Altair(ALTR)2024-02-21 16:00Financial Performance - In 2023, 36% of software billings were attributed to the Americas, 31% to EMEA, and 33% to APAC[84]. - Seasonal variations in customer purchases significantly affect cash flows, with new and renewal licenses concentrated in the first and fourth quarters[115]. - As of December 31, 2023, Altair had cash, cash equivalents, and restricted cash totaling $467.6 million, primarily from bank deposits and money market funds[422]. Acquisitions and Growth - The company has acquired 51 companies or strategic technologies since 1996, including 22 in the last five years[113]. - In September 2023, the company acquired OmniQuest, enhancing its optimization leadership in the market[117]. - In July 2023, the company acquired OmniV technology, improving its capabilities in digital twins and simulation data management[117]. Intellectual Property - As of December 31, 2023, the company had 290 issued patents and 15 published patent applications worldwide[93]. Employee and Operational Insights - The company employs over 3,200 in-house employees, with more than two-thirds located in the United States, India, Germany, and the UK[99]. - The company’s software applications are noted for high performance and scalability, crucial for the high-end simulation market[88]. Business Model and User Engagement - The company’s subscription-based business model aims to reduce barriers to adoption and encourage user engagement within its ecosystem[91]. - The company’s solutions for data preparation, data science, and AI are recognized for their ability to handle large, complex data sets[89]. Financial Instruments and Risks - The company issued $230.0 million in 1.750% convertible senior notes due in 2027 and $230.0 million in 0.250% convertible senior notes due in 2024, with approximately $148.3 million of the latter repurchased by the end of 2023[421]. - Altair does not have any foreign currency hedging contracts as of December 31, 2023, and does not plan to engage in hedging activities in the near future[420]. - The appreciation of the U.S. dollar against foreign currencies negatively impacts reported revenue and operating income, while depreciation has a positive effect[419]. - Interest rate risk is present due to the potential impact on debt balances and interest expenses, although historical fluctuations in interest expense have not been significant[423]. - The fair market value of Altair's fixed interest rate convertible notes is influenced by changes in interest rates and the company's stock price[421]. - Altair's policy prohibits entering into derivative instruments for speculative purposes, and no such instruments are held for trading[424]. - The company is exposed to foreign currency risks due to substantial international operations, affecting financial results when translating into U.S. dollars[418]. Investor Relations - Altair's financial information is disclosed through press releases, SEC filings, and public conference calls[123]. - The company maintains a website where investors can access financial reports and other relevant information[122].