Altair Announces Third Quarter 2022 Financial Results

TROY, Mich., Nov. 03, 2022 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a worldwide chief in computational science and synthetic intelligence (AI), at this time launched its monetary outcomes for the third quarter ended September 30, 2022.

“Altair had a solid third quarter, showing exceptional momentum despite significant macro-economic uncertainty, led by double digit growth in billings on a constant currency basis and strong demand across all geographies,” stated James Scapa, founder, chairman and chief government officer of Altair. “Our dedicated global teams continue to push forward with outstanding technology developments and applications.”

“We’re very pleased with the third quarter, continuing the success we had in the first half of the year,” stated Matt Brown, chief monetary officer of Altair. “Our third quarter revenue was at the high end of our guidance range, despite significant currency headwinds, while our profitability exceeded our expectations. These strong results give us the confidence to raise our full year 2022 guidance in constant currency.”

Third Quarter 2022 Financial Highlights

• Software product income was $103.8 million in comparison with $102.3 million for the third quarter of 2021, a rise of 1.4% in reported foreign money and 10.1% in fixed foreign money
• Total income was $119.4 million in comparison with $121.3 million for the third quarter of 2021, a lower of 1.6% in reported foreign money and a rise of 6.3% in fixed foreign money
• Net loss was $(33.2) million in comparison with $(8.1) million for the third quarter of 2021. Diluted web loss per share was $(0.42) primarily based on 79.2 million diluted weighted common frequent shares excellent, in comparison with diluted web loss per share of $(0.11) for the third quarter of 2021, primarily based on 75.8 million diluted weighted common frequent shares excellent. Net loss margin was -27.9% in comparison with -6.7% for the third quarter of 2021
• Non-GAAP web revenue was $4.3 million, in comparison with non-GAAP web revenue of $9.6 million for the third quarter of 2021, a lower of 55.7%. Non-GAAP diluted web revenue per share was $0.05 primarily based on 88.1 million non-GAAP diluted frequent shares excellent, in comparison with non-GAAP diluted web revenue per share of $0.12 for the third quarter of 2021, primarily based on 81.1 million non-GAAP diluted frequent shares excellent
• Adjusted EBITDA was $6.8 million in comparison with $14.8 million for the third quarter of 2021, a lower of 54.0%. Adjusted EBITDA margin was 5.7% in comparison with 12.2% for the third quarter of 2021
• Cash supplied by working actions was $8.5 million, in comparison with $0.9 million for the third quarter of 2021
• Free money circulate was $5.2 million, in comparison with $(0.5) million for the third quarter of 2021.

Business Outlook

Based on info obtainable as of at this time, Altair is issuing the next steering for the fourth quarter and full 12 months 2022:

The following desk gives a reconciliation of 2022 Full Year steering to the final steering supplied in August:

Conference Call Information

Non-GAAP Financial Measures

This press launch comprises the next non-GAAP monetary measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.

Altair believes that these non-GAAP measures of monetary outcomes present helpful info to administration and buyers relating to sure monetary and business traits referring to its monetary situation and outcomes of operations. The Company’s administration makes use of these non-GAAP measures to match the Company’s efficiency to that of prior intervals for pattern evaluation, for functions of figuring out government and senior administration incentive compensation and for budgeting and planning functions. The Company additionally believes that the usage of these non-GAAP monetary measures gives an extra instrument for buyers to make use of in evaluating ongoing working outcomes and traits and in evaluating the Company’s monetary measures with different software program corporations, lots of which current related non-GAAP monetary measures to buyers.

Non-GAAP web revenue excludes stock-based compensation, amortization of intangible belongings associated to acquisitions, restructuring expenses, asset impairment expenses, non-cash curiosity expense, different particular objects as recognized by administration and described elsewhere on this press launch, and the influence of non-GAAP tax price to revenue tax expense, which approximates our tax price excluding discrete objects and different particular occasions that may fluctuate from interval to interval.

Non-GAAP diluted frequent shares as outlined beginning with Q1 2022, consists of the diluted weighted common shares excellent per GAAP no matter whether or not the Company is in a loss place. All intervals introduced can be adjusted to align with this new definition.

Adjusted EBITDA represents web revenue adjusted for revenue tax expense, curiosity expense, curiosity revenue and different, depreciation and amortization, stock-based compensation expense, restructuring expenses, asset impairment expenses and different particular objects as recognized by administration and described elsewhere on this press launch.

Free money circulate consists of money circulate from operations much less capital expenditures.

Non-GAAP gross revenue represents gross revenue adjusted for stock-based compensation expense, restructuring expense and different particular objects as recognized by administration and described elsewhere on this press launch.

Non-GAAP working expense represents working expense excluding stock-based compensation expense, amortization, restructuring expenses, asset impairment expenses and different particular objects as recognized by administration and described elsewhere on this press launch.

Company administration doesn’t think about these non-GAAP measures in isolation or as a substitute for monetary measures decided in accordance with GAAP. The principal limitation of those non-GAAP monetary measures is that they exclude important bills and revenue which are required by GAAP to be recorded within the Company’s monetary statements. In addition, they’re topic to inherent limitations as they mirror the train of judgment by administration about which bills and revenue are excluded or included in figuring out these non-GAAP monetary measures. Altair urges buyers to evaluation the reconciliation of its non-GAAP monetary measures to the comparable GAAP monetary measures, which it consists of in press releases saying quarterly monetary outcomes, together with this press launch, and to not depend on any single monetary measure to judge the Company’s business.

Reconciliation tables of probably the most comparable GAAP monetary measures to the non-GAAP monetary measures used on this press launch are included with the monetary tables on the finish of this launch.

About Altair

Altair is a worldwide chief in computational science and synthetic intelligence (AI) that gives software program and cloud options in simulation, high-performance computing (HPC), information analytics and AI. Altair allows organizations throughout all industries to compete extra successfully and drive smarter selections in an more and more related world – all whereas making a greener, extra sustainable future. To be taught extra, please go to www.altair.com.

Cautionary Language Concerning Forward-Looking Statements

This press launch comprises “forward-looking statements” throughout the that means of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, together with however not restricted to, our steering for the fourth quarter and full 12 months 2022, our statements relating to our expectations for 2022, and our reconciliations of projected non-GAAP monetary measures. These forward-looking statements are made as of the date of this launch and are primarily based on present expectations, estimates, forecasts and projections in addition to the beliefs and assumptions of administration. Words corresponding to “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of those phrases or the destructive of those phrases and related expressions are supposed to establish these forward-looking statements. Forward-looking statements are topic to numerous dangers and uncertainties, lots of which contain components or circumstances which are past Altair’s management. Altair’s precise outcomes might differ materially from these acknowledged or implied in our forward-looking statements on account of numerous components, together with however not restricted to, the dangers detailed in Altair’s quarterly and annual studies filed with the Securities and Exchange Commission in addition to different paperwork which may be filed by the Company occasionally with the Securities and Exchange Commission. Past efficiency isn’t essentially indicative of future outcomes. The forward-looking statements included on this press launch signify Altair’s views as of the date of this press launch. The Company anticipates that subsequent occasions and developments will trigger its views to vary. Altair undertakes no intention or obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case. These forward-looking statements shouldn’t be relied upon as representing Altair’s views as of any date subsequent to the date of this press launch.

Media Relations
Altair
Dave Simon
248-614-2400 ext. 332
[email protected]

Investor Relations
The Blueshirt Group
Monica Gould
212-871-3927
[email protected]

*   Amounts embody stock-based compensation expense as follows (in 1000’s):

Financial Results

The following desk gives a reconciliation of Non-GAAP web revenue and Non-GAAP web revenue per share – diluted, to web loss and web loss per share – diluted, probably the most comparable GAAP monetary measures:

(1)  The Company makes use of a non-GAAP efficient tax price of 26%.

(2)  The three months ended September 30, 2022, consists of $6.8 million foreign money losses on acquisition-related intercompany loans and a $2.2 million acquire from a mark-to-market adjustment of contingent consideration related to the World Programming acquisition. The 9 months ended September 30, 2022, consists of $16.6 million expense on the repurchase of convertible senior notes, $13.7 million foreign money losses on acquisition-related intercompany loans and a $7.5 million acquire from the mark-to-market adjustment of contingent consideration related to the World Programming acquisition.

(3)  The Non-GAAP diluted shares excellent for the three and 9 months ended September 30, 2021, has been modified to align with the present definition.

The following desk gives a reconciliation of Adjusted EBITDA to web loss, probably the most comparable GAAP monetary measure:

(1)  The three months ended September 30, 2022, consists of $6.8 million foreign money losses on acquisition-related intercompany loans and a $2.2 million acquire from a mark-to-market adjustment of contingent consideration related to the World Programming acquisition. The 9 months ended September 30, 2022, consists of $16.6 million expense on the repurchase of convertible senior notes, $13.7 million foreign money losses on acquisition-related intercompany loans and a $7.5 million acquire from the mark-to-market adjustment of contingent consideration related to the World Programming acquisition.

The following desk gives a reconciliation of Free Cash Flow to web money supplied by working actions, probably the most comparable GAAP monetary measure:

(1)   The 9 months ended September 30, 2022, features a $65.9 million cost in January 2022 for a authorized judgement acquired in December 2021.

The following desk gives a reconciliation of Non-GAAP gross revenue to gross revenue, probably the most comparable GAAP monetary measure:

The following desk gives a reconciliation of Non-GAAP working expense to Total working expense, probably the most comparable GAAP monetary measure:

The following desk gives our income and Adjusted EBITDA on a relentless foreign money foundation:

Business Outlook
The following desk gives a reconciliation of projected Non-GAAP web revenue to projected web loss, probably the most comparable GAAP monetary measure:

(1)   Year ending December 31, 2022, consists of $16.6 million expense on the repurchase of convertible senior notes, $13.7 million foreign money losses on acquisition-related intercompany loans and $7.5 million acquire from the mark-to-market adjustment of contingent consideration related to the World Programming acquisition.

The following desk gives a reconciliation of projected Adjusted EBITDA to projected web loss, probably the most comparable GAAP monetary measure:

(1)   Year ending December 31, 2022, consists of $16.6 million expense on the repurchase of convertible senior notes, $13.7 million foreign money losses on acquisition-related intercompany loans and $7.5 million acquire from the mark-to-market adjustment of contingent consideration related to the World Programming acquisition.

The following desk gives a reconciliation of projected Free Cash Flow to projected web money supplied by working actions, probably the most comparable GAAP monetary measure:

(1)   Includes $65.9 million cost in January 2022 for authorized judgement acquired in December 2021.