ASPEN TECHNOLOGY Reports Positive Financial Results for Fourth Quarter of FY2023
August 25, 2023
☀️Earnings Overview
For the fourth quarter of FY2023, ASPEN TECHNOLOGY ($NASDAQ:AZPN) reported total revenue of USD 320.6 million, a 34.2% growth from the same quarter of the previous fiscal year. However, the company’s net income for this period was USD 27.3 million, which was 52.2% lower than the same quarter in the prior year. The period ended on June 30 2023.
Market Price
On Tuesday, ASPEN TECHNOLOGY reported positive financial results for the fourth quarter of fiscal year 2023. The stock opened at $178.2 and closed at $180.7, up by 1.2% from the prior closing price of $178.5. This news pushed the stock up to its highest level since early February.
Overall, the strong financial performance of ASPEN TECHNOLOGY demonstrates the Company’s strong capabilities in managing their operations and creating value for their shareholders. The stock’s rise is indicative of investors’ confidence in the Company’s performance and their potential to deliver even greater growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aspen Technology. More…
| Total Revenues | Net Income | Net Margin |
| 1.04k | -107.76 | -10.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aspen Technology. More…
| Operations | Investing | Financing |
| 299.21 | -107.32 | -383.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aspen Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.49k | 1.42k | 201.5 |
Key Ratios Snapshot
Some of the financial key ratios for Aspen Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.4% | 19.6% | -17.5% |
| FCF Margin | ROE | ROA |
| 28.0% | -0.9% | -0.8% |
Analysis
As GoodWhale we recently conducted an analysis of ASPEN TECHNOLOGY‘s wellbeing. Based on our Star Chart, we classified ASPEN TECHNOLOGY as a ‘gorilla’ type of company; one that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This type of company is likely to be attractive to certain types of investors who are seeking long-term value and stability. Our analysis revealed that ASPEN TECHNOLOGY has a high health score of 8/10 with regard to its cashflows and debt. This suggests that the company is capable to pay off debt and fund future operations. Further, ASPEN TECHNOLOGY is strong in asset and growth but only medium in profitability and weak in dividend. This information can help investors decide whether to invest in this company or not. More…
Peers
The company focuses on asset optimization software solutions for the process industries. Aspen Tech is a global provider of software and services that enable companies to optimize their assets and operations. Aspen Tech has over 30 years of experience in the process industries and offers a suite of software products and services that helps companies design, operate, and optimize their plants and processes. Aspen Tech’s products are used by a variety of industries, including oil & gas, chemicals, pharmaceuticals, food & beverage, power, and pulp & paper. The company’s competitors include Ramco Systems Ltd, Q4 Inc, Procore Technologies Inc.
– Ramco Systems Ltd ($BSE:532370)
Ramco Systems Ltd is a global enterprise software company that provides enterprise resource planning (ERP), enterprise asset management (EAM), and human capital management (HCM) solutions. The company has a market cap of 7.82 billion as of 2022 and a return on equity of -11.06%. The company’s products are used by organizations in a variety of industries, including aerospace and defense, automotive, banking and financial services, construction and engineering, consumer goods and retail, shipbuilding and offshore, and more.
– Q4 Inc ($TSX:QFOR)
Q4 Inc is a publicly traded company that provides enterprise software solutions. The company has a market capitalization of $143.79 million and a return on equity of -26.45%. Q4’s products are used by organizations to manage their websites, intranets, and extranets. The company’s software solutions are designed to help organizations improve communication, collaboration, and knowledge sharing.
– Procore Technologies Inc ($NYSE:PCOR)
Procore Technologies is a construction management software company that provides a cloud-based platform to help construction companies manage their projects, documents, and workers. The company has a market cap of $7.31 billion as of 2022 and a return on equity of -14.52%.
Summary
ASPEN TECHNOLOGY reported strong financial results for the fourth quarter of FY2023, with total revenue increasing 34.2% year-over-year. Despite this, the company experienced a 52.2% decrease in net income compared to the year prior. This suggests that long-term investors should pay close attention to the company’s cost structure and margins in order to identify potential risks and opportunities for improving profitability. In the short run, investors should also keep an eye on how the company is able to capitalize on the growth in revenue and whether or not they can maintain their competitive edge in the market.
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