries. In high tech, customers are leveraging the company's solutions to optimize and analyze increasingly complex chip designs.

Key industry trends fueling customers' increasing needs for simulation include: Electrification, Autonomy, Connectivity, The industrial internet of things (IIoT), and Digital transformation/shift to fully digital engineering ecosystem.

The company provides geographic revenue variances using actual and constant currency rates during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.