| (in millions, except percentages) |
Q2 QTD
2019 |
Q2 QTD
2018 | % Change |
% Change
in Constant Currency | |||||||||
| ACV | $ | 326.1 | $ | 293.0 | 11 | % | 14 | % | |||||
| Operating cash flows | $ | 88.5 | $ | 111.1 | (20 | )% | |||||||
| (in millions, except percentages) |
Q2 YTD
2019 |
Q2 YTD
2018 | % Change |
% Change
in Constant Currency | |||||||||
| ACV | $ | 629.6 | $ | 586.9 | 7 | % | 10 | % | |||||
| Operating cash flows | $ | 240.1 | $ | 243.5 | (1 | )% | |||||||
ACV is a financial performance metric that we introduced in 2018. We believe this measure is an improved metric as compared to the historically provided bookings metric because it adjusts the sales bookings metric to reflect only the annual value of a contract and also adjusts to reflect the sales booking at the date of the contract inception or renewal. There is no GAAP measure comparable to ACV. ACV is composed of the following:
- the annualized value of maintenance and lease contracts with start dates or anniversary dates during the period, plus
- the value of perpetual license contracts with start dates during the period, plus
- the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
- the value of work performed during the period on fixed-deliverable services contracts.
Management's 2019 Financial Outlook
The Company's third quarter and fiscal year 2019 revenue and diluted earnings per share guidance is provided below. The revenue and diluted earnings per share guidance is provided on both a GAAP and non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, acquisition-related transaction costs and adjustments related to the transition tax associated with the Tax Cuts and Jobs Act.
Third Quarter 2019 Guidance
The Company currently expects the following for the quarter ending September 30, 2019:
| (in millions, except per share data) | GAAP | Non-GAAP | |
| Revenue | $318.4 - $338.4 | $320.0 - $340.0 | |
| Diluted earnings per share | $0.77 - $0.96 | $1.15 - $1.28 |
