Antonio Pietri: Yeah. But look, certainly, the first half of the year has been a good year for engineering. We’ve seen an acceleration, and we’re performing ahead of our plan in engineering. With MSC, I would say, we’re tracking MSC deals tend to be — to have a longer sales cycle, nine months to 12 months and really historically is in the Q3, Q4 quarters when we see that big wave of MSC deals. But overall, performing according to expectations.
Andrew Obin: Got you. And just a follow-up question. I think it’s more of a big picture question. Right now is sort of December, January and when we’re getting really good view at the budgets of your customers for capital planning for ’23. Now that you guys sort of have access to Emerson and their channels, et cetera, et cetera, how has the visibility for Aspen has changed through the relationship you have with Emerson? And what I’m referring to, like, do you guys get better visibility with the relationship now versus before? Thank you.
Antonio Pietri: Well, look, certainly, as the two companies are engaging in the market, we’re getting increased visibility. I do think it behooves us as separate entities to develop our own point of view, but we do share what we hear in the market. Our point of view on the macro outlook and budgets is developed — internally developed through multiple conversations and customers over a period of time, and that’s what you have in our guidance.
Chantelle Breithaupt: I would say Yeah, I think the only thing I would add, Andrew, if I can take that bigger picture down to more granular, so not macro, but I think where we do have more near-term visibility is probably more at an account segment level, working with Emerson. So we have probably more granular visibility into the customer accounts, but at the macro level, as Antonio articulated.
Andrew Obin: Got you. This is very useful. Thank you.
Operator: Thank you. And I show our next question comes from the line of Matthew Pfau from William Blair. Please go ahead.
Antonio Pietri: Hi, Matt.
Operator:
Matthew Pfau: Yeah. Hey, Antonio and Chantelle. Thanks for taking my question. Wanted to first follow-up on your chemicals commentary. And is this an area that, I believe, last quarter, you sort of also called out that performance was good, but you were maybe cautious on it and keeping a close eye and this quarter you had somewhat similar commentary. But just wondering if anything has changed versus last quarter either in terms of pipeline or ability to close deals in the chemicals vertical?
Antonio Pietri: No. Perhaps what I would say is with some customers in chemicals, we did see a little bit of longer conversations on deals. There was perhaps one or two deals that moved from Q2 into Q3 that we’re now working to close. But in general, it’s just a lot of conversations, a lot of meetings with chemical customers. I spent a lot of time meeting customers in the Q2 quarter. And they just express the reality of what they are facing, which is slowing demand and more pressure in margins. I think I think we all see that in the announcements that they’re making with the results and guidance, forward-looking guidance we’re giving, so — but look, at the same time, as we’ve said, when the economic environment becomes more difficult for these customers, they also look for ways to drive efficiencies in their businesses and they turned to AspenTech historically for that as well.
So just being cautious about it. I think especially this quarter as new budgets have to be executed, but we continue good engagement. We have good visibility into a pipeline of business in the quarter and into Q4 and we’re just being cautious about it.
Matthew Pfau: Okay. Great. And then on the revenue in the quarter, it was down sequentially from first quarter and we don’t have a lot of history of the combined business, but in heritage Aspen, you typically would see a sequential increase from first Q to second Q. Is that related to SSE and OSI? And is this sort of some sort of seasonality that we should think about modeling going forward? Thanks.
Chantelle Breithaupt: Yeah. I definitely — I would definitely take into account Matt, the portfolio business mix coming in, and happy to follow up with you on that, but it’s definitely a seasonality based on the portfolio and actually take the business models coming of SSE historically having on your terms and their calendar year and you have the OSI milestone completion. So you’re going to see a different mix definitely. And it depends on the renewal cycle as well. So there’s quite a few — there are quite a few dynamics.
Antonio Pietri: I think Matt, just to emphasize the point — that one of the points that Chantelle made, remember, the OSI revenue today is a percent of completion on projects and driven by dynamics of our projects. So it has nothing to do with software sales.
Matthew Pfau: Okay. Understood. Very helpful. Thank you. Appreciate it.
Chantelle Breithaupt: Thank you.
Operator: Thank you. And I show our next question comes from the line of Jason Celino from KeyBanc Capital Markets. Please go ahead.
