Ansys Inc (NASDAQ:ANSS) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 08:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to ANSYS' Second Quarter 2020 Earnings Conference Call. With us today are Ajei Gopal, Chief Executive Officer; Maria Shields, SVP and Chief Financial Officer; and Annette Arribas, Senior Director, Global Investor Relations.
At this time, I would like to turn the call over to Ms. Arribas for some opening remarks. Please go ahead.
Good morning, everyone. Our earnings release, the related prepared remarks document and the link to our second quarter Form 10-Q have all been posted on the homepage of our Investor Relations website. They contain the key financial information and supporting data relative to our second quarter financial results and business update, as well as our Q3 and updated fiscal year 2020 outlook and the key underlying qualitative and quantitative assumptions.
I would like to remind everyone that in addition to any risks and uncertainties that we highlight during the course of this call, important factors that may affect our future results are discussed at length in our public filings with the SEC, all of which are also available via our website. We note, in particular, that uncertainty regarding the impact of the COVID-19 pandemic on our performance could cause actual results to differ materially from our projections. Additionally, the Company's reported results should not be considered an indication of future performance as there are risks and uncertainties that could impact our business in the future. These statements are based upon our view of the business as of today, and ANSYS undertakes no obligation to update any such information, unless we do so in a public forum.
During this call and in the prepared remarks, we'll be referring to non-GAAP financial measures, unless otherwise stated. A discussion of the various items that are excluded and a full reconciliation of GAAP to the comparable non-GAAP financial measures is included in this morning's earnings release materials and related Form 8-K.
I would now like to turn the call over to our CEO, Ajei Gopal, for his opening remarks. Ajei?
Ajei S. Gopal
Good morning, everyone, and thank you for joining us. Thanks to strong execution, ANSYS delivered Q2 revenue, operating margin and earnings that exceeded the high end of our guidance. Our Q2 results illustrate the close relationships we have built with our customers, which were important as the overwhelming majority of our business in Q2 was transacted remotely. That included two notable sales. First, we closed the largest total contract in our 50-year history at almost $100 million, with an existing customer in the automotive and ground transportation space. This customer is standardizing on ANSYS solutions for multi-physics, additive manufacturing, electrification and digital twin to develop great products faster and more affordably.
Our second notable deal was our largest new business professional agreement, which was driven by our flagships HFSS for electro-magnetics and LS-DYNA for explicit analysis. This $12 million agreement with a major high-tech company had been forecasted for the second half of the year. But based on the customer's evolving needs