Altair(ALTR) - 2024 Q4 - Annual Report

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]