Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Altair Engineering Inc. Q2 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star and one on your telephone keypad. If you require any further assistance, please press star and zero. At this time, I would like to turn the conference over to Mr. Dave Simon. Sir, please begin. Good afternoon, welcome and thank you for attending Altair's earnings conference call for the Q2 of 2021 ended June 30th, 2021. I'm Dave Simon, Chief Administrative Officer of Altair, and with me on the call are James Scapa, Founder, Chairman, and CEO, and Matthew Brown, Chief Financial Officer. After market close today, we issued a press release with details regarding our Q2 performance and guidance for the Q3 and the full year 2021, which can be accessed on the investor relations section of our website at investor.altair.com. 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. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. 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. 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. 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 quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future. With that, let me turn the call over to James for his prepared remarks. James? Thank you, Dave, and welcome to everyone on the call. Altair had a strong Q2 2021 with across the board success in multiple verticals, regions, and products, reflecting year-on-year software product revenue growth of 22%. Customers are investing to grow their businesses as we emerge from the pandemic and Altair's products, services, and business models are clearly resonating, gaining market awareness and increasing market share. We are pleased to report Q2 results with total revenue of $119.9 million. Software product revenue for the quarter was $99.6 million versus $81.8 million in Q2 of 2020. Adjusted EBITDA was $9.5 million compared to $5.7 million in Q2 of 2020, an increase of more than 65% from the Q2 of 2020. All were well above our guidance ranges. The updated Altair Units business model continues to roll out as a win-win for our customers and Altair, including in data analytics accounts. Approximately 75% of our simulation customers have thus far converted to the new software bundle choices in line with our expectations. Software product revenue for the first half of 2021 continued a strong positive trend at 85% of total revenue, compared to 83% during the first half of 2020. Our recurring software license rate remained high at 90% for the Q2 of 2021 and 92% year to date. We held an investor day on May 27th, and many of the questions were framed around understanding Altair's growth drivers and opportunities for expansion. This is in fact, a combination of verticals, technologies, and regional success, and I would like to spend some time talking about wins from the Q2 related to each. In architecture, engineering, and construction, or the AEC vertical, our Q2 wins included the addition of a new customer logo listed as one of the top 10 global design firms. We continue to build our customer base and align with the need for performance-based outcomes and sustainable infrastructure development. Our new logos and expansion in aerospace for the quarter included the addition of a newly spun out airplane manufacturer and a six-figure expansion representing almost a 3x usage increase at an existing client. The automotive sector continues to develop significant opportunities, especially related to electrification, communications, analytics, and computing. The BFSI vertical continues to show strong performance, including a steady stream of data analytics customers embracing units-based licensing. Our Q2 wins included new logo six-figure deals under units-based licensing and some key direct wins against data analytics software competitors. In consumer products, one recent and interesting application involved a food manufacturer leveraging thin film forming simulation. Healthcare saw a number of wins in the Q2, including a new logo win based on developing prosthetics using 3D printing technology, and an expansion from an existing medical products customer specifically targeted at data analytics for their engineering applications. In motorsports, we had several expansions and new customers, including one agreement to improve safety and performance, leveraging our data science technology and expertise. This aligns with our robust pipeline growth in engineering analytics and is consistent with our vision for the convergence of simulation, HPC, and AI. Finally, SimSolid is disrupting the energy market by dramatically reducing design cycle times and displacing traditional simulation performed with competitors' products. Our expectations for SimSolid are coming to fruition across many verticals as this product is being adopted broadly across our customer base. Products and technology are at the core of Altair's success, and we continue to invest heavily in research and development. During the Q2, we built upon the broad and deep product releases of 2020 with the latest versions of our simulation software solutions. All our existing products added significant new features in this release, and we introduced some new products as we continue to evolve our portfolio with a combination of sustaining and disruptive innovation. Altair has invested strategically for several years, both organically and by acquisition, to build out what we believe is the broadest and deepest portfolio of computational fluid dynamics solutions, covering a wide array of applications. With the latest announcements of our Altair CFD software, we are well-positioned and focused to grow our share in the very large and rapidly growing CFD simulation market. Altair CFD delivers sophisticated technology for fluid and thermal systems modeling, general-purpose multi-physics simulation, external aerodynamics, discrete element modeling, and smooth particle hydrodynamics, very cost-effectively and under a single license. Several of these products have embedded optimization and machine learning algorithms and often work in concert, co-simulating with other technologies to deliver deep insights and clear design direction for difficult-to-understand and predict physical behavior. We believe Altair is a leader in manufacturing simulation with a broad portfolio of key products and technologies, many of which have CFD at their core, including casting, molding, extrusion, foaming, forming, and additive manufacturing. The consideration and integration of manufacturing simulations with design optimization is critical for customers to make key product decisions in this fast-changing market. CFD had some outstanding Q2 successes in applications such as sporting goods, building design, and electric vehicles. The building design win is impressive technically in that our customer will simulate tall buildings in excess of 100 m through a variety of wind load conditions. The possibilities for this customer to shorten design cycles, eliminate expensive wind tunnel testing, and improve building safety while making efficient use of materials to improve sustainability are all consistent with the positive trends we see in the AEC vertical. Altair's electronic systems design toolset has a new thermal management workflow to enhance the design of electronic devices. In addition to the existing Altair SimLab workflows for structural stress, vibration, and drop test performance, product engineers can now ensure the cooling of printed circuit boards and complete systems to prevent overheating, product reliability issues, or expensive late-stage redesigns. Smart connected devices increasingly need high-speed memory. Altair PollEx has added signal integrity automation for double data rate memory interfaces, enhancing optimization of double data rate timing, transmission lines, topology, and terminations. Other improvements include additional power integrity simulation and the capability to export PCB layers for thermal management analysis. Recent additions and new logos across multiple verticals and regions in electronics and electromagnetics have added seven-figure revenue to Altair's top line. Applications include electronic systems design, circuit board simulation, antenna placement, radar cross-section, autonomous driving connectivity, and electric drive system development. Altair One is a cloud portal for Altair's products, accessible anywhere via standard workstations, PCs, laptops, and mobile devices. Users can launch applications in the cloud from a single interface with easy access to resources that are on premises or in the cloud. Product teams can increase collaboration by securely uploading, accessing, storing, and managing data using the Altair One Drive. Finally, Altair entered the high-performance, or HPC, market when HPC shifted from specialized computers to commodity cluster servers in the early 2000s. In 2003, we spun the PBS team out of NASA. In 2017, we acquired Runtime to focus on the electronics market with specialized solutions for high throughput workflows. In 2020, we acquired Ellexus to bring in technology for IO and storage profiling, develop storage-aware scheduling, and we acquired Grid Engine with its strong position in life science and its top-tier technical team. HPC continues to mature as a business and had a strong Q2 for Altair. With a $7-figure multi-year agreement inked with one of the world's largest cloud technology companies. Altair's position in HPC has become increasingly powerful, reflected in the growing confidence of our sales team and the robust pipeline of opportunities we see. A strength of Altair has always been our robust regional diversification. Our revenues and people have been distributed very evenly across the Americas, EMEA, and APAC, as well as between countries in these super regions. This has been an especially important year in APAC, as this is the 20-year anniversary of our founding in Altair China and Altair Korea, and the 25th anniversary of Altair Japan's formation. The Americas and EMEA operations came online earlier, making it even more impressive that our APAC organization is driving 1/3 of our software product billings and usage. We invest to support our people and customers globally, and especially as world events are sometimes disruptive, we appreciate the focus and teamwork of our colleagues and the collaboration with customers across every time zone. As we look at success stories from the Q2, the degree of geographic diversity is amazing. Eastern Europe, Southeast Asia, and South America all rang in as strong players within the larger regions of EMEA, APAC, and the Americas. We are truly One Altair and believe we are serving our customers with less locational barriers than ever in our history. Over the last two months, we enhanced our organization by adding two new board members to our board of directors, Jim F. Anderson and Shekar Ayyar. Jim F. Anderson is currently a managing director for Google Cloud and has a passion around scaling enterprise-level businesses and building sales channels. Shekar was most recently an executive with VMware and brings a wealth of consulting, strategy, and technical expertise to Altair. We believe they both add outstanding depth and breadth to our board. Welcome, Jim and Shekar. I am deeply appreciative of Jan Kowal, Richard Hart, and Brett Chouinard for their time on Altair's board. Brett is now in a key technology role for Altair, while Jan is fully retired and Richard is focused on other professional endeavors. The three of them were magnificent sources of support and inspiration through our IPO process and over the last several years. Q2 was strong, and we remain cautiously optimistic for the balance of the year. New variants of COVID-19, disappointing vaccination rates in some locations, and a generally long process to fully shake off the pandemic globally have the potential of curbing what should otherwise be a vibrant economic environment. However, as our customers invest to drive more innovation into their products and services, we are confident in our ability to be a differentiating asset for them. Now, I will turn the call over to Matt to provide more details on our financial performance and our guidance for the Q3 and remainder of 2021. Matt? Thank you, James Scapa, hello and welcome to everyone on the call. We're very excited about our Q2 2021 results, which set a record for highest revenue and EBITDA for any Q2 in the company's history. The strong opportunity pipeline and momentum we've seen in the last few quarters carried through to Q2 2021, once again, generating results above the high end of the range on every metric we guided to for the quarter. Total billings for the quarter were $117.8 million, an increase of 19.1% compared to Q2 2020. As with last quarter, our software billing strength relative to prior year was driven by solid new and expansion opportunities and high retention on our renewal base. Again, we saw broad success across all three geographic regions and across our product offerings. I continue to be delighted with the diverse usage and range of applications for our solutions. As James R. Scapa highlighted, just this quarter, we saw customers acquiring our software across a wide range of verticals for use in anything from building design to healthcare, to food design, to motorsports and aerospace. Further, we saw success in all 3 core competencies: simulation, HPC, and data analytics. As expected, we saw services and other billings stabilize in the Q2 as we've now anniversaries the start of the COVID-19 impact, which began impacting services and other revenue in the Q2 last year. All told, the strength in billings resulted in software product and total revenue exceeding our expectations for the Q2. Software product revenue was $99.6 million, or an increase of 21.7% compared to Q2 2020. Total revenue, which includes services and other revenue, was $119.9 million, or an increase of 21.7% compared to Q2 2020. Our recurring software license rate, which is the percentage of software product billings that are recurring, continues to be strong at approximately 92% year to date. As a reminder, a significant portion of our revenues are billed in currencies other than the U.S. dollar and are therefore impacted by changes in FX rates. Relative to Q2 2020, our revenues were favorably impacted by changes in FX rates of approximately $3.7 million during the quarter. non-GAAP gross margin, which excludes stock-based compensation and restructuring expense, was 74.5% in the Q2, relatively flat to the Q2 of 2020, as our software revenue mix, which carries higher gross margins, was consistent with the prior year. Software revenue was 83% of total revenue in both Q2 2021 and the year ago period. This is in line with our expectations for the quarter as we expected to see a rebound in services and other revenue in Q2 2021 compared to Q2 2020, keeping pace with the gains we saw in software product revenue. Over the long term, we continue to expect a general mix shift towards software product revenue as growth there will outpace services and other revenue. non-GAAP operating expenses, which excludes stock-based compensation, amortization of intangible assets, and restructuring charges, were $80.9 million, compared to $69.5 million in the year ago period. As a reminder, operating expenses in Q2 and Q3 of last year were impacted by COVID-19 as a result of temporary salary reductions and significantly reduced marketing and travel costs. In Q2 2021, we saw increased marketing and travel activities representing some return to normal compared to the prior year, and overall non-GAAP operating expenses were in line with our expectations. Adjusted EBITDA was $9.5 million or 7.9% of total revenue in Q2 2021, an increase of 65.2% compared to Q2 2020. This increase compared to the prior year quarter as well as relative to our expectations, was driven by the increase in revenue in the quarter, combined with our disciplined spending. We are executing on our strategy of expanding EBITDA margins by scaling into our top-line revenue growth, and the Q2 was another positive step in that direction. Turning to our balance sheet, we ended the quarter with $260 million in cash and cash equivalents, an increase of almost $17 million from the prior quarter. The quarter-over-quarter increase reflects strong free cash flow during the quarter of $15.8 million, compared to free cash flow of $4.5 million in Q2 2020. As a reminder, our cash flows throughout the year are seasonal in nature, typically with Q1 being our most significant cash flow quarter, followed by Q2. We are very pleased with our cash flow generation in Q2, which was driven by collections on strong Q1 and Q2 billings. Turning to guidance for Q3 and full year 2021. For Q3 and full year 2021, we are looking to continue building on the great momentum from the first half. We are expecting software product revenue for Q3 in the range of $94 million-$97 million, or year-over-year growth of 7.1%-10.5%, and we're raising our full year 2021 software product revenue range to $434 million-$440 million, or year-over-year growth of 10.8%-12.3%. We continue to expect services and other revenue to be approximately flat in 2021 compared to 2020, consistent with our previous guidance. As a result, we expect total revenue for Q3 2021 in the range of $112 million-$115 million, or year-over-year growth of 5.2%-8.0%. We're raising our full year 2021 total revenue guidance to a range of $512 million-$518 million, or year-over-year growth of 9.0%-10.2%, reflecting our increased software revenue guidance. The $7 million increase at the midpoint on the full-year revenue guidance from last quarter reflects our overachievement in Q2 2021, while maintaining our view for the second half of 2021. Overall, we're encouraged by our customer demand and pipeline of opportunities we see in the second half. From a cost perspective, we've been successful in our disciplined approach to spending and expect to continue that approach in the second half. That said, we will continue to invest heavily in product development, and we expect to increase marketing and sales-related travel expenses in the second half compared to the first half of 2021. For Q3 2021, we expect adjusted EBITDA in the range of $2 million-$4 million or 1.8%-3.5% of total revenue, compared to $8.2 million or 7.7% of total revenue in the year ago period. For full year 2021, we are raising our adjusted EBITDA range to $63 million-$68 million or 12.3%-13.1% of total revenue, compared to $57.3 million or 12.2% of total revenue in 2020. We are also raising our full year 2021 free cash flow guidance to a range of $34 million-$39 million. As a reminder, our cash flow expectations are sensitive to billings and collections patterns, which fluctuate seasonally. In particular, our historical pattern has shown free cash inflow in the first half of the year, primarily from collections on billings from Q4 and Q1, and a smaller free cash outflow in the second half of the year. We're expecting that pattern to continue in 2021. We've provided detailed guidance tables in our earnings press release, including reconciliations to comparable GAAP amounts, which was issued after close of market today. This was another great quarter for Altair. We're executing on our mission to transform enterprise decision-making by offering product and technology that delight our customers. With that, we'd be happy to take your questions. Operator? Ladies and gentlemen, if you have a question or comment at this time, please press star then one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press the pound key. Again, if you have a question or comment at this time, please press star then one on your telephone keypad. Our first question or comment comes from the line of Bhavan Suri from William Blair. Your line is open. Hey, gents. Thanks for taking my question, and congrats. Those are great software growth numbers, so nicely done there. I guess my question for maybe both of you, I'd love to get an update on the adoption or the migration within the current install base towards your updated Units model. Sort of any use cases you could point around strong upsell or towards the lower tiered suite's ability to target the less technical design engineer. I'd love to get some thought of some color on how those are playing out. Bhavan, nice to hear your voice. I have to confess I didn't quite hear the question. I'm really sorry. That's okay. It was just the update. You've got the sort of new updated Altair Units model. How is that playing out within the current install base? Any sort of early use case you might point out to sort of how that lower tiered suites are starting to target the less technical user, how's the traction? Okay. I see. How's the pipeline, how are customers doing? Yeah. Yeah. I think in general, the customers, it's producing conversations with all of our enterprise customers, which are mostly good conversations. Basically getting the customers to understand what they have, what the value is that they have, and it's generally translating into more revenue, frankly. At the lower end, it's still a bit early, but I think it's also being well-received and customers are appreciative of the flexibility that they're seeing. I think you see our numbers, our growth numbers, and I think it's just reflected there. Yeah. Bhavan, maybe one thing I'll add, too, is at this point, roughly three-quarters of our customers are now on Altair Units. Based on that trajectory, we expect that over the next quarter or so, the rest of those will convert over. Still very smooth on the conversion and everything's going according to plan. I think my prepared remarks talked about how the data analytics customers are embracing it as well. Most importantly, I know this may sound crazy, but the sales guys on the data analytics side are embracing it, too, which was not the case two years ago. Really big changes. Yeah, no, those are all really, really good signs. Certainly, the sales guys embracing the model and the customers and that sort of transition is great to hear. The other thing, James, we've been hearing from auto manufacturers and even the suppliers like Continental or something, is that everyone's really focused on EV. No surprise there. Most of them are long-term targets, right? People are thinking 2030 or beyond. To me, that requires positioning and planning and designing today from a simulation perspective. I'd like to understand, are you seeing that and is that actually going to be a driver of revenue growth? Is it a driver of revenue growth today? I suspect it is. How material is that whole shift towards EV that the suppliers, the parts guys, and the OEMs are doing? I'd love to get a little color around that. I think it's very material. If you look at our growth, automotive is pretty robust for the first half of the year. I think it's because all these companies are investing so much. We always talk about automotive as a large percentage of our business, but it also was quite robust growth in the first half of the year, even on top of that large amount of volume. Got it. Thanks, James. Thanks, Matthew. Again, great numbers. Thank you. Thank you. Thank you. Our next question or comment comes from the line of Jackson Ader from JPMorgan. Your line is open. Great. Thanks for taking my questions, guys. Just curious, when you talk about the AEC customer, pretty big global design firm. Typically, we don't think of design and AEC being really Altair's bread and butter. You just mentioned automotive and maybe more complex simulations being your typical strength. I'm just curious, what led to this particular win? Was this win part of a suite deal, like an AEC suite that you've been selling? Until now, there is no AEC suite, but it may surprise you to know that we have a lot of AEC customers. Most of the famous architectural engineering companies, I could name some, but I'm not sure I should at this moment, are customers of Altair. They were initially introduced through the optimization technology that we bring. Many of the most beautiful, elegant, complex tall towers are designed using our technology, using the structural optimization and just simply the structural analysis tools. We do see a lot of opportunity in AEC. We've created some solutions for them. I've had somebody on my team whose PhD is in architectural engineering for probably 15 years now, and he's been guiding us and pushing us to do more and more in that direction. We work with a lot of really key customers there. It's not just sort of a blue bird that came in. This is something that we've consistently been going after. Okay. A follow-up. Looking at the non-software revenue for the rest of the year, what type of impact, given that's mostly services and people possibly having to travel, what type of impact are you forecasting for the Delta variant in that non-software revenue for the rest of the year? What's the impact from the Delta variant to the? I see. Yeah. For sure, last year. How much are you actually- Right. Yeah. What are you actually factoring in, if anything? Yeah. No, that's fair. For sure, last year we saw a large drop in services revenue, which came with the impact of the pandemic and all that. This year, not the case. We're seeing some comeback in that business. You can see that in the numbers, probably. I would expect that that's going to continue for the rest of this year. It's still below where we were in 2019, but above where we were in 2020, and I think that's going to remain consistent, actually. The staffing business, the CES business, is impacted not so much by that as just the fact that there's a lot of hiring going on everywhere. There's a big battle for people, and it's more than anything, that's the challenge in that business to keep that business growing. Just a lot of challenge for quality people. Okay. All right. Thank you. Yep. Thank you. Our next question or comment comes from the line of Ken Wong from Guggenheim Securities. Your line is open. Mr. Ken, you may need to unmute your phone. Hey, guys. Sorry about that. Thanks for taking my question. Really interesting comments around the data analytics business. Probably the competitor you guys are speaking about, they mentioned they're seeing prolonging churn on their sales employee base. I was wondering, is that something you guys are benefiting from in regards to your own hiring and recruiting efforts? I don't think I want to speak specifically about any one company. I think our business seems to be relatively healthy, and I think businesses spiral up and spiral down, and some of these companies have hit a rough spot, and sales guys have a tendency to run a little quickly when they see that kind of situation. I can't really speak to what they're doing. We're certainly recruiting in a lot of different places. Thank you. I just want to follow up. Can you describe some of the, I guess, what's driving some of the success you're seeing in different verticals outside of your core verticals? Is it something you've changed with how you're structuring your sales organization, or is there something more broadly you're doing? That'll be it. Thank you. Sure. No, thank you. We talked a lot about mechanizing our sales machine, if you will. The whole sales motion, I think, has upgraded sales and marketing motion in Altair. I think we're benefiting from that. I think we're benefiting from a lot more training and structure of the sales team. In general, the sales team is selling the entire portfolio as opposed to maybe a tendency earlier to sell specific products or solutions. I think that's really a key differentiator now for us. Thank you. Our next question or comment comes from the line of Gal Munda from Berenberg. Your line is open. Hey, thanks for taking my questions. The first one would just be around the solid performance in Q2, maybe if you could just help us understand by product area how those have performed, maybe not by nominal values, but more kind of descriptive if you had to kind of stack rank between the core simulation versus the data analytics piece versus the high-performance computing, the way that you're thinking about the growth when you talked at Investor Day. Yeah. Actually, the numbers across HPC simulation and data analytics are all pretty robust actually so far first half of the year. We're feeling really positive, kind of running on all cylinders. There is a reality for all of us that Q2 last year was a little bit of a weaker year. If you look across all of H1, I think we've really been running pretty strong. We're feeling very positive about pipelines and all that. Yeah, I think all the products are hitting it very nicely. The electronics products are really coming into their own. It's a little early for us promoting the CFD technologies, but we're starting to feel good about our offering there, and some of these tools are starting to mature. We have some evaluations from some of the top automotive companies in Asia telling us that our solutions are more accurate than some of the more established tools. We're generally seeing a pretty broad-based success here. That's very helpful. Then maybe as a follow-up, we talked about SimSolid a little bit. Over the last few quarters, you've started highlighting it, I was just wondering if you think about the SimSolid sales today, at what stage do you think it actually becomes a material contributor to the growth of the business? I know it's still relatively small in terms of the dollar value. As you see adoption, you mentioned the German OEM testing at a couple of last quarter, I think it was. Maybe, one, how are these contracts kind of testing progressing? Then two, at what stage it's becoming material to the growth of the business? I think SimSolid's already material to the growth of the business, Gal. I haven't looked recently at the number of companies that are using it, but it's substantial. I don't know what the number is, but it is very substantial. We are seeing very high usage numbers for SimSolid. It's already kind of contributing meaningfully for sure. Okay. That is very helpful. Thanks, James. Thank you, Gal. Thank you. Our next question or comment comes from the line of Matthew Hedberg from RBC Capital Markets. Your line is open. Hey, it's Dan Bergstrom for Matthew Hedberg. Thanks for taking our questions. Just curious, could you talk to the deal pipeline for the remainder of 2021 here? Seems like the last several quarters speak to its strength. With deals coming out of this quarter into the Q1, and then this quarter had nice upside. How's the pipeline looking over the second half? You want to answer this one, Matthew? Yeah, no, I think the pipeline we're feeling pretty good about it. If you go back to beginning-of-the-year guide, where we had guided total revenue at the midpoint of $506 and then took that up last quarter a bit, and now took it up to $508. We've moved it from $508- $515 at the midpoint. That really speaks to the confidence that we have as we've moved through the year. We've had, like you mentioned, we've had really good success in the first half, and we feel good about the second half. We continue to be reaffirmed in our outlook. As we go throughout the year, we continue to build on those successes. The pipeline looks good, and we feel confident. We're, of course, keeping our eye on Delta variant and spikes and larger macroeconomic, like everybody is. At this point, feeling cautiously optimistic about the second half. Great. Thanks. Thank you. Our next question or comment comes from the line of Mark Schappel from Benchmark. Hi, good evening. Nice job on the quarter. Thank you for taking my question. James, I'd like to dig a little bit deeper into your expanded CFD capabilities that were referred to in your prepared remarks. Is your intent to focus your CFD sales efforts in your core customer base, principally automotive and aerospace? Do you plan to direct that more toward process industries such as, say, chemicals or oil and gas? It's probably more in the traditional core market, but it's really across everything. CFD is not like structures. CFD has a variety of different problems that you solve, and you have a variety of different types of technologies, if you will, to solve them best. We really have spent years pulling together what we think is a solution set that can solve all these different problems. We also had to build all the modeling and visualization elements that go along with that. Some parts of that solution set are less mature. For external aerodynamics, we're still working on it, but it's coming really fast. We have a lot of customers very excited about it. For some other areas, it's more mature than that. It's broad-based for us. We're selling CFD to every customer. We see it going especially into the core. Great. Thank you. Just building on the earlier question on SimSolid. How much of SimSolid do you see being sold for use cases in upfront design rather than, say, more traditional engineering simulation use cases? The vast majority of how SimSolid is used is more for the upfront design for sure. That is how we've targeted. That's where the solution sweet spot is, if you will. For the more traditional stuff, OptiStruct and to some extent, Radioss are really the go-to solutions there. Thank you. Sure. Thank you. Thank you. Again, ladies and gentlemen, if you have a question or comment at this time, please press star then one on your telephone keypad. Our next question or comment comes from the line of Blair Abernethy from Rosenblatt Securities. Your line is open. Thank you. Nice quarter, guys. Just wondering, James, if you can give us a little color into how things are going with SmartWorks. I realize it's only been a short period of time that you've been in the market with it, but just want to understand how you're taking it to market and where you're seeing some traction in that product. SmartWorks sort of has two halves to it right now. It is coming together, there's sort of a SmartWorks IoT and then the SmartWorks Analytics. The analytics is, they're both relatively new, and they're both coming together. Both of them have some lead customers. We're getting a lot of really good feedback on SmartWorks Analytics now. Seems to be very positive. I think we're really focused on developing the solutions that customers are telling us that we need to add. The IoT piece has got a lot of interest. I'd say it's a little bit earlier for getting a lot of traction at this point. We do have customers who are using it, integrating it. I would say it's still early. These are horizon three things to me. Yeah. On the analytics side, any particular verticals that you'd say are more interested in it? Just where are you seeing that interest, without naming names? It's mostly in the traditional core customers that we have for analytics, which is more BFSI. We are certainly engaging with customers on the engineering side as well. Okay, great. Thank you. Sure. Thank you. I'm showing no additional questions in the queue at this time. I'd like to turn the conference back over to management for any closing comments. Okay. Yeah. Thanks to everybody for your interest. Appreciate you all tuning in, and thanks to my team for another great quarter. We're having a lot of fun here in Altair as we're hitting these big growth numbers. Thanks. Thank you all. Thanks, everybody. Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.