Altair Engineering Inc (ALTR) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Altair Engineering Inc. Q2 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的耐心等待，歡迎參加 Altair Engineering Inc. 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Stephen Palmtag, Investor Relations. Please go ahead.

我現在想把會議交給今天的發言人，投資者關係部門的史蒂芬‧帕爾塔格（Stephen Palmtag）。請繼續。

Good afternoon. Welcome, and thank you for attending Altair's earnings conference call for the second quarter 2024 ended June 30th. I am Stephen Palmtag, Altair's Head of Investor Relations. And with me on the call, are Jim Scapa, Founder, Chairman and CEO; and Matt Brown, Chief Financial Officer.

午安.歡迎並感謝您參加 Altair 於 6 月 30 日結束的 2024 年第二季財報電話會議。我是 Stephen Palmtag，Altair 投資人關係主管。與我一起參加電話會議的還有創辦人、董事長兼執行長吉姆‧斯卡帕 (Jim Scapa)；和首席財務官馬特·布朗。

After market close today, we issued a press release with details regarding our second quarter 2024 performance and guidance for the third quarter and full year 2024, which can be accessed on our Investor Relations website at investor.altair.com.

今天收盤後，我們發布了一份新聞稿，詳細介紹了2024 年第二季度的業績以及第三季度和2024 年全年的指引，您可以在我們的投資者關係網站Investor.altair.com 上訪問該新聞稿。

This call is being recorded and a replay will be available on the IR section of our website following the conclusion of this call. During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws.

本次通話正在錄音，通話結束後，我們網站的 IR 部分將提供重播。在今天的電話會議中，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聲明。

These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date, and 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. 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 time to time.

這些陳述僅反映我們截至今天的觀點，不應被視為代表我們截至任何後續日期的觀點，並且我們不承擔更新任何前瞻性陳述或展望的義務。這些陳述受到各種風險和不確定性的影響，可能導致實際結果與我們的預期有重大差異。我們今天早些時候發布的新聞稿總結了這些風險。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 SEC 提交的季度和年度報告中包含的內容以及我們已提交或可能不時提交的其他文件。

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.

在今天的電話會議中，我們將提及某些非公認會計準則財務指標。我們的新聞稿中包含了 GAAP 與非 GAAP 指標的調整表。

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 core quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.

最後，有時在我們準備好的評論或對您的問題的答覆中，我們可能會提供對我們通常的演示有所補充的指標，以便更深入地了解我們的業務動態或核心季度業績。請注意，我們將來可能會也可能不會繼續提供此附加詳細資訊。

With that when we turn the call over to Jim for his prepared remarks. Jim?

當我們把電話轉給吉姆聽他準備好的演講。吉姆？

Thank you, Steven, and welcome to everyone on the call. During the second quarter of 2020 for Altium maintained its strong trajectory. Total quarterly revenue was $148.8 million, with software revenue accounting for $135.4 million, both surpassing the high end of our guidance.

謝謝你，史蒂文，歡迎大家來參加電話會議。2020 年第二季度，Altium 維持了強勁的發展軌跡。季度總收入為 1.488 億美元，軟體收入為 1.354 億美元，均超過了我們指導的上限。

For the quarter, adjusted EBITDA was $17.3 million above the midpoint of our guided range. Altair's Q2 results underscore the robustness of our software product lineup, which continues to empower our customers with industry leading computational intelligence software revenue on a constant currency basis grew 10.6% year-over-year in the second quarter.

本季調整後的 EBITDA 比我們指引範圍的中點高出 1,730 萬美元。Altair 第二季的業績凸顯了我們軟體產品陣容的穩健性，該產品陣容繼續為我們的客戶提供業界領先的運算智慧軟體，以固定匯率計算，第二季營收年增 10.6%。

Software revenue as a percentage of total revenue grew to 91% compared to 88.8% in the second quarter of 2023 after a successful quarter spanned broadly across technologies and industry verticals with notable strength in aerospace and defense. Last month, we unveiled exciting product enhancements with the release of Altair HyperWorks 2024, which includes substantial advancements in artificial intelligence.

軟體收入佔總收入的百分比從 2023 年第二季的 88.8% 增長至 91%，該季度在技術和行業垂直領域取得了成功，在航空航天和國防領域表現強勁。上個月，我們發布了 Altair HyperWorks 2024，推出了令人興奮的產品增強功能，其中包括人工智慧的重大進展。

This further solidifies our platform status as a leading environment for a high-powered simulation driven innovation HyperWorks 2024 includes improvements in AI driven engineering, design of mechanical and electronic systems and design optimization driven by simulation.

這進一步鞏固了我們作為高效能模擬驅動創新領先環境的平台地位。

It's the only platform that offers a unified modern user experience across any geometry physics and complexity at every stage of the product development lifecycle from design to in-service. With AI. embedded workflows, photo, realistic graphics and a unified back end data system. Altair HyperWorks is the foundation upon which many of the world's most innovative digital engineering practices are being built.

它是唯一一個能夠在從設計到投入使用的產品開發生命週期的每個階段提供跨任何幾何物理和複雜性的統一現代用戶體驗的平台。有了人工智慧。嵌入式工作流程、照片、逼真的圖形和統一的後端資料系統。Altair HyperWorks 是世界上許多最具創新性的數位工程實踐的基礎。

In June, we announced that Altria was named a leader in the Gartner Magic Quadrant for data science and machine learning platforms for our offering. Altair RapidMiner Gartner's Magic Quadrant, especially for data related technologies, is widely regarded as an influential tool in the IT industry and serves as a key reference point for many organizations on evaluating technology vendors.

6 月，我們宣布 Altria 被評為 Gartner 魔力像限中我們產品的資料科學和機器學習平台的領導者。Altair RapidMiner Gartner 的魔力像限，尤其是資料相關技術，被廣泛認為是 IT 產業中具有影響力的工具，並成為許多組織評估技術供應商的關鍵參考點。

The evaluation is based on specific criteria that analyzes the company's overall completeness of vision and ability to execute being named as the leader in this ranking report validates what we have known for years, Altair has one of the market's most unique and comprehensive offerings for data analytics and machine learning.

該評估基於具體標準，分析公司願景的整體完整性和執行能力。之一和機器學習。

For us, this placement is a testament to our unmatched vision and business model, which has defined us since our inception as pioneers at the forefront of technological innovation and computational intelligence. I am proud of our Altair stands today and I look forward to the strides we continue to make each day.

對我們來說，這個佈局證明了我們無與倫比的願景和商業模式，這使我們自成立以來就成為技術創新和運算智慧前沿的先驅。我為今天的 Altair 展位感到自豪，並期待我們每天繼續的進步。

In July, we announced the acquisition of metrics design automation, a Canadian company with a game changing simulation as a service business model for semiconductor electronic functional simulation and design verification. The Metrics, digital simulator, DSim, when combined with Altor silicon debug tools will deliver a world-class advanced simulation environment with superior simulation and debug capabilities in the EDA and semiconductor space.

7 月，我們宣布收購 Metrics Design Automation，這是一家加拿大公司，該公司為半導體電子功能模擬和設計驗證提供了改變遊戲規則的模擬即服務業務模式。Metrics 數位模擬器 DSim 與 Altor 晶片調試工具相結合，將提供世界一流的高級仿真環境，在 EDA 和半導體領域具有卓越的仿真和調試功能。

The cloud-based business model has the potential to transform the semiconductor space by making high caliber of EDA design tools, much more affordable and accessible for companies looking to aggressively scale out simulations to accelerate design cycles. Today, integrated circuit design verification has high licensing costs and they require hundreds and sometimes thousands of seats to run a single chip simulation.

基於雲端的業務模式有潛力改變半導體領域，因為它可以使高品質的 EDA 設計工具變得更加經濟實惠，對於那些希望積極擴展模擬以加快設計週期的公司來說更容易獲得。如今，積體電路設計驗證的授權成本很高，並且需要數百甚至數千個席位來運行單晶片模擬。

Additionally, these tools run on desktop machines and are not typically cloud-native or cloud enabled. The Altair Metrics solution delivers the flexibility to run us the desktop app on your own servers for the cloud and can run very large regressions with customers paying only for what they use customers will be able to run simulations concurrently, and at scale, moving massive amounts of time and cost from the traditional design cycle.

此外，這些工具在桌上型電腦上運行，通常不是雲端原生或支援雲端的。Altair Metrics 解決方案使我們能夠靈活地在您自己的雲端伺服器上運行桌面應用程序，並且可以運行非常大的回歸，客戶只需為他們使用的內容付費客戶將能夠同時大規模運行模擬，移動大量數據傳統設計週期的時間和成本。

By combining our best-in-class software with Metrics cloud-based simulation service. We are excited to bring this groundbreaking technology to our EDA and semiconductor customers. We are unique in our ability to merge simulation with industry leading work workload and workflow optimization technology serving as a true partner for companies embracing innovative tools and resource delivery models. In this highly specialized and high stakes industry.

透過將我們一流的軟體與 Metrics 基於雲端的模擬服務相結合。我們很高興能夠將這項突破性技術帶給我們的 EDA 和半導體客戶。我們的獨特之處在於能夠將模擬與業界領先的工作負載和工作流程最佳化技術相結合，成為採用創新工具和資源交付模型的公司的真正合作夥伴。在這個高度專業化和高風險的行業。

Customers now have a choice and design verification decent will be available through Altair One Altair's cloud innovation gateway, where it will also be available for desktop download. Altair's software portfolio continues to demonstrate leadership across industries. This quarter, we were thrilled to highlight the role our technologies playing throughout the development cycle for many teams in their quest for victory in the 37th America's Cup beginning August 22.

客戶現在可以選擇，並且可以透過 Altair One Altair 的雲端創新網關獲得不錯的設計驗證，也可以在桌面上下載。Altair 的軟體產品組合持續展現出跨產業的領先地位。本季度，我們很高興地強調我們的技術在整個開發週期中為許多團隊在 8 月 22 日開始的第 37 屆美洲盃帆船賽上取得勝利所發揮的作用。

Our work with America's Cup teams demonstrates the power of Altra's computational Intelligence vision on a global stage like no other. These are world-class organizations always looking to find new ways to innovate and succeed just as alternatives, their use of our software solutions and expertise is helping design state of the art AC75.

我們與美洲盃帆船賽團隊的合作展示了 Altra 計算智慧願景在全球舞台上無與倫比的力量。這些世界級組織始終尋求創新和成功的新方法作為替代方案，他們使用我們的軟體解決方案和專業知識正在幫助設計最先進的 AC75。

Yes, Altair, is the official computational science and artificial intelligence partner for the New York Yacht Club American Magic team, as well as an official supplier of Luna Rossa Prada Pirelli, and we are excited to watch the races and experienced the outcome of these remarkable athletes and technologists.

是的，Altair 是紐約遊艇俱樂部美國魔術隊的官方計算科學和人工智慧合作夥伴，也是 Luna Rossa Prada Pirelli 的官方供應商，我們很高興觀看比賽並體驗這些非凡的成果運動員和技術人員。

In the second quarter, we partnered with Hewlett Packard to enrich the Altair Material Data Center with HP's proprietary material information, enhancing its utility for designers, engineers and scientists. This aims to overcome traditional 3D printing challenges and improve component design for multi jet fusion and metal jet printers. The collaboration bridges the often siloed functions of design and production of 3D printed parts.

第二季度，我們與惠普合作，利用惠普專有的材料資訊豐富了 Altair 材料資料中心，增強了其對設計師、工程師和科學家的實用性。其目的是克服傳統 3D 列印挑戰並改進多噴頭融合和金屬噴射列印機的組件設計。此次合作彌合了 3D 列印零件的設計和生產通常孤立的功能。

Now engineers with access to the Altair Material Data Center will be able to use HP material data to design efficient components, conduct structural analysis using (technical difficulty) analysis and predict and fix manufacturing defects during design and simulation. The collaboration will also benefit users of Altair Inspire Print3D, which accelerates the creation, optimization, and study of innovative structurally efficient additively manufactured parts by providing a fast and accurate toolset for the design and process simulation of parts made by metal binder jetting.

現在，有權存取 Altair 材料資料中心的工程師將能夠使用 HP 材料資料來設計高效能元件、使用（技術難度）分析進行結構分析，並在設計和模擬過程中預測和修復製造缺陷。此次合作也將讓Altair Inspire Print3D 的用戶受益，該軟體為金屬黏合劑噴射製造的零件的設計和製程模擬提供了快速、準確的工具集，從而加速了結構高效的創新增材製造零件的創建、優化和研究。

Customers within our automotive vertical continue to adopt our cutting edge technology. In the quarter, a motorsports company with aspirations of joining the F1 grid signed a six-figure three-year deal to leverage our comprehensive suite of simulation and high performance computing solutions. The organization believes our simulation driven design philosophy and will use SimSolid and Inspire throughout the design process for rapid design exploration. The value, breadth, and flexibility of the Altair unit software licensing model continues to be an important factor in securing new deals.

我們汽車行業的客戶繼續採用我們的尖端技術。本季度，一家渴望加入 F1 車隊的賽車運動公司簽署了為期三年的六位數協議，以利用我們全面的模擬和高效能運算解決方案套件。該組織相信我們的模擬驅動設計理念，並將在整個設計過程中使用 SimSolid 和 Inspire 進行快速設計探索。Altair 單位軟體授權模式的價值、廣度和靈活性仍然是獲得新交易的重要因素。

In the banking, financial services and insurance vertical, we welcomed one of the largest property and casualty insurance companies in the United States as a new customer. This organization will leverage Altair SLC, our powerful SaaS language compiler to construct advanced machine learning models, perform data preparation and execute data transformations. Their decision not only emphasizes the quality of our data analytics and AI platform but also highlights the significant potential for growth in this sector.

在銀行、金融服務和保險領域，我們迎來了美國最大的財產和意外傷害保險公司之一作為新客戶。該組織將利用我們強大的 SaaS 語言編譯器 Altair SLC 來建立高級機器學習模型、執行資料準備和執行資料轉換。他們的決定不僅強調了我們數據分析和人工智慧平台的質量，還凸顯了該領域的巨大成長潛力。

In addition, a Canadian bank leveraging our data analytics platform expanded its six-figure annual spend with Altair by over 200%. We also maintained strong performance within the aerospace and defense vertical. We signed an eight-figure three-year contract with a multinational aerospace company, our largest deal ever.

此外，一家加拿大銀行利用我們的數據分析平台，將 Altair 的六位數年度支出擴大了 200% 以上。我們還在航空航太和國防垂直領域保持了強勁的業績。我們與一家跨國航空航太公司簽署了一份價值八位數的三年合同，這是我們有史以來最大的一筆交易。

The commitment was driven by Altair HyperMesh, part of the Altair HyperWorks design and simulation platform, which continues to provide superior capabilities for structural modeling and analysis. With HyperMesh, we continue to expand our presence in mission critical workflows at some of the world's most important companies.

這項承諾是由 Altair HyperMesh 推動的，它是 Altair HyperWorks 設計和模擬平台的一部分，繼續提供卓越的結構建模和分析功能。借助 HyperMesh，我們繼續擴大在世界上一些最重要的公司的關鍵任務工作流程中的影響力。

In addition, a European aerospace defense and security company signed a seven figure agreement representing a 49% year-on-year expansion compared to 2023. This agreement grows our presence in simulation, high performance computing and data analytics, underscoring the convergence of these domains and Altair's unique ability to deliver comprehensive solutions.

此外，一家歐洲航空航天國防和安全公司簽署了一項價值七位數的協議，與 2023 年相比，年增 49%。該協議擴大了我們在模擬、高效能運算和數據分析領域的影響力，凸顯了這些領域的融合以及 Altair 提供全面解決方案的獨特能力。

This year, Altair established a new vertical focused on healthcare and life sciences where we already had significant business in the areas of HPC and simulation and won our first data analytics deal in Q1 2024. During the second quarter, we saw several new sales and our pipeline of data science activities significantly grow in this vertical, especially for our SaaS language solutions and our graph database technology.

今年，Altair 建立了一個專注於醫療保健和生命科學的新垂直領域，我們已經在 HPC 和模擬領域擁有重要業務，並於 2024 年第一季贏得了第一筆數據分析交易。在第二季度，我們看到了一些新的銷售和我們的資料科學活動管道在這個垂直領域的顯著成長，特別是我們的 SaaS 語言解決方案和圖形資料庫技術。

Our indirect sales channel remains an important contributor to our overall revenue and a priority moving forward. A clear testament of this commitment is the addition of three new channel partners during the second quarter. [Ackspan], based in Seattle will offer customers Altair's full suite of comprehensive data analytics and AI solutions found in the Altair RapidMiner platform.

我們的間接銷售管道仍然是我們整體收入的重要貢獻者，也是未來發展的優先事項。第二季增加了三個新的通路合作夥伴，明確證明了這項承諾。總部位於西雅圖的 [Ackspan] 將為客戶提供 Altair RapidMiner 平台中的全套綜合數據分析和人工智慧解決方案。

Devoteam and Semantic Partners will extend the reach of Altair's data analytics and AI solutions to customers across the EMEA region. And [Atec] will bolster Altair's expansion into the Northwest and Central African regions dynamic areas primed for swift adoption of technological solutions. The first half of 2024 was a strong start to the year.

Devoteam 和 Semantic Partners 將把 Altair 的資料分析和 AI 解決方案的覆蓋範圍擴展到歐洲、中東和非洲地區的客戶。[Atec] 將支援 Altair 向西北和中非地區的擴張，這些地區是迅速採用技術解決方案的活躍地區。2024 年上半年是個強勁的開局。

We are confident Altair is well positioned for future growth, and we remain committed to delivering best in class technology to our customers. I will now turn the call over to Matt to provide more details on our financial performance and our guidance for the third quarter and full year of 2024. Matt?

我們相信 Altair 已為未來的發展做好了準備，我們將繼續致力於為客戶提供一流的技術。我現在將把電話轉給 Matt，以提供有關我們的財務業績以及 2024 年第三季和全年指引的更多詳細資訊。馬特？

Thank you, Jim. Hello to everyone on the call and thank you for joining us. Altair had a strong Q2, exceeding the high end of the guidance range for software revenue and total revenue, and adjusted EBITDA was above the midpoint of our guidance range. Our first half performance was driven by growth across multiple products and verticals with especially strong performance in aerospace and defense, where demand for our products continues to be robust.

謝謝你，吉姆。大家好，感謝您加入我們。Altair 在第二季度表現強勁，超越了軟體收入和總收入指導範圍的高端，調整後的 EBITDA 高於我們指導範圍的中點。我們上半年的業績是由多個產品和垂直領域的成長所推動的，其中在航空航太和國防領域的表現尤其強勁，這些領域對我們產品的需求持續強勁。

Altair's solutions are fundamental to our customers' mission-critical workflows, spanning design, simulation and data analytics. As we look forward, we remain committed to innovation and product excellence, striving to exceed our customers' expectations.

Altair 的解決方案是我們客戶關鍵任務工作流程的基礎，涵蓋設計、模擬和資料分析。展望未來，我們將繼續致力於創新和卓越產品，並努力超越客戶的期望。

As a reminder, some of our revenues and expenses are transacted in currencies other than the US dollar, and therefore, our reported results may be impacted by changes in foreign exchange rates. To aid in the review of our results, throughout my remarks, I will reference growth rates in both reported and constant currency.

提醒一下，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外匯匯率變動的影響。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成長率。

For the second quarter, calculated total billings were $154.5 million, a year-over-year increase of 4.5% in reported currency and 7.1% in constant currency. Software revenue in Q2 was $135.4 million, a year-over-year increase of 8.1% in reported currency and 10.6% in constant currency compared to Q2 2023. The year-over-year increase in software revenue was driven by high retention rates and new and expansion business with notable strength in aerospace and defense, where customers are increasingly leveraging the convergence of capabilities in our software.

第二季的總帳單為 1.545 億美元，以報告貨幣計算年增 4.5%，以固定匯率計算年增 7.1%。第二季的軟體營收為 1.354 億美元，與 2023 年第二季相比，以報告貨幣計算年增 8.1%，以固定匯率計算成長 10.6%。軟體收入的同比增長是由高保留率以及在航空航天和國防領域具有顯著實力的新業務和擴展業務推動的，客戶越來越多地利用我們軟體中的功能融合。

For instance, one aerospace customer is using romAI for multidisciplinary optimization of an avionic system, while another is using RapidMiner for predictive maintenance and root cause analysis. Our unique ability to deliver these comprehensive AI-powered engineering solutions gives us great confidence in the long term trajectory of our software offerings.

例如，一位航空航太客戶正在使用 romAI 對航空電子系統進行多學科最佳化，而另一位客戶則使用 RapidMiner 進行預測性維護和根本原因分析。我們提供這些全面的人工智慧工程解決方案的獨特能力使我們對我們軟體產品的長期發展軌跡充滿信心。

Additionally, our strength in software continues to be broad based with gains across the Americas, EMEA, and APAC. Total revenue in Q2, which includes engineering services and other revenue, was $148.8 million, a year-over-year increase of 5.4% in reported currency and 7.8% in constant currency compared to Q2 2023. Non-GAAP gross margin, which excludes stock based compensation, was 80.9% in the second quarter compared to 80% in the prior year period, an increase of 90 basis points.

此外，我們在軟體方面的優勢繼續廣泛，在美洲、歐洲、中東和非洲和亞太地區都取得了進展。第二季的總收入（包括工程服務和其他收入）為 1.488 億美元，與 2023 年第二季相比，以報告貨幣計算年增 5.4%，以固定匯率計算成長 7.8%。第二季非公認會計準則毛利率（不含股票薪酬）為 80.9%，與去年同期的 80% 相比，成長了 90 個基點。

The year-over-year increase in non-GAAP gross margin in Q2 was driven by the mix shift towards software revenue, where gross margins are higher than our engineering services and other revenue margins. Software revenue was 91% percent of total revenue in Q2, compared to 88.8% in the prior year. We expect software revenue growth will continue to outpace that of engineering services and other revenue and therefore continue to push our blended gross margins higher.

第二季非公認會計準則毛利率的年增率是由向軟體收入的混合轉變所推動的，軟體收入的毛利率高於我們的工程服務和其他收入利潤率。第二季軟體收入佔總營收的 91%，去年同期為 88.8%。我們預計軟體收入的成長將繼續超過工程服務和其他收入的成長，從而繼續推高我們的綜合毛利率。

GAAP operating expenses were $128.2 million, compared to $126.6 million in the prior year period, reflecting growth of just 1.2% due to the continued and sustained year-over-year reduction in stock based compensation expense. Non-GAAP operating expenses, which exclude stock based compensation and amortization of intangible assets were $105.3 million, compared to $96.9 million in the prior year period, reflecting the planned investments we're making in product development and sales capacity to capitalize on the large and exciting opportunities we're seeing ahead of us.

公認會計準則營運費用為 1.282 億美元，而去年同期為 1.266 億美元，由於股票薪資費用持續持續年比減少，僅成長 1.2%。非 GAAP 營運費用（不包括以股票為基礎的薪酬和無形資產攤銷）為 1.053 億美元，而去年同期為 9,690 萬美元，反映了我們計劃在產品開發和銷售能力方面進行投資，以利用大型和我們看到了令人興奮的機會。

Adjusted EBITDA in Q2 was $17.3 million or 11.7% of total revenue compared to $17.1 million or 12.1% in the prior year. Moving to our balance sheet, we ended the quarter with $507 million in cash and cash equivalents, an increase of approximately $88.7 million from the prior year period and $39.5 million from year end. These increases in cash and cash equivalents were despite us paying $81.7 million for the settlement of our 2024 convertible notes in the second quarter.

第二季調整後 EBITDA 為 1,730 萬美元，佔總營收的 11.7%，而前一年為 1,710 萬美元，佔總營收的 12.1%。轉向我們的資產負債表，本季末我們的現金和現金等價物為 5.07 億美元，比上年同期增加約 8,870 萬美元，比年底增加約 3,950 萬美元。儘管我們在第二季為 2024 年可轉換票據的結算支付了 8,170 萬美元，但現金和現金等價物仍出現了增長。

Free cash flow continues to be strong and was the primary driver of our cash and cash equivalents balance. Free cash flow was $97 million for the six months ended June 30, compared to $83 million in the prior year period, an increase of 16.8%. We expect to continue to generate significant free cash flow going forward and we will continue to allocate capital with focus and discipline to drive long term shareholder value.

自由現金流持續強勁，是我們現金和現金等價物平衡的主要驅動力。截至 6 月 30 日的六個月自由現金流為 9,700 萬美元，較去年同期的 8,300 萬美元增長 16.8%。我們預計未來將繼續產生大量自由現金流，並將繼續專注並嚴格分配資本，以推動長期股東價值。

Turning to guidance for Q3 and full year 2024. We've provided detailed tables in our earnings press release, including reconciliation to comparable GAAP amounts. To provide 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 Q3, we expect software revenue in the range of $130 million to $133 million, a year-over-year increase of 9.2% to 11.7% in reported currency, and 11.1% to 13.7% in constant currency.

轉向第三季和 2024 年全年的指導。我們在收益新聞稿中提供了詳細的表格，包括與可比較 GAAP 金額的調整。為了明確外匯對我們預期的影響，我們在指導表中提供了以報告貨幣和固定貨幣表示的成長率。對於第三季度，我們預計軟體營收在 1.3 億至 1.33 億美元之間，按報告貨幣計算同比增長 9.2% 至 11.7%，按固定匯率計算同比增長 11.1% 至 13.7%。

For full year 2024, we are raising our previous outlook in constant currency for software revenue and also adjusting for changes in foreign currency exchange rates over the past quarter. These amounts are offsetting and therefore, we expect full year software revenue in reported currency to be a range of $590 million to $600 million; a year-over-year increase of 7.3% to 9.1% in reported currency and 8.9% to 10.8% in constant currency.

對於 2024 年全年，我們上調了先前按固定匯率計算的軟體收入預期，並根據上個季度的外幣匯率變化進行了調整。這些金額相互抵消，因此，我們預計以報告貨幣計算的全年軟體收入將在 5.9 億美元至 6 億美元之間；以報告貨幣計算，年增 7.3% 至 9.1%；以固定匯率計算，年增 8.9% 至 10.8%。

We expect Q3 total revenue, which includes engineering services and other revenue in the range of $145 million to $148 million, a year-over-year increase of 8.2% to 10.4% in reported currency and 10.0% to 12.3% in constant currency. For full year 2024, we are maintaining our previous outlook in constant currency for total revenue. This includes the increase in our full year software revenue outlook in constant currency and an offsetting reduction in engineering services and other revenue.

我們預計第三季總收入（包括工程服務和其他收入）將在1.45 億至1.48 億美元之間，按報告貨幣計算將同比增長8.2% 至10.4%，按固定匯率計算將同比增長10.0% 至12.3 %。對於 2024 年全年，我們維持先前以固定匯率計算的總收入預期。這包括以固定匯率計算的全年軟體收入前景的增加以及工程服務和其他收入的抵銷性減少。

However, due to changes in our foreign currency exchange rates over the past quarter, we are adjusting our full year outlook and reported currency to a range of $648 million to $658 million, a year-over-year increase of 5.8% to 7.4% in reported currency and 7.5% to 9.1% in constant currency.

然而，由於上一季外幣匯率的變化，我們正在將全年展望和報告貨幣調整至 6.48 億美元至 6.58 億美元的範圍，同比增長 5.8% 至 7.4%。 7.5% 至9.1%。

For Q3, we expect adjusted EBITDA in the range of $16 million to $19 million or 11.0% to 12.8% of total revenue compared to $15.5 million or 11.5% of total revenue in Q3 2023. For full year 2024, changes in foreign currency exchange rates have also impacted adjusted EBITDA. And therefore, we are adjusting our outlook to a range of $136 million to $144 million or 21.0% percent to 21.9% of total revenue compared to $129.1 million or 21.1% of total revenue in 2023.

對於第三季度，我們預計調整後EBITDA 在1,600 萬美元至1,900 萬美元之間，佔總營收的11.0% 至12.8%，而2023 年第三季調整後的EBITDA 為1,550 萬美元，佔總營收的11.5%。2024 年全年，外幣匯率的變動也影響了調整後的 EBITDA。因此，我們將展望調整為 1.36 億美元至 1.44 億美元，佔總營收的 21.0% 至 21.9%，而 2023 年則為 1.291 億美元，佔總營收的 21.1%。

And finally, for the full year 2024, we expect free cash flow in the range of $122 million to $130 million, which has also been impacted by changes in foreign exchange rates and therefore, has been adjusted in line with the change in our full year adjusted EBITDA guidance.

最後，對於 2024 年全年，我們預計自由現金流在 1.22 億至 1.3 億美元之間，這也受到外匯匯率變化的影響，因此已根據全年變化進行了調整調整後的 EBITDA 指引。

As a reminder, our cash flow expectations are sensitive to billings and collections patterns, which fluctuate seasonally. We continue to be pleased with the high free cash flow as a percentage of adjusted EBITDA at approximately 90%. We are excited about our strong Q2 and first half performance to start the year and we are looking forward to maintaining that momentum in the second half.

提醒一下，我們的現金流量預期對季節性波動的帳單和收款模式很敏感。我們仍然對高自由現金流佔調整後 EBITDA 的比例感到滿意，約為 90%。我們對今年第二季和上半年的強勁表現感到興奮，並期待在下半年保持這種勢頭。

With that, we'd be happy to take your questions. Operator?

因此，我們很樂意回答您的問題。操作員？

(Operator Instructions) Matt Hedberg, RBC.

（操作員說明）Matt Hedberg，RBC。

Thank you so much for taking my question. This is Matt Swanson on for Matt. It was great to hear about the success in the aerospace and defense. And Jim, I think you mentioned big HyperMesh win, which has always been seen as a best of breed product for the space. And then, Matt, I think in some of your examples, we talked about some of the newer products like RapidMiner.

非常感謝您回答我的問題。我是馬特·斯旺森 (Matt Swanson) 替馬特發言。很高興聽到在航空航太和國防領域的成功。Jim，我想你提到了 HyperMesh 的重大勝利，它一直被視為該領域的最佳產品。然後，馬特，我認為在您的一些例子中，我們討論了一些較新的產品，例如 RapidMiner。

Could you guys just talk a little bit about the go to market and the ability to be able to sell both those things, and interconnectedness from your traditional products and some of these newer data focus? And just how the sales force is doing ramping on that?

你們能談談進入市場和銷售這些東西的能力，以及傳統產品和一些新數據焦點的互連性嗎？銷售人員在這方面做得如何？

Sure. First of all, thank you. Yeah, I mean, the go to market, first of all, in general, we've moved to this vertical market orientation for all the strategic accounts. So in the aerospace and defense vertical, we have a global team that is managed by one individual and then the account teams are spread throughout the world. When you think about an account, one of the major aerospace accounts, most of them are using HyperMesh and it just continues to expand and now we're expanding out to many of the other products.

當然。首先，謝謝您。是的，我的意思是，首先，總的來說，我們已經轉向所有策略客戶的垂直市場導向。因此，在航空航太和國防垂直領域，我們擁有一支由一人管理的全球團隊，然後客戶團隊遍布世界各地。當您考慮一個帳戶時，主要的航空航天帳戶之一，其中大多數都在使用 HyperMesh，並且它還在繼續擴展，現在我們正在擴展到許多其他產品。

RapidMiner is pretty natural next step, because they have a lot of test data or they're trying to process material data, for example, coming in for, for example, if they want to project what are values that maybe didn't come in through testing and they want to project those using some AI technology. I just saw that this morning. So it's fresh in my mind. It's just a great tool for doing that.

RapidMiner 是很自然的下一步，因為他們有很多測試數據，或者他們正在嘗試處理材料數據，例如，如果他們想要預測可能沒有出現的值是什麼通過測試，他們希望使用一些人工智慧技術來進行預測。我今天早上才看到。所以它在我的腦海裡是新鮮的。它只是一個很好的工具來做到這一點。

So we're seeing more and more applications throughout our traditional engineering customer base. And I would say that the account teams that are traditionally selling simulation applications are becoming more and more comfortable as they see more of these applications, understand them, and can really just talk about them. And we bring experts in of course more and more.

因此，我們在傳統工程客戶群中看到越來越多的應用程式。我想說的是，傳統上銷售模擬應用程式的客戶團隊變得越來越舒服，因為他們看到了更多的這些應用程序，了解它們，並且可以真正談論它們。當然，我們也會引進越來越多的專家。

The other big application is a solution called physicsAI or romAI, reduced order modeling. So when we're doing digital twins, very often we're creating these reduced order models that are typically neural net type models to simulate a part of a system in the digital twin. Similarly, physicsAI lets you run a number of simulations and then run it through the neural nets of physicsAI build an AI model, if you will. The next simulation just simply runs the AI model.

另一個重要的應用是稱為物理人工智慧或 romAI 的解決方案，即降階建模。因此，當我們進行數位孿生時，我們通常會創建這些降階模型，這些模型通常是神經網路類型模型，用於模擬數位孿生中系統的一部分。同樣，如果您願意，PhysicsAI 可以讓您執行多次模擬，然後透過PhysicsAI 的神經網路運行它來建立 AI 模型。下一個模擬只是簡單地運行人工智慧模型。

So it's really starting to take off. We have a lot of technology just embedded in our tools also as all built on machine learning and AI. So it's permeating throughout the products. And I think we have frankly speaking quite a big lead on our competition and applying thist technology. It does take time for everyone to come up to speed, the tech support guys, the sales guys, but we've been at this for five, six years now. And so we are just really running with it.

所以它真的開始起飛了。我們的工具中嵌入了許多技術，而且所有技術都建立在機器學習和人工智慧的基礎上。所以它滲透到整個產品中。坦白說，我認為我們在競爭和應用這項技術方面擁有相當大的領先優勢。每個人（技術支援人員、銷售人員）確實需要時間才能跟上進度，但我們已經這樣做了五、六年了。所以我們只是真正地運用它。

We've been running these seminars, AI for engineering and we have, in some cases, thousands of people signing up for them. So it's been very, very positively received.

我們一直在舉辦這些研討會，即工程人工智慧，在某些情況下，我們有數千人報名參加。所以它受到了非常非常積極的歡迎。

That's super helpful. And then my follow-up question was actually on that getting up to speed standpoint and just the idea of the push and pull of AI with your customers right now. It was great to hear about those updates that came for the HyperWorks 2024 around AI. But I'm just curious, is AI something that your customers are looking to as a must have when you enter into a new deal process, or are you really -- (multiple speakers)

這非常有幫助。然後我的後續問題實際上是關於加快速度的觀點，以及現在與客戶推動人工智慧的想法。很高興聽到 HyperWorks 2024 圍繞人工智慧的更新。但我只是好奇，當你進入新的交易流程時，你的客戶是否希望人工智慧成為必須具備的東西，或者你真的是這樣嗎？——（多位發言者）

I think so, and I think it's what's putting us really in the lead at this point. We see our position in many of these accounts where typically there's multiple vendors in each one of these accounts, ourselves and competitors. But we see our position rising across the board actually. And a lot of the reason for that is the AI technology that we're bringing, I think. So yeah, I think it's very important.

我想是的，而且我認為這就是我們目前真正處於領先地位的原因。我們在許多此類客戶中看到了自己的地位，其中每個客戶中通常都有多個供應商，包括我們自己和競爭對手。但我們看到我們的地位實際上全面上升。我認為，造成這種情況的主要原因是我們帶來的人工智慧技術。是的，我認為這非常重要。

Thank you.

謝謝。

Sure.

當然。

Blair Abernethy, Rosenblatt Securities.

布萊爾·阿伯內西，羅森布拉特證券公司。

Thanks for taking the questions, guys. Jim, just wanted to drill in a little bit more on your comments about the channel and adding some new capacity there. Are you looking at emphasizing the channel more now that you have more product? Just what are your thoughts there? And I'm not sure what the current percentage revenue from the channel is for Altair?

謝謝你們提出問題，夥伴們。吉姆，只是想進一步深入了解您對該頻道的評論，並在那裡添加一些新容量。既然您擁有更多產品，您是否考慮更加強調通路？你有什麼想法？我不確定 Altair 目前從該管道獲得的收入百分比是多少？

We are trying to emphasize the channel more. It's particularly important on the data side, to be honest with you, but it's also important on the simulation side in many of the regions that we probably historically have not gone to market indirectly as much. So some of the larger markets where we were selling a lot directly, we were underserving, I would say, the small, medium accounts and we need to get to those through indirect channels and that's what we're doing.

我們正在努力更加強調管道。老實說，這在數據方面尤其重要，但在我們歷史上可能沒有那麼多間接進入市場的許多地區的模擬方面也很重要。因此，在我們直接銷售大量產品的一些較大市場中，我們對中小型客戶的服務不足，我們需要透過間接管道接觸這些客戶，這就是我們正在做的事情。

The other thing very, very important for us is systems integrators on the data side, particularly when a customer wants to do like a data modernization program, moving their SaaS to stay into Python in some cases or into a mix of Python and ARM, and SaaS. We're really well positioned for those deals but they have to be done through systems integrators.

對我們來說非常非常重要的另一件事是資料方面的系統整合商，特別是當客戶想要像資料現代化計劃一樣，在某些情況下將他們的SaaS 遷移到Python 或遷移到Python 和ARM 的混合中，並且SaaS。我們確實為這些交易做好了準備，但它們必須透過系統整合商來完成。

And the other one that heavily relies on systems integrators is the graph technology. We have a lot of activity happening with that and -- in pharma and in those opportunities very often it's a system integrator that's heavily involved in the implementations. So yes, indirect is really important for us.

另一種嚴重依賴系統整合商的技術是圖形技術。我們為此進行了許多活動，並且在製藥業和這些機會中，系統整合商通常會大量參與實施。所以，是的，間接對我們來說確實很重要。

And just one other, if I could, called out the HP partnership and with your material solutions. Is that strictly a product arrangement or is there some go to market there as well?

如果可以的話，我想談談與惠普的合作關係以及你們的材料解決方案。這嚴格來說是一種產品安排還是也有一些產品進入市場？

There is no go to market there that I'm aware of, maybe I'm missing something, other than the fact that now their material data is available in our material database modeler, which is really important. We have about 400 different providers. HP is a new one that's added, but a very, very important one. That solution has been maturing and I think it's going to really take off. We're going to move it into a units model approach coming up pretty soon here.

據我所知，那裡沒有進入市場，也許我錯過了一些東西，除了現在他們的材料數據可以在我們的材料數據庫建模器中獲得這一事實之外，這非常重要。我們有大約 400 個不同的提供者。惠普是一個新加入的公司，但卻是一個非常非常重要的公司。該解決方案已經日趨成熟，我認為它將會真正成功。我們將把它轉移到很快就會出現的單位模型方法中。

And I think that's going to be very, very transformational. I think most of our existing customers are going to start using it. And when they do, I think it's going to really change the game. It's a gorgeous product and it uses AI as part of it as well. So there's some new things coming that are rather cool.

我認為這將是非常非常具有變革性的。我認為我們的大多數現有客戶都會開始使用它。當他們這樣做時，我認為這將真正改變遊戲規則。這是一款華麗的產品，而且它也使用了人工智慧作為其中的一部分。因此，將會出現一些相當酷的新事物。

That's great. Thanks. Thanks very much.

那太棒了。謝謝。非常感謝。

Sure.

當然。

Charles Shi, Needham and Company.

查爾斯‧史（Charles Shi），李約瑟公司。

I know we're in the -- well, middle part of the year, still a little bit away from 2025. But Jim, Matt, any initial thoughts on next year at this point given there seems to be some renewed concerns about the macroeconomic environment, particularly we're seeing news, Stellantis, for example, I'm sure it's probably one of your large customers in automotive, seems to be -- that there's some rumored layoffs there. Not so sure if this is isolated case or not, but I want to get your thoughts in the middle part of 2024, any initial view on 2025, the macro environment, automotive and what you think about the Altair business?

我知道我們現在正處於——嗯，今年中期，距離 2025 年還有一點距離。但吉姆、馬特，考慮到人們似乎對宏觀經濟環境出現了一些新的擔憂，目前對明年的任何初步想法，特別是我們看到的新聞，例如Stellantis，我確信它可能是你們的大客戶之一在汽車產業，似乎有傳言說有一些裁員。不太確定這是否是孤立的案例，但我想了解您對 2024 年中期的想法，對 2025 年、宏觀環境、汽車以及您對 Altair 業務的看法有什麼初步看法嗎？

No, that's a good question. In general, I feel like these companies have no choice but to continue to innovate aggressively. And so my feeling is that these downturns aren't necessarily bad for my business, because I think I bring a lot of value to the customers. And I think the customers are going to choose to work more and more with Altair as time goes on. But of course, when there -- if there is an overall malaise or whatever, I suppose it can have some effect.

不，這是個好問題。總的來說，我覺得這些公司別無選擇，只能繼續積極創新。所以我的感覺是，這些低迷不一定對我的業務不利，因為我認為我為客戶帶來了很多價值。我認為隨著時間的推移，客戶將越來越多地選擇與 Altair 合作。但當然，當出現整體不適或其他什麼情況時，我認為它可能會產生一些影響。

But generally, I'm not that concerned. I feel really, really optimistic coming into 2025. The product lineup that we're bringing at the end of this year into next year, it's just second to none across the board on the simulation side. All the modeling and visualization, all the work we've done on the modeling and visualization is essentially complete and we are seeing ourselves very, very competitive against really, really everyone. Similarly on the data side and the HPC stuff we're launching a product called NavOps. We've got a huge number of customers lined up.

但一般來說，我並不那麼擔心。進入 2025 年，我感到非常非常樂觀。我們從今年底到明年推出的產品陣容，在模擬方面是首屈一指的。所有的建模和視覺化，我們在建模和視覺化方面所做的所有工作基本上已經完成，我們看到自己與每個人都非常非常有競爭力。同樣，在資料方面和 HPC 方面，我們正在推出一款名為 NavOps 的產品。我們有大量顧客在排隊。

It lets you get to the cloud, basically it works with any of the different cloud providers, every customer is interested in being able to do that managing cost and performance. So I just think we're in a great spot. Of course, macro can have some overarching effect but it's my job to plow us through whatever and I'm pretty confident about it.

它可以讓您進入雲端，基本上它可以與任何不同的雲端供應商合作，每個客戶都有興趣管理成本和效能。所以我認為我們處於一個很好的位置。當然，宏觀可以產生一些整體影響，但我的工作是幫助我們克服一切困難，我對此非常有信心。

Maybe a second question. Glad to see you at the Design Automation Conference. I can feel like Altair has a bigger presence at that EDA industry trade show. And I do want to ask, maybe first off, can you kind of help us give us a reminder what are the Altair business, Altair exposure to the semiconductors at this point?

也許還有第二個問題。很高興在設計自動化會議上見到您。我感覺 Altair 在 EDA 產業貿易展的影響力更大。我確實想問，也許首先，您能否幫助我們提醒一下 Altair 業務是什麼，Altair 目前涉足半導體領域？

And it's interesting to see Altair announce acquiring this company called the Metrics Design Automation, but also want to check with you because that company, the founder, Joe Costello, is very famous for his different thinking along the business model, charged by the minute rather than charged by the seat that has been his pitch to the EDA industry. But that does echo some of the new point based business model you have been promoting for over the year. So I wonder if we can get a comment from you on that as well.

很有趣的是看到Altair 宣布收購這家名為Metrics Design Automation 的公司，但也想向您核實一下，因為該公司的創始人Joe Costello 因其對商業模式的不同思考而聞名，按分鐘收費，而不是比他向 EDA 行業推銷的席位所收取的費用還要高。但這確實呼應了您一年來一直在推廣的一些基於點的新商業模式。所以我想知道我們是否也可以得到您對此的評論。

We've been building on our portfolio in electronics starting with printed circuit boards and now more and more in the semiconductor space. Obviously, we're not a major player there yet but we're coming with a lot of I think interesting technology that DSim probably tested the hell out of it and it's very, very competitively performing to the best in class logic simulators. And we have really nice digital debug technology, honestly best in class there. We plan to integrate that stuff, make it available so people can run desktop on their servers or in the cloud with business models and technology that makes it very interesting.

我們一直在電子產品領域建立產品組合，從印刷電路板開始，現在越來越多地涉足半導體領域。顯然，我們還不是這方面的主要參與者，但我們帶來了很多我認為有趣的技術，DSim 可能已經對其進行了徹底的測試，並且它的性能非常非常有競爭力，達到了同類最佳邏輯模擬器的水平。我們擁有非常出色的數位調試技術，老實說是同類中最好的。我們計劃整合這些東西，使其可用，以便人們可以在他們的伺服器上或在雲端中運行桌面，並使用使其變得非常有趣的業務模型和技術。

And there's -- the market I think for semiconductor design is exploding starting from universities and small companies. And I do think that there's been a bit of a duopoly there with very expensive software that is sort of anathema to the creative power of the market to be able to go out and innovate. So I think we're going to bring some disruption there. I don't mean that we're going to completely change the world in six months but I think we are going to see a lot of traction around the stuff we're bringing.

我認為半導體設計市場正在從大學和小公司開始爆炸性成長。我確實認為，非常昂貴的軟體存在一定程度的雙頭壟斷，這對市場走出去和創新的創造力來說是一種詛咒。所以我認為我們會在那裡帶來一些破壞。我並不是說我們將在六個月內徹底改變世界，但我認為我們將看到我們帶來的東西有很大的吸引力。

And you also have this move to 3D IC and healthcare is very well positioned with some really nice technology in that direction as well. So I think it's going to be more and more important what we do, obviously, we played big on the HPC side there as well. So bringing all that, that convergence, if you will, is going to be important. And I think some of the expertise and technology we bring on the AI side as well is going to bring some interesting innovation. I think that particular market, the EDA market, is right for some disruption and we're going to try and bring some.

而且您也朝著 3D IC 邁進，醫療保健也處於非常有利的位置，在這個方向上也有一些非常好的技術。因此，我認為我們所做的事情將變得越來越重要，顯然，我們在 HPC 方面也發揮了重要作用。因此，如果你願意的話，整合所有這些，這種融合將非常重要。我認為我們在人工智慧方面帶來的一些專業知識和技術也將帶來一些有趣的創新。我認為 EDA 市場這個特定市場適合進行一些顛覆，我們將嘗試帶來一些顛覆。

Thank you.

謝謝。

Steve Tusa, JP Morgan.

史蒂夫圖薩，摩根大通。

Hey, good evening. Just a question on the guidance and the margins. I would assume that part of the margin tweak down is due to foreign exchange. Can you just confirm that or is there something else in the business that you're seeing on the cost side?

嘿，晚上好。只是關於指導和利潤的問題。我認為利潤率下降的部分原因是外匯。您能否證實這一點，或者您在成本方面還看到了其他情況嗎？

If you look at the full year guide and we have a table that's there that's helpful in getting you to bridge from sort of one quarter to the next. The full year guide from an EBITDA perspective in constant currency is unchanged. So you're correct that the only impact to EBITDA is due to FX.

如果您查看全年指南，我們會提供一張表格，幫助您從一個季度過渡到下一個季度。從固定匯率計算的 EBITDA 角度來看，全年指引保持不變。所以你說對 EBITDA 的唯一影響是外匯造成的，這是正確的。

Okay, great. And then as far as the aerospace strength is concerned, it's kind of as juxtaposed against I know you're not like direct competitors on certain fronts, but juxtaposed against, Dassault, who called out aerospace and defense as being a headwind. Is there anything to kind of like directly read through there to market share or are these just on like very -- obviously, they're a large company with many different product lines. But is there anything to kind of read through from that to like a direct project win or direct deal win for you guys?

好的，太好了。就航空航太實力而言，它與我知道你在某些方面不像直接競爭對手，但與達梭並列，達梭稱航空航太和國防為逆風。有什麼可以直接通讀市場佔有率的東西嗎？但是，有什麼值得你們讀的，例如直接贏得專案或直接贏得交易嗎？

I don't think there's anything direct Altair versus Dassault, if you will, but I do think some of the players are rising and some are slipping some. And I would say Altair is gaining and others are perhaps slipping some. So without calling out names, not sure what else I can say there. But it's part of why I don't concern myself with some of the macro, because I think it can create new opportunities and I think Altair is rising irrespective of where the tide is going.

如果你願意的話，我認為 Altair 與 Dassault 之間沒有任何直接的關係，但我確實認為有些玩家正在崛起，有些玩家正在下滑。我想說 Altair 正在上漲，而其他公司可能正在下滑。因此，在不喊出名字的情況下，我不確定我還能說些什麼。但這也是我不關心某些宏觀因素的部分原因，因為我認為它可以創造新的機會，而且我認為無論潮流走向如何，Altair 都在崛起。

Great. Thank you.

偉大的。謝謝。

Mark Schappel, Loop Capital Markets.

馬克‧沙佩爾 (Mark Schappel)，Loop 資本市場。

Thank you for taking my question and nice job on the software revenue print. Jim, question for you on metric design. I appreciate your color on that in your prepared remarks. You mentioned that you thought the technology was groundbreaking. I mean, would you consider the technology groundbreaking in the EDA space in the same way that maybe SimSolid is disruptive in mechanical simulation?

感謝您提出我的問題，並且在軟體收益列印方面做得很好。吉姆，問你一個關於公制設計的問題。我很欣賞你在準備好的發言中對此的看法。您提到您認為這項技術是開創性的。我的意思是，您是否會認為該技術在 EDA 領域具有突破性，就像 SimSolid 在機械模擬領域具有顛覆性一樣？

No. So I said it's groundbreaking, the business model that they're applying here, because with the cloud you can scale up to thousands of simulations simultaneously. And so you can basically do in a very, very short amount of time, which you could do in much, much longer period of time because you perhaps don't have enough licenses or enough computing hardware to scale out as fast. So the business model and the approach I think is what's groundbreaking and can really accelerate design.

不。所以我說他們在這裡應用的商業模式是開創性的，因為透過雲，你可以同時擴展到數千個模擬。因此，您基本上可以在非常非常短的時間內完成，而您可以在非常非常長的時間內完成，因為您可能沒有足夠的許可證或足夠的計算硬體來快速擴展。因此，我認為商業模式和方法具有開創性，可以真正加速設計。

But general technology of the logic simulator, I think it's a really excellent logic simulator, which I admit before a lot of testing that we did, we were a little skeptical but it's really quite strong. In fact at the DAC conference one of the gentlemen that does all these evaluations and whatever actually wrote similarly, he was quite surprised with its performance and we were as well, we tested it with a team overseas. So no, I don't think the simulator itself is groundbreaking, I think it's a very competitive simulator. I think the business model is what's groundbreaking.

但是邏輯模擬器的一般技術，我認為它是一個非常出色的邏輯模擬器，我承認在我們進行大量測試之前，我們有點懷疑，但它確實非常強大。事實上，在 DAC 會議上，一位先生進行了所有這些評估，並且實際上寫了類似的內容，他對它的性能感到非常驚訝，我們也是如此，我們與海外團隊一起對其進行了測試。所以不，我不認為模擬器本身俱有開創性，我認為它是一個非常有競爭力的模擬器。我認為商業模式是開創性的。

Great. Thanks. And then on physicsAI that was a big topic during the user conference and Investor Day. What kind of an uptake rate are you seeing with your physicsAI tools?

偉大的。謝謝。然後是實體人工智慧，這是用戶會議和投資者日期間的一個大話題。您對實體人工智慧工具的使用率如何？

I think, huge percentage of the customers are beginning to use it. So it's getting a lot of uptake.

我認為，很大一部分客戶已經開始使用它。所以它得到了大量的採用。

Great. Thank you.

偉大的。謝謝。

Dylan Becker, William Blair.

迪倫貝克爾、威廉布萊爾。

Hey, gentlemen, nice job here. Jim, maybe touching on kind of the HyperWorks 24 rollout, any kind of additional color you could give us around maybe added functionality for customers, how they're thinking about adoption of this, what that can mean for incremental usage or units, kind of the right way of thinking about what that means for the business?

嘿，先生們，幹得好。Jim，也許會談到 HyperWorks 24 的推出，您可以為我們提供的任何附加顏色，可能會為客戶添加功能，他們如何考慮採用此功能，這對於增量使用或單位意味著什麼，有點思考這對企業意味著什麼的正確方法？

So I think it's sort of a broad based release with a lot of really great things touching it. The HyperMesh product, which is our flagship product, has gone through this complete transformation. It's a new user experience, it's all Python, all of that. And there's a lot of underlying stuff that you can't see that we are taking out, if you will, because we have two processes running simultaneously. So the performance is dramatically improving.

所以我認為這是一個基礎廣泛的版本，有很多真正偉大的東西。我們的旗艦產品HyperMesh產品經歷了這次徹底的轉變。這是一種新的使用者體驗，全部都是 Python。如果你願意的話，有很多你看不到的底層東西我們正在刪除，因為我們有兩個進程同時運行。所以性能正在顯著提高。

It improved dramatically with the 4.0 release and 4.1 release, which is right now and the 4.2 release in a few months, each one of these is giving us a lot of new performance and that is extremely important, a lot of robustness as well.

它在4.0 版本和4.1 版本（現在）和幾個月後的4.2 版本中得到了顯著改進，每個版本都為我們帶來了很多新的性能，這是極其重要的，還有很多魯棒性。

So brand new user experience, much higher performance. Some of the products have the new graphics engine in it, which is gorgeous. And so it's full time real time rendering, it's really beautiful stuff. The Inspire product continues to really just be groundbreaking for simulation driven design. And I think over the next six months to 12 months, I think we're going to see a lot more take up of Inspire and that addresses the design community.

全新的使用者體驗，更高的效能。有些產品配備了新的圖形引擎，非常華麗。所以它是全時即時渲染，這真的是很漂亮的東西。Inspire 產品在模擬驅動設計方面仍具有真正的開創性。我認為在接下來的 6 個月到 12 個月內，我們將看到更多人採用 Inspire 並解決設計社群的問題。

And I'm very excited about that as well, especially some of the new technology for implicit design is, I think very, very interesting as well. So there's a lot, I mean, it's hard to pinpoint lots of new things in SimSolid, the electronics, electromagnetics and SimSolid continues to evolve here. And we're continuing to benchmark run against our traditional electromagnetic solver Feko and getting very, very good results. So we are excited about where things are going.

我對此也非常興奮，特別是一些隱式設計的新技術，我認為也非常非常有趣。所以，我的意思是，很難在 SimSolid 中找出很多新東西，電子學、電磁學和 SimSolid 在這裡繼續發展。我們將繼續針對傳統電磁求解器 Feko 進行基準測試，並獲得非常非常好的結果。因此，我們對事情的進展感到興奮。

Okay. Thanks. Appreciate the depth there. Maybe two for Jim and maybe or Matt as well too. On that kind of push to new verticals, obviously, we've kind of restructured and verticalized the sales force, but it sounds like there's some key wins in some of those segments as well. I guess, how should we think about kind of the evolution of those pockets of strength within some of these new markets, and how to kind of fully capitalize on the potential in each of those as well?

好的。謝謝。欣賞那裡的深度。也許吉姆有兩個，也許馬特也有。顯然，在推動新垂直領域的過程中，我們對銷售團隊進行了重組和垂直化，但聽起來在其中一些細分市場中也取得了一些關鍵的勝利。我想，我們應該如何思考這些新市場中這些力量的演變，以及如何充分利用每個市場的潛力？

I can answer that. I don't know if Matt has a different answer here. But I think some of them are -- have matured faster or really hitting their stride, aerospace and defense for sure. Some of them are continuing to mature and we're continuing to tune them.

我可以回答這個問題。我不知道馬特在這裡是否有不同的答案。但我認為他們中的一些人已經成熟得更快或真正取得了進步，航空航天和國防領域肯定如此。其中一些正在不斷成熟，我們正在繼續調整它們。

Some of the people that we might have selected whatever we're making little changes here and there and kind of learning from the ones that are doing well. We're also adding more folks with domain expertise, for example, in life science space. We've had to add a couple of people that really deeply know that space, particularly on the data science side.

我們可能會選擇一些人，我們在這裡或那裡做一些小小的改變，並向表現良好的人學習。我們也增加了更多具有領域專業知識的人員，例如生命科學領域的人員。我們必須添加一些真正深入了解該領域的人，特別是在數據科學方面。

But some of the acquisitions that we've made, for example, the graph database acquisition had a lot of life science expertise in it. And so that's really shored up that new healthcare life science vertical, which really looks like it's taken off for us. So in general, I mean, I think it's coming along and it's only a year and a half into this new organization. And I think an organizational transformation like this probably takes three, four years to really completely hit its stride.

但我們進行的一些收購，例如圖形資料庫收購，其中包含大量生命科學專業知識。因此，這確實支撐了新的醫療保健生命科學垂直領域，它看起來確實為我們起飛了。所以總的來說，我的意思是，我認為它正在出現，而且這個新組織成立只有一年半。我認為像這樣的組織轉型可能需要三、四年才能真正完全踏出步伐。

The only thing I would add there, Dylan, is just that I think the momentum we're seeing is really strong. And Jim called out in his prepared remarks in Q2, we signed our largest deal ever and that has a lot to do with us moving to verticals. So a lot of these verticals are starting to hit their stride. We were pleased with our Q2 software revenue performance, getting to 10.6% in constant currency and we're excited about our guide for Q3 at the midpoint of 12.4% in constant currency. So just we're pleased with how momentum is building here and feel very good about it.

迪倫，我唯一要補充的是，我認為我們看到的勢頭非常強大。吉姆在第二季度準備好的演講中指出，我們簽署了有史以來最大的一筆交易，這與我們轉向垂直領域有很大關係。因此，許多垂直行業都開始大步前進。我們對第二季的軟體營收表現感到滿意，以固定匯率計算達到 10.6%，我們對第三季的指導值以固定匯率計算達到 12.4% 的中位數感到興奮。因此，我們對這裡的勢頭感到高興，並且感覺非常好。

Okay, great. I'll get back. Thank you.

好的，太好了。我會回來的。謝謝。

This concludes our question and answer session. I would now like to turn it back to Jim Scapa for closing remarks.

我們的問答環節到此結束。現在我想請吉姆·斯卡帕（Jim Scapa）發表結束語。

Okay. Well, thank you very much. I want to just express appreciation to the team because everyone worked really hard on the Altair team. And appreciate everyone's interest in our company and look forward to continued success here. Thank you.

好的。嗯，非常感謝。我想對團隊表示感謝，因為 Altair 團隊的每個人都非常努力。感謝大家對我們公司的興趣，並期待在這裡繼續取得成功。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。