| (in millions, except percentages) | FY 2019 | FY 2018 | % Change |
% Change
in Constant Currency | |||||||||
| ACV | $ | 1,461.8 | $ | 1,325.2 | 10 | % | 12 | % | |||||
| Operating cash flows | $ | 499.9 | $ | 485.0 | 3 | % | |||||||
ACV is a financial performance metric that Ansys introduced in 2018. The Company believes 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 2020 Financial Outlook
The Company's first quarter and fiscal year 2020 revenue and diluted earnings per share guidance is provided below. The Company is also providing its fiscal year 2020 guidance for ACV and operating cash flows. 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 and acquisition-related transaction costs.
First Quarter 2020 Guidance
The Company currently expects the following for the quarter ending March 31, 2020:
| (in millions, except per share data) | GAAP | Non-GAAP | |
| Revenue | $296.1 - $316.1 | $300.0 - $320.0 | |
| Diluted earnings per share | $0.43 - $0.59 | $0.75 - $0.88 | |
Fiscal Year 2020 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2020:
| (in millions, except per share data) | GAAP | Non-GAAP | |
| Revenue | $1,632.0 - $1,692.0 | $1,640.0 - $1,700.0 | |
| Diluted earnings per share | $4.36 - $5.02 | $6.19 - $6.71 | |
In the first quarter and fiscal year 2020 guidance reflected above, the expected impacts of non-GAAP adjustments associated with the acquisition accounting for deferred revenue are $3.9 million and $8.0 million, respectively.
| (in millions) |
Other Financial
Metrics |
| ACV | $1,605.0 - $1,650.0 |
| Operating cash flows | $500.0 - $530.0 |
Conference Call Information
Ansys will hold a conference call at
8:30 a.m. Eastern Time on February 27, 2020 to discuss fourth quarter and fiscal year results. The Company will provide its prepared remarks on the Company’s investor relations homepage and as an exhibit in its Form 8-K in advance of the call to provide stockholders and analysts with additional time and detail for analyzing its results in preparation for the conference call. The prepared remarks will not be read on the call, and only brief remarks will be made prior to the Q&A session. The Company will also post a complementary investor presentation titled "4Q 2019 Investor Presentation" that can be accessed by clicking Events & Presentations, then Presentations at
https://investors.ansys.com .
