Altair Engineering Inc (ALTR) 2023 Q1 法說會逐字稿

Good day, and welcome to Altair's First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. It is now my pleasure to introduce SVP of Investor Relations, David Simon.

美好的一天，歡迎來到 Altair 2023 年第一季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。現在我很高興介紹投資者關係高級副總裁大衛西蒙。

Good afternoon. Welcome, and thank you for attending Altair's earnings conference call for the first quarter of 2023 ended March 31, 2023. I'm Dave Simon, Altair's SVP for Investor Relations. And with me on the call are Jim Scapa, Founder, Chairman and CEO; and Matt Brown, Chief Financial Officer. After market closed today, we issued a press release with details regarding our first quarter 2023 performance and guidance for the second quarter and full year 2023, which can be accessed on the Investor Relations section of our website at investor.altair.com. This call is being recorded, and a replay will be available on the IR section of our website following the conclusion of this call.

下午好。歡迎並感謝您參加 Altair 截至 2023 年 3 月 31 日的 2023 年第一季度收益電話會議。我是 Altair 投資者關係高級副總裁 Dave Simon。與我通話的還有創始人、董事長兼首席執行官吉姆·斯卡帕 (Jim Scapa)；和首席財務官 Matt Brown。今天收市後，我們發布了一份新聞稿，詳細介紹了我們 2023 年第一季度的業績以及 2023 年第二季度和全年的指導意見，可在我們網站 investor.altair.com 的投資者關係部分訪問。此通話正在錄製中，本次通話結束後，我們網站的 IR 部分將提供重播。

During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from our expectations. These risks are summarized in the press release that we issued earlier today.

在今天的電話會議上，我們將發表與我們的業務相關的聲明，根據聯邦證券法，這些聲明可能被視為前瞻性的。這些聲明僅反映我們截至今天的觀點，不應被視為代表我們在任何後續日期的觀點。我們不承擔任何更新任何前瞻性陳述或展望的義務。這些陳述受各種風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們的預期存在重大差異。我們今天早些時候發布的新聞稿中總結了這些風險。

For a further discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our quarterly and annual reports filed with the SEC as well as other documents that we have filed or may file from Tignotyde. During the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release. Finally, at times in our prepared comments or responses to your questions, we may offer metrics that are incremental to our usual presentation to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future. With that, let me turn the call over to Jim for his prepared remarks. Jim?

有關可能影響我們實際結果的重大風險和其他重要因素的進一步討論，請參閱我們向美國證券交易委員會提交的季度和年度報告以及我們已向或可能向 Tignotyde 提交的其他文件中包含的內容。在今天的電話會議中，我們將參考某些非 GAAP 財務指標。我們的新聞稿中包含 GAAP 與非 GAAP 措施的對賬。最後，有時在我們準備好的評論或對您問題的答復中，我們可能會提供比我們通常的演示更增量的指標，以更深入地了解我們的業務動態或我們的季度業績。請注意，我們將來可能會或可能不會繼續提供此額外詳細信息。有了這個，讓我把電話轉給吉姆，讓他準備好發言。吉姆？

Thank you, Dave, and welcome to everyone on the call. Altair had a very strong start to 2023 with software product revenue, total revenue and EBITDA above the high end of our guidance. Q1 exceeded our expectations and represents an all-time high for software product revenue and total revenue and continues our good momentum from 2022. Demand for our products is strong, and we're seeing the investments we've made in product development and our approach to customer success paying off. Adjusted EBITDA for Q1 2023 was $43.1 million, well above our expectations.

謝謝你，戴夫，歡迎來電的每一個人。 Altair 在 2023 年開局非常強勁，軟件產品收入、總收入和 EBITDA 均高於我們指導的上限。第一季度超出了我們的預期，代表了軟件產品收入和總收入的歷史新高，並延續了我們從 2022 年開始的良好勢頭。對我們產品的需求強勁，我們看到了我們在產品開發和方法方面所做的投資客戶的成功得到回報。 2023 年第一季度調整後的 EBITDA 為 4310 萬美元，遠高於我們的預期。

Software product revenue as a percentage of total revenue for the first quarter continued a strong positive trend at 90.1% compared to 88.2% in the first quarter of 2022 and 88.5% for the full year 2022. Our recurring software license rate was 95% for the quarter as compared to 93% in the first quarter of 2022 and 92% for the full year 2022. Software product revenue in the first quarter grew by 10% year-over-year on a constant currency basis, led by strong renewals and expansion, especially in automotive and the aerospace verticals.

第一季度軟件產品收入佔總收入的百分比繼續保持強勁的積極趨勢，為 90.1%，而 2022 年第一季度為 88.2%，2022 年全年為 88.5%。我們的經常性軟件許可率為 95%與 2022 年第一季度的 93% 和 2022 年全年的 92% 相比，第一季度的軟件產品收入在固定匯率基礎上同比增長 10%，這主要得益於強勁的更新和擴張，特別是在汽車和航空航天垂直領域。

We also continued to add several new and important logos in the first quarter, and the number of significant deals continues to grow as we focus on selling our broad solution set, especially our data analytics offerings into existing and new customers. We are experiencing a substantial increase in engagement from our traditional manufacturing customers to apply our data analytics portfolio and leverage AI to accelerate simulation using CAE and test data. This is translating into meaningful new opportunities. Overall, we believe our strong first quarter performance positions the company well for the rest of 2023.

我們還在第一季度繼續添加了幾個新的和重要的標識，並且隨著我們專注於向現有和新客戶銷售我們廣泛的解決方案集，尤其是我們的數據分析產品，重要交易的數量繼續增長。我們的傳統製造客戶越來越多地參與應用我們的數據分析產品組合併利用 AI 來加速使用 CAE 和測試數據進行仿真。這正在轉化為有意義的新機會。總體而言，我們相信我們強勁的第一季度業績將使公司在 2023 年剩餘時間里處於有利地位。

The core of Altair 's success is the industry-leading breadth and depth of our technology. We work hard to deliver awesome capabilities and our HyperWorks 20 22.3 platform release exemplifies this commitment. HyperWorks 2022. 3 offers an enhanced ALTA-1 experience by providing users with flexible access to solutions, applications, data and compute power. Users can submit solver jobs covering structural, thermal, computational fluid dynamics and electromagnetics disciplines in Altair's scalable elastic cloud infrastructure, making it easier for organizations to meet budgets and demand.

Altair 成功的核心是我們技術的行業領先廣度和深度。我們努力提供出色的功能，我們的 HyperWorks 20 22.3 平台版本體現了這一承諾。 HyperWorks 2022.3 通過為用戶提供對解決方案、應用程序、數據和計算能力的靈活訪問，提供增強的 ALTA-1 體驗。用戶可以在 Altair 的可擴展彈性雲基礎設施中提交涵蓋結構、熱、計算流體動力學和電磁學學科的求解器作業，使組織更容易滿足預算和需求。

The latest software updates enable product teams to collaborate on all aspects of electronic systems, printed circuit board, firmware and 5G connectivity development in a connected end-to-end environment. HyperWorks 2022. 3 features tighter integration between Altair Flux, flux motor, nanoFluidX, SimLab and material data center to help users streamline workflows and provide advanced modeling capabilities, electrical system design exploration and optimization and faster acoustic and thermal flow analysis. Debugging and post-production servicing updates are also available with AllCare EE vision for electronic system design.

最新的軟件更新使產品團隊能夠在互聯的端到端環境中就電子系統、印刷電路板、固件和 5G 連接開發的各個方面進行協作。 HyperWorks 2022.3 更緊密地集成了 Altair Flux、磁通電機、nanoFluidX、SimLab 和材料數據中心，以幫助用戶簡化工作流程並提供高級建模功能、電氣系統設計探索和優化以及更快的聲學和熱流分析。用於電子系統設計的 AllCare EE 願景還提供調試和後期製作服務更新。

Further improvements enable better modeling and analysis through low and no co design and engineering tools, reduced pre- and post-processing lead times, improved surface modeling, integrated solver dashboard capabilities, expanded fluid topology optimization, coupling between AcuSolve EDM and more. HyperWorks has been augmented with AI to enhance the modeling experience with automated part identification, characterization and grouping as well as geometry feature recognition and management for use in downstream processes and further end user recommendations. In addition, we introduced physics AI, an all-new module seamlessly integrated within our modeling environment to automatically train a neural net with previous simulations to quickly predict accurate results for a new CAD or a simulation model without running additional solver analysis.

進一步的改進通過低和無協同設計和工程工具實現更好的建模和分析，減少預處理和後處理交貨時間，改進表面建模，集成求解器儀表板功能，擴展流體拓撲優化，AcuSolve EDM 之間的耦合等。 HyperWorks 已通過 AI 得到增強，通過自動零件識別、表徵和分組以及幾何特徵識別和管理來增強建模體驗，以用於下游流程和進一步的最終用戶建議。此外，我們還引入了物理 AI，這是一個無縫集成到我們的建模環境中的全新模塊，可自動訓練具有先前模擬的神經網絡，從而快速預測新 CAD 或模擬模型的準確結果，而無需運行額外的求解器分析。

Last week, we announced the release of SIMSOLID Cloud, allowing users to access next-generation simulation technology through a web browser, anywhere, anytime. SIMSOLID cloud eliminates geometry simplification and meshing, the 2 most time consuming and expertise intensive tasks and traditional finite analysis, handles complex assemblies and delivers results with unprecedented ease and speed. SIMSOLID Cloud is available via LTE-1 Altair's Cloud Innovation Gateway that offers collaborative access to simulation and data analytics technology, alongside scalable, high-performance computing and cloud resources. We believe SIMSOLID Cloud has the potential to dramatically accelerate and simplify the daily work of structural analysis in all markets and that rapid adoption of this technology will become necessary for companies to maintain their competitive advantage in product development.

上週，我們宣布發布 SIMSOLID Cloud，讓用戶可以隨時隨地通過網絡瀏覽器訪問下一代仿真技術。 SIMSOLID 雲消除了幾何簡化和網格劃分這兩項最耗時且專業知識密集的任務和傳統的有限分析，它可以處理複雜的裝配體並以前所未有的輕鬆和速度交付結果。 SIMSOLID Cloud 可通過 LTE-1 Altair 的 Cloud Innovation Gateway 使用，該網關提供對仿真和數據分析技術以及可擴展的高性能計算和雲資源的協作訪問。我們相信 SIMSOLID Cloud 有潛力顯著加速和簡化所有市場的結構分析日常工作，快速採用這項技術將成為公司保持產品開發競爭優勢的必要條件。

We reached a positive milestone for Altair related to our acquisition of World Programming in 2021 and the establishment of Altair SLC. On April 6, the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the court for the Eastern District of Texas, which ruled in favor of Altair by dismissing the 2018 lawsuit initiated by the SaaS Institute against World Programming for alleged copyright infringement of SaaS software. After more than 10 years of litigation across multiple international venues, it was ruled that the SaaS language is not proprietary and companies other than the SaaS Institute are free to provide compilers and development environments, supporting the SaaS language as is the case with other languages, including Python, C++, Fortran and others in the public domain.

我們在 2021 年收購了 World Programming 並成立了 Altair SLC，這對 Altair 來說是一個積極的里程碑。 4 月 6 日，美國聯邦巡迴上訴法院維持了得克薩斯州東區法院的判決，該判決駁回了 2018 年 SaaS 研究所針對 World Programming 涉嫌侵犯版權而對 Altair 提起的訴訟。軟件即服務。經過 10 多年在多個國際場所的訴訟，裁定 SaaS 語言不是專有的，SaaS Institute 以外的公司可以免費提供編譯器和開發環境，與其他語言一樣支持 SaaS 語言，包括 Python、C++、Fortran 和其他公共領域的語言。

Altair SLC demonstrates our dedication to open architecture technology which we believe is the best way for people to harness innovation, improve products and get the most from their work. Now companies in any industry across the globe can embrace open-source languages and technology while simultaneously leveraging the decades of investment they put into the SaaS language. Momentum in our data analytics business continues to be positive as companies look to modernize their data analysis operations and standardized development primarily with Python, the most popular language talking universities, the Altair RapidMiner offers a unique solution to support companies converting a percentage of existing SaaS language code to Python while leveraging Altair SLC for the rest.

Altair SLC 展示了我們對開放式架構技術的奉獻，我們相信這是人們利用創新、改進產品並從工作中獲得最大收益的最佳方式。現在，全球任何行業的公司都可以採用開源語言和技術，同時利用他們在 SaaS 語言上投入的數十年投資。我們數據分析業務的勢頭繼續保持積極，因為公司希望主要使用 Python 實現數據分析操作和標準化開發的現代化，Altair RapidMiner 提供了一個獨特的解決方案來支持公司轉換一定比例的現有 SaaS 語言將代碼轉換為 Python，同時利用 Altair SLC 完成其餘工作。

We won a multiyear 7-figure software license for the Alta Rapid Miner platform with a major computational hardware company for its users in IT, marketing, corporate affairs, data office engineering and e-commerce. We are currently engaged with many BFSI accounts on modernization projects where SLC accelerates and de-risks their move to Python and the cloud. We also have new revenue coming in for Altair SLC from 3 financial sector companies in India and an insurance company in South America. A bank in APAC founded more than 100 years ago, have committed to Altair SLC and Rapid Miner to help their corporate credit check activities.

我們為 IT、營銷、公司事務、數據辦公工程和電子商務領域的用戶贏得了一家大型計算硬件公司的 Alta Rapid Miner 平台多年期 7 位數軟件許可。目前，我們正在與許多 BFSI 帳戶進行現代化項目合作，在這些項目中，SLC 加速並降低了他們向 Python 和雲遷移的風險。我們還從印度的 3 家金融部門公司和南美的一家保險公司獲得了 Altair SLC 的新收入。 APAC 的一家銀行成立於 100 多年前，致力於使用 Altair SLC 和 Rapid Miner 來幫助他們的企業信用檢查活動。

Our simulation business continues to grow with the convergence of data analytics and AI and CAE workflows. Every week, we hear more stories from our account teams about customers using AI combined with simulation to produce clear efficiency gains and product development. The government research organization is using the Altair HyperWorks and Rapid Miner platforms to acquire real-world armored vehicle data, apply machine learning and develop predictive models. A passenger vehicle manufacturer is using Alkarim Solid and other Altair simulation tools, combined with data analytics, including Altair Panopticon for real-time data streaming to develop operational digital twins for electric vehicles. Another vehicle manufacturer is using Altair's tools for machine learning to use historical simulation data for crash, NVH and durability. A global leader in power management is using Altair Compose, combined with data analytics to develop a digital test bench for electrical systems.

隨著數據分析與 AI 和 CAE 工作流程的融合，我們的仿真業務不斷發展。每週，我們都會從我們的客戶團隊聽到更多關於客戶使用 AI 結合模擬來產生明顯的效率提升和產品開發的故事。政府研究機構正在使用 Altair HyperWorks 和 Rapid Miner 平台來獲取真實世界的裝甲車數據、應用機器學習和開發預測模型。一家乘用車製造商正在使用 Alkarim Solid 和其他 Altair 仿真工具，結合數據分析，包括用於實時數據流的 Altair Panopticon，以開發電動汽車的可操作數字孿生模型。另一家汽車製造商正在使用 Altair 的機器學習工具，將歷史模擬數據用於碰撞、NVH 和耐久性。電源管理領域的全球領導者正在使用 Altair Compose 並結合數據分析來開發電氣系統數字測試台。

The stories from the field continue to build and the convergence of simulation with AI is a reality for Altair's customers. Altair's HPC Works platform for high-performance computing continues to be a strong growth area for Altair. One of the top 5 global fabless semiconductor companies committed to a 6-figure expansion, representing a 6x year-on-year increase. And in EMEA, a major materials company awarded Altair, a multiyear 7-figure deal for Altair's Azure Virtual Appliance cloud solution, of which it will run a broad spectrum of Altair CAE software, along with third-party CAE offerings.

該領域的故事不斷湧現，模擬與 AI 的融合對 Altair 的客戶來說已成為現實。 Altair 用於高性能計算的 HPC Works 平台仍然是 Altair 的強勁增長領域。全球前 5 大無晶圓廠半導體公司之一，承諾實現 6 位數的擴張，同比增長 6 倍。在歐洲、中東和非洲地區，一家大型材料公司與 Altair 簽訂了為期 7 位數的多年合同，用於購買 Altair 的 Azure Virtual Appliance 雲解決方案，其中它將運行廣泛的 Altair CAE 軟件以及第三方 CAE 產品。

A recently published case study demonstrates the positive social impact of high-performance computing. Argon National Laboratories with university and industry collaborators won the 2022 Gordon Bell special prize for high-performance computing-based COVID-19 research for its work using AI to track virus variants.

最近發布的案例研究展示了高性能計算的積極社會影響。 Argon 國家實驗室與大學和行業合作者一起獲得了 2022 年戈登貝爾基於高性能計算的 COVID-19 研究特別獎，以表彰其使用 AI 追踪病毒變體的工作。

Machine learning played an important role in the research and the researchers analyzed 1.5 million complete high-quality SARS COVA2-genome sequences, a process that would have previously been time and labor-intensive by individually examining every protein and mapping mutation. Instead, the team streamlined the process by developing the first genome scale language model, the computing hardware used in the project is equipped with workload orchestration by Altair PBS professional, and we are pleased to have played a part in this important life-saving work.

機器學習在這項研究中發揮了重要作用，研究人員分析了 150 萬個完整的高質量 SARS COVA2 基因組序列，這一過程以前通過單獨檢查每個蛋白質和映射突變來耗時耗力。相反，該團隊通過開發第一個基因組規模語言模型簡化了流程，該項目中使用的計算硬件配備了 Altair PBS 專業人員的工作負載編排，我們很高興在這項重要的挽救生命的工作中發揮了作用。

In addition to our technology, Altair's culture has kept us moving in the right direction. Throughout our history, we have always prioritized diversity as it is a foundational pillar of our culture and thereby our success. We have also long supported STEM education. Combining these 2 values, we recently established the Altair only Forward scholarship and Columbia University School of Engineering and Applied Science. It is designed to assist incoming first-year students pursuing an undergraduate degree in engineering and applied science and who have demonstrated leadership in or support for the African-American and/or Latino community. Ideally, the scholarship will benefit first-generation college students and students who are socioeconomically disadvantaged. The scholarship will award 10 students pursuing a 4-year engineering or STEM-related undergraduate degree with $25,000 annually, which they will receive each year of their undergraduate studies until graduation. Columbia Engineering will select and announce the first cohort of scholarship recipients in the fall of 2023.

除了我們的技術，Altair 的文化也讓我們朝著正確的方向前進。縱觀我們的歷史，我們始終將多樣性放在首位，因為它是我們文化的基石，也是我們成功的基石。我們也長期支持 STEM 教育。結合這兩個價值觀，我們最近設立了 Altair 唯一的 Forward 獎學金和哥倫比亞大學工程與應用科學學院。它旨在幫助攻讀工程和應用科學本科學位並在非裔美國人和/或拉丁裔社區中表現出領導才能或支持的一年級新生。理想情況下，該獎學金將使第一代大學生和社會經濟弱勢學生受益。該獎學金將獎勵 10 名攻讀 4 年制工程或 STEM 相關本科學位的學生，每年 25,000 美元，他們將在本科學習期間每年獲得這筆獎學金，直至畢業。哥倫比亞工程學院將在 2023 年秋季選出並宣布第一批獎學金獲得者。

We continue to invest and partner with companies developing leading-edge technologies to remain on the forefront of innovation. Altair has a long history of creating and investing in HPC technologies. In the fourth quarter of 2022, we invested in Xscape Photonics, at Columbia University start-up, dramatically accelerating data transfer rates between various computing elements, leveraging photonic chips for ultrahigh bandwidth connections inside data centers and HPC -- more recently, we invested in River Line a Cambridge University start-up, developing an operating system for quantum computers to support multiple hardware architectures for error-corrected quantum computing. River lanes groundbreaking technology has the potential to accelerate the impact and scale of quantum computing. Collaborating with Xscape and River Line allows Altair to stay ahead of the curve of transformative technologies to help our customers fast track their innovations.

我們繼續投資並與開發前沿技術的公司合作，以保持在創新的前沿。 Altair 在創建和投資 HPC 技術方面擁有悠久的歷史。 2022 年第四季度，我們投資了哥倫比亞大學的初創公司 Xscape Photonics，利用光子芯片實現數據中心和 HPC 內部的超高帶寬連接，顯著加快了各種計算元素之間的數據傳輸速率——最近，我們投資了River Line 是劍橋大學的一家初創公司，為量子計算機開發操作系統，以支持用於糾錯量子計算的多種硬件架構。 River lanes 突破性技術有可能加速量子計算的影響和規模。與 Xscape 和 River Line 的合作使 Altair 能夠保持領先於變革性技術的曲線，幫助我們的客戶快速跟踪他們的創新。

In conclusion, Q1 2023 was a strong quarter, and we are optimistic that the value we bring to our customers will continue to help us perform well against the backdrop of global uncertainty. We have been prudent in our hiring practices, and we are investing to develop our exceptional workforce. We are experiencing a less competitive hiring environment this year versus the last couple of years, and our turnover rates have returned to our historically low pre-pandemic levels. Our summer internship program, which focuses on top-tier educational institutions saw a 100% acceptance rate, which is well above normal. Now I will turn the call over to Matt to provide more details on our financial performance and our guidance for the second quarter and full year 2023. Matt?

總之，2023 年第一季度是一個強勁的季度，我們樂觀地認為，我們為客戶帶來的價值將繼續幫助我們在全球不確定性的背景下表現出色。我們在招聘方面一直很謹慎，我們正在投資培養我們優秀的員工隊伍。與過去幾年相比，我們今年的招聘環境競爭較弱，我們的離職率已恢復到大流行前的歷史低位。我們專注於一流教育機構的暑期實習計劃的錄取率為 100%，遠高於正常水平。現在我將把電話轉給馬特，提供更多關於我們的財務業績的細節以及我們對 2023 年第二季度和全年的指導。馬特？

Thank you, Jim. Hello to everyone on the call, and thank you for joining us. The first quarter was a great start to 2023, coming right on the heels of a very strong fourth quarter to end last year. Q1 exceeded our expectations and represents an all-time high for software product revenue and total revenue. And we once again exceeded the high end of the range on software product revenue, total revenue and adjusted EBITDA. It's encouraging to see the continued momentum in our software products where demand continues to be strong. As I dive into the details of our financial results, remember, some of our revenues and expenses are transacted in currencies other than the U.S. dollar. And therefore, our reported results may be significantly impacted by changes in foreign exchange rates. To aid in the review of our results, throughout my remarks, I will make reference to growth rates in both reported and constant currency.

謝謝你，吉姆。大家好，感謝您加入我們。第一季度是 2023 年的一個良好開端，緊隨去年年底非常強勁的第四季度之後。第一季度超出了我們的預期，代表了軟件產品收入和總收入的歷史新高。我們再次超過了軟件產品收入、總收入和調整後 EBITDA 範圍的高端。令人鼓舞的是，我們的軟件產品在需求持續強勁的情況下繼續保持強勁勢頭。當我深入探討我們的財務業績細節時，請記住，我們的一些收入和支出是以美元以外的貨幣進行交易的。因此，我們報告的結果可能會受到匯率變化的重大影響。為了幫助審查我們的結果，在我的整個發言中，我將參考報告貨幣和固定貨幣的增長率。

Total billings for the quarter were $163.5 million, a year-over-year decrease of 4.6% in reported currency and 0.9% in constant currency. Remember that in Q1 last year, we highlighted our largest-ever data analytics and AI deal in the BFSI vertical, which was a 5-year 8-figure deal. So while we're pleased with this year's first quarter billings, the significant multiyear deal from a year ago is impacting the year-over-year billings growth rates. In Q1 2023, we saw strength in our renewals base, especially in the automotive and aerospace verticals, and I was pleased with our new customer growth, which increased compared to last year.

本季度總賬單為 1.635 億美元，按報告貨幣計算同比下降 4.6%，按固定貨幣計算同比下降 0.9%。請記住，在去年第一季度，我們強調了 BFSI 垂直領域有史以來最大的數據分析和人工智能交易，這是一項為期 5 年、價值 8 位數的交易。因此，儘管我們對今年第一季度的賬單感到滿意，但一年前的重大多年期交易正在影響同比賬單增長率。 2023 年第一季度，我們看到了續訂基礎的實力，尤其是在汽車和航空航天垂直領域，我對我們的新客戶增長感到滿意，與去年相比有所增長。

Software product revenue in Q1 2023 was $149.6 million, a year-over-year increase of 6.2% in reported currency and 10.0% in constant currency compared to Q1 2022. Software product revenue growth was led by strong renewal and expansion in simulation. As Jim mentioned a few moments ago, we continue to hear customer success stories regarding continued convergence of data analytics in AI and simulation processes, and this is showing up in our financial results. Total revenue in Q1 2023, which includes services and other revenue was $166.0 million, a year-over-year increase of 3.9% in reported currency and 7.5% in constant currency compared to Q1 2022.

2023 年第一季度的軟件產品收入為 1.496 億美元，與 2022 年第一季度相比，按報告貨幣計算同比增長 6.2%，按固定匯率計算增長 10.0%。軟件產品收入增長是由模擬領域的強勁更新和擴展帶動的。正如 Jim 剛才提到的那樣，我們繼續聽到客戶關於人工智能和模擬過程中數據分析持續融合的成功案例，這也體現在我們的財務業績中。 2023 年第一季度的總收入（包括服務和其他收入）為 1.66 億美元，與 2022 年第一季度相比，報告貨幣同比增長 3.9%，固定匯率同比增長 7.5%。

Our recurring software license rate, which is the percentage of software product billings that are recurring, continues to be strong at approximately 95% for the quarter. Non-GAAP gross margin, which excludes stock-based compensation, was 81.9% in the first quarter compared to 81.4% in the prior year, an increase of 50 basis points. Software product mix drove this increase as our software revenue, which carries higher gross margins increased as a percentage of total revenue. Software revenue was 90.1% of total revenue in Q1 2023 compared to 88.2% in the prior year.

我們的經常性軟件許可率，即經常性軟件產品賬單的百分比，在本季度繼續保持強勁，約為 95%。不包括基於股票的薪酬的非美國通用會計準則毛利率在第一季度為 81.9%，而去年同期為 81.4%，增長了 50 個基點。軟件產品組合推動了這一增長，因為我們的軟件收入具有更高的毛利率，佔總收入的百分比有所增加。軟件收入佔 2023 年第一季度總收入的 90.1%，而去年同期為 88.2%。

Over the long term, we continue to expect a general mix shift towards software product revenue as growth there will outpace services and other revenue. And as a result, we expect our non-GAAP gross margin to continue to increase modestly in the near term. Non-GAAP operating expenses, which excludes stock-based compensation and amortization of intangible assets, were $93.9 million compared to $84.9 million in the year ago period. Beginning in Q1 2023, we began to allocate certain indirect expenses such as facilities and IT-related expenses across our operating expenses to improve comparability with our peer's presentation. These costs were previously captured primarily in general and administrative costs, that are now allocated across research and development, sales and marketing and general and administrative costs based on global head count. We've made this change prospectively as well as to all prior comparable periods, which we've included in a supplemental table in our earnings release.

從長遠來看，我們繼續預計總體結構將轉向軟件產品收入，因為那裡的增長將超過服務和其他收入。因此，我們預計我們的非 GAAP 毛利率在短期內將繼續溫和增長。不包括基於股票的補償和無形資產攤銷的非 GAAP 運營費用為 9390 萬美元，而去年同期為 8490 萬美元。從 2023 年第一季度開始，我們開始在我們的運營費用中分配某些間接費用，例如設施和 IT 相關費用，以提高與同行報告的可比性。這些成本以前主要包含在一般和行政成本中，現在根據全球員工人數分配給研發、銷售和營銷以及一般和行政成本。我們已經對所有之前的可比期間進行了前瞻性更改，我們已將其包含在收益發布的補充表中。

Adjusted EBITDA in Q1 2023 was $43.1 million or 25.9% of total revenue compared to $46.6 million or 29.2% in Q1 2022. This decrease compared to the prior year quarter was driven by an increase in year-over-year expenses, but is actually above our expectations heading into the quarter. We had anticipated the increase in expenses year-over-year due primarily to acquisitions we made throughout 2022, and actual expenses for the quarter landed in line with our expectations. The over performance in adjusted EBITDA relative to our expectations was driven by the increase in software revenue in the quarter, most of which dropped down to the bottom line.

2023 年第一季度調整後的 EBITDA 為 4310 萬美元，佔總收入的 25.9%，而 2022 年第一季度為 4660 萬美元，佔總收入的 29.2%。與去年同期相比，這一下降是由於同比支出增加，但實際上高於我們對本季度的期望。我們曾預計費用同比增加主要是由於我們在整個 2022 年進行的收購，並且本季度的實際費用符合我們的預期。調整後 EBITDA 相對於我們預期的超額表現是由於本季度軟件收入的增長，其中大部分收入下降至底線。

Turning to our balance sheet. We ended the quarter with $378.4 million in cash and cash equivalents, an increase of approximately $62.2 million from year-end. We're extremely pleased with our ability to generate free cash flow, and we're able to generate $57.5 million of free cash flow in the quarter. The turmoil in the banking sector in March served as another reminder of the importance of a strong balance sheet. We feel very comfortable with our significant cash balance, relatively low levels of debt and access to an additional $200 million line of credit and that we're well positioned to withstand various types of market uncertainty.

轉向我們的資產負債表。我們在本季度末擁有 3.784 億美元的現金和現金等價物，比年底增加約 6220 萬美元。我們對產生自由現金流的能力感到非常滿意，本季度我們能夠產生 5750 萬美元的自由現金流。 3 月份銀行業的動盪再次提醒人們，穩健資產負債表的重要性。我們對我們的大量現金餘額、相對較低的債務水平和獲得額外 2 億美元的信貸額度感到非常滿意，並且我們有能力承受各種類型的市場不確定性。

Let's turn to guidance for Q2 and full year 2023. We've provided detailed guidance tables in our earnings press release, including reconciliation to comparable GAAP amounts. We are continuing to see an FX impact relative to 2022 as foreign exchange rates change throughout last year. To provide more clarity on the FX impact to our expectations, we've provided growth rates in both reported currency and constant currency in our guidance tables. For Q2, we expect software product revenue in the range of $123 million to $125 million, a year-over-year increase of 5.2% to 6.9% in reported currency and 6.7% to 8.4% in constant currency.

讓我們轉向第二季度和 2023 年全年的指導。我們在收益新聞稿中提供了詳細的指導表，包括與可比 GAAP 金額的對賬。隨著去年全年外匯匯率的變化，我們將繼續看到相對於 2022 年的外匯影響。為了更清楚地說明外匯對我們預期的影響，我們在指導表中提供了報告貨幣和固定貨幣的增長率。對於第二季度，我們預計軟件產品收入在 1.23 億美元至 1.25 億美元之間，按報告貨幣計算同比增長 5.2% 至 6.9%，按固定匯率計算同比增長 6.7% 至 8.4%。

For full year 2023, we are maintaining our previous outlook for software product revenue in constant currency and slightly increasing our outlook in reported currency to a range of $551 million to $561 million, a year-over-year increase of 8.8% to 10.8% in reported currency and 9.1% to 11.0% in constant currency. As expected, services and other revenue has begun to stabilize in 2023 compared to the sharp declines we saw in 2022. While services and other revenue was down slightly year-over-year in Q1, we expect it to be flat year-over-year in Q2 and for the rest of the year. As a result, we expect total revenue for Q2 2023 in the range of $138 million to $140 million, a year-over-year increase of 4.0% to 5.5% in reported currency and 5.4% to 6.9% in constant currency.

對於 2023 年全年，我們維持之前對以固定貨幣計算的軟件產品收入的展望，並將我們以報告貨幣計算的展望略微上調至 5.51 億美元至 5.61 億美元，同比增長 8.8% 至 10.8%報告的貨幣和固定貨幣的 9.1% 至 11.0%。正如預期的那樣，與我們在 2022 年看到的急劇下降相比，服務和其他收入在 2023 年開始趨於穩定。雖然服務和其他收入在第一季度同比略有下降，但我們預計同比持平在第二季度和今年剩餘時間。因此，我們預計 2023 年第二季度的總收入在 1.38 億美元至 1.4 億美元之間，按報告貨幣計算同比增長 4.0% 至 5.5%，按固定匯率計算同比增長 5.4% 至 6.9%。

For full year 2023, we are maintaining our previous outlook for total revenue in constant currency and slightly increasing our outlook in reported currency to a range of $614 million to $624 million, a year-over-year increase of 7.3% to 9.0% in reported currency and 7.5% to 9.3% in constant currency. From a cost perspective, we're on track with our spending goals for 2023, continuing to invest in areas for growth, for example, in additional sales capacity while cutting back on administrative costs and overhead. For Q2 2023, we expect adjusted EBITDA in the range of $15 million to $17 million or 10.9% to 12.1% of total revenue compared to $16.4 million or 12.4% of total revenue in Q2 2022. For the full year 2023, we are maintaining our outlook from last quarter for adjusted EBITDA, which we expect to be in the range of $120 million to $130 million or 19.5% to 20.8% of total revenue compared to $108.6 million or 19.6% of total revenue in 2022.

對於 2023 年全年，我們維持之前對以固定匯率計算的總收入的展望，並將我們以報告貨幣計算的展望略微上調至 6.14 億美元至 6.24 億美元，報告中同比增長 7.3% 至 9.0%貨幣和固定匯率的 7.5% 至 9.3%。從成本的角度來看，我們正在實現 2023 年的支出目標，繼續投資於增長領域，例如，增加銷售能力，同時削減管理成本和間接費用。對於 2023 年第二季度，我們預計調整後的 EBITDA 在 1500 萬美元至 1700 萬美元之間，佔總收入的 10.9% 至 12.1%，而 2022 年第二季度為 1640 萬美元，佔總收入的 12.4%。對於 2023 年全年，我們將維持我們的上一季度調整後 EBITDA 的展望，我們預計 EBITDA 將在 1.2 億美元至 1.3 億美元之間，佔總收入的 19.5% 至 20.8%，而 2022 年為 1.086 億美元，佔總收入的 19.6%。

And finally, for the full year 2023, we are maintaining our outlook from last quarter for free cash flow, which we expect to be in the range of $108 million to $116 million, which represents a substantial increase year-over-year. As a reminder, our cash flow expectations are sensitive to billings and collection patterns which fluctuate seasonally. In particular, our historical pattern has shown a larger free cash inflow in the first half of the year, primarily from collections of billings from Q4 and Q1 and a smaller free cash inflow in the second half of the year. We're expecting that pattern to continue this year. We're excited to be starting the year with an all-time high in quarterly revenue, which we feel gives us momentum and helps to achieve our financial goals for the year. With that, we'd be happy to take your questions. Operator?

最後，對於 2023 年全年，我們維持上一季度的自由現金流展望，我們預計自由現金流將在 1.08 億美元至 1.16 億美元之間，同比大幅增長。提醒一下，我們的現金流量預期對季節性波動的賬單和收款模式很敏感。特別是，我們的歷史模式顯示上半年有較大的自由現金流入，主要來自第四季度和第一季度的賬單收集，而下半年的自由現金流入較小。我們預計今年將繼續這種模式。我們很高興以季度收入的歷史新高開始新的一年，我們認為這給了我們動力並有助於實現我們今年的財務目標。有了這個，我們很樂意回答您的問題。操作員？

(Operator Instructions) And our first question comes from the line of Blair Abernethy with Rosenblatt Securities.

（操作員說明）我們的第一個問題來自 Blair Abernethy 與 Rosenblatt Securities 的合作。

Congratulations for the quarter guys.

祝賀四分之一的傢伙。

Thank you, Blair.

謝謝你，布萊爾。

Matt, just one for you, if you could. Could you just walk us through a little bit of your thinking on the Q2 guide, and its sort of down sequentially a fair bit. Is this partially the outperformance in Q1, just sort of your thinking of how you got there for Q2? And also just in terms of the linearity you saw in deals in Q1, that would be helpful.

馬特，如果可以的話，給你一個。您能否向我們介紹一下您對 Q2 指南的一些想法，以及它的排序順序。這是第一季度的部分錶現，只是你對第二季度如何到達那裡的想法？而且就您在第一季度的交易中看到的線性而言，這也會有所幫助。

Sure. Yes. Thanks for the question, Blair. So what we ended up seeing the dynamic that we're seeing from Q1 into Q2, it's actually just very similar to our historical pattern. So as you know, we typically have our quarters seasonally Q1 than Q4, our highest quarters, whereas we end up having Q2 and Q3 being somewhat lower. And so what you're seeing here in 2023 and what's embedded in the guide is that same pattern continuing for 2023. And then so when we sort of look broadly over the full year, which is really how we're looking at things, we end up seeing growth in Q1 in software product revenue in constant currency was about 10%. And then if you sort of look at the midpoint of the guide and what that implies for full year growth, it's very consistent with what we're expecting for full year. So nothing to point out in particular for Q2. It's sort of similar to some of the remarks we made a quarter ago, we really are looking at things 1 year at a time and not focusing on the ins and outs of one particular quarter.

當然。是的。謝謝你的問題，布萊爾。因此，我們最終看到從第一季度到第二季度的動態，實際上與我們的歷史模式非常相似。如您所知，我們的季度季度通常比 Q4 季節性高，而我們最終的 Q2 和 Q3 略低。因此，您在 2023 年在這裡看到的以及指南中嵌入的是相同的模式將持續到 2023 年。然後當我們對全年進行廣泛觀察時，這實際上是我們看待事物的方式，我們最終看到第一季度按固定匯率計算的軟件產品收入增長約為 10%。然後，如果你看一下指南的中點以及它對全年增長的影響，它與我們對全年的預期非常一致。所以沒有什麼特別要指出的第二季度。這有點類似於我們一個季度前發表的一些言論，我們確實是在一年一次地審視事物，而不是關注某個特定季度的來龍去脈。

Okay. Great. And just one for you, Jim, if I might. Just rapid minor deal closed in September, mid-September. How is that performing for you now? How are those components of the AI analytics business coming together now that you've had them for another quarter?

好的。偉大的。如果可以的話，吉姆，只給你一個。只是在 9 月、9 月中旬快速完成小額交易。你現在的表現如何？人工智能分析業務的這些組成部分是如何結合在一起的，既然你已經擁有了另一個季度？

We feel really, really great about that acquisition, to be honest with you, Blair. It's -- we've been bringing these pieces together and the rapid minor piece was sort of the final and necessary element to bring it all together. And as we go out to customers, it's just extremely well received now. And beyond that, the sales force is just super confident these days, and that's across the entire sales force selling into our traditional manufacturing customers. There's a noticeable uptick in the number of discovery calls we're having and the level of interest and our credibility is just really soared in that space.

老實說，布萊爾，我們對這次收購感覺非常非常好。這是——我們一直在將這些片段組合在一起，而快速的小片段是將它們組合在一起的最後和必要的元素。當我們面向客戶時，它現在非常受歡迎。除此之外，這些天銷售人員非常自信，而且整個銷售人員都在向我們的傳統製造客戶銷售產品。我們進行的發現電話數量明顯增加，興趣水平和我們的可信度在該領域確實飆升。

Our next question comes from the line of Ahmad Khalil with Oppenheimer.

我們的下一個問題來自 Ahmad Khalil 和 Oppenheimer 的對話。

A nice quarter. First question for Jim. Really, really impressive commentary coming out of the manufacturing side in terms of demand for analytics. I guess, are you noticing any changes in dynamics outside of manufacturing? I know you had a peer report and it seems like they're seeing the opposite.

一個不錯的季度。吉姆的第一個問題。就分析需求而言，製造方面的評論真的非常令人印象深刻。我想，您是否注意到製造業以外的任何動態變化？我知道你有一份同行報告，但他們似乎看到了相反的情況。

So you mean like in the banking and financial services sector, for example?

所以你的意思是比如在銀行和金融服務領域？

Yes.

是的。

To be honest, we're feeling relatively positive really in all those accounts. I was just on a call with one of the major banks. And I think there's a lot of opportunity for us. Our business model is a really unique model, and we're into all these accounts. We've been converting most of them to our unit's model. And with the rapid minor element, I think we're extremely well positioned as a sort of differentiated platform. We've got like all the right answers to all the questions that they're asking. And I think they're even surprised, and we were just at the Gartner conference a month or so ago, and we got a very strong reception. So yes, the financial sector, obviously, having some challenges. But for us, it's actually -- the team that we have focused on BFSI is very energized and I think actually doing pretty well.

老實說，我們對所有這些賬戶都感覺相對積極。我剛剛正在與一家主要銀行通電話。我認為我們有很多機會。我們的商業模式是一個非常獨特的模式，我們參與了所有這些賬戶。我們一直在將它們中的大部分轉換為我們單位的模型。有了快速的次要元素，我認為我們作為一種差異化平台的定位非常好。對於他們提出的所有問題，我們已經得到了所有正確的答案。而且我認為他們甚至感到驚訝，大約一個月前我們剛剛參加了 Gartner 會議，我們得到了非常強烈的反響。所以是的，金融部門顯然面臨一些挑戰。但對我們來說，實際上——我們專注於 BFSI 的團隊非常有活力，我認為實際上做得很好。

That's great to hear. And thanks for elaborating. And then secondly, also a question for Jim, for you, Jim. SIMSOLID Cloud, you had some pretty, I guess, prosthetic comments there. What makes you so confident in the technology.

聽到這個消息我很高興。並感謝詳細說明。其次，還有一個問題要問吉姆，問你，吉姆。 SIMSOLID Cloud，我猜你有一些漂亮的修復評論。是什麼讓你對這項技術如此自信。

Because it sounds like a lot of marketing ball, but SIMSOLID is just so powerful. I mean, you're importing a complete kind model. There's no modeling and meshing necessary. You push a button and very quickly, you're getting very accurate results, including on very complex assemblies with thousands of parts. And it's only getting faster and we're adding more and more capabilities to it. We've added thermal. We've added a lot of nonlinear. We're looking at other physics as well.

因為這聽起來像很多營銷球，但 SIMSOLID 就是這麼強大。我的意思是，您正在導入一個完整的種類模型。無需建模和網格劃分。您按下一個按鈕，很快就會得到非常準確的結果，包括具有數千個零件的非常複雜的裝配體。而且它只會變得越來越快，我們正在為其添加越來越多的功能。我們添加了熱量。我們添加了很多非線性。我們也在研究其他物理學。

And so I think especially in the mid-market and the lower end of the market where, frankly speaking, Altair's not historically played big, but others have. I think those customers, which will say are less -- even less sophisticated, a tool like this that can give them such a fast turnaround is really -- it's magical actually, I think. It's a matter of getting the opportunity to get into these accounts, getting the eyeballs, the awareness of it, that is the biggest challenge, and we're working hard on that. And the competition is trying to make similar claims. But frankly speaking, when you dig in, it's just not true. What we're doing is really quite special.

因此，我認為尤其是在中端市場和低端市場，坦率地說，Altair 在歷史上並不大，但其他公司有。我認為那些客戶會說更少 - 甚至不那麼複雜，像這樣可以讓他們快速周轉的工具真的 - 我認為這實際上是神奇的。這是獲得進入這些客戶的機會，吸引眼球，意識到這一點的問題，這是最大的挑戰，我們正在為此努力。競爭對手正試圖提出類似的主張。但坦率地說，當您深入研究時，事實並非如此。我們正在做的事情真的很特別。

Congrats again.

再次恭喜。

Thank you.

謝謝。

Our next question comes from the line of Andrew DeGasperi with Berenberg.

我們的下一個問題來自 Andrew DeGasperi 與 Berenberg 的對話。

Maybe the first one, Jim, on the topic of AI. You mentioned how you added those capabilities to a HyperWorks. I was just wondering, is potentially adding that to SIMSOLID as well, something in the cards that you're thinking longer term?

也許是第一個，吉姆，關於人工智能的話題。您提到瞭如何將這些功能添加到 HyperWorks 中。我只是想知道，是否也有可能將其添加到 SIMSOLID 中，您考慮的是更長期的卡片？

Yes, there's no reason that the same fundamental technology that we're using. This is something we've been working on a long time, by the way. And we're feeling very excited about the quality of the results that we're getting. We've completely integrated it in HyperMesh actually. So that is -- there are a lot of start-ups in the space and all that, but it's quite important that it's easy to use, if you will, and sort of integrate it in the users' workflows, and we've done that. There's absolutely no reason you can't use this with SIMSOLID as well.

是的，我們沒有理由使用相同的基礎技術。順便說一句，這是我們長期以來一直在努力的事情。我們對所獲得結果的質量感到非常興奮。我們實際上已經將它完全集成到 HyperMesh 中。那就是——這個領域有很多初創企業等等，但重要的是它易於使用，如果你願意的話，並將它集成到用戶的工作流程中，我們已經完成了那。您完全沒有理由不能將其與 SIMSOLID 一起使用。

That's helpful. And then maybe on the 7 figure Rapid Miner deal, the SLC wins that you've had this quarter. I was just wondering, in terms of how accretive these are relative to your broader simulation portfolio? I mean, would you say these tend to fall on the higher end in terms of deal size?

這很有幫助。然後也許在 7 位數的 Rapid Miner 交易中，SLC 贏得了您本季度的勝利。我只是想知道，這些相對於您更廣泛的模擬產品組合的增值程度如何？我的意思是，你會說這些在交易規模方面往往屬於高端嗎？

I'm going to let Matt answer that question.

我要讓馬特回答這個問題。

Thanks, Jim. Yes, I mean, so clearly, there are large opportunities, and particularly when we're looking at our data analytics suite in the larger BFSI space, and it's where we see some of the larger deals. But that's one of the things that makes us exciting about integrating this technology not just stand-alone and data analytics, but also within our simulation customers. So yes, I think there's opportunity. Our deal size is increasing. That's something that we're happy about. And I think that, that continues to present opportunities as we continue to integrate and push forward in the space.

謝謝，吉姆。是的，我的意思是，很明顯，有很多機會，特別是當我們在更大的 BFSI 空間中查看我們的數據分析套件時，這是我們看到一些更大交易的地方。但這是讓我們興奮地集成這項技術的原因之一，不僅是獨立的和數據分析，而且還集成到我們的模擬客戶中。所以是的，我認為有機會。我們的交易規模正在增加。這是我們很高興的事情。而且我認為，隨著我們繼續在該領域整合和推進，這將繼續提供機會。

And our next question comes from the line of Dylan Becker with William Blair.

我們的下一個問題來自 Dylan Becker 和 William Blair 的台詞。

It's Dave on for Dylan. You touched on this with a previous question, but can you just provide some color on how this SIMSOLID plays into the longer-term strategy of targeting those less technical users and just driving incremental usage of the platform through democratization of simulation in those lower end market audiences.

戴夫替迪倫上場。您在上一個問題中提到了這個問題，但是您能否提供一些顏色說明這個 SIMSOLID 如何發揮長期戰略的作用，即針對那些技術水平較低的用戶，並通過在這些低端市場中模擬的民主化來推動平台的增量使用觀眾。

Sure. Thanks for the question. So I mean we're mostly focused. We've talked a lot about simulation-driven design. So we've been very focused through our Inspire platform on sort of the design and engineer community, particularly in sort of the more sophisticated large enterprise customers. But there's really also a very -- and that's a large opportunity. You could argue it's 5x or 10x bigger than just the analyst community within those companies. But there's also a very, very large opportunity at the mid and small market customers. But again, we have not historically been as large into. We are definitely focused there more and more. And so for them, you have less sophisticated users often it's the same guy who is designing whatever they're working on and doing simulation. And for those guys, I think the technology really makes a great tool for them.

當然。謝謝你的問題。所以我的意思是我們主要集中精力。我們已經討論了很多關於仿真驅動設計的內容。因此，我們通過我們的 Inspire 平台非常關注設計和工程師社區，特別是更複雜的大型企業客戶。但實際上也有一個非常 - 這是一個很大的機會。你可以說它比那些公司內部的分析師社區大 5 倍或 10 倍。但在中小型市場客戶中也有非常非常大的機會。但同樣，我們在歷史上並沒有那麼大。我們肯定越來越關注那裡。因此，對於他們來說，您的用戶通常不太成熟，他們通常是同一個人在設計他們正在從事的工作並進行模擬。對於那些人，我認為這項技術確實為他們提供了一個很好的工具。

Our next question comes from the line of Yu Shi with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Yu Shi 線。

I want to ask you about what your view on your automotive end market. I know it's probably a declining revenue contributor to our overall business, but still it was about roughly 30% of your business as of fiscal 2022. Jim, I think are you being very vocal when you see some early warning signs in the past, right? You just give the analyst community a very early warning when you are seeing something was not turning in the right direction roughly, I think in to go. But how do you feel about the automotive end market going into the end of the year and going into next year, especially now we kind of continue to feel a little bit nervous about the macro environment with the recent added uncertainties related to the banking crisis. So I want to get your thoughts on what you see here from automotive customers.

我想問一下您對汽車終端市場的看法。我知道這可能是我們整體業務的收入貢獻下降，但截至 2022 財年，它仍約佔您業務的 30%。吉姆，我認為當您過去看到一些預警信號時，您是否非常直言不諱，對嗎？ ？當你看到事情沒有大致朝著正確的方向轉變時，你只是給分析師社區一個非常早期的警告，我想繼續下去。但是您如何看待進入年底和進入明年的汽車終端市場，尤其是現在我們繼續對宏觀環境感到有點緊張，最近與銀行業危機相關的不確定性增加了。所以我想听聽汽車客戶對您在這裡看到的內容的看法。

Okay. No, Charles. Thank you for the question. It's interesting because I live in the Bay or now. And all around me, all the tech companies are laying people off, they've over hired their businesses are very significantly affected. But I was just back in Detroit. We did -- I spent a week there and it's very clear that in the sort of main street world of manufacturing. It's sort of business as usual. They're doing some trimming of their own in certain areas. There are always -- these companies know how to manage costs because they've been doing it so long. They don't go out and over hire.

好的。不，查爾斯。感謝你的提問。這很有趣，因為我住在海灣或現在。在我周圍，所有的科技公司都在裁員，他們過度僱傭了他們的業務，這受到了非常大的影響。但我剛回到底特律。我們做到了——我在那里呆了一個星期，很明顯，這是在那種主要的製造業街道世界裡。一切如常。他們正在某些區域進行自己的修整。總有——這些公司知道如何管理成本，因為他們已經這樣做了很長時間。他們不會外出和過度租用。

But the demand is still really high for new cars. And so right now, that whole market, I think, is still very solid. And for us, you're right, it's declining as a percentage of the total for us every year, but it's still growing. Now if you look at the startup EV community, I think that community of company is feeling probably more strain as the more traditional players are really starting to come in and Tesla is cutting prices and so on. But right now, I think the demand is still very, very high for their products, and I don't see it as really a problem for us.

但對新車的需求仍然很高。所以現在，我認為整個市場仍然非常穩固。對於我們來說，你是對的，它占我們總數的百分比每年都在下降，但它仍在增長。現在，如果你看看初創 EV 社區，我認為公司社區可能感到壓力更大，因為更傳統的參與者真的開始進入，特斯拉正在降價等等。但現在，我認為對他們產品的需求仍然非常非常高，我不認為這對我們來說真的是個問題。

Yes. Maybe a follow-up. Maybe this is for Matt. You basically reiterated your 2023 guidance, maybe taking it up a little bit on a U.S. dollar basis. But given the seasonality pattern, we're seeing that Q2 seems to be a little bit -- it's relative to at least my expectation, it's a little bit more seasonal than I thought, which would have been a little bit more, I mean, steady than what you guided for, which kind of implies Q3 maybe follow the same seasonality pattern by Q4, you kind of suggest we're going to need a very strong double-digit sequential growth into the year-end to really meet the full year target. I know Jim just provided some commentary around automotive. But how do you think about that trajectory? Is that what gives you the confidence that the same pattern will repeat going into the year and a double-digit sequential growth into Q4.

是的。也許是後續行動。也許這是給馬特的。您基本上重申了您的 2023 年指導方針，可能會以美元為基礎稍微調整一下。但考慮到季節性模式，我們看到第二季度似乎有點——至少與我的預期有關，它比我想像的更具季節性，我的意思是，這本來會更多一點，比你指導的穩定，這意味著第三季度可能會在第四季度遵循相同的季節性模式，你有點暗示我們需要在年底前實現非常強勁的兩位數連續增長才能真正滿足全年需求目標。我知道吉姆剛剛提供了一些關於汽車的評論。但你如何看待這條軌跡？是什麼讓你有信心相同的模式將在今年重複出現，並在第四季度實現兩位數的連續增長。

Yes. Thanks, Charles. Yes, it's actually interesting, if you just look back at 2022 and look to see what happened in 2022, Q1 to Q2, software product revenue in particular was down fairly consistently with where we're projecting our guidance to be sequentially this year. So it's actually fairly in line with historical. But just kind of stepping back, if we look at first half, second half dynamic, which I think is sort of useful here, we feel pretty good about how the first half is balancing in the second half. We're not expecting to have to go out and get a big number in the second half, for example, in order to make our guidance.

是的。謝謝，查爾斯。是的，這真的很有趣，如果你回顧 2022 年，看看 2022 年 Q1 到 Q2 發生了什麼，特別是軟件產品收入的下降與我們預計今年的連續指引相當一致。所以其實還是比較符合歷史的。但退一步說，如果我們看看上半場、下半場的動態，我認為這在這裡很有用，我們對上半場在下半場的平衡感覺非常好。例如，我們不期望在下半年必須出去獲得大量數據才能做出我們的指導。

I mentioned a moment ago that in Q1, we got to 10% software product revenue growth in the first quarter in constant currency. -- and that for full year, at the midpoint, we're at 10.1%. So that's certainly consistent. But even when you look at just first half versus second half, what's implied at the midpoint of the guide, it's roughly 9% in first half, which, of course, includes that Q2 guide and a little over 11% in the second half. So we're not -- we're really not talking about a big ramp in second half. It's something that we feel is manageable. And we've got eyes on and feel is attainable. So yes, not expecting a significant ramp in the second half from our perspective.

我剛才提到，在第一季度，我們的軟件產品收入在第一季度以固定匯率計算增長了 10%。 ——全年來看，在中點，我們是 10.1%。所以這當然是一致的。但即使你只看上半年和下半年，指南中點所暗示的，上半年也大約是 9%，當然，這包括第二季度指南和下半年略高於 11%。所以我們不是——我們真的不是在談論下半年的大幅增長。這是我們認為可以管理的事情。我們已經看到並認為是可以實現的。所以是的，從我們的角度來看，預計下半年不會出現顯著增長。

Our next question comes from the line of Mark Schappel with Loop Capital Markets.

我們的下一個問題來自 Loop Capital Markets 的 Mark Schappel。

Jim, I just want to build off one of the earlier questions on SIMSOLID Cloud. I was wondering if you could just give us some additional details into the go-to-market model or strategy for the product? And how you plan to kind of take that solution down to smaller and mid-market customers.

吉姆，我只想解決之前關於 SIMSOLID Cloud 的問題之一。我想知道您是否可以向我們提供一些有關產品上市模型或策略的更多詳細信息？以及您打算如何將該解決方案推廣到中小型市場客戶。

Well, there's a lot of discussion, to be honest with you, internally around how we do that. A lot of it really comes down to more marketing. I think we really have to promote it in a fairly substantial way. And that's what we're planning to do. So there's no brilliance here, but we really have to promote it somewhat aggressively, I think, so that it gets the visibility of that mid-market. We're also obviously pushing very, very hard through our indirect channels, which are getting more robust year-by-year. And those relationships are getting much, much better for us. So that's how we do it.

好吧，老實說，在內部圍繞我們如何做到這一點進行了很多討論。其中很多實際上歸結為更多的營銷。我認為我們真的必須以相當實質性的方式推廣它。這就是我們計劃要做的。所以這裡沒有光彩，但我認為我們真的必須稍微積極地推廣它，這樣它才能獲得中端市場的知名度。顯然，我們也在非常、非常努力地推動我們的間接渠道，這些渠道逐年變得更加強大。這些關係對我們來說變得越來越好。所以我們就是這樣做的。

Okay. Great. And then second question, one of your sales strategies has been to push or sell your data analytics products into the engineering simulation customer base. Just wondering if you could just give us a little bit of an update on those efforts. I know it's relatively early days.

好的。偉大的。然後是第二個問題，您的銷售策略之一是將您的數據分析產品推銷或銷售到工程模擬客戶群中。只是想知道您是否可以向我們介紹一下這些工作的最新情況。我知道現在還比較早。

Well, actually, it's sort of turning a corner, I would say, and there's a couple of reasons why we made the decision to bring the data analytics products into a suite it's sort of our upper-end suite of simulation products. So it's not across everything, but it's into the upper level suite where you got electromagnetics and things like that. And so now those products are available to use in that customer base that's already paying sort of a premium for their solution. Now they get access to this. And there's a lot of interest much more than I think we were perceiving before.

好吧，實際上，我想說，它有點轉折，我們決定將數據分析產品納入一個套件，這是我們的高端模擬產品套件，有幾個原因。所以它並沒有涵蓋所有方面，但它進入了上層套件，在那裡你可以獲得電磁學和類似的東西。因此，現在這些產品可以在已經為他們的解決方案支付一定溢價的客戶群中使用。現在他們可以訪問它了。而且有很多興趣遠遠超過我認為我們之前的感知。

But I think what's most important is that our technical teams have been training across all the different products, Panopticon, Rapid Miner Monarch. And they are finding use cases I just saw one that was super interesting where we're looking at wells, for example, and able to plot the results beautifully in Pano across the whole model in 3D. And there's just so many applications that we're starting to come up on and the customers are really very hungry for how they can apply this kind of technology as well. So the sales force, the technical engagement force all kind of coming up to speed. They're learning it. And I think the customers are very interested. In an environment where everybody is watching cost, whatever, I think our offering makes it easy for them to slide into using some of these tools and technology. So I think we are turning a corner now.

但我認為最重要的是我們的技術團隊一直在對所有不同的產品進行培訓，Panopticon，Rapid Miner Monarch。他們正在尋找用例，我剛剛看到一個非常有趣的用例，例如，我們正在觀察水井，並且能夠在 Pano 中以 3D 方式在整個模型中精美地繪製結果。而且我們開始提出的應用程序太多了，客戶真的非常渴望他們也可以如何應用這種技術。因此，銷售人員、技術參與人員都在加快速度。他們正在學習它。我認為客戶非常感興趣。在每個人都在關注成本的環境中，我認為我們的產品可以讓他們很容易地使用其中的一些工具和技術。所以我認為我們現在正在拐彎。

Our next question comes from the line of Arsenije Matovic with Wolfe Research.

我們的下一個問題來自 Arsenije Matovic 與 Wolfe Research 的合作。

This is Arsenije on for Josh. Just one for Matt, briefly. Just to confirm, constant currency software revenue and total revenue has been maintained, right? Because I'm looking at previous guidance, and I think it suggests a 40 basis point decrease on software revenue in on a constant currency basis. So I just wanted to make sure I had the message.

這是 Josh 的 Arsenije。只是一個給馬特的，簡單地說。只是確認一下，恆定貨幣軟件收入和總收入一直保持，對嗎？因為我正在查看之前的指導，我認為這表明在固定貨幣基礎上軟件收入減少了 40 個基點。所以我只是想確保我收到了消息。

Yes, that's right, Arsenije. So when we roll up our guidance in constant currency is consistent for the year, quarter-over-quarter, we include this table in the back of our earnings release that sort of has this walk from midpoint of guidance in February to midpoint of guidance in May, and then you could see the fluctuation in the data currency. So yes, you've got the message correct, Constant currency, no change in full year guidance, but on a reported currency basis, it's up just slightly.

是的，沒錯，Arsenije。因此，當我們以固定匯率匯總我們的指導意見時，我們的指導意見在一年中是一致的，季度環比，我們將這張表包含在我們的收益發布的後面，從 2 月份的指導意見中點到 2 月份的指導意見中點五月，然後你可以看到數據貨幣的波動。所以是的，你得到的信息是正確的，不變的貨幣，全年指導沒有變化，但在報告的貨幣基礎上，它只是略有上升。

Okay. And then just on indirect channel sales, I think it's down sequentially as a portion of revenue. Is this driven maybe by strength in large customers and renewals? And what's the outlook on renewals down market? And has this changed maybe versus initial expectations given the backdrop?

好的。然後就間接渠道銷售而言，我認為它作為收入的一部分連續下降。這可能是由大客戶和續訂的力量驅動的嗎？續訂市場的前景如何？在這種背景下，這是否可能與最初的預期發生了變化？

Yes. Was it -- did you say indirect?

是的。是——你說的是間接的嗎？

Yes.

是的。

Yes So indirect is performing well. As you know, it's been a focus of ours to continue to grow that. It's relatively actually consistent year-on-year with what we saw in terms of percentage of indirect, but we expect to continue to expand there and to focus of ours to eventually grow that up more in the 20% range. Of course, that's a multiyear project we're on. But yes, the overall indirect channel is performing well as is our direct channel.

是 所以間接表現良好。如您所知，繼續發展它一直是我們的重點。它實際上與我們在間接百分比方面看到的同比一致，但我們預計會繼續在那裡擴大並關注我們的重點，最終將其增長到 20% 的範圍內。當然，這是我們正在進行的一個多年項目。但是，是的，整體間接渠道和我們的直接渠道一樣表現良好。

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating, and you may now disconnect.

謝謝。女士們，先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。