Aspen Technology, Inc. (NASDAQ:AZPN) Q4 2022 Earnings Conference Call August 8, 2022 4:30 PM ET Company Participants Brian Denyeau - Investor Relations Antonio Pietri - President and Chief Executive Officer Chantelle Breithaupt - Chief Financial Officer Conference Call Participants Matthew Pfau - William Blair Andrew Obin - Bank of America Mark Schappel - Loop Capital Operator Good afternoon. My name is Rex and I will be your conference operator today. At this time, I would like to welcome everyone to the F ...

[Explanatory Note](index=3&type=section&id=Explanatory%20Note) This section provides context on Emersub CX, Inc. (Newco) and its role in the proposed merger with Aspen Technology, Inc. [Transaction Overview](index=3&type=section&id=Transaction%20Overview) This section outlines the formation of Newco for the merger of Emerson's software businesses with AspenTech, forming New AspenTech - Emersub CX, Inc. (Newco) was formed by Emerson to combine its industrial software businesses (Open Systems International, Inc. and Geological Simulation Software) with Aspen Technology, Inc. (AspenTech)[5](index=5&type=chunk) - Following the transaction, Newco will be renamed **New AspenTech**, with Emerson owning **55%** of the new entity and the entity trading on NASDAQ under **AZPN**[7](index=7&type=chunk) - A special meeting for AspenTech stockholders is scheduled for **May 16, 2022**, to vote on the adoption of the Transaction Agreement[6](index=6&type=chunk) [PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) This section presents the financial statements and related disclosures for Emersub CX, Inc., a non-operational shell company [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements reflect Emersub CX, Inc.'s status as a non-operational shell company, reporting zero or nominal values [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Unaudited financial statements for Q1 and H1 2022 report zero activity, consistent with a non-operational shell company Financial Highlights as of March 31, 2022 | Financial Metric | Three Months Ended Mar 31, 2022 | Six Months Ended Mar 31, 2022 | As of Mar 31, 2022 | | :--- | :--- | :--- | :--- | | Revenue | $0 | $0 | N/A | | Net Earnings | $0 | $0 | N/A | | Total Assets | N/A | N/A | $0 | | Total Liabilities | N/A | N/A | $0 | | Total Equity | N/A | N/A | $0 | | Net Cash from Operations | N/A | $0 | N/A | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the transaction agreement, Emerson's contribution of **$6.014 billion** cash, and related legal proceedings - The transaction involves Emerson contributing **$6.014 billion** in cash and its Industrial Software Business to Newco, with AspenTech shareholders receiving **0.42 shares** of Newco common stock plus a per-share cash consideration[21](index=21&type=chunk) - Key parties to the transaction include Newco (the shell company), AspenTech, Emerson, the Emerson Industrial Software Business (comprising OSI Inc. and GSS), Emerson Sub, and Merger Sub[27](index=27&type=chunk)[28](index=28&type=chunk)[30](index=30&type=chunk) - A stockholder lawsuit (Ciccotelli v. Aspen Technology, Inc. et al.) was filed on **January 21, 2022**, alleging incomplete disclosures in Newco's Form S-4 registration statement[34](index=34&type=chunk) - As of **March 31, 2022**, a nominal **$1** receivable was due from Emerson Sub, a related party[33](index=33&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=12&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This MD&A confirms Emersub CX, Inc. is a non-operational shell company, detailing forward-looking statements and transaction risks - The company confirms it has not engaged in any activities other than those incidental to its formation and matters contemplated by the Transaction Agreement[36](index=36&type=chunk) - The report includes extensive forward-looking statements concerning the proposed transaction's timing, benefits, and financial performance, subject to significant risks[38](index=38&type=chunk)[39](index=39&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=13&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a non-operational shell company, Emersub CX, Inc. incurred no significant market risks during the reporting period - The company incurred no significant market risks, with activities limited to its formation and matters related to the Transaction Agreement[40](index=40&type=chunk) [Item 4. Controls and Procedures](index=14&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of **March 31, 2022**, with no material changes in internal controls - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[42](index=42&type=chunk) - No material changes occurred in internal controls over financial reporting during the quarter ended **March 31, 2022**[42](index=42&type=chunk) [PART II. Other Information](index=15&type=section&id=PART%20II.%20Other%20Information) This section covers legal proceedings, risk factors, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=15&type=section&id=Item%201.%20Legal%20Proceedings) This section references legal proceedings detailed in Note 4, concerning a stockholder lawsuit over Form S-4 disclosures - The company is involved in a legal proceeding, as detailed in Note 4 of the financial statements, concerning a stockholder lawsuit over proposed transaction disclosures[44](index=44&type=chunk)[34](index=34&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) This section refers to risk factors outlined in the Prospectus, part of the Registration Statement on Form S-4 - For detailed risk discussion, the report refers to the "Risk Factors" section of the Registration Statement on Form S-4 (File No. **333-262106**)[45](index=45&type=chunk) [Item 6. Exhibits](index=15&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including executive certifications and iXBRL financial data - Exhibits include certifications pursuant to Exchange Act Rules **13a-14(a)** and **13a-14(b)**, as well as iXBRL formatted financial statements and notes[46](index=46&type=chunk)

Aspen Technology, Inc. (NASDAQ:AZPN) Q3 2022 Earnings Conference Call April 27, 2022 4:30 PM ET Company Participants Brian Denyeau - Investor Relations Antonio Pietri - President and Chief Executive Officer Chantelle Breithaupt - Chief Financial Officer Conference Call Participants Jason Celino - KeyBanc Capital Markets Inc. Robert Oliver - Robert W. Baird & Co. Andrew Obin - Bank of America Merrill Lynch Matthew Pfau - William Blair & Company, LLC Mark Schappel - Loop Capital Markets LLC Operator Good day, ...

Aspen Technology, Inc. (NASDAQ:AZPN) Q2 2022 Earnings Conference Call January 26, 2022 4:30 PM ET Company Participants Brian Denyeau - ICR Antonio Pietri - President and Chief Executive Officer Chantelle Breithaupt - Chief Financial Officer Conference Call Participants Andrew Obin - Bank of America Rob Oliver - Baird Matt Pfau - William Blair Gal Munda - Berenberg Jackson Ader - J.P. Morgan Mark Schappel - Loop Capital Disclaimer*: This transcript is designed to be used alongside the freely available audio ...

Aspen Technology Inc (NASDAQ:AZPN) Q1 2022 Earnings Conference Call October 27, 2021 4:30 PM ET Company Participants Brian Denyeau - IR Antonio Pietri - President and CEO Chantelle Breithaupt - CFO Conference Call Participants Andrew Obin - Bank of America Matthew Pfau - William Blair Jackson Ader - JPMorgan Jason Celino - KeyBanc Operator Ladies and gentlemen, thank you for standing by and welcome to the Aspen Technology First Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are ...

Aspen Technology Inc (NASDAQ:AZPN) Q4 2021 Earnings Conference Call August 11, 2021 4:30 PM ET Company Participants Chantelle Breithaupt - CFO Antonio Pietri - President and CEO Conference Call Participants David Robinson - William Blair Jackson Ader - JPMorgan Andrew Obin - Bank of America Jason Celino - KeyBanc Mark Schappel - Benchmark Operator Good day, and thank you for standing by. And welcome to the Q4 2021 Aspen Technology Earnings Conference Call. At this time, all participants are in a listen-only ...

Aspen Technology, Inc. (NASDAQ:AZPN) Q3 2021 Earnings Conference Call April 28, 2021 4:30 PM ET Company Participants Chantelle Breithaupt – Chief Financial Officer Antonio Pietri – President and Chief Executive Officer Conference Call Participants Matt Pfau – William Blair Jackson Ader – JP Morgan Rob Oliver – Baird Gal Munda – Berenberg Blake Gendron – Wolfe Research Jason Celino – KeyBanc Capital Markets Operator Good day and thank you for standing by. Welcome to the Q3 2021 Aspen Technology Earnings Conf ...

Financial Data and Key Metrics Changes - Revenue for Q2 2021 was $233.7 million, an 85% increase year-over-year, driven by a significant increase in total bookings [31][29] - GAAP EPS was $1.89, while non-GAAP EPS was $2.04, reflecting strong profitability [32] - Annual spend reached $604 million, up 1.3% sequentially and 7% year-over-year [30][7] - Free cash flow for the quarter was $38 million, supported by strong collections and disciplined expense management [27][32] Business Line Data and Key Metrics Changes - The engineering and MSC Suites performed in line with expectations, while the APM Suite underperformed [8] - APM contributed 0.3 points to annual spend growth, which was below expectations due to conservative customer spending [17][10] - Total bookings for the quarter were $274.4 million, a 144% increase year-over-year, influenced by the timing of renewals [31] Market Data and Key Metrics Changes - The chemicals market showed resilience and was the best-performing vertical, benefiting from digitalization and sustainability initiatives [11][12] - The refining sector continues to face challenges due to reduced demand for gasoline and jet fuel, but there is a commitment to invest in digitalization technologies [14][15] - The E&C market is experiencing attrition in line with expectations, with a focus on managing cash flows [16][17] Company Strategy and Development Direction - The company aims to be the industrial AI leader, leveraging core engineering capabilities with AI to enhance customer value [21][22] - Recent product launches, including the AIoT Hub and aspenONE v12, are expected to drive future growth [21][22] - The company is diversifying into pharmaceuticals and mining, with strategic hires and acquisitions to strengthen its position in these markets [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit annual spend growth as economic conditions normalize [21][28] - The company anticipates a strong second half of fiscal 2021, supported by a robust pipeline and customer interest in new technologies [9][21] - Management acknowledged the impact of COVID-related restrictions on customer spending but remains optimistic about future growth opportunities [8][54] Other Important Information - The company plans to repurchase up to $200 million of stock in the second half of fiscal 2021, reflecting a strong balance sheet [27][28] - The company is focused on sustainability and digitalization, aligning its strategies with customer goals in these areas [72][71] Q&A Session Summary Question: Insights on APM spending and guidance - Management noted that the refining and upstream sectors are particularly cautious with cash flows, impacting APM growth [40] Question: Details on the $75 million renewal - The renewal was highlighted as the largest license bookings transaction ever, reflecting the strategic importance of the company's technologies [42] Question: Comparison of APM expectations to previous years - Management indicated that the pipeline remains flat, but the volume of in-flight pilots has increased, suggesting potential for future growth [44] Question: Impact of cautious spending on APM versus engineering and MSC - APM is viewed as discretionary spending, while engineering and MSC solutions have a long history of delivering value, leading to continued investment in those areas [52] Question: Future investments in the pharma market - The company is establishing a dedicated sales organization for pharmaceuticals and exploring additional capabilities to enhance its offerings in this sector [56]

Financial Data and Key Metrics Changes - Annual spend at the end of Q1 is expected to be between $596 million and $597 million, representing an 8.8% year-over-year growth and 0.6% sequential growth [5][6][13] - The company ended Q1 with $317.5 million in cash and cash equivalents, and $427.2 million in outstanding debt, reflecting a cash increase of $29.7 million from the previous quarter [19][20] Business Line Data and Key Metrics Changes - Customer engagement and transaction discussions have improved since Labor Day, particularly in the chemicals sector, which is showing slow and steady recovery [7][8] - In the energy vertical, customer activity has increased, although there was a notable pause in spending during the summer [8][9] - The engineering and construction (E&C) market has seen renewals in line with expectations, with one significant renewal signed for a shorter duration but with increased annual commitment [9][10] Market Data and Key Metrics Changes - The chemicals market is experiencing uneven recovery, with some areas benefiting from changing demand patterns while others face challenges [7] - 90% of surveyed global chemical and energy companies have sustainability initiatives in place, with 75% rating digital transformation as highly important for achieving sustainability goals [11] Company Strategy and Development Direction - The company is focused on enhancing its industrial AI capabilities and has recently released aspenONE v12, which integrates AI across its product portfolio [14][17] - The introduction of Aspen Hybrid Models aims to provide comprehensive and accurate modeling solutions, addressing complex problems in the industry [15][16] - The company is positioning itself as an industrial AI leader, with a strategy centered around the Self-Optimizing Plant concept [18][60] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the outlook for the remainder of the fiscal year, despite the challenging macro environment [13][19] - The company is reiterating its full-year annual spend growth target of 6% to 9%, with expectations of attrition in line with previous guidance [13][21] - Sustainability and digitalization are expected to drive future investments, with customers increasingly focused on achieving net-zero carbon emissions [56] Other Important Information - The company is currently working through delays in filing its 10-K and 10-Q due to identified errors related to the adoption of ASC Topic 606, but does not expect these errors to be material [20][21] - The company has not repurchased any shares in Q1 but plans to repurchase $200 million of stock in fiscal 2021, depending on market conditions [19][20] Q&A Session Summary Question: APM activity and spending pauses - Management noted that the pause in spending was more of a general slowdown in activity rather than significant deals being pushed out, particularly in the energy sector [24] Question: E&C customer contract duration - The renewal involved a customer initially seeking a reduction in spend but ended up committing to a higher spend for a shorter contract duration [26] Question: Potential regulation impacts on the energy industry - Management indicated that tighter regulations could drive better spending as their technologies help improve efficiencies and meet stricter standards [29] Question: Sales capacity in the GEI segment - The company is in the process of establishing a pharmaceutical sales organization and sees opportunities in this sector [31][39] Question: Budgeting process and customer conversations - Management emphasized the importance of certainty in budgeting processes and noted that digitalization budgets have remained stable despite cuts in OpEx and CapEx [52][56] Question: Self-Optimizing Plant example - The Self-Optimizing Plant vision aims to automate processes in complex assets, leveraging AI and hybrid modeling capabilities to enhance operational efficiency [58][60]

Aspen Technology, Inc. (NASDAQ:AZPN) Q4 2020 Earnings Call August 12, 2020 4:30 PM ET Executives Karl Eric Johnsen - Aspen Technology, Inc. Antonio Jose Pietri - Aspen Technology, Inc. Analysts Matthew Pfau - William Blair & Co. LLC Jackson E. Ader - JPMorgan Rob Oliver - Robert W. Baird & Co., Inc. Jason Celino - KeyBanc Capital Markets, Inc. Andrew DeGasperi - Berenberg Capital Markets LLC Mark W. Schappel - The Benchmark Co. LLC Operator Ladies and gentlemen, thank you for standing by. And welcome to the ...