Altair(ALTR) - 2024 Q3 - Quarterly Results

Revenue Performance - Software revenue for Q3 2024 was $138.7 million, up 16.5% from $119.1 million in Q3 2023[3] - Total revenue for Q3 2024 reached $151.5 million, a 13.0% increase compared to $134.0 million in Q3 2023[3] - License revenue increased to $92,939,000 for the three months ended September 30, 2024, up from $79,825,000, marking a 16% growth year-over-year[22] - Total revenue for the three months ended September 30, 2024, was $151,450,000, representing a 13% increase from $134,003,000 in the same period of 2023[22] - Revenue for the three months ended September 30, 2024, was $151,450 thousand, an increase of 12.9% compared to $134,003 thousand for the same period in 2023[32] - Total revenue for the nine months ended September 30, 2024, was $473,157 thousand, reflecting a 7.2% increase from $441,198 thousand in the prior year[33] - Software revenue for the nine months ended September 30, 2024, was $432,500 thousand, a 9.8% increase from $394,000 thousand in the same period of 2023[33] Profitability - Net income improved to $1.8 million in Q3 2024 from a net loss of $(4.4) million in Q3 2023, resulting in a net income margin of 1.2%[3] - Non-GAAP net income for Q3 2024 was $21.2 million, an increase of $8.5 million from $12.7 million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was $25.7 million, reflecting a 66.3% increase from $15.5 million in Q3 2023, with an adjusted EBITDA margin of 17.0%[3] - The company reported a net income of $1,779,000 for the three months ended September 30, 2024, compared to a net loss of $4,362,000 in the same period of 2023[22] - Net income for the nine months ended September 30, 2024, was $13,179 thousand, a significant improvement from a net loss of $28,601 thousand for the same period in 2023[24] - Non-GAAP net income for the nine months ended September 30, 2024, was $72,220 thousand, compared to $57,679 thousand for the same period in 2023, reflecting a year-over-year increase of 25.5%[26] - Adjusted EBITDA for the nine months ended September 30, 2024, was $88,871 thousand, an increase from $75,565 thousand in the same period of 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $88,900 thousand, a 17.6% increase from $75,600 thousand in the same period of 2023[33] Cash Flow and Assets - Cash provided by operating activities was $14.5 million in Q3 2024, down from $16.4 million in Q3 2023[3] - Free cash flow decreased to $9.8 million in Q3 2024 from $14.7 million in Q3 2023[3] - The company reported a net cash provided by operating activities of $116,554 thousand for the nine months ended September 30, 2024, compared to $105,656 thousand for the same period in 2023[24] - Free cash flow for the nine months ended September 30, 2024, was $106,815 thousand, compared to $97,774 thousand for the same period in 2023, indicating a 9.5% increase[28] - Total current assets as of September 30, 2024, were $686,999,000, slightly down from $700,623,000 as of December 31, 2023[21] - Cash and cash equivalents increased to $513,371,000 as of September 30, 2024, compared to $467,459,000 at the end of 2023, showing a growth of 10%[21] Liabilities and Equity - Total liabilities decreased to $540,968,000 as of September 30, 2024, from $652,162,000 at the end of 2023, a reduction of approximately 17%[21] - The company’s accumulated deficit improved to $(117,324,000) as of September 30, 2024, from $(130,503,000) at the end of 2023[21] - Total stockholders' equity increased to $836,900,000 as of September 30, 2024, up from $711,331,000 at the end of 2023, reflecting a growth of 18%[21] Other Significant Events - Altair has entered into a merger agreement with a subsidiary of Siemens, leading to the suspension of quarterly financial results conference calls and guidance[2][4] - The company emphasizes the importance of non-GAAP financial measures for evaluating ongoing operating results and trends[6] - Forward-looking statements indicate potential risks and uncertainties related to the proposed transaction with Siemens and its impact on Altair's operations[19] - The company changed the presentation of revenue and cost of revenue effective in Q1 2024, combining several line items into "Engineering services and other" without affecting previously reported amounts[25] - The company settled convertible senior notes amounting to $81,729 thousand during the financing activities[24] - Ending deferred revenue as of September 30, 2024, was $140,835 thousand, compared to $138,933 thousand at the end of September 30, 2023[32] - The company experienced a currency change impact of $4.4 thousand on software revenue for the nine months ended September 30, 2024[33]