Aspen Technology, Inc. (NASDAQ:AZPN) Q3 2020 Earnings Conference Call May 6, 2020 4:30 PM ET Company Participants Karl Johnsen - Chief Financial Officer Antonio Pietri - President and Chief Executive Officer Conference Call Participants Robert Oliver - Robert W. Baird & Co. Matthew Pfau - William Blair & Company, L.L.C. Steven Koenig - Wedbush Securities Andrew DeGasperi - Joh. Berenberg, Gossler & Co. KG Jackson Ader - JPMorgan Chase & Co. Operator Ladies and gentlemen, thank you for standing by, and welco ...

Financial Data and Key Metrics Changes - For Q2 2020, revenue was $124.7 million, with GAAP EPS at $0.56 and non-GAAP EPS at $0.66. Annual spend reached $564 million, reflecting a 3% sequential increase and a 10% year-over-year growth. Free cash flow was $48.1 million, with $50 million returned to shareholders through share repurchases [5][6][22][24]. Business Line Data and Key Metrics Changes - The refining sector showed strong performance, with refiners expanding the adoption of asset optimization solutions amid margin compression. The engineering and construction (E&C) sector experienced its strongest growth in over four years, driven by improved CapEx spending and reduced attrition [6][8][15]. - The Asset Performance Management (APM) business contributed 0.64 points to year-to-date annual spend growth, although it was slightly behind expectations at the midpoint of the year. The company anticipates stronger growth in the second half of the fiscal year [9][10][15]. Market Data and Key Metrics Changes - The upstream sector is expected to see flat or low single-digit CapEx spending in 2020. However, the company remains optimistic about growth in the E&C sector, particularly due to ongoing LNG projects [8][51]. - The chemical sector has shown solid growth despite uncertainties from global trade conflicts, with expectations for improved demand in 2020 [9][42]. Company Strategy and Development Direction - The company is focused on leveraging digitalization technologies in core markets, with a strong emphasis on artificial intelligence and data-driven applications. There is a significant opportunity to introduce a new generation of solutions that enhance value creation across customer assets [15][16]. - Partnerships are being developed to enhance market reach, including collaborations with global consulting firms and implementation services firms [16][44]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year growth and profitability objectives, citing a favorable macro environment and strong customer demand for digitalization investments [5][20]. - The company anticipates that the Phase 1 trade agreement between the U.S. and China will improve conditions for chemical customers, which is expected to positively impact business performance [9][42]. Other Important Information - The company updated its free cash flow guidance for fiscal 2020 to $260 million to $270 million, reflecting lower-than-expected tax payments [28]. - A new senior management appointment was announced, with John Hague promoted to Executive Vice President of Operations, enhancing leadership in the APM business unit [18][19]. Q&A Session Summary Question: What gives confidence in APM transactions that were pushed to the second half? - Management noted that previous large enterprise deals have set a precedent, and customers are now ready to expand their deployments, which is expected to lead to closures in Q3 and Q4 [32][33]. Question: How did bookings compare to expectations? - Bookings came in around 40% of the expected total for the first half, with renewals meeting expectations but some growth bookings slipping into the second half [38][39]. Question: Is there any impact from Middle East unrest? - Management indicated that business in the Middle East performed well and there was no significant impact from recent unrest [48]. Question: What is the pricing model for APM? - The company believes there is price elasticity due to the value created for customers, but it remains competitive in the market [55]. Question: Are there plans for more customer partnerships? - Management confirmed that there are plans to establish more partnerships similar to the recent customer-turned-partner model [66].

Aspen Technology, Inc. (NASDAQ:AZPN) Q1 2020 Earnings Conference Call October 30, 2019 4:30 PM ET Company Participants Karl Johnsen - SVP & CFO Antonio Pietri - President, CEO & Director Conference Call Participants Robert Oliver - Robert W. Baird & Co. David Hynes - Canaccord Genuity Corp. Steven Koenig - Wedbush Securities David Griffin - William Blair & Company Jackson Ader - JPMorgan Chase & Co. Jason Celino - KeyBanc Capital Markets Mark Schappel - The Benchmark Company Operator Good day, ladies and ge ...

Aspen Technology, Inc. (NASDAQ:AZPN) Q4 2019 Earnings Conference Call August 7, 2019 4:30 PM ET Company Participants Karl Johnsen – Chief Financial Officer Antonio Pietri – President and Chief Executive Officer Conference Call Participants Rob Oliver – Baird Matt Pfau – William Blair Steve Koenig – Wedbush Shankar Subramanian – Bank of America Gal Munda – Berenberg Capital Jackson Ader – JPMorgan Jason Celino – KeyBanc Capital Mark Schappel – Benchmark Operator Good day, ladies and gentlemen, and welcome to ...

Aspen Technology, Inc. (NASDAQ:AZPN) Q3 2019 Earnings Conference Call April 24, 2019 4:30 PM ET Company Participants Karl Johnsen – Chief Financial Officer Antonio Pietri – President and Chief Executive Officer Conference Call Participants David Hynes – Canaccord Rob Oliver – Baird Matt Pfau – William Blair Jackson Ader – JPMorgan Shankar Subramanian – Bank of America Merrill Lynch Steve Koenig – Wedbush Jason Celino – KeyBanc Operator Good afternoon, my name is Mary, and I will be your conference operator ...

Financial Data and Key Metrics Changes - Revenue for Q2 2019 was $140.4 million, representing a 33% increase year-over-year [27] - GAAP EPS was $0.83, while non-GAAP EPS was $0.92 [7] - Annual spend reached $513 million, up 9.4% year-over-year [7][26] - Free cash flow was $57.3 million, with $100 million returned to shareholders through share repurchases [7][32] - Total bookings increased by 80% year-over-year to $154.8 million [26] Business Line Data and Key Metrics Changes - The APM business grew 190% in the first half of the fiscal year compared to the same period last year, contributing 1.25 points to annual spend growth [11][22] - The engineering business exceeded growth expectations, with positive trends in E&C renewals and lower attrition rates [12][13] - The MSC business is expected to achieve double-digit growth in 2019 [14] Market Data and Key Metrics Changes - APM transactions were closed in eight different countries across various industries, indicating broad market strength [10] - North American E&C customers showed positive growth for two consecutive quarters, reflecting increased investment in engineering modeling and simulation capabilities [13] - The overall macro environment remains positive for technology spending, particularly in capital-intensive industries [19] Company Strategy and Development Direction - The company is focused on expanding its APM suite, which is seen as a significant growth opportunity due to its cost-saving benefits for customers [11][12] - The strategy includes increasing share repurchase programs to capitalize on favorable market conditions [7] - The company aims to leverage its strong balance sheet to support growth investments and enhance shareholder value [7][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, increasing annual spend growth forecasts to 8.5% to 9.5% [22][34] - The company noted that fluctuations in oil prices have not significantly impacted its business performance [19] - Management highlighted a positive sentiment among customers regarding budget and spending, with expectations for flat to low-to-mid-single-digit increases in CapEx [58] Other Important Information - The company repurchased approximately 1.2 million shares for $100 million during the quarter [7][32] - The transition to Topic 606 has impacted revenue recognition, making annual spend a more reliable metric for assessing business growth [24][25] Q&A Session Summary Question: Insights on APM opportunities and pipeline - Management noted that the APM pipeline has grown, with significant interest in mining and pharmaceuticals [40] Question: Factors affecting license revenue - Management clarified that the number of renewals in Q2 significantly contributed to revenue performance [42] Question: Initiatives to improve pilot capacity - Steps are being taken to centralize data analysis and improve pilot execution capabilities [44] Question: Clarification on license revenue as a percent of bookings - Management explained that various factors, including performance obligations and interest income, affect the recognition of license revenue [46] Question: Update on Emerson relationship and pipeline - The relationship with Emerson is progressing well, particularly in the engineering suite [52] Question: Demand pickup in E&C - Management observed improved demand from E&C customers, with less attrition and increased entitlements [54] Question: CapEx forecasts and customer sentiment - Management indicated that customer sentiment remains stable, with expectations for flat to modest increases in CapEx [58] Question: Breakdown of annual spend growth and churn - Management provided guidance on attrition rates and indicated strong gross growth [80]