Altair, a global technology company providing software and cloud solutions in the areas of simulation, high-performance computing, data analytics and artificial intelligence today released its financial results for the second quarter ended June 30, 2021.
“Altair had a strong second quarter 2021, with across-the-board success in multiple verticals, regions, and products, reflecting year on year software product revenue growth of 22%,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “Customers are investing to grow their businesses as we emerge from the pandemic, and Altair’s products, services, and business models are clearly resonating, gaining market awareness, and increasing market share.”
“Once again we saw customer demand exceed expectations in the second quarter 2021, which enabled us to achieve results above the high end of our guidance range for the third consecutive quarter,” said Matt Brown, Chief Financial Officer of Altair. “The second quarter 2021 reflects solid execution on our strategy of driving strong organic topline revenue growth and profit expansion.”
Second Quarter 2021 Financial Highlights
- Software product revenue was $99.6 million compared to $81.8 million for the second quarter of 2020, an increase of 21.7%
- Total revenue was $119.9 million compared to $98.6 million for the second quarter of 2020, an increase of 21.7%
- Net loss was $13.6 million compared to a net loss of $10.2 million for the second quarter of 2020, an increase of 33.5%. Diluted net loss per share was $0.18 based on 75.3 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $0.14 for the second quarter of 2020, based on 73.0 million diluted weighted average common shares outstanding
- Adjusted EBITDA was $9.5 million compared to $5.7 million for the second quarter of 2020, an increase of 65.2%. Adjusted EBITDA margin was 7.9% compared to 5.8% for the second quarter of 2020
- Non-GAAP net income was $5.6 million, compared to Non-GAAP net income of $3.0 million for the second quarter of 2020, an increase of 86.8%. Non-GAAP diluted net income per share was $0.07 based on 83.4 million non-GAAP diluted common shares outstanding, compared to Non-GAAP diluted net income per share of $0.04 for the second quarter of 2020, based on 80.7 million non-GAAP diluted common shares outstanding
- Free cash flow was $15.8 million, compared to $4.5 million for the second quarter of 2020, an increase of 252.7%
Business Outlook
Based on information available as of today, Altair is issuing the following guidance for the third quarter and full year 2021:
|
(in millions) |
Third Quarter 2021 |
|
Full Year 2021 |
|
||||||||||||
|
Software Product Revenue |
|
$ |
94.0 |
|
to |
$ |
97.0 |
|
|
$ |
434.0 |
|
to |
$ |
440.0 |
|
|
Total Revenue |
|
$ |
112.0 |
|
|
$ |
115.0 |
|
|
$ |
512.0 |
|
|
$ |
518.0 |
|
|
Net Loss |
|
$ |
(22.8 |
) |
|
$ |
(20.9 |
) |
|
$ |
(31.6 |
) |
|
$ |
(26.8 |
) |
|
Non-GAAP Net Income |
|
$ |
0.1 |
|
|
$ |
1.6 |
|
|
$ |
40.9 |
|
|
$ |
44.6 |
|
|
Adjusted EBITDA |
|
$ |
2.0 |
|
|
$ |
4.0 |
|
|
$ |
63.0 |
|
|
$ |
68.0 |
|
|
Net Cash Provided by Operating Activities |
|
|
|
|
|
|
|
|
|
$ |
43.0 |
|
|
$ |
48.0 |
|
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
$ |
34.0 |
|
|
$ |
39.0 |
|
Conference Call Information
|
What: |
Altair’s Second Quarter 2021 Financial Results Conference Call |
|
When: |
Thursday, August 5, 2021 |
|
Time: |
5:00 p.m. ET |
|
Live Call: |
(866) 754-5204, Domestic |
|
|
(636) 812-6621, International |
|
Replay: |
(855) 859-2056, Conference ID 4173813, Domestic |
|
|
(404) 537-3406, Conference ID 4173813, International |
|
Webcast: |
http://investor.altair.com (live & replay) |
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Share and Free Cash Flow.
Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.
Non-GAAP diluted common shares includes total outstanding shares plus outstanding equity awards under the Company’s equity award plans.
Free cash flow consists of cash flow from operations less capital expenditures.
Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.
