Altair(ALTR) - 2024 Q2 - Quarterly Results

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]