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Sep 30, 2023
Altair Q3 2023 Earnings Report
Altair's Q3 2023 performance was excellent, with software product revenue and total revenue exceeding guidance. The company's vision for convergence of computational science and AI across industries drove positive results.
Key Takeaways
Altair reported strong Q3 2023 results, with software product revenue increasing by 14.8% year-over-year and total revenue increasing by 12.3%. The company's net loss decreased significantly, and non-GAAP net income saw a substantial increase.
Software product revenue increased by 14.8% year-over-year to $119.1 million.
Total revenue increased by 12.3% year-over-year to $134.0 million.
Net loss improved to $(4.4) million compared to $(33.2) million in the third quarter of 2022.
Adjusted EBITDA increased by 126.3% year-over-year to $15.5 million.
Altair
Altair
Altair Revenue by Segment
Revenue by Segment
License Revenue
CapyFin.comMaintenance and other services Revenue
CapyFin.comSoftware related services Revenue
CapyFin.comClient engineering services Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Altair is issuing the following guidance for the fourth quarter and full year 2023:
Positive Outlook
- Software Product Revenue: $153 to $159 million (Q4 2023)
- Software Product Revenue Growth Rate: 5.6% to 9.7% (Q4 2023)
- Total Revenue: $169 to $175 million (Q4 2023)
- Total Revenue Growth Rate: 5.3% to 9.1% (Q4 2023)
- Adjusted EBITDA: $44 to $50 million (Q4 2023)
Challenges Ahead
- Net Income (Loss): $15.5 to $21.3 million (Q4 2023)
- Non-GAAP Net Income: $33.6 to $38.0 million (Q4 2023)
- Software Product Revenue Growth Rate - Constant Currency: 5.1% to 9.3% (Q4 2023)
- Total Revenue Growth Rate - Constant Currency: 4.9% to 8.6% (Q4 2023)
- Net Cash Provided by Operating Activities: $118 to $126 million (FY 2023)
Revenue & Expenses
Visualization of income flow from segment revenue to net income