Burlington, Massachusetts – Aspen Technology reported that their third quarter results were strong and that they surpassed consensus expectations in all metrics. The said company also continues to achieve encouraging customer usage patterns and demand is relatively healthy. This contributed to a quarter of healthy total contract value (TCV) growth, which was 15.4% year over year to 3% sequentially.
Aspen Technology’s strong quarterly performance was primarily because of ongoing software business and subscription growth. Aspen continues to increase customer demand and usage with the launch of aspenONE (8.5), their latest version of their product. In addition, the company experienced impressive growth in their small and mid-sized customer segments. This indicates that Aspen’s continued investment in internal sales force is paying great dividends.
Aspen Technology is confidently expecting that they will be able to sustain healthy demand, earnings, increased full-year revenue, and good cash flow. Considering this healthy demand, strong TCV growth, and shifting perpetual customers’ opportunities to subscribe, subscription fees that drives in cash flow, Aspen believes that their guidance remains conservative and they maintain stable buyers of their stock. Aspen’s dominant third quarter results, good market position, maintenance of customer penetration, and maintained TCV growth is promising great expectations in the coming years.