Aspen Technology, Inc. (NASDAQ:AZPN) Q3 2023 Earnings Call Transcript

Chantelle Breithaupt: Yes, absolutely. There’s very specific and very actionable. The free cash flow has 3 components. One is the change in the — if we’re taking that change from guidance is the change in the methodology. So that’s about 35% of the change Mark. The other 2, roughly 1/2, so 1/3 and 1/3 is OSI and SSE, and there are 2 different drivers for OSI. It’s really the movement of those completion milestones out. And so that delays the collections and the invoicing and the funds expected from that perspective. And from SSE, it’s actually just pure execution on collections that we’re working through as we break rigor to the team and working with our customers to get them to the Heritage AspenTech kind of cadence. Those are the 3 drivers, 1/3, 1/3 and 1/3 with 3 different actions to go from there.

Mark Schappel : Okay. Great. And then I was wondering if you just review one more time the factors impacting bookings in the quarter that I think you discussed in your prepared remarks.

Chantelle Breithaupt: I had the — so bookings would be impacted by the renewals amount of renewals and contract duration term link for SSE. And most of my remarks were around the revenue change in the guide. I don’t know if you’re looking for bookings or revenue, but revenue is mostly the renewals for discussion and the SSE contract term length that we mentioned.

Operator: Thank you, this does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Antonio Pietri for any further remarks.

Antonio Pietri : I want to thank everyone for joining the call today, and I look forward to meeting you all as we get on the road over the next few days and weeks. Thank you.

Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.