Altair Announces Second Quarter 2024 Financial Results
Altair (ALTR), a global computational intelligence leader, announced its Q2 2024 financial results on August 1, 2024. The company reported software revenue of $135.4 million, a year-over-year increase of 8.1%, and total revenue of $148.8 million, up 5.4% from Q2 2023. Net loss improved significantly, reducing to $(5.1) million from $(22.3) million in the same period last year. Non-GAAP net income was $14.8 million, a 12.1% increase from Q2 2023. Adjusted EBITDA was $17.3 million, slightly up by 1.7%. Cash provided by operating activities was $28.6 million, and free cash flow was $26.3 million.
For Q3 2024, Altair expects software revenue between $130-$133 million and total revenue between $145-$148 million. Full-year 2024 guidance projects software revenue of $590-$600 million and total revenue of $648-$658 million, with positive growth rates in both reported and constant currencies.
Altair (ALTR), un leader globale nell'intelligenza computazionale, ha annunciato i risultati finanziari del secondo trimestre 2024 il 1 agosto 2024. L'azienda ha riportato un fatturato da software di 135,4 milioni di dollari, con un incremento dell'8,1% rispetto all'anno precedente, e un fatturato totale di 148,8 milioni di dollari, in aumento del 5,4% rispetto al secondo trimestre del 2023. La perdita netta è migliorata significativamente, riducendosi a 5,1 milioni di dollari rispetto ai 22,3 milioni di dollari dello stesso periodo dell'anno scorso. L'utile netto non GAAP è stato di 14,8 milioni di dollari, con un aumento del 12,1% rispetto al secondo trimestre del 2023. L'EBITDA rettificato è stato di 17,3 milioni di dollari, leggermente aumentato dell'1,7%. Il cash flow generato dalle attività operative è stato di 28,6 milioni di dollari, e il flusso di cassa libero è stato di 26,3 milioni di dollari.
Per il terzo trimestre del 2024, Altair prevede un fatturato da software compreso tra 130 e 133 milioni di dollari e un fatturato totale tra 145 e 148 milioni di dollari. La guida per l'intero anno 2024 prevede un fatturato da software compreso tra 590 e 600 milioni di dollari e un fatturato totale tra 648 e 658 milioni di dollari, con tassi di crescita positivi sia nelle valute riportate che in quelle costanti.
Altair (ALTR), un líder global en inteligencia computacional, anunció sus resultados financieros del segundo trimestre de 2024 el 1 de agosto de 2024. La compañía reportó unos ingresos de software de 135,4 millones de dólares, un aumento del 8,1% en comparación con el año anterior, y unos ingresos totales de 148,8 millones de dólares, un incremento del 5,4% desde el segundo trimestre de 2023. La pérdida neta mejoró significativamente, reduciéndose a 5,1 millones de dólares desde 22,3 millones de dólares en el mismo periodo del año pasado. El ingreso neto no GAAP fue de 14,8 millones de dólares, un aumento del 12,1% en comparación con el segundo trimestre de 2023. El EBITDA ajustado fue de 17,3 millones de dólares, ligeramente aumentado en un 1,7%. El flujo de caja generado por actividades operativas fue de 28,6 millones de dólares y el flujo de caja libre fue de 26,3 millones de dólares.
Para el tercer trimestre de 2024, Altair espera unos ingresos de software entre 130 y 133 millones de dólares y unos ingresos totales entre 145 y 148 millones de dólares. La proyección para el año completo 2024 prevé ingresos de software de entre 590 y 600 millones de dólares y unos ingresos totales de entre 648 y 658 millones de dólares, con tasas de crecimiento positivas en ambas monedas reportadas y constantes.
알테어 (ALTR), 글로벌 컴퓨팅 지능 리더, 2024년 2분기 재무 결과를 2024년 8월 1일 발표했습니다. 회사는 소프트웨어 수익으로 1억 3,540만 달러를 보고했으며, 이는 지난해 대비 8.1% 증가한 수치입니다. 총 수익은 1억 4,880만 달러로, 2023년 2분기 대비 5.4% 상승했습니다. 순손실은 2230만 달러에서 510만 달러로 감소하며 크게 개선되었습니다. 비 GAAP 순이익은 1,480만 달러로, 2023년 2분기 대비 12.1% 증가했습니다. 조정된 EBITDA는 1,730만 달러로, 소폭 1.7% 증가했습니다. 운영 활동에서 발생한 현금은 2,860만 달러였으며, 자유 현금 흐름은 2,630만 달러였습니다.
2024년 3분기 동안 알테어는 소프트웨어 수익을 1억 3,000만 달러에서 1억 3,300만 달러로 예상하며, 총 수익은 1억 4,500만 달러에서 1억 4,800만 달러로 예상하고 있습니다. 2024 전체 연도 전망은 소프트웨어 수익이 5억 9,000만 달러에서 6억 달러, 총 수익은 6억 4,800만 달러에서 6억 5,800만 달러로 예상되며, 보고된 통화와 상수 통화 모두에서 긍정적인 성장률을 기록할 것으로 보입니다.
Altair (ALTR), un leader mondial en intelligence computationnelle, a annoncé ses résultats financiers pour le deuxième trimestre 2024 le 1er août 2024. L'entreprise a rapporté des revenus logiciels de 135,4 millions de dollars, soit une augmentation de 8,1 % par rapport à l'année précédente, et un revenu total de 148,8 millions de dollars, en hausse de 5,4 % par rapport au deuxième trimestre 2023. La perte nette s'est considérablement améliorée, passant de 22,3 millions de dollars l'année dernière à 5,1 millions de dollars cette année. Le revenu net non GAAP s'élevait à 14,8 millions de dollars, soit une augmentation de 12,1 % par rapport au deuxième trimestre 2023. L'EBITDA ajusté était de 17,3 millions de dollars, en légère hausse de 1,7 %. Les liquidités fournies par les opérations ont atteint 28,6 millions de dollars, tandis que le flux de trésorerie libre était de 26,3 millions de dollars.
Pour le troisième trimestre 2024, Altair prévoit des revenus logiciels compris entre 130 et 133 millions de dollars et des revenus totaux compris entre 145 et 148 millions de dollars. Les prévisions pour l'année 2024 estiment des revenus logiciels de 590 à 600 millions de dollars et des revenus totaux de 648 à 658 millions de dollars, avec des taux de croissance positifs dans les deux devises rapportées et constantes.
Altair (ALTR), ein globaler Marktführer im Bereich der rechnergestützten Intelligenz, gab am 1. August 2024 seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt. Das Unternehmen meldete Software-Umsätze von 135,4 Millionen Dollar, was einem Anstieg von 8,1 % im Vergleich zum Vorjahr entspricht, und einen Gesamtumsatz von 148,8 Millionen Dollar, was einem Anstieg von 5,4 % im Vergleich zum Q2 2023 entspricht. Der Nettverlust verbesserte sich erheblich und sank auf 5,1 Millionen Dollar von 22,3 Millionen Dollar im gleichen Zeitraum des Vorjahres. Das Nicht-GAAP-Nettoeinkommen betrug 14,8 Millionen Dollar, ein Anstieg von 12,1 % gegenüber dem Q2 2023. Das bereinigte EBITDA betrug 17,3 Millionen Dollar, ein leichter Anstieg von 1,7 %. Der Cashflow aus der Betriebstätigkeit betrug 28,6 Millionen Dollar, und der freie Cashflow betrug 26,3 Millionen Dollar.
Für das dritte Quartal 2024 erwartet Altair Software-Umsätze zwischen 130 und 133 Millionen Dollar und Gesamtumsätze zwischen 145 und 148 Millionen Dollar. Die Prognose für das Gesamtjahr 2024 sieht Software-Umsätze zwischen 590 und 600 Millionen Dollar und Gesamtumsätze zwischen 648 und 658 Millionen Dollar vor, mit positiven Wachstumsraten in beiden berichteten und konstanten Währungen.
- Software revenue increased by 8.1% year-over-year to $135.4 million.
- Total revenue rose by 5.4% year-over-year to $148.8 million.
- Net loss improved significantly from $(22.3) million to $(5.1) million.
- Non-GAAP net income increased by 12.1% to $14.8 million.
- Adjusted EBITDA rose by 1.7% to $17.3 million.
- Free cash flow increased from $25.6 million to $26.3 million.
- Net loss margin remains negative at -3.5%.
Insights
Altair's Q2 2024 results demonstrate solid performance, with software revenue reaching
The company's net loss narrowed significantly to
Altair's cash flow remains robust, with
Looking ahead, Altair's guidance for Q3 and full-year 2024 suggests continued growth, with software revenue expected to increase between
However, investors should note the slight decrease in Adjusted EBITDA margin to
Altair's Q2 results underscore the growing importance of computational intelligence in various industries. The
The company's performance aligns with broader industry trends, where digital transformation initiatives are fueling the need for advanced computational tools. Altair's ability to exceed revenue expectations suggests it's successfully capitalizing on these trends and potentially gaining market share.
It's worth noting that Altair's growth outpaces the general software industry average, which typically hovers around
The company's guidance for the rest of 2024 implies continued confidence in its market position and product portfolio. However, the slight compression in Adjusted EBITDA margin bears watching, as it could suggest increased competition or investment in growth initiatives that may pressure profitability in the short term.
Investors should keep an eye on Altair's ability to maintain its growth trajectory while managing costs, especially in light of ongoing global economic uncertainties that could impact corporate IT spending.
Altair Exceeds Revenue Expectations for the Second Quarter
TROY, Mich., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Altair (Nasdaq: ALTR), a global leader in computational intelligence, today released its financial results for the second quarter and six months ended June 30, 2024.
“Altair maintained its strong trajectory during the second quarter, with software revenue and total revenue above the high end of guidance,” said James R. Scapa, founder, chairman, and chief executive officer, Altair. “Our Q2 results underscore the robustness of our software product lineup, which continues to empower customers with industry-leading computational intelligence.”
“We are pleased with our execution in the second quarter and first half of the year,” said Matt Brown, chief financial officer, Altair. “Our quarterly revenues exceeded expectations as we continued to deliver software revenue growth, which gives us confidence in our path to meet our financial targets for the year.”
Second Quarter 2024 Financial Highlights
- Software revenue was
$135.4 million compared to$125.3 million for the second quarter of 2023, an increase of8.1% in reported currency and10.6% in constant currency - Total revenue was
$148.8 million compared to$141.2 million for the second quarter of 2023, an increase of5.4% in reported currency and7.8% in constant currency - Net loss was
$(5.1) million compared to a net loss of$(22.3) million for the second quarter of 2023. Net loss per share, diluted was$(0.06) b ased on 83.6 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of$(0.28) for the second quarter of 2023, based on 80.0 million diluted weighted average common shares outstanding. Net loss margin was -3.5% compared to net loss margin of -15.8% for the second quarter of 2023 - Non-GAAP net income was
$14.8 million , compared to non-GAAP net income of$13.2 million for the second quarter of 2023, an increase of12.1% . Non-GAAP net income per share, diluted was$0.16 b ased on 91.0 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of$0.15 for the second quarter of 2023, based on 88.4 million non-GAAP diluted common shares outstanding - Adjusted EBITDA was
$17.3 million compared to$17.1 million for the second quarter of 2023, an increase of1.7% . Adjusted EBITDA margin was11.7% compared to12.1% for the second quarter of 2023 - Cash provided by operating activities was
$28.6 million , compared to$30.0 million for the second quarter of 2023 - Free cash flow was
$26.3 million , compared to$25.6 million for the second quarter of 2023.
Business Outlook
Based on information available as of today, Altair is issuing the following guidance for the third quarter and full year 2024:
| (in millions, except %) | Third Quarter 2024 | Full Year 2024 | ||||||||||||||
| Software Revenue | $ | 130 | to | $ | 133 | $ | 590 | to | $ | 600 | ||||||
| Growth Rate | 9.2 | % | 11.7 | % | 7.3 | % | 9.1 | % | ||||||||
| Growth Rate - Constant Currency | 11.1 | % | 13.7 | % | 8.9 | % | 10.8 | % | ||||||||
| Total Revenue | $ | 145 | $ | 148 | $ | 648 | $ | 658 | ||||||||
| Growth Rate | 8.2 | % | 10.4 | % | 5.8 | % | 7.4 | % | ||||||||
| Growth Rate - Constant Currency | 10.0 | % | 12.3 | % | 7.5 | % | 9.1 | % | ||||||||
| Net (Loss) Income | $ | (14.0 | ) | $ | (11.1 | ) | $ | 22.6 | $ | 30.3 | ||||||
| Non-GAAP Net Income | $ | 13.4 | $ | 15.7 | $ | 108.4 | $ | 114.4 | ||||||||
| Adjusted EBITDA | $ | 16 | $ | 19 | $ | 136 | $ | 144 | ||||||||
| Net Cash Provided by Operating Activities | $ | 133 | $ | 141 | ||||||||||||
| Free Cash Flow | $ | 122 | $ | 130 | ||||||||||||
The following table provides a reconciliation of Full Year 2024 guidance to the last guidance provided in May
| (Unaudited) | ||||||||||||||||
| Full Year 2024 | ||||||||||||||||
| (in millions) | Midpoint of Guidance in May | Increase/ (Decrease) | Currency Fluctuations from Prior Guidance | Midpoint of Guidance in August | ||||||||||||
| Software Revenue | $ | 595.0 | $ | 3.0 | $ | (3.0 | ) | $ | 595.0 | |||||||
| Total Revenue | $ | 657.0 | $ | — | $ | (4.0 | ) | $ | 653.0 | |||||||
| Adjusted EBITDA | $ | 142.0 | $ | — | $ | (2.0 | ) | $ | 140.0 | |||||||
Conference Call Information
| What: | Altair’s Second Quarter 2024 Financial Results Conference Call | |
| When: | Thursday, August 1, 2024 | |
| Time: | 5 p.m. ET | |
| Webcast: | http://investor.altair.com (live & replay) |
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Billings, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.
Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.
Non-GAAP diluted common shares includes the diluted weighted average shares outstanding per GAAP regardless of whether the Company is in a loss position.
Billings consists of total revenue plus the change in deferred revenue, excluding deferred revenue from acquisitions.
Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
Free cash flow consists of cash flow from operations less capital expenditures.
Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense and other special items as identified by management and described elsewhere in this press release.
Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.
About Altair
Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit https://www.altair.com.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the third quarter and full year 2024, our statements regarding our expectations for 2024, and our reconciliations of projected non-GAAP financial measures. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in our forward-looking statements due to a number of factors, including but not limited to, the risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.
Media Relations
Altair
Jennifer Ristic
216-849-3109
jristic@altair.com
Investor Relations
Altair
Stephen Palmtag
669-328-9111
spalmtag@altair.com
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| (In thousands) | (Unaudited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 507,008 | $ | 467,459 | ||||
| Accounts receivable, net | 126,560 | 190,461 | ||||||
| Income tax receivable | 17,682 | 16,650 | ||||||
| Prepaid expenses and other current assets | 28,582 | 26,053 | ||||||
| Total current assets | 679,832 | 700,623 | ||||||
| Property and equipment, net | 38,463 | 39,803 | ||||||
| Operating lease right of use assets | 31,816 | 30,759 | ||||||
| Goodwill | 459,070 | 458,125 | ||||||
| Other intangible assets, net | 77,537 | 83,550 | ||||||
| Deferred tax assets | 9,120 | 9,955 | ||||||
| Other long-term assets | 40,119 | 40,678 | ||||||
| TOTAL ASSETS | $ | 1,335,957 | $ | 1,363,493 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 4,002 | $ | 8,995 | ||||
| Accrued compensation and benefits | 39,819 | 45,081 | ||||||
| Current portion of operating lease liabilities | 8,057 | 8,825 | ||||||
| Other accrued expenses and current liabilities | 41,508 | 48,398 | ||||||
| Deferred revenue | 123,439 | 131,356 | ||||||
| Current portion of convertible senior notes, net | — | 81,455 | ||||||
| Total current liabilities | 216,825 | 324,110 | ||||||
| Convertible senior notes, net | 226,518 | 225,929 | ||||||
| Operating lease liabilities, net of current portion | 24,568 | 22,625 | ||||||
| Deferred revenue, non-current | 28,745 | 32,347 | ||||||
| Other long-term liabilities | 47,995 | 47,151 | ||||||
| TOTAL LIABILITIES | 544,651 | 652,162 | ||||||
| Commitments and contingencies | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock ( | — | — | ||||||
| Common stock ( | ||||||||
| Class A common stock, authorized 513,797 shares, issued and outstanding 59,198 and 55,240 shares as of June 30, 2024, and December 31, 2023, respectively | 5 | 5 | ||||||
| Class B common stock, authorized 41,203 shares, issued and outstanding 25,471 and 26,814 shares as of June 30, 2024, and December 31, 2023, respectively | 3 | 3 | ||||||
| Additional paid-in capital | 939,691 | 864,135 | ||||||
| Accumulated deficit | (119,103 | ) | (130,503 | ) | ||||
| Accumulated other comprehensive loss | (29,290 | ) | (22,309 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 791,306 | 711,331 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,335,957 | $ | 1,363,493 | ||||
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | ||||||||||||||||
| License | $ | 92,699 | $ | 87,738 | $ | 210,406 | $ | 200,147 | ||||||||
| Maintenance and other services | 42,724 | 37,583 | 83,446 | 74,817 | ||||||||||||
| Total software | 135,423 | 125,321 | 293,852 | 274,964 | ||||||||||||
| Engineering services and other | 13,372 | 15,840 | 27,855 | 32,231 | ||||||||||||
| Total revenue | 148,795 | 141,161 | 321,707 | 307,195 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| License | 3,152 | 3,981 | 7,642 | 8,805 | ||||||||||||
| Maintenance and other services | 16,199 | 13,639 | 30,365 | 28,065 | ||||||||||||
| Total software * | 19,351 | 17,620 | 38,007 | 36,870 | ||||||||||||
| Engineering services and other | 11,165 | 13,177 | 23,402 | 26,662 | ||||||||||||
| Total cost of revenue | 30,516 | 30,797 | 61,409 | 63,532 | ||||||||||||
| Gross profit | 118,279 | 110,364 | 260,298 | 243,663 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development * | 55,570 | 55,277 | 107,903 | 108,528 | ||||||||||||
| Sales and marketing * | 46,475 | 44,982 | 90,909 | 88,474 | ||||||||||||
| General and administrative * | 19,294 | 18,622 | 37,055 | 36,573 | ||||||||||||
| Amortization of intangible assets | 7,629 | 7,625 | 15,067 | 15,439 | ||||||||||||
| Other operating (income) expense, net | (786 | ) | 127 | (1,668 | ) | 5,732 | ||||||||||
| Total operating expenses | 128,182 | 126,633 | 249,266 | 254,746 | ||||||||||||
| Operating (loss) income | (9,903 | ) | (16,269 | ) | 11,032 | (11,083 | ) | |||||||||
| Interest expense | 1,604 | 1,528 | 3,180 | 3,054 | ||||||||||||
| Other income, net | (5,750 | ) | (4,195 | ) | (9,707 | ) | (7,808 | ) | ||||||||
| (Loss) income before income taxes | (5,757 | ) | (13,602 | ) | 17,559 | (6,329 | ) | |||||||||
| Income tax (benefit) expense | (610 | ) | 8,678 | 6,159 | 17,910 | |||||||||||
| Net (loss) income | $ | (5,147 | ) | $ | (22,280 | ) | $ | 11,400 | $ | (24,239 | ) | |||||
| (Loss) earnings per share, basic | ||||||||||||||||
| (Loss) earnings per share | $ | (0.06 | ) | $ | (0.28 | ) | $ | 0.14 | $ | (0.30 | ) | |||||
| Weighted average shares | 83,607 | 79,986 | 83,097 | 80,088 | ||||||||||||
| (Loss) earnings per share, diluted | ||||||||||||||||
| (Loss) earnings per share | $ | (0.06 | ) | $ | (0.28 | ) | $ | 0.13 | $ | (0.30 | ) | |||||
| Weighted average shares | 83,607 | 79,986 | 87,397 | 80,088 | ||||||||||||
* Amounts include stock-based compensation expense as follows (in thousands):
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cost of revenue – software | $ | 2,097 | $ | 2,572 | $ | 4,099 | $ | 5,324 | ||||||||
| Research and development | 6,618 | 9,943 | 12,978 | 18,686 | ||||||||||||
| Sales and marketing | 4,979 | 7,581 | 9,499 | 15,172 | ||||||||||||
| General and administrative | 3,661 | 3,640 | 6,778 | 6,715 | ||||||||||||
| Total stock-based compensation expense | $ | 17,355 | $ | 23,736 | $ | 33,354 | $ | 45,897 | ||||||||
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| (In thousands) | 2024 | 2023 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 11,400 | $ | (24,239 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 19,557 | 19,488 | ||||||
| Stock-based compensation expense | 33,354 | 45,897 | ||||||
| Deferred income taxes | (367 | ) | 2,015 | |||||
| Loss on mark-to-market adjustment of contingent consideration | 189 | 7,987 | ||||||
| Other, net | 1,166 | 1,335 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 61,360 | 45,077 | ||||||
| Prepaid expenses and other current assets | (3,647 | ) | (3,166 | ) | ||||
| Other long-term assets | 164 | (2,516 | ) | |||||
| Accounts payable | (4,382 | ) | (5,529 | ) | ||||
| Accrued compensation and benefits | (4,071 | ) | (6,591 | ) | ||||
| Other accrued expenses and current liabilities | (2,834 | ) | 4,857 | |||||
| Deferred revenue | (9,882 | ) | 4,614 | |||||
| Net cash provided by operating activities | 102,007 | 89,229 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Payments for acquisition of businesses, net of cash acquired | (13,680 | ) | (721 | ) | ||||
| Capital expenditures | (5,004 | ) | (6,184 | ) | ||||
| Other investing activities, net | (398 | ) | (1,452 | ) | ||||
| Net cash used in investing activities | (19,082 | ) | (8,357 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Settlement of convertible senior notes | (81,729 | ) | — | |||||
| Proceeds from the exercise of common stock options | 37,227 | 23,507 | ||||||
| Proceeds from employee stock purchase plan contributions | 4,363 | 3,797 | ||||||
| Payments for repurchase and retirement of common stock | — | (6,255 | ) | |||||
| Other financing activities | — | (48 | ) | |||||
| Net cash (used in) provided by financing activities | (40,139 | ) | 21,001 | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,295 | ) | (44 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 39,491 | 101,829 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 467,576 | 316,958 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 507,067 | $ | 418,787 | ||||
Change in Presentation of Revenue and Cost of Revenue
Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue or total cost of revenue amounts previously reported or have any effect on segment reporting.
Financial Results
The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net (loss) income and net (loss) income per share – diluted, the most comparable GAAP financial measures:
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (5,147 | ) | $ | (22,280 | ) | $ | 11,400 | $ | (24,239 | ) | |||||
| Stock-based compensation expense | 17,355 | 23,736 | 33,354 | 45,897 | ||||||||||||
| Amortization of intangible assets | 7,629 | 7,625 | 15,067 | 15,439 | ||||||||||||
| Non-cash interest expense | 422 | 465 | 894 | 930 | ||||||||||||
| Impact of non-GAAP tax rate (1) | (5,548 | ) | 4,033 | (10,843 | ) | 2,100 | ||||||||||
| Special adjustments and other (2) | 104 | (361 | ) | 1,134 | 4,870 | |||||||||||
| Non-GAAP net income | $ | 14,815 | $ | 13,218 | $ | 51,006 | $ | 44,997 | ||||||||
| Net (loss) income per share, diluted | $ | (0.06 | ) | $ | (0.28 | ) | $ | 0.13 | $ | (0.30 | ) | |||||
| Non-GAAP net income per share, diluted | $ | 0.16 | $ | 0.15 | $ | 0.56 | $ | 0.51 | ||||||||
| GAAP diluted shares outstanding | 83,607 | 79,986 | 87,397 | 80,088 | ||||||||||||
| Non-GAAP diluted shares outstanding | 90,994 | 88,383 | 90,606 | 88,735 | ||||||||||||
| (1) | For the three and six months ended June 30, 2024, the Company used a non-GAAP effective tax rate of | |
| (2) | The three months ended June 30, 2024, includes |
The following table provides a reconciliation of Adjusted EBITDA to net (loss) income, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (5,147 | ) | $ | (22,280 | ) | $ | 11,400 | $ | (24,239 | ) | |||||
| Income tax (benefit) expense | (610 | ) | 8,678 | 6,159 | 17,910 | |||||||||||
| Stock-based compensation expense | 17,355 | 23,736 | 33,354 | 45,897 | ||||||||||||
| Interest expense | 1,604 | 1,528 | 3,180 | 3,054 | ||||||||||||
| Depreciation and amortization | 9,938 | 9,738 | 19,557 | 19,488 | ||||||||||||
| Special adjustments, interest income and other (1) | (5,792 | ) | (4,344 | ) | (10,484 | ) | (1,999 | ) | ||||||||
| Adjusted EBITDA | $ | 17,348 | $ | 17,056 | $ | 63,166 | $ | 60,111 | ||||||||
| (1) | The three months ended June 30, 2024, primarily includes |
The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by operating activities | $ | 28,557 | $ | 30,030 | $ | 102,007 | $ | 89,229 | ||||||||
| Capital expenditures | (2,238 | ) | (4,457 | ) | (5,004 | ) | (6,184 | ) | ||||||||
| Free cash flow | $ | 26,319 | $ | 25,573 | $ | 97,003 | $ | 83,045 | ||||||||
The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure, and a comparison of Non-GAAP gross margin (Non-GAAP gross profit as a percentage of total revenue) to gross margin (gross profit as a percentage of total revenue), the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Gross profit | $ | 118,279 | $ | 110,364 | $ | 260,298 | $ | 243,663 | ||||||||
| Stock-based compensation expense | 2,097 | 2,572 | 4,099 | 5,324 | ||||||||||||
| Non-GAAP gross profit | $ | 120,376 | $ | 112,936 | $ | 264,397 | $ | 248,987 | ||||||||
| Gross profit margin | 79.5 | % | 78.2 | % | 80.9 | % | 79.3 | % | ||||||||
| Non-GAAP gross margin | 80.9 | % | 80.0 | % | 82.2 | % | 81.1 | % | ||||||||
The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total operating expense | $ | 128,182 | $ | 126,633 | $ | 249,266 | $ | 254,746 | ||||||||
| Stock-based compensation expense | (15,258 | ) | (21,164 | ) | (29,255 | ) | (40,573 | ) | ||||||||
| Amortization | (7,629 | ) | (7,625 | ) | (15,067 | ) | (15,439 | ) | ||||||||
| Loss on mark-to-market adjustment of contingent consideration | (44 | ) | (981 | ) | (189 | ) | (7,987 | ) | ||||||||
| Non-GAAP operating expense | $ | 105,251 | $ | 96,863 | $ | 204,755 | $ | 190,747 | ||||||||
The following table provides a reconciliation of Billings to revenue, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 148,795 | $ | 141,161 | $ | 321,707 | $ | 307,195 | ||||||||
| Ending deferred revenue | 152,184 | 148,547 | 152,184 | 148,547 | ||||||||||||
| Beginning deferred revenue | (144,939 | ) | (141,943 | ) | (163,703 | ) | (144,460 | ) | ||||||||
| Deferred revenue acquired | (1,572 | ) | — | (1,572 | ) | — | ||||||||||
| Billings | $ | 154,468 | $ | 147,765 | $ | 308,616 | $ | 311,282 | ||||||||
The following table provides Software revenue, Total revenue, Billings and Adjusted EBITDA on a constant currency basis:
| (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Increase/ (Decrease) % | ||||||||||||||||||||||
| (in thousands) | As reported | Currency changes | As adjusted for constant currency | As reported | As reported | As adjusted for constant currency | ||||||||||||||||||
| Software revenue | $ | 135.4 | $ | 3.3 | $ | 138.7 | $ | 125.3 | 8.1 | % | 10.6 | % | ||||||||||||
| Total revenue | $ | 148.8 | $ | 3.4 | $ | 152.2 | $ | 141.2 | 5.4 | % | 7.8 | % | ||||||||||||
| Billings | $ | 154.5 | $ | 3.7 | $ | 158.2 | $ | 147.8 | 4.5 | % | 7.1 | % | ||||||||||||
| Adjusted EBITDA | $ | 17.3 | $ | 2.2 | $ | 19.5 | $ | 17.1 | 1.7 | % | 14.1 | % | ||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Increase/ (Decrease) % | ||||||||||||||||||||||
| (in thousands) | As reported | Currency changes | As adjusted for constant currency | As reported | As reported | As adjusted for constant currency | ||||||||||||||||||
| Software revenue | $ | 293.9 | $ | 4.7 | $ | 298.6 | $ | 275.0 | 6.9 | % | 8.6 | % | ||||||||||||
| Total revenue | $ | 321.7 | $ | 4.9 | $ | 326.6 | $ | 307.2 | 4.7 | % | 6.3 | % | ||||||||||||
| Billings | $ | 308.6 | $ | 4.5 | $ | 313.1 | $ | 311.3 | -0.9 | % | 0.6 | % | ||||||||||||
| Adjusted EBITDA | $ | 63.2 | $ | 3.4 | $ | 66.6 | $ | 60.1 | 5.1 | % | 10.8 | % | ||||||||||||
Business Outlook
The following table provides a reconciliation of projected Non-GAAP net income to projected net (loss) income, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ending September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||||
| (in thousands) | Low | High | Low | High | ||||||||||||
| Net (loss) income | $ | (14,000 | ) | $ | (11,100 | ) | $ | 22,600 | $ | 30,300 | ||||||
| Stock-based compensation expense | 17,800 | 17,800 | 68,900 | 68,900 | ||||||||||||
| Amortization of intangible assets | 8,400 | 8,400 | 31,500 | 31,500 | ||||||||||||
| Non-cash interest expense | 300 | 300 | 1,500 | 1,500 | ||||||||||||
| Impact of non-GAAP tax rate(1) | 900 | 300 | (17,200 | ) | (18,900 | ) | ||||||||||
| Special adjustments and other(2) | — | — | 1,100 | 1,100 | ||||||||||||
| Non-GAAP net income | $ | 13,400 | $ | 15,700 | $ | 108,400 | $ | 114,400 | ||||||||
| (1) | The Company uses a non-GAAP effective tax rate of | |
| (2) | The year ending December 31, 2024, includes a |
The following table provides a reconciliation of projected Adjusted EBITDA to projected net (loss) income, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ending September 30, 2024 | Year Ending December 31, 2024 | |||||||||||||||
| (in thousands) | Low | High | Low | High | ||||||||||||
| Net (loss) income | $ | (14,000 | ) | $ | (11,100 | ) | $ | 22,600 | $ | 30,300 | ||||||
| Income tax expense | 5,400 | 5,500 | 19,000 | 19,300 | ||||||||||||
| Stock-based compensation expense | 17,800 | 17,800 | 68,900 | 68,900 | ||||||||||||
| Interest (income) expense | (3,900 | ) | (3,900 | ) | (16,200 | ) | (16,200 | ) | ||||||||
| Depreciation and amortization | 10,700 | 10,700 | 40,600 | 40,600 | ||||||||||||
| Special adjustments and other(1) | — | — | 1,100 | 1,100 | ||||||||||||
| Adjusted EBITDA | $ | 16,000 | $ | 19,000 | $ | 136,000 | $ | 144,000 | ||||||||
| (1) | The year ending December 31, 2024, includes a |
The following table provides a reconciliation of projected Free Cash Flow to projected net cash provided by operating activities, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||
| Year Ending December 31, 2024 | ||||||||
| (in thousands) | Low | High | ||||||
| Net cash provided by operating activities | $ | 133,000 | $ | 141,000 | ||||
| Capital expenditures | (11,000 | ) | (11,000 | ) | ||||
| Free cash flow | $ | 122,000 | $ | 130,000 | ||||
FAQ
What were Altair's Q2 2024 financial results?
What is Altair's guidance for Q3 2024?
What is ALTR's full-year 2024 financial guidance?
How has ALTR's net loss changed in Q2 2024?
What was ALTR's adjusted EBITDA in Q2 2024?
