Core Insights - Altair has announced a technical integration with NVIDIA, enhancing its capabilities in simulation-driven design, AI-powered engineering, and computational intelligence [1][2] - The integration allows users to visualize, build, edit, and interact with complex simulations and digital twins in a shared environment, leveraging GPU acceleration and NVIDIA technologies [1][3] Integration Details - The integration combines NVIDIA Omniverse Blueprint for Real-Time Digital Twins with Altair One, enabling real-time collaboration and simulation in a virtual environment [3][4] - Users can benefit from high-end rendering and streaming capabilities, simplifying the interaction of software components in large systems, particularly for AI and data processing [3][4] Performance Enhancements - Altair is utilizing NVIDIA technology to enhance performance across its products, including the introduction of the cuDSS GPU-accelerated Direct Sparse Solver library in Altair OptiStruct [5] - Performance improvements have been noted, with Altair ultraFluidX, nanoFluidX, and EDEM demonstrating up to 1.6x improvement on NVIDIA DGX B200, and EDEM showing a 40x speed increase compared to 32 CPUs [6] Industry Impact - Digital twin technology is transforming industries by enabling real-time design and faster optimization, providing engineers and designers with advanced tools [4] - The integration supports the development of models in tools like Altair PhysicsAI, significantly reducing analysis time from hours or days to seconds or minutes [4]

Group 1 - Altair has appointed Var Group as a channel partner for the EMEA region to offer its simulation, data analytics, and AI solutions [1][2] - The partnership aims to optimize operations, drive innovation, and unlock new opportunities for organizations [1][2] - Var Group's expertise in digital transformation aligns with Altair's vision of empowering businesses through advanced technology [2] Group 2 - The collaboration will enhance Var Group's portfolio with advanced AI, data analytics, and simulation solutions to meet complex industry needs [2] - Altair is recognized as a global leader in computational intelligence, providing software and cloud solutions across various industries [3] - The partnership is expected to accelerate innovation and enhance efficiency in an evolving market [2]

Core Insights - Altair will showcase its advanced AI and simulation technologies at Hannover Messe 2025, highlighting their role in transforming industries and driving sustainable success [1][3] - The company emphasizes the importance of AI and machine learning in enhancing speed, performance, quality, and cost-effectiveness for organizations [3] AI-Powered Solutions - Altair's AI-powered engineering solutions provide deeper insights, accelerate design processes, and improve decision-making, contributing to a safer and more sustainable future [3] - A notable use case from CNH Industrial demonstrates how Altair's AI-augmented simulation tools enabled the creation of a digital twin, significantly reducing time to market and optimizing workflows [3] Event Participation - Altair will have a booth at Hall 17, Booth D35, and will participate in four speaking sessions during the event [4] - The sessions will cover topics such as AI in smart factories, engineering efficiency, materials transition for a net-zero future, and anomaly detection in industrial applications [4] Company Overview - Altair is recognized as a global leader in computational intelligence, providing software and cloud solutions in simulation, high-performance computing (HPC), data analytics, and AI [5] - The company offers scalable AI solutions for smart manufacturing, AI-powered engineering, digital twins, knowledge graphs, AI fabric, and AI agents [5]

Core Insights - Altair has been selected to join the Piedmont Aerospace Cluster, enhancing its role in driving innovation within the aerospace sector [1][2] - The Cluster aims to improve the competitiveness of Piedmont's aerospace industry through coordination and long-term investment in technological innovation [3] Company Contributions - Altair will provide essential tools and expertise in digital engineering and AI for the development, production, and maintenance of aircraft and subsystems [2][3] - The company has established strong relationships with leading aerospace firms over its 20 years in the region, indicating a deep-rooted presence in the aerospace ecosystem [3] Industry Context - The Piedmont Aerospace Cluster is a nonprofit organization founded in 2005, focusing on enhancing the aerospace industry's competitiveness in the region [3] - The Cluster includes various innovative aerospace companies and emphasizes the importance of simulation, data analytics, and AI in the industry [3]

Company Performance - Altair Engineering reported quarterly earnings of $0.52 per share, missing the Zacks Consensus Estimate of $0.53 per share, but showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of -1.89% [1] - The company posted revenues of $192.63 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.42%, compared to year-ago revenues of $171.5 million [2] - Over the last four quarters, Altair Engineering has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Altair Engineering shares have added about 2% since the beginning of the year, underperforming the S&P 500's gain of 4.5% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the coming quarter is $0.48 on revenues of $188.13 million, and $1.55 on revenues of $704.85 million for the current fiscal year [7] Industry Context - The Internet - Software industry, to which Altair Engineering belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, EverCommerce, is expected to report a quarterly loss of $0.02 per share, reflecting a year-over-year change of +83.3%, with revenues projected at $169.96 million, up 0.3% from the previous year [9]

Financial Performance - In 2024, 32% of software billings were attributed to the Americas, 31% to EMEA, and 37% to APAC[85] - The company’s software piracy is expected to negatively impact revenue and financial results, despite a shift to a subscription-based model[98] - The company’s backlog is not considered a key management metric due to fluctuations in customer subscription agreements[115] - As of December 31, 2024, the company reported cash, cash equivalents, and restricted cash totaling $562.0 million[433] - The company issued $230.0 million in convertible senior notes with a fixed interest rate of 1.750%, due in 2027, mitigating interest rate exposure[432] - The company does not have any foreign currency hedging contracts as of December 31, 2024, and does not plan to engage in hedging activities in the near future[431] - The company is exposed to foreign currency risks due to substantial international operations, which can impact reported revenue and operating income[430] - The fair market value of the company's convertible notes is influenced by interest rates and the stock price of its Class A common stock[432] - Historical fluctuations of interest expense related to interest-bearing instruments have not been significant for the company[433] Acquisitions and Strategic Growth - The company has acquired 55 companies or strategic technologies since 1996, including 21 in the last five years[111] - In August 2024, the company acquired KSK Analytics, a Japanese firm specializing in AI and data analytics, enhancing its strategic consulting capabilities[117] - The acquisition of Metrics Design Automation Inc. in July 2024 will allow the company to offer semiconductor electronic functional simulation through its Altair One platform[117] - The company acquired Research in Flight in April 2024, integrating its computational fluid dynamics software into the Altair HyperWorks platform, targeting aerospace and defense sectors[117] - The assets of Cambridge Semantics were acquired in April 2024, with plans to integrate its analytical graph database technology into the Altair RapidMiner platform[117] Innovation and Technology - As of December 31, 2024, the company had 303 issued patents worldwide and eight published patent applications[94] - The company’s simulation solutions are noted for their ability to handle large and complex models, delivering high performance and scalability[89] - The company’s unique units-based licensing model lowers barriers to adoption and encourages user engagement within its ecosystem[92] - The company’s consulting and implementation services are aimed at ensuring customer success and deepening relationships[91] Sustainability Efforts - The company’s sustainability efforts include supporting additive manufacturing and cloud-based applications to reduce environmental impact[110] Workforce and Employment - The company employs over 3,300 in-house employees and more than 200 on-site Client Engineering Services employees globally[100]

Revenue Performance - Software revenue for Q4 2024 was $179.4 million, a 15.0% increase from $155.9 million in Q4 2023[6] - Total revenue for Q4 2024 reached $192.6 million, up 12.3% from $171.5 million in Q4 2023[6] - Full year 2024 software revenue was $611.9 million, an 11.3% increase from $550.0 million in 2023[6] - Total revenue for the full year 2024 was $665.8 million, an 8.7% increase from $612.7 million in 2023[6] - Total revenue for the year ended December 31, 2024, increased to $665.8 million, up 8.6% from $612.7 million in 2023[21] - Software revenue for the year was $611.9 million, representing a 11.2% increase from $550.0 million in 2023[21] - Billings for Q4 2024 were $219.412 million, a 11.9% increase from $196.124 million in Q4 2023[30] - Total revenue for Q4 2024, adjusted for constant currency, was $195.2 million, a 13.8% increase from $171.5 million in Q4 2023[30] Profitability Metrics - Net income for Q4 2024 was $1.0 million, a decrease of $18.7 million compared to $19.7 million in Q4 2023, resulting in a net income margin of 0.5%[6] - Non-GAAP net income for Q4 2024 was $47.4 million, an increase of $6.3 million from $41.1 million in Q4 2023[6] - Adjusted EBITDA for Q4 2024 was $61.0 million, reflecting a 13.9% increase from $53.6 million in Q4 2023[6] - Net income for the full year 2024 improved to $14.2 million from a net loss of $(8.9) million in 2023[6] - Gross profit for the year ended December 31, 2024, was $541.0 million, a 10.2% increase compared to $490.9 million in 2023[21] - Operating income for the year was $17.7 million, a significant increase from $0.2 million in 2023[21] - Non-GAAP net income for Q4 2024 was $47.362 million, up from $41.091 million in Q4 2023, representing a 5.5% increase[25] - Non-GAAP diluted earnings per share increased to $0.52 in Q4 2024 from $0.47 in Q4 2023, reflecting an 10.6% growth[30] Cash Flow and Expenses - Free cash flow for Q4 2024 was $33.2 million, compared to $19.3 million in Q4 2023[6] - Total operating expenses for Q4 2024 were $148.287 million, an increase from $119.740 million in Q4 2023, representing a 23.9% rise[29] - The company incurred $22.3 million in expenses related to a pending merger transaction in Q4 2024[26] - The company reported a net cash provided by operating activities of $37.530 million for Q4 2024, up from $21.651 million in Q4 2023[28] Balance Sheet Highlights - Cash and cash equivalents at the end of 2024 were $562.0 million, up from $467.6 million at the end of 2023[23] - Total assets increased to $1.45 billion in 2024, compared to $1.36 billion in 2023, reflecting a growth of 6.0%[19] - Total liabilities decreased to $588.5 million in 2024, down from $652.2 million in 2023, a reduction of 9.8%[19] - The company reported a total stockholders' equity of $857.2 million as of December 31, 2024, up from $711.3 million in 2023, reflecting a growth of 20.5%[19] Future Outlook - The pending merger with Siemens is expected to close in the first half of 2025, leading to the suspension of quarterly financial results conference calls and guidance[5]

Core Insights - Altair, a leader in computational intelligence, reported its financial results for Q4 and the full year of 2024, showing significant revenue growth but a decline in net income for the fourth quarter [1][4]. Financial Highlights Fourth Quarter 2024 Financial Highlights - Software revenue reached $179.4 million, up 15.0% from $155.9 million in Q4 2023, with a 16.5% increase in constant currency [6]. - Total revenue was $192.6 million, a 12.3% increase from $171.5 million in Q4 2023, with a 13.8% rise in constant currency [6]. - Net income fell to $1.0 million from $19.7 million in Q4 2023, resulting in a net income margin of 0.5% compared to 11.5% in the previous year [6]. - Non-GAAP net income increased to $47.4 million from $41.1 million in Q4 2023, with non-GAAP net income per share rising to $0.52 from $0.47 [6]. - Adjusted EBITDA was $61.0 million, up 13.9% from $53.6 million in Q4 2023, with an adjusted EBITDA margin of 31.7% [6]. Full Year 2024 Financial Highlights - Software revenue for the full year was $611.9 million, an 11.3% increase from $550.0 million in 2023, with a 12.5% rise in constant currency [6]. - Total revenue reached $665.8 million, up 8.7% from $612.7 million in 2023, with a 9.8% increase in constant currency [6]. - Net income improved to $14.2 million from a net loss of $(8.9) million in 2023, resulting in a net income margin of 2.1% [6]. - Non-GAAP net income for the year was $119.6 million, compared to $98.8 million in 2023, with non-GAAP net income per share increasing to $1.35 from $1.17 [6]. - Adjusted EBITDA for the full year was $149.9 million, a 16.1% increase from $129.1 million in 2023, with an adjusted EBITDA margin of 22.5% [6]. Pending Transaction - On January 22, 2025, Altair's stockholders approved a merger agreement with Siemens Industry Software Inc., with the transaction expected to close in the first half of 2025, pending customary closing conditions [4]. - Due to the pending merger, Altair is suspending its quarterly financial results conference calls and guidance [4]. Cash Flow and Operating Activities - Cash provided by operating activities was $154.1 million for the full year, compared to $127.3 million in 2023 [6]. - Free cash flow for the year was $140.0 million, up from $117.1 million in 2023 [6]. Balance Sheet - As of December 31, 2024, total assets were $1,445.6 million, compared to $1,363.5 million in 2023 [20][21]. - Total liabilities were $588.5 million, down from $652.2 million in 2023 [20][21]. - Stockholders' equity increased to $857.2 million from $711.3 million in 2023 [21]. Changes in Revenue Presentation - Effective Q1 2024, Altair changed the presentation of revenue and cost of revenue, combining certain line items into a single category labeled "Engineering services and other," which does not affect previously reported amounts [28].

Core Insights - Altair has launched Altair® HyperWorks® 2025, a design and simulation platform aimed at creating a zero-prototype world where designs are perfected virtually before physical production [1][2] - The platform integrates AI, high-performance computing, and multiphysics simulation to enhance product development and innovation [1][3] AI-Powered Engineering and Optimization - Altair's new transformer architectures improve physics prediction models, enabling accurate simulations with limited data [4] - Machine learning models reduce simulation times while enhancing reliability, and AI-enabled reduced order modeling allows for faster simulations of nonlinear systems [4] Cloud-Based and SaaS Solutions - The Altair® DSim™ SaaS solution offers semiconductor designers unlimited simulations on a pay-as-you-go basis, promoting scalability without upfront costs [5] - Altair One® cloud innovation gateway enhances collaboration by providing instant access to simulation applications and HPC resources [5] Automation and Customization - New automation features, including Python APIs, streamline repetitive tasks and data queries, while advanced batch execution reduces workflow complexity [6] - Customization options allow users to tailor simulations for specific applications, such as pharmaceuticals and agriculture [6] Digital Engineering: A Connected Ecosystem - Altair's approach connects data, teams, and processes across the product lifecycle, enhancing digital twin and digital thread technologies for seamless data flow [7] - Private material databases support sustainability goals by providing a single source for material decisions and CO₂ impact analysis tools [7] Solver Efficiency - The "One Model, One Solver" approach simplifies structural simulations, allowing smooth transitions between different analysis types [8] - AI-powered PhysicsAI™ models can replace traditional numerical solvers, accelerating simulations while maintaining accuracy [8] Multiphysics Simulation for Electronics - Recent updates improve the management of thermal, electromagnetic, and power interactions in electronics design, enhancing system performance predictions [10] CAE as a Design Tool - Altair® Inspire™ offers user-friendly computational physics for various analyses, while the CoPilot™ Beta AI assistant provides on-demand guidance [11] Advanced Material Simulation - Altair's material solutions enable organizations to source and simulate high-fidelity material data, optimizing designs and achieving sustainability goals [12] Particle Simulation - New physics models in particle simulation enhance workflows and enable realistic representations for applications in agriculture, batteries, and pharmaceuticals [13]

Core Insights - Altair and L&T Technology Services have launched a 5G-6G Wireless Center of Excellence (CoE) to enhance capabilities in various industries [1][2] - The CoE aims to address challenges such as connectivity breakdowns, high operational costs, and slower innovation cycles in sectors like telecommunications, automotive, manufacturing, and healthcare [3][4] Company Overview - Altair is recognized as a global leader in computational intelligence, providing software and cloud solutions in simulation, high-performance computing, data analytics, and AI [7] - L&T Technology Services (LTTS) is a global leader in engineering and technology services, offering design, development, testing, and sustenance services across various sectors [8] CoE Objectives and Initiatives - The CoE will leverage Altair's design and simulation tools alongside LTTS's domain expertise to unlock the potential of 5G and 6G technologies [3][4] - It will focus on initiatives such as network planning, enhancements to wireless connectivity, and the development of digital twins for 5G and 6G networks [9] Training and Collaboration - The CoE will provide hands-on training, workshops, and collaborative spaces to assist industries in adopting wireless technologies tailored to their specific challenges [5] - It aims to foster smarter infrastructure, drive operational efficiency, and improve decision-making processes across various industries [5]