© Altair Engineering Inc. Proprietary and Confidential. All rights reserved. EARNINGS PRESENTATION Q1 FY24 © Altair Engineering Inc. Proprietary and Confidential. All rights reserved. Safe Harbor Statement This presentation and the accompanying oral commentary may contain “forward-looking” statements that are based on our beliefs and assumptions and on information available to us as of the date of this presentation. All statements other than statements of historical facts contained in this presentation, inc ...

Financial Performance - Total revenue for the three months ended March 31, 2024, was $172,912, an increase of 4.3% from $166,034 in the same period of 2023[16] - Gross profit for the same period was $142,019, compared to $133,299 in the prior year, reflecting a gross margin improvement[16] - Net income for the three months ended March 31, 2024, was $16,547, a significant recovery from a net loss of $1,959 in the same period of 2023[16] - Operating income increased to $20,935 from $5,186 year-over-year, indicating strong operational efficiency[16] - Adjusted EBITDA for the same period was $43,055, reflecting an increase from $42,772 in the previous quarter[90] - Income before income taxes for the three months ended March 31, 2024, was $23,316, compared to $7,273 for the same period in 2023, indicating significant growth[91] - Net income for the three months ended March 31, 2024, was $16.5 million, a significant increase of $18.5 million compared to a net loss of $2.0 million for the same period in 2023[123] - Adjusted EBITDA increased to $45.8 million for the three months ended March 31, 2024, compared to $43.1 million for the same period in 2023, reflecting a growth of 6.4%[131] Cash and Liquidity - Cash and cash equivalents rose to $557,605 as of March 31, 2024, up from $467,459 at the end of 2023, showing improved liquidity[14] - Cash, cash equivalents, and restricted cash at the end of the period were $557,696,000, compared to $378,860,000 at the end of the same period in 2023[25] - Net cash provided by operating activities for the three months ended March 31, 2024, was $73,450,000, compared to $59,199,000 for the same period in 2023[25] - Free cash flow rose by 23% to $70,684,000, indicating strong cash generation capabilities[104] - As of March 31, 2024, the company had $557.6 million in cash and cash equivalents and $200.0 million available on its credit facility[135] - The company had no outstanding borrowings under its 2019 Amended Credit Agreement as of March 31, 2024, with $200.0 million available for future borrowing[139] Assets and Equity - Total assets increased to $1,379,911 as of March 31, 2024, compared to $1,363,493 at the end of 2023, indicating growth in the company's asset base[14] - Total stockholders' equity increased to $762,928 as of March 31, 2024, from $711,331 at the end of 2023, reflecting a stronger equity position[14] - The net carrying amount of the 2027 Notes was $226.2 million as of March 31, 2024, remaining unchanged from December 31, 2023[61] Revenue Segmentation - Revenue for the three months ended March 31, 2024, was $172.912 million, with Software segment revenue at $165.046 million and Client Engineering Services (CES) at $6.457 million[89] - Software revenue increased by 6% to $158,429,000, accounting for 92% of total revenue, driven by strong retention and expansions in existing accounts[106] - Engineering services and other revenue decreased by 12% to $14,483,000, representing 8% of total revenue[107] Expenses and Costs - Research and development expenses were $52,333 for the three months ended March 31, 2024, slightly down from $53,251 in the prior year, indicating stable investment in innovation[16] - Total operating expenses decreased by 5% to $121,084,000, with notable reductions in research and development expenses by 2% to $52,333,000[112] - The company reported stock-based compensation expense of $15,999,000 for the three months ended March 31, 2024, down from $22,161,000 in the same period in 2023[25] Tax and Other Liabilities - The effective tax rate for the three months ended March 31, 2024, was 29%, a significant decrease from 127% in the same period of 2023[80] - Income taxes payable rose to $15.2 million as of March 31, 2024, compared to $12.2 million as of December 31, 2023, an increase of 24.7%[48] - Total other liabilities decreased to $43.8 million as of March 31, 2024, from $48.4 million as of December 31, 2023, a reduction of 9.5%[48] Market and Strategic Outlook - The company anticipates that revenues and profits may be impacted by changes in foreign currency rates due to substantial international operations[100] - Recent acquisitions are expected to expand the software and product portfolio, although successful integration is crucial for realizing anticipated benefits[99] - The company continues to evaluate potential acquisitions and strategic transactions to expand its business, which may impact its cash position and debt obligations[137] Risks and Forward-Looking Statements - The company faces risks related to customer acquisition, product development spending, and maintaining intellectual property, which could impact future performance[93] - Forward-looking statements indicate potential uncertainties that may cause actual results to differ materially from expectations, emphasizing the need for cautious interpretation[94]

Financial Performance - Software revenue for Q1 2024 reached $158.4 million, a 5.9% increase from $149.6 million in Q1 2023[4] - Total revenue for Q1 2024 was $172.9 million, up 4.1% from $166.0 million in Q1 2023[4] - Net income for Q1 2024 was $16.5 million, compared to a net loss of $(2.0) million in Q1 2023, resulting in a net income margin of 9.6%[4] - Non-GAAP net income increased by 13.9% to $36.2 million in Q1 2024, with non-GAAP net income per share at $0.40[4] - Adjusted EBITDA for Q1 2024 was $45.8 million, reflecting a 6.4% increase from $43.1 million in Q1 2023[4] - Total revenue for the three months ended March 31, 2024, was $172,912,000, an increase of 4.0% compared to $166,034,000 in the same period of 2023[23] - Software revenue reached $158,429,000, up 5.9% from $149,643,000 year-over-year[23] - Gross profit increased to $142,019,000, representing a gross margin of 82.1%, compared to 80.3% in the prior year[31] - Net income for the quarter was $16,547,000, a significant improvement from a net loss of $1,959,000 in the same quarter of 2023[23] - Non-GAAP net income was $36,191,000, with a diluted non-GAAP net income per share of $0.40, compared to $0.36 in the prior year[29] - Adjusted EBITDA for the quarter was $45,818,000, an increase from $43,055,000 in the same period last year[31] - Free cash flow for the three months ended March 31, 2024, was $70,684,000, compared to $57,472,000 in the prior year[32] Cash Flow and Assets - Cash provided by operating activities was $73.5 million, compared to $59.2 million in Q1 2023[4] - Free cash flow for Q1 2024 was $70.7 million, an increase from $57.5 million in Q1 2023[4] - Cash, cash equivalents, and restricted cash at the end of the period totaled $557,696,000, up from $378,860,000 at the end of the same period last year[27] - Altair's total assets as of March 31, 2024, were $1,379.9 million, an increase from $1,363.5 million at the end of 2023[21] Guidance and Projections - For Q2 2024, software revenue guidance is between $131 million and $134 million, with a growth rate of 4.5% to 6.9%[5] - Full year 2024 total revenue guidance is between $652 million and $662 million, with a growth rate of 6.4% to 8.0%[5] - Projected Non-GAAP net income for the three months ending June 30, 2024, is estimated to be between $12,700 and $15,000 thousand[34] - For the year ending December 31, 2024, projected Non-GAAP net income ranges from $109,900 to $115,900 thousand[34] - Adjusted EBITDA for the three months ending June 30, 2024, is projected to be between $15,000 and $18,000 thousand[35] - For the year ending December 31, 2024, Adjusted EBITDA is expected to range from $138,000 to $146,000 thousand[35] - Net cash provided by operating activities for the year ending December 31, 2024, is projected to be between $135,300 and $143,300 thousand[36] - Free cash flow for the year ending December 31, 2024, is estimated to be between $124,000 and $132,000 thousand[36] Expenses and Adjustments - The company experienced a stock-based compensation expense of $15,999,000, down from $22,161,000 in the prior year[25] - Stock-based compensation expense for the year ending December 31, 2024, is projected at $72,500 thousand[34] - Amortization of intangible assets for the year ending December 31, 2024, is expected to be $28,900 thousand[34] - The company anticipates a net (loss) income of $23,200 to $30,900 thousand for the year ending December 31, 2024[35] - The year ending December 31, 2024, includes a $0.1 million loss from the mark-to-market adjustment related to the World Programming acquisition[35] Billings - The company reported billings of $154,148,000, a decrease of 5.7% from $163,517,000 in the same quarter of 2023[33]

In a bid to enhance its strong analytics and data science team with deep data warehousing expertise, Altair Engineering Inc. (ALTR) has acquired Cambridge Semantics.Cambridge Semantics is a modern data fabric provider and creator of one of the industry's leading analytical graph databases. Its graph-powered data fabric technology simplifies the creation of comprehensive enterprise knowledge graphs by integrating the complex web of structured and unstructured enterprise data into one place.Cambridge Semantic ...

Acquisition expands Altair's data analytics and AI offeringsTROY, Mich., April 18, 2024 /PRNewswire/ -- Altair (Nasdaq: ALTR) a global leader in computational intelligence, acquired Cambridge Semantics, a modern data fabric provider and creator of one of the industry's leading analytical graph databases. Cambridge Semantics' graph-powered data fabric technology accelerates the creation of comprehensive enterprise knowledge graphs, integrating the complex web of structured and unstructured enterprise data to ...

KBR, Inc. (KBR) has inked a landmark alliance with GeoLith SAS, securing exclusive global rights to deploy Li-Capt, a cutting-edge Direct Lithium Extraction technology. This innovative approach enables emission-free extraction of lithium from underutilized sources such as geothermal and oil well brines.With Li-Capt, KBR augments its suite of battery material technologies, including PureLiSM, to offer clients a comprehensive solution for producing battery-grade lithium carbonate or lithium hydroxide monohydr ...

KBR, Inc. (KBR) has landed lucrative contracts exceeding $450 million to provide advanced systems engineering support and services to the U.S. government. These agreements encompass an array of technical provisions spanning systems engineering, acquisition support, and cutting-edge expertise in data science and communications security infrastructure. Notably, KBR will leverage digital engineering to enhance acquisition efficiency and bolster secure communications and information technology systems.With an e ...

Key topics will include democratizing AI, supercharging data-driven manufacturing, and moreTROY, Mich., April 10, 2024 /PRNewswire/ -- Altair (Nasdaq: ALTR), a global leader in computational intelligence, will demonstrate the power of artificial intelligence (AI)-powered engineering at Hannover Messe 2024, taking place April 22-26 in Hanover, Germany. In a market saturated with traditional simulation offerings, Altair's AI-powered engineering stands above the rest thanks to unparalleled technology that demo ...

KBR, Inc. (KBR) , a renowned name in the hydrogen market, clinched an engineering services contract with First State Hydrogen, Inc. The contract aims to bolster the feasibility and development of the inaugural clean hydrogen production facility in the U.S. mid-Atlantic region.Under this agreement, KBR will provide engineering services crucial for evaluating the feasibility of establishing a clean hydrogen production plant. This facility, powered by electrolysis and driven by renewable energy sources, aligns ...

"Google Cloud's Partner Awards celebrate the transformative impact and value that partners have delivered for customers, through inclusion initiatives," said Kevin Ichhpurani, corporate vice president, Global Ecosystem and Channels at Google Cloud. "We're proud to announce Altair as a 2024 Google Cloud Partner Award winner and recognize their achievements as diversity enriches our teams and communities." "Altair is honored to win this prestigious award from Google Cloud – it's a true testament to our tirele ...