Altair Engineering Reports 2024 Financial Growth Amid Net Income Decline

Altair Engineering ( (ALTR) ) has released its Q4 earnings. Here is a breakdown of the information Altair Engineering presented to its investors.

Altair Engineering is a leading global company in computational intelligence, providing software and cloud solutions for simulation, high-performance computing, data analytics, and AI, aiming to enhance organizational competitiveness and promote sustainability across industries. In its latest earnings report for the fourth quarter and full year of 2024, Altair demonstrated significant growth in software and total revenue, despite a notable decline in net income. The company reported a 15% increase in software revenue for the fourth quarter, reaching $179.4 million, with total revenue up by 12.3% to $192.6 million. However, net income fell sharply to $1.0 million from $19.7 million in the same quarter of the previous year, representing a significant drop in earnings per share. For the full year, Altair saw an 11.3% rise in software revenue to $611.9 million and an 8.7% increase in total revenue to $665.8 million, with net income improving to $14.2 million from a loss in 2023. The company’s non-GAAP financial measures showed better performance, with non-GAAP net income and adjusted EBITDA both experiencing increases. Notably, Altair’s cash flow from operating activities and free cash flow also showed substantial improvement. Looking ahead, Altair’s management remains optimistic about the company’s growth trajectory, albeit with a pause on quarterly financial results conference calls and guidance due to an impending merger with Siemens Industry Software Inc. The transaction is expected to close in the first half of 2025, marking a significant transition for Altair’s strategic direction.