TROY, Mich., May 04, 2023 (GLOBE NEWSWIRE) --
Altair (Nasdaq: ALTR), a global leader in computational science and artificial intelligence, today released its financial results for the first quarter ended March 31, 2023.
“Altair had a very strong start to 2023, with software product revenue and total revenue above the high end of our guidance,” said James Scapa, founder, chairman and chief executive officer of Altair. “Q1 exceeded our expectations and represents an all-time high for revenue to continue our good momentum from 2022. Demand for our products continues to be strong and we’re seeing the investments we’ve made in product development and our approach to our customers’ success paying off.”
“Coming right on the heels of a very strong fourth quarter to end last year, we had impressive performance in the first quarter,” said Matt Brown, chief financial officer of Altair. “We’re excited to be starting the year so well, which we feel gives us momentum and helps to achieve our financial goals for the year.”
First Quarter 2023 Financial Highlights
- Software product revenue was $149.6 million compared to $140.9 million for the first quarter of 2022, an increase of 6.2% in reported currency and 10.0% in constant currency
- Total revenue was $166.0 million compared to $159.8 million for the first quarter of 2022, an increase of 3.9% in reported currency and 7.5% in constant currency
- Net loss was $(2.0) million compared to net income of $11.5 million for the first quarter of 2022. Diluted net loss per share was $(0.02) based on 80.2 million diluted weighted average common shares outstanding, compared to diluted net income per share of $0.13 for the first quarter of 2022, based on 87.3 million diluted weighted average common shares outstanding. Net loss margin was -1.2% compared to net income margin 7.2% for the first quarter of 2022
- Non-GAAP net income was $31.8 million, compared to non-GAAP net income of $32.9 million for the first quarter of 2022, a decrease of 3.5%. Non-GAAP diluted net income per share was $0.36 based on 88.0 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.38 for the first quarter of 2022, based on 87.3 million non-GAAP diluted common shares outstanding
- Adjusted EBITDA was $43.1 million compared to $46.6 million for the first quarter of 2022, a decrease of 7.6%. Adjusted EBITDA margin was 25.9% compared to 29.2% for the first quarter of 2022
- Cash provided by operating activities was $59.2 million, compared to $5.8 million for the first quarter of 2022
- Free cash flow was $57.5 million, compared to $3.6 million for the first quarter of 2022. Free cash flow in the first quarter of 2022 was impacted by the payment of a $65.9 million litigation judgement assumed as part of the World Programming acquisition.
Business Outlook
Based on information available as of today, Altair is issuing the following guidance for the second quarter and full year 2023:
| (in millions, except %) | Second Quarter 2023 | Full Year 2023 | ||||||||||||||
| Software Product Revenue | $ | 123.0 | to | $ | 125.0 | $ | 551.0 | to | $ | 561.0 | ||||||
| Growth Rate | 5.2 | % | 6.9 | % | 8.8 | % | 10.8 | % | ||||||||
| Growth Rate - Constant Currency | 6.7 | % | 8.4 | % | 9.1 | % | 11.0 | % | ||||||||
| Total Revenue | $ | 138.0 | $ | 140.0 | $ | 614.0 | $ | 624.0 | ||||||||
| Growth Rate | 4.0 | % | 5.5 | % | 7.3 | % | 9.0 | % | ||||||||
| Growth Rate - Constant Currency | 5.4 | % | 6.9 | % | 7.5 | % | 9.3 | % | ||||||||
| Net Loss | $ | (15.8 | ) | $ | (13.9 | ) | $ | (19.7 | ) | $ | (10.0 | ) | ||||
| Non-GAAP Net Income | $ | 11.5 | $ | 13.0 | $ | 89.8 | $ | 97.2 | ||||||||
| Adjusted EBITDA | $ | 15.0 | $ | 17.0 | $ | 120.0 | $ | 130.0 | ||||||||
| Net Cash Provided by Operating Activities | $ | 118.0 | $ | 126.0 | ||||||||||||
| Free Cash Flow | $ | 108.0 | $ | 116.0 | ||||||||||||
The following table provides a reconciliation of Full Year 2023 guidance to the last guidance provided in February:
