Arteris Inc (AIP) 2021 Q3 法說會逐字稿

Good morning, everyone, and welcome to the Arteris IP Third Quarter 2021 Earnings Call. For opening remarks and introductions, I will now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

大家早上好，歡迎參加 Arteris IP 2021 年第三季度收益電話會議。對於開場白和介紹，我現在將把電話轉給 Sapphire 投資者關係部的 Erica Mannion。請繼續。

Thank you, and good morning. With me today from Arteris IP are Charlie Janac, Chief Executive Officer; and Nick Hawkins, Chief Financial Officer. Charlie will begin with a brief review of the business results for the third quarter ended September 30, 2021. Nick will then review the financial results for the third quarter, followed by the company's outlook for the fourth quarter and full year of 2021. We will then open the call for questions.

謝謝你，早上好。今天和我在一起的是來自 Arteris IP 的首席執行官 Charlie Janac；和首席財務官尼克·霍金斯。查理將首先簡要回顧截至 2021 年 9 月 30 日的第三季度的業務業績。然後尼克將回顧第三季度的財務業績，然後是公司對 2021 年第四季度和全年的展望。我們將然後打開提問環節。

Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statements contained in our press release for a more complete description.

請注意，本次電話會議將包括前瞻性陳述，這些陳述涉及可能導致實際結果與管理層當前預期存在重大差異的風險和不確定性。我們鼓勵您查看我們新聞稿中包含的安全港聲明，以獲得更完整的描述。

All material contained in the webcast is the sole property and copyright of Arteris IP with all rights reserved. Please note, this presentation describes certain non-GAAP measures, including non-GAAP net loss and non-GAAP net loss per share, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe that they provide investors with the means of evaluating and understanding how the company's management evaluates the company's operating performance.

網絡廣播中包含的所有材料均為 Arteris IP 的專有財產和版權，保留所有權利。請注意，本演示文稿描述了某些非 GAAP 衡量標準，包括非 GAAP 淨虧損和非 GAAP 每股淨虧損，這些衡量標準並非根據美國 GAAP 制定。本演示文稿中介紹了非公認會計準則衡量標準，因為我們相信它們為投資者提供了評估和理解公司管理層如何評估公司經營業績的方法。

These non-GAAP measures should not be considered in isolation from, as substitutes for or superior to financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter ended September 30, 2021, press release may obtain a copy by visiting the Investor Relations section of the company's website.

這些非公認會計原則措施不應孤立地視為根據美國公認會計原則制定的財務措施的替代品或優於其。沒有截至 2021 年 9 月 30 日的季度新聞稿副本的聽眾可以通過訪問公司網站的投資者關係部分獲取副本。

Now I'd like to turn the call over to Charlie.

現在我想把電話轉給查理。

Thank you, Erica, and thanks, everyone, for joining us on the call this afternoon. We're excited to report our first quarter as a public company. I want to extend a special thanks to the Arteris IP team for their hard work and support during the IPO process. We are excited about this next step in our company's journey, notably, since Arteris IP is the first pure-play semiconductor IP company to go public on a major USA Stock Exchange in 19 years.

謝謝艾麗卡，也謝謝大家今天下午加入我們的電話會議。我們很高興報告我們作為上市公司的第一季度業績。我要特別感謝 Arteris IP 團隊在 IPO 過程中的辛勤工作和支持。我們對公司旅程的下一步感到興奮，特別是，因為 Arteris IP 是 19 年來第一家在美國主要證券交易所上市的純半導體 IP 公司。

I'll start this afternoon with a few highlights from the quarter. And then, because it is our first earnings call, I want to take some time to discuss our business and market opportunity as many of you may be new to the Arteris IP story.

今天下午我將首先介紹本季度的一些亮點。然後，因為這是我們的第一次財報電話會議，我想花一些時間討論我們的業務和市場機會，因為你們中的許多人可能對 Arteris IP 的故事不熟悉。

We reported a strong third quarter with GAAP revenue of $9 million, up 39% year-over-year. Demonstrating our continued momentum through the end of the third quarter of 2021, we have added 28 new system IP customers, marking the highest number of new customer additions in a 9-month period in company history.

我們公佈的第三季度業績強勁，GAAP 收入為 900 萬美元，同比增長 39%。截至 2021 年第三季度末，我們新增了 28 個系統 IP 客戶，創下公司歷史上 9 個月內新增客戶數量最多的紀錄，展現了我們持續的發展勢頭。

In the third quarter alone, the total number of active customers increased from 166 to 179 with new customer applications ranging from automotive to machine learning to consumer 5G wireless and data center SoCs with the highest number of customers creating new machine learning SoCs. This included 2 major automotive design wins for leading SoC projects, including 1 with BMW.

僅第三季度，活躍客戶總數就從 166 個增加到 179 個，新客戶應用範圍從汽車到機器學習，再到消費類 5G 無線和數據中心 SoC，其中創建新機器學習 SoC 的客戶數量最多。其中包括領先 SoC 項目的 2 項重大汽車設計勝利，其中 1 項是與 BMW 合作的。

We believe that our products are utilized in 70% to 80% of all automotive ADAS SoC projects. Geographically, the largest licensing regions for the quarter were EMEA, followed by China and then closely followed by USA. There were 22 customer design starts in the third quarter, continuing the strong trend and taking a total of 9 months ended September 30 to 65, our highest ever number in a 9-month period.

我們相信，我們的產品應用於所有汽車 ADAS SoC 項目的 70% 至 80%。從地理位置上看，本季度最大的授權地區是歐洲、中東和非洲地區，其次是中國，緊隨其後的是美國。第三季度有 22 個客戶設計啟動，延續了強勁的趨勢，截至 9 月 30 日至 65 日的 9 個月內，這是我們 9 個月以來的最高數字。

We saw a strong performance in the third quarter across all of our system IP application market segments with notable new license contracts in machine learning and automotive. In addition, we were especially encouraged by the acceleration of automotive royalties as car electrification and automated driving deployment continues to expand. We have made good progress on the integration of Magillem following the acquisition in November 2020 and are encouraged by the high renewal rates from our IP deployment software customers. Looking forward, we believe our market opportunity remains very attractive on a sustained basis.

我們在第三季度看到了所有系統 IP 應用細分市場的強勁表現，其中機器學習和汽車領域的新許可合同引人注目。此外，隨著汽車電氣化和自動駕駛部署的不斷擴大，汽車特許權使用費的加速增長尤其令我們感到鼓舞。自 2020 年 11 月收購 Magillem 以來，我們在整合方面取得了良好進展，並且對 IP 部署軟件客戶的高續訂率感到鼓舞。展望未來，我們相信我們的市場機會在持續的基礎上仍然非常有吸引力。

For those of you who are new to the story, let me tell you a little bit more about Arteris IP. We are a leading provider of semiconductor system IP that enables our customers to deliver increasingly complex SoCs that not only process data, but also able to make decisions. The growth in a number of connected on-chip IP blocks and subsystems places an increasing premium on the interconnect IP's capability to move data inside complex SoCs as well as our IP deployment technology's ability to automate important aspects of the SoC creation design flow. We believe this increase in SoC complexity is creating a significant opportunity for growth of our sophisticated system IP solutions.

對於那些不熟悉這個故事的人，讓我向您介紹一下有關 Arteris IP 的更多信息。我們是半導體系統 IP 的領先供應商，使我們的客戶能夠提供日益複雜的 SoC，這些 SoC 不僅可以處理數據，還能夠做出決策。互連片上 IP 模塊和子系統數量的增長使得互連 IP 在復雜 SoC 內移動數據的能力以及我們的 IP 部署技術實現 SoC 創建設計流程的重要方面自動化的能力變得越來越重要。我們相信 SoC 複雜性的增加為我們複雜的系統 IP 解決方案的發展創造了重要的機會。

Founded in 2003, we have pioneered and emerged as a global leader in the development of interconnect IP technology for on-chip communications that addresses the complexity, performance and cost requirements of advanced SoC semiconductors. Traditional on-chip communication methods such as hybrid buses are generally inadequate in handling communications within advanced semiconductors for sophisticated applications.

我們成立於 2003 年，是片上通信互連 IP 技術開發的先驅並成為全球領導者，該技術可滿足先進 SoC 半導體的複雜性、性能和成本要求。傳統的片上通信方法（例如混合總線）通常不足以處理複雜應用的先進半導體內的通信。

We leveraged our extensive technological expertise to develop a new method for on-chip communications to address these critical semiconductor development challenges. This method is called network-on-chip or NoC interconnect. By pioneering the use of proprietary networking techniques to remove the inherent architectural limitations of traditional on-chip communications, to improve ease of integration, performance silicon area and power consumption, we help our customers to achieve their design goals faster, easier and at lower R&D and SoC unit costs.

我們利用豐富的技術專業知識開發了一種新的片上通信方法，以應對這些關鍵的半導體開發挑戰。這種方法稱為片上網絡或NoC互連。通過率先使用專有網絡技術來消除傳統片上通信的固有架構限制，提高集成便利性、性能矽面積和功耗，我們幫助客戶更快、更輕鬆、以更低的研發成本實現其設計目標和SoC單位成本。

We're also a leading provider of IP deployment software, which enables our customers to more efficiently deploy their internally developed and commercially licensed semiconductor IP block libraries to accelerate creation of SoC-type semiconductors. Our IP deployment solutions complement our interconnect IP solutions by helping to automate not only the customer configuration of interconnect IPs, but also the process of integrating and assembling all of the customers' IP blocks into an SoC.

我們還是 IP 部署軟件的領先提供商，使我們的客戶能夠更有效地部署其內部開發和商業許可的半導體 IP 模塊庫，以加速 SoC 類型半導體的創建。我們的 IP 部署解決方案補充了我們的互連 IP 解決方案，不僅幫助客戶實現互連 IP 的配置自動化，而且還幫助實現將客戶的所有 IP 塊集成和組裝到 SoC 中的過程自動化。

Products incorporating our IP are used to carry critical data inside complex SoCs for sophisticated applications, including automated driving, artificial intelligence, machine learning, 5G and wireless communications, data centers and consumer electronics, among other applications. IP deployment software together with our NoC interconnect IP and several NoC interface IPs that improve SoC data flow performance make up the system IP market segment.

包含我們 IP 的產品用於在復雜的 SoC 內傳輸關鍵數據，以實現複雜的應用，包括自動駕駛、人工智能、機器學習、5G 和無線通信、數據中心和消費電子產品等。 IP 部署軟件與我們的 NoC 互連 IP 和多個可提高 SoC 數據流性能的 NoC 接口 IP 一起構成了系統 IP 細分市場。

We work directly with our customers throughout the SoC development process and seek to develop long-term sustainable relationships with them as our technology becomes embedded in their products and processes. We also leverage our long history in interconnect IP design and are able to serve a broad range of applications and deliver customer-specific features that are useful to other customers.

我們在整個 SoC 開發過程中直接與客戶合作，並在我們的技術嵌入到他們的產品和流程中時尋求與他們建立長期可持續的關係。我們還利用我們在互連 IP 設計方面的悠久歷史，能夠為廣泛的應用提供服務，並提供對其他客戶有用的特定於客戶的功能。

For example, in the third quarter, we announced Aeva Technologies, an innovator in 4-dimensional LiDAR, is our 200th customer in Arteris IP history, and Vayyar, a leader in innovative automotive radar systems. The 200th customer milestone quickly follows the company's announcement of its 150th customer in November 2020 and its 100th customer in 2018, reflecting Arteris' rapid growth as semiconductor design teams license the company's technologies to speed development and increase performance of SoCs.

例如，在第三季度，我們宣布 4 維 LiDAR 創新者 Aeva Technologies 是我們在 Arteris IP 歷史上的第 200 個客戶，而 Vayyar 是創新汽車雷達系統的領導者。繼該公司於2020 年11 月宣布其第150 個客戶和2018 年宣布其第100 個客戶之後，很快就迎來了第200 個客戶里程碑，這反映出Arteris 隨著半導體設計團隊授權該公司的技術以加速開發並提高SoC 性能而快速增長。

Specific to Aeva, they chose Arteris IP on-chip interconnect technology as part of their proprietary digital processing chip because our technology complements Aeva's high standards for functional safety. In addition, the Arteris IP interconnect technology increases digital processing chip performance by optimizing on-chip communications for high-bandwidth and low-latency data flows, including state-of-the-art quality of service, or QoS, techniques.

具體到 Aeva，他們選擇 Arteris IP 片上互連技術作為其專有數字處理芯片的一部分，因為我們的技術補充了 Aeva 的功能安全高標準。此外，Arteris IP互連技術通過優化高帶寬和低延遲數據流的片上通信（包括最先進的服務質量或QoS技術）來提高數字處理芯片的性能。

Within the artificial intelligence machine learning market, in the third quarter, we also announced that the imaging SoC leader, Eyenix, licensed FlexNoC interconnect IP for its next-generation image processing SoC. Eyenix chose Arteris' IP on-chip interconnect technology as part of their proprietary image processing chip because it enables them to design and integrate a complete and superior imaging solution without dependency on external IP blocks for the machine learning function.

在人工智能機器學習市場，第三季度，我們還宣布成像 SoC 領導者 Eyenix 為其下一代圖像處理 SoC 授權 FlexNoC 互連 IP。 Eyenix 選擇 Arteris 的 IP 片上互連技術作為其專有圖像處理芯片的一部分，因為該技術使他們能夠設計和集成完整且卓越的成像解決方案，而無需依賴外部 IP 模塊來實現機器學習功能。

In addition, the Arteris IP interconnect increases image processing chip performance by optimizing on-chip communication for high-bandwidth and low-latency data flows using state-of-the-art quality of service techniques. Our technology also provides opportunities for our customers to reduce power consumption in battery-operated applications.

此外，Arteris IP互連通過使用最先進的服務質量技術優化高帶寬和低延遲數據流的片上通信來提高圖像處理芯片的性能。我們的技術還為客戶提供了降低電池供電應用功耗的機會。

To ensure we stay at the forefront of technology innovation for these and other opportunities, we intend to continue ramping up our investments in the next-generation product offering. As an example of this, we recently announced the launch of Arteris Harmony Trace Design Data Intelligence Solution to ease compliance with the semiconductor industry functional safety and quality standards.

為了確保我們在這些和其他機會中保持在技術創新的前沿，我們打算繼續加大對下一代產品的投資。舉個例子，我們最近宣布推出 Arteris Harmony Trace 設計數據智能解決方案，以輕鬆遵守半導體行業功能安全和質量標準。

The design teams with functional safety requirements are creating complex SoCs or systems. Arteris Harmony Trace increases system quality and the ability to achieve functional safety certification by creating and maintaining traceability between disparate systems for requirements, specification, hardware design, software code, test and documentation so that engineers will know immediately when a change occurs and the effect of that change on other design artifacts [and part of] the system.

具有功能安全要求的設計團隊正在創建複雜的 SoC 或系統。 Arteris Harmony Trace 通過在不同系統之間創建和維護需求、規範、硬件設計、軟件代碼、測試和文檔的可追溯性，提高系統質量和實現功能安全認證的能力，以便工程師能夠立即知道何時發生變更以及變更的影響。系統其他設計工件[和部分]的變化。

The development of Harmony Trace was driven by our customers' needs to establish an automated traceability flow and implement change management best practices between their existing requirements, specification, their electronic design automation tool suite, their code -- software code repository and documentation tools. Harmony Trace allows our customers to use their existing tools and automatically link data between them due to Harmony Trace's unique semiconductor industry-specific semantic computing technology.

Harmony Trace 的開發是由客戶的需求驅動的，即建立自動化的可追溯性流程，並在其現有需求、規範、電子設計自動化工具套件、代碼（軟件代碼存儲庫和文檔工具）之間實施變更管理最佳實踐。由於 Harmony Trace 獨特的半導體行業特定語義計算技術，Harmony Trace 允許我們的客戶使用他們現有的工具並自動鏈接它們之間的數據。

As we look at the multitude of both captive and greenfield system IP opportunities in the market, we estimate that our TAM will expand to an estimated $3.2 billion in 2026 or $1.1 billion in 2020, driven by an increasing number of SoC design wins and growing complexity, increasing average selling prices of interconnect IP and IP deployment software and our move deeper into the NoC interface IP market.

當我們審視市場上眾多的自有和新建系統IP 機會時，我們預計，在SoC 設計獲勝數量不斷增加和復雜性不斷增加的推動下，我們的TAM 將在2026 年擴大到約32 億美元，到2020 年將擴大到11 億美元，提高互連 IP 和 IP 部署軟件的平均銷售價格，以及我們更深入地進入 NoC 接口 IP 市場。

More specifically, we believe our growth will be driven by technology trends requiring more sophisticated on-chip processing in automotive, machine learning, 5G and wireless communications, data center and consumer electronic markets. Also, the need for sophisticated system IP products is growing rapidly in order to address the requirements of smaller die size, lower power consumption and higher operation frequencies as well as management of critical net latencies in a timely and cost-effective manner.

更具體地說，我們相信我們的增長將受到汽車、機器學習、5G 和無線通信、數據中心和消費電子市場需要更複雜的片上處理的技術趨勢的推動。此外，為了滿足更小芯片尺寸、更低功耗和更高工作頻率以及及時且經濟高效地管理關鍵網絡延遲的要求，對複雜系統 IP 產品的需求正在迅速增長。

There are also structural growth factors such as regionalization of the semiconductor industry, more system houses building their own custom or partner customized silicon and the lengthening of the semiconductor supply chain which favors our IP deployment software. As a result, we believe these trends have led to an increased economic benefit of in-licensing of system IP and, in fact, all commercial semiconductor IP.

還有結構性增長因素，例如半導體行業的區域化、更多的系統公司構建自己的定製或合作夥伴定制的芯片以及半導體供應鏈的延長，這有利於我們的 IP 部署軟件。因此，我們相信這些趨勢已經導致系統 IP 乃至所有商業半導體 IP 許可的經濟效益增加。

This is an exciting time to be at Arteris IP. Looking ahead, we recognize that our IPO is just one step on the journey of our company. While we're excited to have achieved this milestone, we have much more to do. we look forward to continuing our momentum in the years ahead and updating all of you in the quarters to come.

對於 Arteris IP 來說，這是一個激動人心的時刻。展望未來，我們認識到，首次公開募股只是我們公司發展歷程中的第一步。雖然我們很高興實現這一里程碑，但我們還有很多事情要做。我們期待在未來幾年繼續保持我們的勢頭，並在未來幾個季度向大家通報最新情況。

With that, I'll turn it over to Nick to discuss our financial results in more detail.

接下來，我將把它交給尼克，更詳細地討論我們的財務業績。

Thank you, Charlie, and good afternoon, everyone. As I review our third quarter results today, please note that I'll be referring to non-GAAP metrics. A reconciliation of GAAP to non-GAAP metrics is included in today's earnings release, which is available on our website.

謝謝你，查理，大家下午好。當我今天回顧第三季度業績時，請注意，我將指的是非 GAAP 指標。 GAAP 與非 GAAP 指標的調節包含在今天的收益發布中，可在我們的網站上查看。

Given this is our first call as a public company, I want to start by sharing some perspectives about our business model and financial profile. Then I'll walk through financial highlights for the third quarter. And finally, I'll close with guidance for the fourth quarter and the full year before we open up the call for questions.

鑑於這是我們作為一家上市公司的第一次電話會議，我想首先分享一些關於我們的商業模式和財務狀況的觀點。然後我將介紹第三季度的財務亮點。最後，在我們開始提問之前，我將介紹第四季度和全年的指導。

Our revenue is derived from licensing intellectual property, licensing software, support and maintenance service, professional services, training services and royalties. Our interconnect IP solutions include software licenses, services, software updates and technical support. We enter into licensing agreements with customers that typically range from 2 to 3 years and generally consist of delivery of a design license that grants the customer the right to use the IP license to design a contractually defined number of products and stand-ready support services that provides a customer with our application engineer support services.

我們的收入來自許可知識產權、許可軟件、支持和維護服務、專業服務、培訓服務和特許權使用費。我們的互連 IP 解決方案包括軟件許可、服務、軟件更新和技術支持。我們與客戶簽訂的許可協議通常為 2 至 3 年，通常包括交付設計許可，授予客戶使用 IP 許可設計合同規定數量的產品和現成支持服務的權利，為客戶提供我們的應用工程師支持服務。

While revenue derived from our interconnect IP license agreements is typically recognized ratably over the duration of the license agreement, customers typically pay fees either shortly after signing their agreements with us or at the start of each year following the design license term, allowing our cash flow to run ahead of revenue recognition.

雖然來自我們的互連 IP 許可協議的收入通常在許可協議期間按比例確認，但客戶通常在與我們簽署協議後不久或在設計許可期限後的每年年初支付費用，從而允許我們的現金流提前確認收入。

In conjunction with our interconnect IP licensing agreements, when products incorporating our IP are sold, we generate royalty revenue. Royalty revenues are recognized during the quarter, which customer and shipments occur and are calculated either as a percentage of customer chip ASP or on a per-unit basis as specified in a license agreement.

結合我們的互連 IP 許可協議，當銷售包含我們 IP 的產品時，我們會產生特許權使用費收入。特許權使用費收入在客戶和發貨發生的季度內確認，並按客戶芯片平均售價的百分比或許可協議中指定的按單位計算。

Our deployment solutions include software licenses, software updates and technical support. The software licenses are time-based licenses with terms generally ranging from 1 to 3 years. Revenue allocated to software licenses are generally recognized at a point in time upon the later of the delivery date or the beginning of the license period or on a token basis. And revenue allocated to support services is recognized ratably over the support term.

我們的部署解決方案包括軟件許可、軟件更新和技術支持。軟件許可證是基於時間的許可證，期限通常為 1 至 3 年。分配給軟件許可證的收入通常在交付日期或許可證期開始時（以較晚者為準）的某個時間點或以像徵性的方式確認。分配給支持服務的收入在支持期內按比例確認。

Given the variation in revenue recognition methodologies between our product offerings, as a management team, we focus on annual contract value, or ACV, as a leading indicator of financial performance. We define ACV for an individual customer agreement as the total fixed fees under the agreement, also referred to as the total contract value, or TCV, divided by the number of years in the agreement term. As this calculation does not include the contributions from royalty payments, we also refer to ACV plus trailing 12-month royalties as a metric which provides a more complete picture of our total revenue proxy. We monitor this metric to measure our success and believe that the historical increase shows our progress in expanding our customers' adoption of our platform.

鑑於我們提供的產品之間的收入確認方法存在差異，作為管理團隊，我們重點關注年度合同價值 (ACV)，將其作為財務業績的領先指標。我們將個人客戶協議的 ACV 定義為協議下的總固定費用，也稱為總合同價值或 TCV，除以協議期限的年數。由於此計算不包括特許權使用費的貢獻，因此我們還參考 ACV 加上過去 12 個月的特許權使用費作為指標，以更全面地了解我們的總收入代理。我們監控這一指標來衡量我們的成功，並相信歷史增長表明我們在擴大客戶對我們平台的採用方面取得了進展。

Moving on to our quarterly results. ACV plus trailing 12-month royalties and other revenue as of September 30 was $45.6 million, up 21% year-over-year on a pro forma basis, including Magillem, driven, in particular, by growth in automotive and machine learning applications and up 4% quarter-over-quarter. Total revenue for the third quarter was $9.0 million, up 39% year-over-year, while remaining performance obligations, or RPO, were $50.6 million, up 48% year-over-year.

接下來是我們的季度業績。截至9 月30 日，ACV 加上過去12 個月的特許權使用費和其他收入為4560 萬美元，預計同比增長21%，其中包括Magillem，這主要是受到汽車和機器學習應用程序及以上增長的推動環比增長 4%。第三季度總收入為 900 萬美元，同比增長 39%，而剩餘履約義務 (RPO) 為 5060 萬美元，同比增長 48%。

Gross profit in the quarter was $8.1 million, representing a gross margin of 90% compared to $6.2 million in the year-ago period. The high gross profit for the quarter was primarily attributed to the increase in licensing and support revenue, partially offset by lower royalty revenues from the significant reduction of shipments from our customer, HiSilicon.

本季度毛利潤為 810 萬美元，毛利率為 90%，而去年同期為 620 萬美元。本季度的高毛利潤主要歸因於許可和支持收入的增加，部分被我們的客戶海思出貨量大幅減少導致的特許權使用費收入減少所抵消。

R&D expense for the third quarter was $7.6 million, or 85% of revenue, compared to 62% in the year-ago period. The increase was driven by additional development costs and then additional head count and payroll expense as we continue to invest in new and improved product offerings.

第三季度的研發費用為 760 萬美元，佔收入的 85%，而去年同期為 62%。這一增長是由額外的開發成本以及隨著我們繼續投資於新的和改進的產品而增加的人員數量和工資支出推動的。

Sales and marketing expense for the third quarter was $3.2 million, or 36% of revenue, roughly in line with the year-ago period. We intend to continue to invest in sales and marketing as we continue to drive awareness in the market and expand our sales and application engineering forces and marketing efforts to capture the significant opportunity in front of us.

第三季度的銷售和營銷費用為 320 萬美元，佔收入的 36%，與去年同期大致持平。我們打算繼續投資於銷售和營銷，繼續提高市場意識，擴大我們的銷售和應用工程力量以及營銷力度，以抓住我們面前的重大機遇。

G&A expense for the third quarter was $1.7 million, or 19% of revenue, compared to 40% in the year-ago period. G&A reflects an increase in people and infrastructure-related expenses associated with our public company ready efforts, offset by a reduction in professional fees associated with our IPO.

第三季度的一般管理費用為 170 萬美元，佔收入的 19%，而去年同期為 40%。一般行政費用反映了與我們上市公司準備工作相關的人員和基礎設施相關費用的增加，但被與我們 IPO 相關的專業費用的減少所抵消。

GAAP operating loss for the third quarter was $4.5 million, or 50% of revenue, increasing from a loss of $2.6 million, or 41% of revenue, in the year-ago period. Non-GAAP operating loss was $4.0 million, or 44% of revenue, increasing from a loss of $2.4 million, or 37% of revenue, in the year-ago period.

第三季度 GAAP 運營虧損為 450 萬美元，佔收入的 50%，高於去年同期的虧損 260 萬美元，佔收入的 41%。非 GAAP 運營虧損為 400 萬美元，佔收入的 44%，高於去年同期的虧損 240 萬美元，佔收入的 37%。

GAAP net loss in the quarter was $5.0 million or net loss per share of $0.24. Non-GAAP net loss for the quarter was $4.4 million or net loss per share of $0.21 based on approximately 20.6 million weighted average diluted shares outstanding.

本季度 GAAP 淨虧損為 500 萬美元，每股淨虧損為 0.24 美元。根據約 2,060 萬股加權平均稀釋後流通股計算，本季度非 GAAP 淨虧損為 440 萬美元，每股淨虧損為 0.21 美元。

Turning to the balance sheet and the cash flow. We ended the quarter with $11.2 million in cash. Cash flow from operations was a usage of $2.5 million in the quarter, while free cash flow includes capital expenditure with a usage of $2.6 million. Subsequent to the quarter end, we closed our initial public offering, resulting in net proceeds of $71.1 million.

轉向資產負債表和現金流量。本季度結束時，我們擁有 1120 萬美元現金。本季度運營現金流使用量為 250 萬美元，而自由現金流包括資本支出，使用量為 260 萬美元。季度末後，我們完成了首次公開募股，淨收益為 7110 萬美元。

I would now like to turn to our outlook for the fourth quarter and the full year 2021. For the fourth quarter, we expect ACV plus trailing 12-month royalties of $48.5 million to $50.0 million and revenue of $10.0 million to $11.1 million with non-GAAP operating loss margin of 32% to 54% and non-GAAP free cash flow margin of negative 37% to negative 52%. For the full year, we expect revenue of $36.3 million to $37.5 million with non-GAAP operating loss margin of 40% to 50% and non-GAAP free cash flow margin of negative 20% to negative 35%.

我現在想談談我們對第四季度和2021 年全年的展望。對於第四季度，我們預計ACV 加上過去12 個月的特許權使用費為4850 萬美元至5000 萬美元，非非收入收入為1000 萬美元至1110 萬美元。 GAAP 運營虧損率為 32% 至 54%，非 GAAP 自由現金流率為負 37% 至負 52%。我們預計全年營收為 3630 萬美元至 3750 萬美元，非 GAAP 運營虧損率為 40% 至 50%，非 GAAP 自由現金流利潤率為負 20% 至負 35%。

With that, I would like to open up the call to questions. Operator?

至此，我想開始提問。操作員？

(Operator Instructions) Our first question is from Mark Lipacis with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Mark Lipacis。

Congrats on the first quarter out of the blocks here. I had a couple of questions. Charlie, maybe for you. Could you talk about the process you undergo for adding new customers? What do you have to do to convince them? How long does it take to convert somebody who's never used your IP before? And has becoming a public company, has it helped that process?

恭喜第一季度的表現。我有幾個問題。查理，也許適合你。您能談談您添加新客戶的過程嗎？你需要做什麼才能說服他們？轉換以前從未使用過您的 IP 的人需要多長時間？成為上市公司對這一過程有幫助嗎？

Yes. I think it has definitely helped. One of the reasons for going public was to reassure the market that we are going to be a long-term, sustainable company and that we were not interested in being bought, right? So the market was really afraid that we were going to go away the way some of the other competitors that we had due to acquisitions. So that helped a lot.

是的。我認為這肯定有幫助。上市的原因之一是向市場保證我們將成為一家長期、可持續發展的公司，並且我們對被收購不感興趣，對嗎？因此，市場真的擔心我們會像其他一些競爭對手一樣因收購而消失。所以這很有幫助。

In terms of the process, it's actually shortening, I would say. So usually, you go through the usual demonstration, evaluation and then basically license negotiation and then closure. And that typically takes, I would say, there's a range on that, right? But I would say 4 to 5 months is a typical cycle with sort of the outliers being as short as a couple of weeks. In one of the few cases, we just laugh about it, it's taken 10 years. So -- but I would say 4 to 5 months is what that process takes, and the IPO has definitely helped.

就流程而言，我想說，它實際上正在縮短。所以通常情況下，你會經歷通常的演示、評估，然後基本上是許可談判，然後關閉。我想說，這通常需要一個範圍，對吧？但我想說 4 到 5 個月是一個典型的周期，有些異常值短至幾週。在為數不多的一個案例中，我們只是一笑置之，這花了10年的時間。所以，但我想說這個過程需要 4 到 5 個月的時間，而 IPO 肯定有所幫助。

Got you. That's helpful. And once you win a customer, once you break in and you have a successful program there, would you expect the customer to embrace your technology broadly for other projects? And I guess maybe another way to ask the question is, you've articulated the benefits of using your IP as time to market, lower cost, lower risk. Are there other benefits for the company to reuse your IP -- to reuse it once they've used it once for, I don't know, maybe continuity of their own product portfolio?

明白你了。這很有幫助。一旦你贏得了客戶，一旦你闖入並在那裡有了一個成功的項目，你會期望客戶在其他項目中廣泛採用你的技術嗎？我想也許問這個問題的另一種方式是，你已經闡明了使用你的知識產權的好處，如上市時間、更低的成本、更低的風險。公司重用你的知識產權是否還有其他好處——一旦他們使用過它一次，我不知道，也許他們自己的產品組合的連續性就重用它？

Yes. I mean -- yes, I mean, Mark, this is a sticky technology, right? So once you break in and once you're successful, the customer has a track record of reusing the technology on subsequent projects. We have some restrictions about what we can disclose. But one of the customers that allow us to disclose this is essentially Mobileye where we've been essentially in 5 generations of projects spanning 11 years, right? So those are -- we aim to foster those kinds of relationships. And for us, the initial license deal is really presales for the next deals.

是的。我的意思是——是的，我的意思是，馬克，這是一項粘性技術，對嗎？因此，一旦您進入並取得成功，客戶就會擁有在後續項目中重複使用該技術的記錄。我們對可以披露的內容有一些限制。但允許我們披露這一點的客戶之一本質上是 Mobileye，我們基本上已經參與了 11 年的 5 代項目，對吧？所以，我們的目標是培養這種關係。對於我們來說，最初的許可交易實際上是下一筆交易的預售。

What we typically see is that we get used on the complex projects where the customer has some -- traditionally some difficulties with alternative technologies. And then as they realize how productive our products are and our methodology is, then they expand it to their less complex products in order to get the acceleration of essentially SoC generation across the entire portfolio.

我們通常看到的是，我們習慣於復雜的項目，而客戶在傳統上對替代技術有一些困難。然後，當他們意識到我們的產品和方法有多高效時，他們會將其擴展到不太複雜的產品，以便在整個產品組合中加速 SoC 的生成。

So yes, we have to be very, very careful not just to have great, high-quality products, but also to have very strong customer support that makes it easy for the customer to use us on subsequent projects.

所以，是的，我們必須非常非常小心，不僅要擁有出色、高質量的產品，還要擁有非常強大的客戶支持，使客戶能夠輕鬆地在後續項目中使用我們。

Our next question is from Matt Ramsay with Cowen.

我們的下一個問題來自馬特·拉姆齊和考恩。

Guys, congratulations on the first quarter out of the gate. And congrats, Charlie, for getting through that script without fluffing in your lines at all. That was quite an accomplishment.

伙計們，祝賀第一季度的成功。恭喜查理，你完全沒有把台詞搞砸，順利完成了劇本。這是一項相當大的成就。

The -- my first question is sort of a bigger picture one. And the way that my team has sort of characterized the opportunity in front of Arteris in the automotive market and in the AI/machine learning market is a comparison back to, I don't know, 2009 through 2011 when a whole bunch of companies that were designing chips for mobile phones were faced with the smartphone inflection and needed to then design SoCs and needed on-chip interconnect to do that. And that was sort of the first phase of Arteris the company and the big inflection.

我的第一個問題是一個更大的問題。我的團隊對 Arteris 在汽車市場和人工智能/機器學習市場中面臨的機會進行了某種程度的比較，我不知道，2009 年到 2011 年，當時一大群公司設計手機芯片時面臨著智能手機的變化，需要設計SoC，並需要片上互連來實現這一目標。這就是 Arteris 公司的第一階段和重大轉變。

And where we're at now is, it seems like in the automotive industry, a bunch of companies that are designing microcontrollers need to design SoCs, and some of the auto companies themselves are designing chips for the first time. And in the AI market, you either have big cloud companies that are starting up chip design projects internally or you have new start-ups in AI that all of those companies don't have the interconnect teams.

我們現在的情況是，在汽車行業，很多設計微控制器的公司需要設計SoC，而一些汽車公司本身正在第一次設計芯片。在人工智能市場中，要么有正在內部啟動芯片設計項目的大型雲公司，要么有新的人工智能初創企業，但所有這些公司都沒有互連團隊。

Am I articulating the inflections that are driving opportunities for your company correctly? And if -- and maybe, Charlie, if you could comment on that a little bit, I'd appreciate it.

我是否正確地闡明了為貴公司帶來機遇的變化？如果——也許，查理，如果你能對此發表一點評論，我將不勝感激。

Yes. I mean the smartphone SoC inflection was that you had architectures, there are many to many communication, right, instead of the simpler ones where you had many initiatives to a single target, which was the memory. The inflection point we're dealing with now is that these chips are allowed not to just process data, but they are actually allowed to make decisions, and that requires a much greater data traffic complexity. So those kinds of chips use much larger number of system IP products. They are more complex to design. So you essentially have to use productivity and automation to fight the growing complexity.

是的。我的意思是，智能手機 SoC 的變化是你有架構，有多對多的通信，對吧，而不是更簡單的架構，你對單個目標（即內存）有很多主動性。我們現在面臨的拐點是，這些芯片不僅可以處理數據，而且實際上可以做出決策，這需要更大的數據流量複雜性。因此這些類型的芯片使用了更多數量的系統IP產品。它們的設計更加複雜。因此，您本質上必須利用生產力和自動化來應對日益增長的複雜性。

So the current inflection is that these SoCs are making decisions, and that's driving our business both today and in the future. And basically, the car is -- one way to characterize the car of today and the near future is basically a power-constrained server on wheels, right? And so the mechanics are becoming less important, and the software and electronics are becoming more important, and that's essentially driving the industry to put more and more SoCs inside the car, including SoCs that they are able to make some decisions.

因此，當前的變化是這些 SoC 正在做出決策，這將推動我們今天和未來的業務。基本上，汽車是一種描述當今和不久的將來汽車的一種方式，基本上是一個帶輪子的功率受限的服務器，對吧？因此，機械結構變得不那麼重要，而軟件和電子設備變得更加重要，這從本質上推動了行業將越來越多的 SoC 放入汽車中，包括能夠做出一些決策的 SoC。

Got it. That makes a lot of sense. As my follow-up question, I'd be remiss if I didn't ask about BMW, since you brought it up in the prepared script. If you could give us some sort of characterization of that customer now that you're talking about the design wins that you have, is this for one chip or one program that they're doing? Was it -- or is it broader than that? Is it something that was led by the NoC IP or maybe the design services parts of your business? If you could characterize the scope of that engagement, that would be helpful.

知道了。這很有意義。作為我的後續問題，如果我不問寶馬，那就是我的失職，因為你在準備好的腳本中提到了它。既然您正在談論您所擁有的設計勝利，如果您能給我們提供該客戶的某種特徵，這是針對他們正在做的一種芯片還是一種程序？是——還是比這更廣泛？它是由 NoC IP 主導的還是由您業務的設計服務部分主導的？如果您能夠描述該參與的範圍，那將會很有幫助。

Yes. So we actually -- to follow up on sort of Mark's question, we typically do break in on 1 project, right, initially. So this definitely is 1 project. We're not allowed to say what it's for, except to say that it's for a car. But the bigger picture here is that the car companies have lost control of their architectures, right? They were relying on Tier 1s to give them subsystems, which they assembled. And technologically, those systems really haven't changed a whole lot in decades, at least. They've been improved, but structurally, they really haven't changed.

是的。因此，實際上，為了跟進馬克的問題，我們通常會首先介入一個項目，對吧。所以這絕對是 1 個項目。我們不能透露它的用途，只能說它是用於汽車的。但更大的情況是汽車公司已經失去了對其架構的控制，對吧？他們依靠一級供應商提供子系統，然後進行組裝。從技術上講，這些系統至少幾十年來確實沒有發生太大變化。它們得到了改進，但從結構上來說，它們確實沒有改變。

Now the architecture of the entire car is being revolutionized, partially forced by Tesla. And so the car companies are now in a fairly aggressive mode in getting back the control of the architecture of the car. So I don't think BMW is unique, in that many of the ride-sharing companies and many of the car companies are going to get involved either in building IPs, building -- at least defining the architectures together with semiconductor partners so they can get customized chips for their software architectures, or in some cases, they will build SoCs themselves.

現在整個汽車的架構正在發生革命性的變化，部分是受到特斯拉的推動。因此，汽車公司現在正以相當積極的方式奪回汽車架構的控制權。因此，我不認為寶馬是獨一無二的，因為許多乘車共享公司和許多汽車公司將參與構建 IP，至少與半導體合作夥伴一起定義架構，以便他們能夠獲得適合其軟件架構的定制芯片，或者在某些情況下，他們將自己構建SoC。

And so this, again, is something new and something of an inflection point. And BMW is just one example that where BMW was kind enough to allow us to say who they are, but there are others.

因此，這又是一個新事物，也是一個拐點。寶馬只是其中一個例子，寶馬很友善地允許我們說出他們是誰，但還有其他例子。

Got it. Very clear. Congrats on the early success.

知道了。非常清楚。祝賀您早日取得成功。

Our next question is from Hans Mosesmann with Rosenblatt Securities.

我們的下一個問題來自羅森布拉特證券公司的漢斯·摩西曼。

And I also echo Matt's commentary about congratulations and a good job at the intro. Just a clarification, Charlie, the BMW engagement, this is your first engagement with BMW?

我也贊同馬特關於祝賀和介紹中出色工作的評論。只是澄清一下，查理，寶馬訂婚，這是您第一次與寶馬訂婚？

Yes.

是的。

Okay. Congrats there. Just a high-level question regarding renewals and in terms of the outlook, is that still at a high level? What part of the outlook for the quarter and the year is reengagements with your licensing customers?

好的。恭喜你。只是一個關於續約和前景的高級別問題，這仍然處於高水平嗎？本季度和全年展望的哪一部分是與您的許可客戶的重新接觸？

So I think it varies a bit by quarter by quarter. But generally, I would say that about 70% of our business, certainly of the licensing revenue, is renewals. And about 30%, maybe low 30%, comes from new customers. So 70% is reorders.

所以我認為每個季度都會有所不同。但總的來說，我想說我們大約 70% 的業務（當然是許可收入）是續訂。大約 30%（也許只有 30%）來自新客戶。所以 70% 是重新訂購。

Okay. And then lastly, and I'll bow out. The opportunity here in terms of ASP expansion per license, what are the trends there all in? And how much can you get from a customer if they license everything?

好的。最後，我要退出了。就每個許可證的 ASP 擴展而言，這裡的機會是什麼？趨勢是什麼？如果客戶許可所有內容，您可以從客戶那裡獲得多少收益？

So yes, so our ASP has been going up throughout the history of the company. And it doesn't come from raising prices of each individual product. Where it comes from is the fact that the SoCs need more system IP functionality, right? So you wind up the current SoCs needing cash coherency as well as the noncoherent interconnect. They have machine learning sections. So machine learning traffic is its own class, so it needs a machine learning interconnect.

所以，是的，我們的平均售價在公司的歷史上一直在上升。它並不是來自提高每種產品的價格。其根源在於 SoC 需要更多系統 IP 功能，對嗎？因此，當前的 SoC 需要現金一致性和非一致性互連。他們有機器學習部分。所以機器學習流量是它自己的類，所以它需要機器學習互連。

There is resilience. There's physical awareness because you want to take physical -- I'm sorry, resilience for functional safety, for mission-critical SoCs, physical awareness because now you need to take into account physical constraints upfront. You have to decide which data traffic stays on chip and which goes off chip, so you have a last-level cache called [code of cache]. And you have all of the IPD software, which allows you to package all of your other IPs in the SoC.

有韌性。物理意識是因為你想要物理——對不起，功能安全、關鍵任務 SoC 的彈性，物理意識是因為現在你需要預先考慮物理約束。您必須決定哪些數據流量保留在芯片上，哪些數據流量離開芯片，因此您有一個稱為[緩存代碼]的最後一級緩存。而且您還擁有所有 IPD 軟件，它允許您將所有其他 IP 打包到 SoC 中。

So if you're going to buy all that from us today, it's going to be -- per project, it's going to be somewhere around $1 million, where in the -- on the average, we're probably somewhere around low $400,000 per SoC. And it will go up more in the future because you're going to have chiplets and other types of functionalities that will make the data traffic patterns even more complex.

因此，如果您今天要從我們這裡購買所有這些產品，那麼每個項目的價格約為 100 萬美元，平均而言，我們每個項目的價格可能約為 40 萬美元左右。系統芯片。未來它會增加更多，因為您將擁有小芯片和其他類型的功能，這將使數據流量模式變得更加複雜。

Great for that rundown, Charlie. Again, congratulations to the team.

查理，非常適合這個概要。再次祝賀團隊。

Our next question is from Gus Richard with Northland.

我們的下一個問題來自 Northland 的格斯·理查德。

Yes. Congratulations, guys. Great job. Charlie, can you talk a little bit about where your incremental customers are coming from? Are they semiconductor companies? Or is it expanding into nontraditional system houses, cloud houses, et cetera?

是的。恭喜你們，伙計們。做得好。查理，你能談談你的增量客戶來自哪裡嗎？他們是半導體公司嗎？或者它正在擴展到非傳統的系統房屋、雲房屋等？

Yes. So obviously, there are a lot of system houses now starting to do SoCs. And some of that is done with partners. So they're partnering with the traditional semiconductor companies to give them not custom chips, but customized chips based on existing platforms, but modified with a few additional IPs for their own particular requirements.

是的。顯然，現在有很多系統公司開始生產 SoC。其中一些是與合作夥伴一起完成的。因此，他們與傳統半導體公司合作，為他們提供的不是定制芯片，而是基於現有平台的定制芯片，但根據自己的特定要求，根據一些額外的 IP 進行了修改。

And you also have a tremendous growth in start-ups in China. So those are 2 things. The system house is starting to build chips, and there's a lot of start-ups in -- semiconductor start-ups in China. And also some of the major semiconductor companies are now starting to have issues with their own internally developed system IP. So we think that also provides an additional growth potential for our products.

中國的初創企業也有了巨大的增長。所以這是兩件事。系統公司開始製造芯片，中國有很多半導體初創企業。而且一些主要的半導體公司現在也開始遇到自己內部開發的系統 IP 的問題。因此，我們認為這也為我們的產品提供了額外的增長潛力。

All right. And that leads me to the...

好的。這讓我想到...

Two things.

兩件事情。

Yes. So that leads me to the second question. Basically, some companies have issues with the design for reuse and shortage of integration -- SoC integration engineers. Can you talk about sort of how you help alleviate those problems and incremental increases in productivity? And then how does that map into IP-XACT? And how will that help accelerate designs to market?

是的。這引出了我的第二個問題。基本上，一些公司存在設計重用和集成不足——SoC集成工程師的問題。您能談談您如何幫助緩解這些問題並逐步提高生產力嗎？那麼它如何映射到 IP-XACT 中呢？這將如何幫助加速設計上市？

Yes. So there's 2 things here. One is the interconnect and one is the IP deployment software even though, ultimately, they're extremely synergistic. So before Arteris, it took 10s of days to build an interconnect. Maybe if you weren't particularly good at it, it could take even months. But it took 10s of days even for the good guys.

是的。所以這裡有兩件事。一是互連，一是 IP 部署軟件，儘管最終它們具有極大的協同作用。因此，在 Arteris 之前，需要花費數十天的時間來構建互連。如果你不是特別擅長，也許甚至可能需要幾個月的時間。但即使是好人也需要十多天的時間。

With Arteris, the really effective teams can build interconnect in days, right? And so that's a major productivity increase, which is one of the reasons why Arteris has grown so well. But as you say, there is a tremendous shortage of interconnect engineers and even experienced semiconductor engineers. So what we need to do is we need to cut down the generation of interconnect to hours, right? And that's something that we need to be working on.

借助 Arteris，真正高效的團隊可以在幾天內建立互連，對嗎？因此，這是生產力的重大提高，這也是 Arteris 發展如此良好的原因之一。但正如你所說，互連工程師甚至經驗豐富的半導體工程師都嚴重短缺。那麼我們需要做的就是將互連的生成時間減少到幾個小時，對嗎？這就是我們需要努力的事情。

The other thing is, what I call the disintermediation of the supply -- semiconductor supply chain. Some of these new entrants only do portions of the design cycle. They're not IDMs, right? So they built a couple IPs and they buy the rest. And so they have a fairly long -- they may use layout contractors, packaging houses and so on and so forth. So they have a long chain of contractors, a long supply chain. And the issue for them is, how do you get it all to work when it comes back -- all the stuff that you bought in your license comes back and you need to turn into an SoC?

另一件事是，我所說的供應脫媒——半導體供應鏈。其中一些新進入者只完成設計週期的一部分。他們不是 IDM，對吧？因此，他們建立了幾個 IP，然後購買其餘的。所以他們有相當長的時間——他們可能會使用佈局承包商、包裝廠等等。所以他們有很長的承包商鏈、很長的供應鏈。他們面臨的問題是，當它回來時，你如何讓這一切正常工作——你在許可證中購買的所有東西都回來了，你需要把它變成一個 SoC？

And so you need a standard that is -- essentially allows you to package all of that stuff into a form that is easily integratable. And IP-XACT is a very good way of doing that, right? It allows you to build an integration model around the IP without worrying necessarily about what's inside the IP. It allows you to configure the registers, the exit boards, allows you to manage high-level connectivity. And so you have a much more -- much better chance of taking all that stuff that's coming back to you from all the suppliers and turning that into a working SoC quickly, efficiently, and at lower cost and lower risk.

因此，您需要一個標準，本質上允許您將所有這些內容打包成易於集成的形式。 IP-XACT 是一種非常好的方法，對嗎？它允許您圍繞 IP 構建集成模型，而不必擔心 IP 內部的內容。它允許您配置寄存器、退出板，允許您管理高級連接。因此，您有更多、更好的機會從所有供應商處獲取所有返回給您的東西，並將其快速、高效、以更低的成本和更低的風險轉化為可用的 SoC。

And so we're involved in both those areas. And one of the things that we find is that the IP-XACT tools are actually making our interconnect IP subsystems easier to integrate in their SoCs. So we're actually, in some sense, eating our own dog food. And it turns out that the 2 things are quite synergistic.

所以我們參與了這兩個領域。我們發現的一件事是，IP-XACT 工具實際上使我們的互連 IP 子系統更容易集成到其 SoC 中。所以，從某種意義上說，我們實際上是在吃自己的狗糧。事實證明，這兩件事具有很強的協同作用。

Got it. Very helpful. If I can sneak in a third, I apologize. As we are going to system and package, heterogeneous integration, as SoCs disintegrate a little bit into separate die, how does that impact your business?

知道了。很有幫助。如果我能偷偷溜進第三個，我深表歉意。當我們進行系統和封裝、異構集成時，當 SoC 稍微分解成單獨的芯片時，這對您的業務有何影響？

It makes it more valuable. It makes it more complex. And we thrive on essentially allowing customers to manage the complexity. So -- think about it just as an example of the Ncore Cash Coherent Interconnect, right? The reason you need cash coherency is that you need to have smaller multiple cores that aren't so -- quite so power hungry and generate so much heat in those kinds of things. But the software programmers are not trained in schools to worry about hardware. I know this from my oldest son who's a computer science guy, and he was aghast at what it takes to manage hardware.

它使它更有價值。這使得事情變得更加複雜。我們的蓬勃發展本質上是讓客戶能夠管理複雜性。那麼——將其視為 Ncore Cash Coherent Interconnect 的一個示例，對吧？您需要現金一致性的原因是您需要擁有更小的多核，但事實並非如此——非常耗電並且在這些事情中產生如此多的熱量。但軟件程序員沒有在學校接受過擔心硬件的培訓。我從我的大兒子那裡知道了這一點，他是一名計算機科學專家，他對管理硬件所需的工作感到震驚。

So we need to handle that for the software teams. And so we came up with cache coherency, which essentially allows multiple processors to look like a single programming space. Now what people want is to make multiple dies look like a single programming space. And this is obviously a more complex and more expensive and more profitable problem, right? And so the chiplets is a technology that is here to stay. It's still not deployed by a huge numbers of people, except on the leading edge, but it makes the interconnect much more complicated and much more sophisticated yet again.

所以我們需要為軟件團隊處理這個問題。因此，我們提出了緩存一致性，它本質上允許多個處理器看起來像一個編程空間。現在人們想要的是使多個芯片看起來像一個編程空間。而這顯然是一個更複雜、更昂貴、更有利可圖的問題，對吧？因此，小芯片是一項長期存在的技術。除了前沿領域外，它仍然沒有被大量人員部署，但它再次使互連變得更加複雜和復雜。

Our next question is from Ambrish Srivastava from BMO.

我們的下一個問題來自 BMO 的 Ambrish Srivastava。

I don't want to make Nick feel too left out. Right out of the gate, Nick, pretty solid, keeping the numbers tight. Maybe as we learn the business model and the quarterly ebbs and flow, can you just please frame for us visibility with respect to the KPIs? So if you look at ACV plus the LTM, RPO, deferred revenue, that would be very helpful. And I did have a question for Charlie while you catch your breath.

我不想讓尼克感到被忽視。尼克一開始就表現得很穩定，保持著緊繃的人數。也許當我們了解業務模式和季度潮起潮落時，您能否為我們提供 KPI 的可見性？因此，如果您查看 ACV 加上 LTM、RPO、遞延收入，這將非常有幫助。當你喘口氣時，我確實有一個問題要問查理。

Well, I'm delighted that you decided to give me a chance to shine, Ambrish. So thank you for that. So yes, in terms of visibility, we have -- you know, I think from our previous conversations, we have a fairly strong and visible pipeline from whether you look at ACM (sic) [ACV] and TTM royalties or you look at revenue.

好吧，我很高興你決定給我一個發光的機會，安布里什。非常感謝你的幫忙。所以，是的，就可見性而言，我們有- 你知道，我認為從我們之前的對話來看，無論您查看ACM（原文如此）[ACV] 和TTM 版稅還是收入，我們都有一個相當強大且可見的管道。

The one element of revenue that is not so 100% predictable is our IPD revenue because most of that is point in time upfront. So if you look at it from quarter-to-quarter, it can fluctuate. But in long term, because we have a very high proportion of repeat customers, so what Charlie was talking about, just to make it clear, was that of our revenues, 70% of that's from our bookings. 70% of that comes from previous customers, existing customers. The other 30% comes from new, roughly.

收入中不能 100% 可預測的一個因素是我們的 IPD 收入，因為其中大部分是提前的時間點。因此，如果你逐季度觀察，它可能會出現波動。但從長遠來看，因為我們的回頭客比例非常高，所以查理所說的是我們的收入，其中 70% 來自我們的預訂。其中 70% 來自以前的客戶、現有客戶。另外 30% 大致來自新產品。

The 70% that's pre-existing customers run on a 98% retention rate. So in other words, 98% of our customers come back. So even if there's a point in time rev rec for an IPD customer, it might appear sort of in Q1 or it might appear in Q2, depending on when the customer decides to place that repeat order. The benefit of having ratable revenue recognition on pretty much all of our SIP or interconnect revenue and/or contracts and some of our IPD contracts is that once that goes into the pipe, into the waterfall essentially, we can see for the next 2, 3, 4 years how that's going to play out into revenue.

70% 的現有客戶保留率為 98%。換句話說，我們 98% 的客戶都是回頭客。因此，即使 IPD 客戶存在某個時間點的收益記錄，它也可能出現在第一季度，也可能出現在第二季度，具體取決於客戶決定下重複訂單的時間。對我們幾乎所有的 SIP 或互連收入和/或合同以及我們的一些 IPD 合同進行可評定收入確認的好處是，一旦進入管道，本質上進入瀑布，我們可以看到接下來的 2、3 ，四年後這將如何轉化為收入。

And the same is true -- you mentioned ACV. The same is true with ACV. ACV is again a waterfall of all current contracts. So if we have a contract, let's say, a 3-year contract, which is not unusual, then that gets basically divided up into 36 months. And it goes on at [1 36] for that -- or sorry, it goes annual [1 1 12] of that, so a year's worth. So a 3-year contract would -- of $300,000 would be $100,000 of ACV. And that would go on the day the contract signed that it would come off 3 years later.

同樣的情況也是如此——你提到了蘋果醋。 ACV 也是如此。 ACV 再次是所有當前合約的瀑布。因此，如果我們有一份合同，比如說一份為期 3 年的合同，這並不罕見，那麼它基本上會分為 36 個月。它會在 [1 36] 繼續進行——或者抱歉，它每年都會進行 [1 1 12]，所以一年的價值。因此，3 年期合同的 300,000 美元相當於 100,000 美元的 ACV。這將從合同簽訂之日起生效，合同將在三年後生效。

And so we can predict with a fair degree of clarity which is why you don't see a great deal of variation on these numbers from where we originally talked to you because we do have this incredibly visible pipeline. And we do also on operating expense, of course, because we can control that quite carefully.

因此，我們可以相當清晰地進行預測，這就是為什麼您看不到這些數字與我們最初與您交談的地方有很大變化，因為我們確實有這個令人難以置信的可見管道。當然，我們也在運營費用上這樣做，因為我們可以非常仔細地控制它。

Does that kind of answer your question?

這能回答你的問題嗎？

Yes. Yes, it does. It does. And it helps to certify what we've been talking about in the past. And Charlie, on the -- turning to you, on the designs part, what are the areas that these are in? And then how would you characterize the -- and you gave us some good comparisons from a year ago for some of the metrics, but how are the starts changing vis-a-vis end markets from a year ago, couple of years ago, and then where do you see that going? I'm assuming it's going to be more automotive SoC, AI/machine learning, but then it would be helpful to see what the comparisons were from a couple of years ago.

是的。是的，它確實。確實如此。它有助於證實我們過去一直在談論的內容。查理，關於設計部分，這些都屬於哪些領域？然後你會如何描述——你給了我們一些與一年前的一些指標的很好的比較，但是與一年前、幾年前和幾年前相比，開始發生了怎樣的變化？那麼你認為會發生什麼？我假設它將更多地涉及汽車 SoC、人工智能/機器學習，但了解幾年前的比較會很有幫助。

Yes. So yes, I mean the hot market not couple of years ago, but a bunch of years ago was smartphone, right? So that was -- majority of the designs came there. As that market consolidated, the volumes stayed the same, but the number of the -- or the group, but the number of designs and the number of companies have shrunk, right? Now it's expanding a little bit with 5G because 5G is going to be used for machine-to-machine communication. So that part of it is expanding yet again.

是的。所以，是的，我的意思是不是幾年前的熱門市場，而是幾年前的智能手機，對吧？所以大多數設計都是在那裡完成的。隨著市場的整合，銷量保持不變，但設計的數量和公司的數量卻減少了，對嗎？現在它隨著 5G 的出現而有所擴展，因為 5G 將用於機器對機器的通信。所以這一部分正在再次擴大。

But the -- kind of the first IoT market that actually works from a business point of view, and this is just my opinion, is the automotive market. The car is really an IoT device. It's -- this whole huge multibillion-dollar investment is essentially turning the car from a mechanical device to a device that's full time attached to the cloud, that's attached to the electronic road infrastructure, which is going to emerge, and the cars are also going to communicate to each other, right?

但從商業角度來看，第一個真正發揮作用的物聯網市場是汽車市場，這只是我的觀點。汽車實際上是一個物聯網設備。這整個數十億美元的巨額投資本質上是將汽車從機械設備轉變為完全連接到雲的設備，連接到即將出現的電子道路基礎設施，並且汽車也正在運行互相溝通，對嗎？

So the car is really a very complex and actually the initial IoT device. And it's a very, very nice business. And consequently, everybody is piling into automotive, right? So the number of customers that -- our potential automotive customers is just increasing because there's such a growth in the number of chips that are going to be inside the car.

所以汽車確實是一個非常複雜的、實際上是最初的物聯網設備。這是一個非常非常好的生意。因此，每個人都湧入汽車行業，對嗎？因此，我們潛在的汽車客戶的數量正在增加，因為汽車內部的芯片數量不斷增加。

But the biggest market is machine learning, right? And so some of the car chips are machine learning chips. The ADAS chips are machine learning chips. But machine learning is going to be everywhere, and it's going to be used for making this relatively complex system functionality to be more user friendly, right? The machine is going to figure out how to operate itself in certain cases.

但最大的市場是機器學習，對嗎？所以一些汽車芯片是機器學習芯片。 ADAS芯片是機器學習芯片。但機器學習將無處不在，它將用於使這個相對複雜的系統功能變得更加用戶友好，對吧？機器將弄清楚在某些情況下如何自行操作。

So the largest number of designs in the future are going to be in machine learning. However, from our experience so far, I think we -- Nick would say that we only probably have only, ignoring the automotive guys, only one nonautomotive machine learning customer paying royalties, right? So the volumes of that market haven't really started yet.

因此，未來最多的設計將是機器學習。然而，從我們迄今為止的經驗來看，我認為我們——尼克會說，忽略汽車行業的傢伙，我們可能只有一個非汽車機器學習客戶支付版稅，對嗎？因此，該市場的交易量尚未真正開始。

And -- but yes, that is what is the future market. And then there's a lot of other companies. There's servers. There's consumer devices. So we'll take all of that. But the focus for us right now is really on automotive, machine learning and 5G from a product development point of view and future development point of view.

但是，是的，這就是未來的市場。然後還有很多其他公司。有服務器。有消費設備。所以我們會接受所有這些。但從產品開發和未來發展的角度來看，我們現在的重點實際上是汽車、機器學習和 5G。

(Operator Instructions) Our next question is from Mark Lipacis with Jefferies.

（操作員說明）我們的下一個問題來自 Jefferies 的 Mark Lipacis。

Quick question here. And just a follow-up on the ASP question before. As you look at your projection for -- your own internal projections for ASP improvement over time, to what extent is that predicated -- that ASP expansion predicated on new IP that you haven't developed yet versus IP that you have already developed and you're just waiting for the customers to reach for it?

在這裡快速提問。以及之前ASP問題的後續。當您查看您的預測時——您自己對 ASP 隨著時間的推移而改進的內部預測，預測到什麼程度——ASP 擴展基於您尚未開發的新 IP 與您已經開發的 IP 的比較只是等待客戶伸手去拿嗎？

Well, that's a good question and not completely easy to answer quantitatively. So clearly, the products that we have, the customer spend on those products is increasing, right? So there's more cash coherent chips, there's more machine learning chips, there's more automotive chips. So those require more of the products that we already have, right?

嗯，這是一個好問題，但並不完全容易定量地回答。很明顯，我們擁有的產品以及客戶在這些產品上的支出正在增加，對嗎？因此，有更多的現金相干芯片，有更多的機器學習芯片，有更多的汽車芯片。那麼這些需要更多我們已有的產品，對吧？

But there's also other things that need to be developed. And so you -- our strategy has been to not shortchange R&D spending, and so we are putting out a new product every year. That's the goal, is one new major product every year and as well 3 releases -- 2 to 3 releases of every major product that we have that are sort of customer enhancement releases. And so we're trying to keep pace with this market because we're basically doing R&D for 10% of the chip, right?

但還有其他事情需要開發。因此，我們的策略是不減少研發支出，因此我們每年都會推出新產品。這就是我們的目標，每年發布一個新的主要產品，以及 3 個版本——我們擁有的每個主要產品的 2 到 3 個版本，這些都是客戶增強版本。所以我們正在努力跟上這個市場的步伐，因為我們基本上是在為 10% 的芯片進行研發，對嗎？

The interconnect is about 10% of the silicon area roughly, maybe a little bit more, depending on what functionality you put on. So we need to keep pace with this. And so we are going to be delivering new products continuously. And so, I don't know, if I was to take a guess, maybe I would say half the growth would come from -- maybe 40% of the growth will come from the products that we have, and maybe 50% to 60% will come up from products that haven't been developed yet.

互連大約佔矽面積的 10%，也許更多一點，具體取決於您所使用的功能。所以我們需要跟上這個步伐。因此，我們將不斷提供新產品。所以，我不知道，如果我猜測的話，也許我會說一半的增長將來自——也許 40% 的增長將來自我們擁有的產品，也許 50% 到 60% % 將來自尚未開發的產品。

And one of the advantages Arteris has is because we see so many designs by so many customers, we have a fast rate of learning than almost anyone because we can synthesize the customer requirements of what they're going to need from a much bigger sample base than, for example, any internal group, right? So we are going to be continuously delivering at least one product a year for the foreseeable future because that's what the market can absorb and that's what the market requires.

Arteris 的優勢之一是因為我們看到了這麼多客戶的這麼多設計，我們的學習速度比幾乎任何人都快，因為我們可以從更大的樣本庫中綜合客戶的需求。例如，比任何內部團體都重要，對吧？因此，在可預見的未來，我們將每年持續提供至少一種產品，因為這是市場可以吸收的，也是市場需要的。

We have reached the end of the question-and-answer session, and I will now turn the call over to Charlie Janac for closing remarks.

問答環節已經結束，我現在將電話轉交給查理·賈納克（Charlie Janac）做總結髮言。

Yes. So I would very much like to thank everyone on the call today. It's been a pleasure working with you and a pleasure for -- and also thank you for your interest in Arteris.

是的。因此，我非常感謝今天參加電話會議的所有人。與您合作非常愉快，也非常感謝您對 Arteris 的興趣。

And also before we close, I would like to acknowledge my thanks to our employees for their continued dedication and diligent work, and to our shareholders for their support. And so we look forward to updating you in the future. And we would like you to have a pleasant afternoon and evening, depending where you are, and thank you for your support of Arteris.

在結束之前，我還要感謝我們的員工的持續奉獻和勤奮工作，以及我們的股東的支持。因此，我們期待將來為您提供最新信息。我們希望您度過一個愉快的下午和晚上，具體取決於您所在的位置，並感謝您對 Arteris 的支持。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。