Altair Announces Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Altair, a leader in computational intelligence, reported its financial results for Q4 and the full year of 2024, showing significant revenue growth but a decline in net income for the fourth quarter [1][4]. Financial Highlights Fourth Quarter 2024 Financial Highlights - Software revenue reached $179.4 million, up 15.0$155.9 million in Q4 2023, with a 16.5% increase in constant currency [6]. - Total revenue was $192.6 million, a 12.3$171.5 million in Q4 2023, with a 13.8% rise in constant currency [6]. - Net income fell to $1.0 million from$19.7 million in Q4 2023, resulting in a net income margin of 0.5% compared to 11.5% in the previous year [6]. - Non-GAAP net income increased to $47.4 million from$41.1 million in Q4 2023, with non-GAAP net income per share rising to $0.52 from$0.47 [6]. - Adjusted EBITDA was $61.0 million, up 13.9$53.6 million in Q4 2023, with an adjusted EBITDA margin of 31.7% [6]. Full Year 2024 Financial Highlights - Software revenue for the full year was $611.9 million, an 11.3$550.0 million in 2023, with a 12.5% rise in constant currency [6]. - Total revenue reached $665.8 million, up 8.7$612.7 million in 2023, with a 9.8% increase in constant currency [6]. - Net income improved to $14.2 million from a net loss of$(8.9) million in 2023, resulting in a net income margin of 2.1% [6]. - Non-GAAP net income for the year was $119.6 million, compared to$98.8 million in 2023, with non-GAAP net income per share increasing to $1.35 from$1.17 [6]. - Adjusted EBITDA for the full year was $149.9 million, a 16.1$129.1 million in 2023, with an adjusted EBITDA margin of 22.5% [6]. Pending Transaction - On January 22, 2025, Altair's stockholders approved a merger agreement with Siemens Industry Software Inc., with the transaction expected to close in the first half of 2025, pending customary closing conditions [4]. - Due to the pending merger, Altair is suspending its quarterly financial results conference calls and guidance [4]. Cash Flow and Operating Activities - Cash provided by operating activities was $154.1 million for the full year, compared to$127.3 million in 2023 [6]. - Free cash flow for the year was $140.0 million, up from$117.1 million in 2023 [6]. Balance Sheet - As of December 31, 2024, total assets were $1,445.6 million, compared to$1,363.5 million in 2023 [20][21]. - Total liabilities were $588.5 million, down from$652.2 million in 2023 [20][21]. - Stockholders' equity increased to $857.2 million from$711.3 million in 2023 [21]. Changes in Revenue Presentation - Effective Q1 2024, Altair changed the presentation of revenue and cost of revenue, combining certain line items into a single category labeled "Engineering services and other," which does not affect previously reported amounts [28].