Altair Engineering Reports 7% Revenue Growth, Net Income Turnaround in Latest 10-Q Filing

Altair Engineering Inc. reported significant financial improvements in its latest 10-Q filing for the nine months ended September 30, 2024. The company achieved revenues of $473.2 million, a 7% increase from $441.2 million in the same period of 2023. For the third quarter alone, revenue rose by 13% to $151.5 million, compared to $134.0 million in Q3 2023. This growth was primarily driven by a 16% increase in software revenue, which reached $138.7 million, attributed to new business and strong retention in existing accounts, particularly in the aerospace and defense sectors.

Gross profit for the nine-month period also improved, totaling $381.7 million, up 10% from $348.6 million in 2023. The gross profit for Q3 2024 was $121.4 million, reflecting a 16% increase from $104.9 million in Q3 2023. Despite these gains, the company reported an operating loss of $4.3 million for Q3 2024, although this was an improvement from a loss of $11.3 million in the prior year. For the nine months, Altair recorded an operating income of $6.7 million, a turnaround from an operating loss of $22.3 million in 2023.

Net income for the nine months ended September 30, 2024, was $13.2 million, compared to a net loss of $28.6 million in the same period last year. The third quarter net income was $1.8 million, a significant recovery from a net loss of $4.4 million in Q3 2023. Earnings per share for the nine-month period improved to $0.16 from a loss of $0.36 in 2023.

The company’s cash and cash equivalents increased to $513.4 million as of September 30, 2024, up from $467.5 million at the end of 2023. Total assets also rose to $1.38 billion, while total liabilities decreased to $541.0 million, down from $652.2 million at the end of 2023. This reduction in liabilities was primarily due to a decrease in current liabilities, which fell to $210.1 million from $324.1 million.

Strategically, Altair completed four acquisitions during the nine months, totaling $36.8 million, aimed at enhancing its software portfolio and customer service capabilities. Notable acquisitions included Cambridge Semantics and Metrics Design Automation. Additionally, the company entered into a merger agreement with Siemens Industry Software Inc., which is expected to close in the second half of 2025, subject to regulatory approvals and stockholder consent. The merger agreement includes a termination fee of $372 million under specific conditions, indicating the company's commitment to this strategic direction.