Altair Engineering Inc. (ALTR) has entered into a joint development agreement with Oasys, the software house of Arup, to offer an integrated solution for safety simulation modeling.This collaborative approach will provide access to a combined service platform, comprising Altair HyperWorks and Oasys PRIMER, to the automotive market for offering customers an advanced solution for safety modeling. This amalgamated platform is accessible through the Altair HyperWorks environment, through which engineers will be ...

TROY, Mich., Aug. 20, 2024 (GLOBE NEWSWIRE) -- Altair (Nasdaq: ALTR), a global leader in computational intelligence, today responded to a statement from Matrix Capital Management. “In response to today’s announcement from Matrix Capital Management, we appreciate its strong support over the years and its decision to maintain its full position in Altair, recognizing our long-term strategic value,” said James R. Scapa, founder, chairman, and chief executive officer, Altair. About Altair Altair is a global lead ...

DuPont, BMW M GmbH, Dow Inc., Toyota, General Motors, and others creating sustainable, lightweight futureTROY, Mich., Aug. 6, 2024 /PRNewswire/ -- Altair (Nasdaq: ALTR), a global leader in computational intelligence, has named the winners of the 2024 Altair Enlighten Award. Presented in association with the Center for Automotive Research (CAR), the award honors the greatest sustainability and lightweighting advancements that successfully reduce carbon footprint, mitigate water and energy consumption, and le ...

Financial Data and Key Metrics Changes - Total quarterly revenue for Q2 2024 was $148.8 million, with software revenue accounting for $135.4 million, both exceeding the high end of guidance [4] - Adjusted EBITDA was $17.3 million, above the midpoint of the guided range [4] - Software revenue grew 10.6% year-over-year on a constant currency basis, while total revenue increased by 5.4% in reported currency [12][14] - Non-GAAP gross margin was 80.9%, up from 80% in the prior year, driven by a shift towards higher-margin software revenue [14] Business Line Data and Key Metrics Changes - Software revenue represented 91% of total revenue in Q2 2024, compared to 88.8% in Q2 2023, indicating a strong focus on software solutions [14] - The aerospace and defense vertical showed notable strength, with significant contracts signed, including an eight-figure deal with a multinational aerospace company [10][12] Market Data and Key Metrics Changes - Calculated total billings were $154.5 million, a year-over-year increase of 4.5% in reported currency and 7.1% in constant currency [12] - Strong performance was noted across the Americas, EMEA, and APAC regions, with growth in software revenue [12][14] Company Strategy and Development Direction - The company is focusing on vertical market orientation for strategic accounts, particularly in aerospace and defense, to enhance customer engagement and sales effectiveness [18] - Recent acquisitions, such as Metrics Design Automation, aim to enhance capabilities in semiconductor design and verification, indicating a strategic push into the EDA market [6][31] - The launch of Altair HyperWorks 2024, featuring advancements in AI, positions the company as a leader in simulation-driven innovation [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing the importance of innovation even amid macroeconomic challenges [28] - The company anticipates continued strong demand for its products, particularly in aerospace and defense, and expects software revenue growth to outpace engineering services [12][28] Other Important Information - Free cash flow for the first half of 2024 was $97 million, an increase of 16.8% from the prior year [15] - The company is raising its full-year guidance for software revenue, reflecting confidence in its product offerings and market position [16] Q&A Session Summary Question: Discussion on the interconnectedness of traditional products and newer data-focused products - Management highlighted the successful integration of traditional engineering products with newer offerings like RapidMiner, enhancing sales force capabilities [17][18] Question: Emphasis on channel partnerships and their impact on revenue - Management confirmed a strategic emphasis on indirect sales channels to reach small and medium accounts, particularly in data analytics [23][24] Question: Initial thoughts on the macroeconomic environment and its impact on business - Management expressed confidence that innovation will drive demand for their solutions, even in challenging economic conditions [27][28] Question: Insights on the Metrics Design Automation acquisition and its business model - Management noted that the acquisition's cloud-based business model allows for scalable simulations, which is expected to disrupt the EDA market [31][38] Question: Uptake rate of physicsAI tools among customers - Management reported a high uptake rate of physicsAI tools, indicating strong customer interest and integration into workflows [39] Question: Additional functionality in HyperWorks 24 and its impact on business - Management described significant enhancements in user experience and performance in HyperWorks 24, which are expected to drive increased adoption [41][42]

Altair Engineering (ALTR) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this company would post earnings of $0.35 per share when it actually produced earnings of $0.40, delivering a surprise of 14.29%.Over the last four quarters, the compan ...

Acquisitions and Strategic Initiatives - The company acquired Cambridge Semantics and Research in Flight in April 2024, enhancing its data analytics and simulation capabilities[93]. - The company emphasizes the importance of successfully integrating recent acquisitions to realize anticipated benefits and expand its software portfolio[97]. - The company continues to evaluate possible acquisitions and strategic transactions, which may impact its cash position and debt obligations[153]. Financial Performance - Total revenue increased by 5% to $148,795 for the three months ended June 30, 2024, compared to $141,161 in the same period of 2023[104]. - Software revenue for the three months ended June 30, 2024, was $135,423, representing an 8% increase compared to $125,321 in the same period of 2023[105]. - Gross profit rose by $7,915, or 7%, to $118,279 for the three months ended June 30, 2024, compared to $110,364 in the same period of 2023[109]. - Net income for the six months ended June 30, 2024, was $11.4 million, a significant improvement from a net loss of $24.2 million for the same period in 2023, reflecting a period-to-period change of $35.6 million[140]. - Total revenue for the six months ended June 30, 2024, was $321.7 million, compared to $307.2 million for the same period in 2023, indicating a growth of 4.7%[147]. - Adjusted EBITDA for the three months ended June 30, 2024, was $17,348, a 2% increase from $17,056 in the same period of 2023[104]. - Adjusted EBITDA for the six months ended June 30, 2024, was $63.2 million, up from $60.1 million in the same period of 2023, representing an increase of 3.5%[148]. Expenses and Costs - Operating expenses increased by 1% to $128,182 for the three months ended June 30, 2024, compared to $126,633 in the same period of 2023[112]. - Research and development expenses increased by $293, or 1%, to $55,570 for the three months ended June 30, 2024, compared to $55,277 in the same period of 2023[112]. - Sales and marketing expenses increased by $1,493, or 3%, to $46,475 for the three months ended June 30, 2024, compared to $44,982 in the same period of 2023[113]. - Research and development expenses decreased by $0.6 million to $107.9 million for the six months ended June 30, 2024, compared to $108.5 million for the same period in 2023[130]. - Sales and marketing expenses increased by $2.4 million to $90.9 million for the six months ended June 30, 2024, compared to $88.5 million for the same period in 2023[131]. - Cost of software revenue increased by $1.1 million to $38.0 million for the six months ended June 30, 2024, compared to $36.9 million for the same period in 2023[126]. Cash Flow and Financing - Free cash flow for the three months ended June 30, 2024, was $97,003, a 17% increase compared to $83,045 in the same period of 2023[104]. - Free cash flow for the six months ended June 30, 2024, was $97.0 million, an increase of 16.8% from $83.0 million in the same period of 2023[149]. - Net cash provided by operating activities increased to $102.0 million for the six months ended June 30, 2024, up from $89.2 million in 2023[160]. - Net cash used in investing activities was $19.1 million for the six months ended June 30, 2024, reflecting an increase of 134.5% compared to $8.4 million in 2023[160]. - Net cash used in financing activities was $40.1 million for the six months ended June 30, 2024, compared to net cash provided of $21.0 million in 2023[161]. - The company paid $81.7 million for the settlement of the remaining balance of its 2024 convertible notes during the six months ended June 30, 2024[161]. - As of June 30, 2024, the company had $507.0 million in cash and cash equivalents and $200.0 million available on its credit facility[152]. - As of June 30, 2024, the company had no outstanding borrowings under its 2019 Amended Credit Agreement, with $200.0 million available for future borrowing[156]. Risks and Challenges - The company is exposed to foreign currency risks due to substantial international operations, which may impact revenues and profits[99]. - The company acknowledges that its future success depends on various factors, including customer acquisition and the ability to manage risks associated with its business model[95]. - The adverse effect of exchange rate changes on cash, cash equivalents, and restricted cash was $3.3 million for the six months ended June 30, 2024[161]. Segment Information - The company operates two reportable segments: Software and Client Engineering Services, focusing on software solutions and client engineering support[100]. - The company’s software segment includes a wide range of products, including high-performance computing applications and data analytics tools[100]. - The company’s client engineering services involve hiring engineers and data scientists for customer-directed assignments, providing ongoing expertise[100]. - The company’s other businesses include Toggled, which focuses on next-generation solid-state lighting technology[101]. Seasonal Trends - The company reported that its billings are historically highest in the first and fourth quarters, indicating potential seasonality in revenue recognition[96].

Revenue Performance - Software revenue for Q2 2024 was $135.4 million, an increase of 8.1% from $125.3 million in Q2 2023[2] - Total revenue for Q2 2024 reached $148.8 million, up 5.4% from $141.2 million in Q2 2023[2] - Total revenue for the three months ended June 30, 2024, was $148,795,000, an increase of 5.2% compared to $141,161,000 for the same period in 2023[18] - Software revenue for the six months ended June 30, 2024, was reported at $293.9 million, reflecting a 6.9% increase from $275.0 million in the same period of 2023[34] - Billings for the three months ended June 30, 2024, reached $154.5 million, up 4.5% from $147.8 million in the prior year[33] - The company reported a decrease in billings for the six months ended June 30, 2024, with a slight decline of 0.9% compared to $311.3 million in the same period of 2023[34] Profitability and Loss - Net loss for Q2 2024 was $(5.1) million, significantly improved from a net loss of $(22.3) million in Q2 2023, resulting in a net loss margin of -3.5%[2] - Non-GAAP net income for Q2 2024 was $14.8 million, a 12.1% increase from $13.2 million in Q2 2023[2] - The company reported a net loss of $5,147,000 for the three months ended June 30, 2024, compared to a net loss of $22,280,000 for the same period in 2023, indicating a significant improvement[18] - Net income for June 2024 was $11,400, compared to a loss of $24,239 in June 2023, representing a significant turnaround[21] - Non-GAAP net income for the six months ended June 2024 was $51,006, up from $44,997 in the same period of 2023, indicating a year-over-year increase of about 13.4%[24] Cash Flow and Operating Activities - Cash provided by operating activities in Q2 2024 was $28.6 million, compared to $30.0 million in Q2 2023[2] - Free cash flow for Q2 2024 was $26.3 million, an increase from $25.6 million in Q2 2023[2] - Net cash provided by operating activities increased to $102,007 in June 2024 from $89,229 in June 2023, reflecting a growth of approximately 14.5%[21] - Free cash flow for the six months ended June 2024 was $97,003, an increase from $83,045 in the same period of 2023, representing a growth of about 16.8%[28] Guidance and Projections - Guidance for Q3 2024 projects software revenue of $130 million, with a growth rate of 9.2%[4] - Full year 2024 total revenue guidance is set at $658 million, reflecting a growth rate of 7.4%[4] - Non-GAAP net income guidance for full year 2024 is projected at $114.4 million[4] - Projected non-GAAP net income for the year ending December 31, 2024, is estimated to be between $108.4 million and $114.4 million[36] - Projected free cash flow for the year ending December 31, 2024, is expected to be between $122.0 million and $130.0 million[38] - The company anticipates a net loss income of between $14.0 million and $11.1 million for the three months ending September 30, 2024[36] Expenses and Costs - Adjusted EBITDA for Q2 2024 was $17.3 million, slightly up from $17.1 million in Q2 2023, with an adjusted EBITDA margin of 11.7%[2] - Operating expenses for the three months ended June 30, 2024, totaled $128,182,000, slightly higher than $126,633,000 for the same period in 2023[18] - The company reported a stock-based compensation expense of $33,354 for the six months ended June 2024, down from $45,897 in the same period of 2023, showing a reduction of approximately 27.4%[24] Balance Sheet and Assets - Cash and cash equivalents increased to $507,008,000 as of June 30, 2024, up from $467,459,000 as of December 31, 2023[17] - Total current liabilities decreased to $216,825,000 as of June 30, 2024, from $324,110,000 as of December 31, 2023, representing a reduction of 33.1%[17] - The company’s total assets decreased to $1,335,957,000 as of June 30, 2024, from $1,363,493,000 as of December 31, 2023[17] - The company’s additional paid-in capital increased to $939,691,000 as of June 30, 2024, from $864,135,000 as of December 31, 2023[17] Changes in Accounting Presentation - The company changed the presentation of revenue and cost of revenue effective Q1 2024, combining several line items into one, which does not affect previously reported figures[22]

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 c ...

Complex fatigue analysis reduced development time for vehicle infotainment components by more than 20% TROY, Mich., July 31, 2024 /PRNewswire/ -- Altair (Nasdaq: ALTR), a global leader in computational intelligence, and LG Electronics Vehicle component Solutions Company (LG VS Company) have collaborated to develop analysis solutions aimed at extending product lifespans. LG Electronics reduced the development time for their vehicle infotainment components by over 20% with the help of Altair® OptiStruct® – an ...

Core Insights - Altair has signed a memorandum of understanding (MoU) with the University of Nottingham for a pioneering digital twin project in the aerospace sector, aimed at enhancing electric propulsion systems [2][3][4] Group 1: Project Overview - The digital twin project will serve as a comprehensive solution for the aerospace industry, enabling rapid design, validation, and testing of electric propulsion systems for new aircraft and advanced air mobility (AAM) vehicles [2][3] - The collaboration will provide University of Nottingham researchers with unlimited access to Altair's HyperWorks and RapidMiner platforms, facilitating AI-powered multiphysics simulations and data analytics [3][4] Group 2: Technological Capabilities - The agreement includes access to Altair's high-performance computing (HPC) tools and extensive training, enhancing the university's research capabilities [3][4] - The project will leverage Altair's technology across various domains, including energy storage, power electronics, digital controllers, and thermal management systems [4] Group 3: Strategic Importance - This MoU supports the University of Nottingham's Zero Carbon Innovation Centre, co-funded by East Midlands Freeport, to develop a complete digital twin of an electric propulsion system [4] - The partnership aligns with Altair's commitment to innovation and sustainability in aerospace and transportation, aiming to translate zero carbon research into practical industry solutions [4]