/ Other Performance Metrics
| (in millions, except percentages) | Q1 2022 | Q1 2021 | % Change | % Change in Constant Currency | |||||||
| ACV | $ | 344.1 | $ | 319.4 | 8 | % | 11 | % | |||
| Operating cash flows | $ | 210.9 | $ | 171.1 | 23 | % | |||||
ACV is a metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. ACV is composed of the following:
- the annualized value of maintenance and subscription 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 2022 Financial Outlook
The Company's second quarter and updated FY 2022 revenue, diluted earnings per share and ACV guidance is provided below. The Company is also updating its FY 2022 guidance for 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, acquisition-related transaction expenses and adjustments for the income tax effect of the excluded items.
This guidance is based on the Company's evaluation of factual information it has determined to be relevant and the application of certain assumptions made by the Company. Please refer to the Company's prepared remarks document for additional information regarding the Company's financial guidance, including its assumptions regarding overall business dynamics.
/
Second Quarter 2022 Guidance
The Company currently expects the following for the quarter ending June 30, 2022:
| (in millions, except percentages and per share data) | GAAP | Non-GAAP | |||||||||||||
| Revenue | $447.9 | - | $472.9 | $450.0 | - | $475.0 | |||||||||
| Revenue Growth Rate | 0.3 % | - | 5.9 % | (0.6 %) | - | 5.0 % | |||||||||
| Revenue Growth Rate — Constant Currency | 5.6 % | - | 11.2 % | 4.5 % | - | 10.1 % | |||||||||
| Diluted earnings per share | $0.80 | - | $1.03 | $1.46 | - | $1.64 | |||||||||
The difference between the GAAP and non-GAAP revenue guidance presented above is a result of the expected impact of the application of the fair value provisions applicable to the accounting for business combinations closed prior to 2022 in the amount of $2.1 million for the quarter ending June 30, 2022.
