Altair Engineering Inc Earnings
Altair Engineering Inc., a leader in computational intelligence, released its financial results for the fourth quarter and full year that ended December 31, 2024. Despite facing significant fiscal challenges, the company showed resilience through substantial revenue growth in specific segments and continued operational efficiency. These results were accompanied by key developments, including a pending merger with Siemens Industry Software Inc., which could present even more opportunities for Altair moving forward.
Altair Engineering Inc Results
The following table highlights key financial metrics for Altair Engineering for Q4 2024 and the full year of 2024, along with comparisons to previous periods where possible.
| Metric | Q4 2024 | Q4 2023 | YoY Growth (%) | FY 2024 | FY 2023 | YoY Growth (%) |
|---|---|---|---|---|---|---|
| Software Revenue (USD) | 179.4M | 155.9M | 15.0% | 611.9M | 550.0M | 11.3% |
| Total Revenue (USD) | 192.6M | 171.5M | 12.3% | 665.8M | 612.7M | 8.7% |
| Net Income (USD) | 1.0M | 19.7M | -94.9% | 14.2M | (8.9M) | N/A |
| EPS (Diluted, USD) | 0.01 | 0.22 | -95.5% | 0.16 | (0.11) | N/A |
| Adjusted EBITDA (USD) | 61.0M | 53.6M | 13.9% | 149.9M | 129.1M | 16.1% |
| Free Cash Flow (USD) | 33.2M | 19.3M | 72.0% | 140.0M | 117.1M | 19.5% |
Analysis : Altair Engineering showcased a robust increase in software and total revenue both for the quarter and the entire year, significantly outpacing industry expectations. The slight setback in net income, particularly during Q4, indicates potential one-off expenses or shifts in operational strategies that impacted profits. However, the year-long improvement from a net loss in 2023 to a positive net income in 2024 underlines a strategic turning point, bolstered by a 16.1% rise in adjusted EBITDA, which signals enhanced profitability and cost management.
Revenue Breakdown
The table below provides a detailed view of Altair's revenue performance across key business segments for Q4 2024:
| Segment | Q4 2024 Revenue (USD) | Q4 2023 Revenue (USD) | YoY Growth (%) |
|---|---|---|---|
| Software | 179.4M | 155.9M | 15.0% |
Analysis : The software segment remains Altair's revenue powerhouse, displaying an impressive year-over-year growth of 15% for Q4 2024, highlighting an effective demand for its computational solutions. This growth reflects Altair's strategic focus on software development and innovation, driving consumer interest and market expansion.
Key Developments
One of the most significant events in Altair's recent history is its pending merger with Siemens Industry Software Inc. Approved by stockholders on January 22, 2025, this potential acquisition is expected to close in the first half of 2025, subject to customary closing conditions. This strategic move could expand Altair's market reach and resource availability, allowing it to leverage Siemens' established industry presence for accelerated innovation and service delivery.
Comments from Company Officers
Altair's management acknowledges the challenging fiscal landscape but remains optimistic about its strategies and growth trajectory. Statements from company officers emphasized commitment to innovation and operational optimization. They highlighted the ongoing improvements in financial metrics as evidence of Altair's capability to adapt and succeed in a competitive arena.
Dividends and Share Repurchases
Altair did not report any dividend payments or share repurchase activities for this period, directing its cash flow towards operational investments and strategic ventures, like the Siemens merger. This approach seeks to sustain business momentum and long-term value for shareholders.
Altair Engineering Inc Stock Forecast
Looking forward, Altair's stock is poised for potential growth, driven by its recent financial performance and strategic merger with Siemens. Key projections include:
- High Scenario : Supported by synergy realization post-acquisition, leading to improved margins and greater market penetration, Altair's stock could climb to $15-$20 in a bullish market climate.
- Low Scenario : If regulatory issues delay the merger or market conditions deteriorate, the stock might stagnate around the current level of $12-$14, maintaining cautious investor optimism.
These projections consider Altair's robust revenue streams, profit marshalling strategies, and industry dynamics, with investments focused on elevating software excellence and integrating Siemens synergies.
In conclusion, Altair Engineering's latest earnings report signals strong operational prowess despite external pressures. The anticipated Siemens acquisition could bolster its strategic outreach, promising a transformative phase in its pursuit of computational excellence. However, stakeholders should remain vigilant of merger progress and market shifts that can impact Altair's future performance trajectory.
