Altair, a global technology company providing solutions in product development, high-performance computing and data analytics, released its financial results for the fourth quarter ended December 31, 2019.
“We continue to execute on our vision of transforming product design and customer decision making by leveraging simulation, data analytics and high-performance computing,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “Our core simulation and optimization technologies performed well during the quarter and we remain highly encouraged by strong demand for our SimSolid product, which continues to have one of the fastest new product ramps in our history. As we enter 2020, we continue to see macro headwinds in our automotive end market and given the potential impact of the Coronavirus on our customers we anticipate a more modest start to the year. However, we remain confident that our diversification across multiple verticals and products positions the company well to achieve above market growth over the long-term.”
“Software product revenue exceeded our expectations in the fourth quarter and our year over year growth rate accelerated sequentially to 27%,” said Howard Morof, Chief Financial Officer of Altair.
Fourth Quarter 2019 Financial Highlights
- Software product revenue was $101.2 million, an increase of 27% from $79.9 million for the fourth quarter of 2018.
- Non-GAAP software product revenue was $103.4 million, an increase of 29% from $79.9 million for the fourth quarter of 2018.
- Total revenue was $123.9 million, an increase of 20% from $103.0 million for the fourth quarter of 2018.
- Non-GAAP total revenue was $126.1 million, an increase of 22% from $103.0 million for the fourth quarter of 2018.
- Net loss was $(1.5) million, compared to net loss of $(9.0) million for the fourth quarter of 2018. Diluted net loss per share was $(0.02) based on 72.2 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.13) for the fourth quarter of 2018, based on 70.5 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $12.7 million, compared to $12.9 million for the fourth quarter of 2018.
- Modified Adjusted EBITDA was $15.0 million, compared to $12.9 million for the fourth quarter of 2018.
- Non-GAAP net income was $6.9 million, compared to non-GAAP net income of $5.6 million for the fourth quarter of 2018. Non-GAAP diluted net income per share was $0.09 based on 78.0 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.07 for the fourth quarter of 2018, based on 77.7 million non-GAAP diluted common shares outstanding.
- Free cash flow was $(0.2) million, compared to $(5.5) million for the fourth quarter of 2018.
Full Year 2019 Financial Highlights
- Software product revenue was $366.7 million, an increase of 20% from $304.4 million for the full year 2018.
- Non-GAAP software product revenue was $375.7 million, an increase of 23% from $304.4 million for the full year 2018.
- Total revenue was $458.9 million, an increase of 16% from $396.4 million for the full year 2018.
- Non-GAAP total revenue was $467.9 million, an increase of 18% from $396.4 million for the full year 2018.
- Net loss was $(7.5) million, compared to net income of $15.5 million for the full year 2018. Diluted net loss per share was $(0.11) based on 71.5 million diluted weighted average common shares outstanding, compared to diluted net income per share of $0.21 for the full year 2018, based on 74.9 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $39.5 million, compared to $50.2 million for the full year 2018.
- Modified Adjusted EBITDA was $48.5 million, compared to $50.2 million for the full year 2018.
- Non-GAAP net income was $24.8 million, compared to non-GAAP net income of $32.8 million for the full year 2018. Non-GAAP diluted net income per share was $0.32 based on 78.0 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.42 for the full year 2018, based on 77.7 million non-GAAP diluted common shares outstanding.
- Free cash flow was $21.7 million, compared to $29.6 million for the full year 2018.
