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ALTR Nasdaq· Altair Engineering Inc.
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ALTR Nasdaq· Altair Engineering Inc.
Earnings report Q4 2023

Altair Engineering Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Altair Engineering Inc. reported total revenue of $612.7 million in the latest quarter, representing a significant increase from $572.2 million in the previous quarter and $532.2 million in the same quarter last year. The company's revenue is divided into three segments:

  1. License Revenue: Altair generated $393.1 million in license revenue, compared to $363.5 million in the previous quarter and $324.8 million in the same quarter last year. This segment primarily includes sales of software licenses to customers.

  2. Maintenance and Other Services Revenue: Altair earned $156.8 million in revenue from maintenance and other services, compared to $143.0 million in the previous quarter and $128.9 million in the same quarter last year. This segment includes revenue from ongoing software maintenance and other related services.

  3. Software Related Services Revenue: Altair generated $28.0 million in revenue from software-related services, compared to $30.7 million in the previous quarter and $31.8 million in the same quarter last year. This segment includes revenue from services related to the company's software offerings.

Strengths

Altair Engineering Inc. demonstrated strong financial performance in the latest quarter, with a notable increase in total revenue. The growth in license revenue can be attributed to the company's focus on serving customers in the product lifecycle management, simulation, data analytics, AI, and high-performance computing markets. Altair's direct sales force played a crucial role in driving revenue, engaging with key decision-makers and leveraging technical specialists to deepen customer relationships. The company's efforts to expand into new industries and increase efficiency through inside sales and indirect channels also contributed to its revenue growth.

Challenges

Altair Engineering Inc. faced challenges in the client engineering services segment, which experienced a decline in revenue from $39.3 million in the previous quarter to $29.5 million in the latest quarter. This decline may be attributed to various factors, such as changes in customer demand or increased competition in the engineering services market. Further analysis is required to determine the specific challenges faced by the company in this segment.

Noteworthy

Altair Engineering Inc. reported a significant increase in total revenue compared to the previous quarter and the same quarter last year. This growth indicates the company's ability to capitalize on market opportunities and effectively serve its customers. Additionally, Altair's strong emphasis on research and development activities highlights its commitment to innovation and staying at the forefront of technological advancements in its target markets.

Summary

Altair Engineering Inc. delivered a strong financial performance in the latest quarter, with a substantial increase in total revenue. The company's focus on serving customers in key markets, along with its direct sales force and technical specialists, contributed to the growth in license and maintenance revenue. However, the decline in client engineering services revenue poses a challenge that requires further investigation. Altair's commitment to research and development activities and its efforts to expand into new industries position the company well for future growth and success.

Source documents

Form 10-K  filed on Feb 22, 2024
114 pages scanned

Reference data

Company financials Q4 revenue 173M
Analyst estimates Q4 EPS missed by -2.44%
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