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Dec 31, 2024
Altair Q4 2024 Earnings Report
Altair reported a modest increase in total revenue for Q4 2024, with net income declining significantly year-over-year.
Key Takeaways
Altair's Q4 2024 revenue grew by 12.3% year-over-year, driven by software sales. However, net income declined sharply to $1.0 million from $19.7 million a year ago. Non-GAAP earnings improved, reflecting strong operational adjustments. The company is in the process of being acquired by Siemens.
Total revenue increased 12.3% year-over-year to $192.6 million.
Net income declined significantly to $1.0 million from $19.7 million in Q4 2023.
Non-GAAP EPS increased to $0.52 from $0.47 in the prior-year quarter.
Free cash flow increased to $33.2 million from $19.3 million.
Altair
Altair
Altair Revenue by Segment
Revenue by Segment
License Revenue
CapyFin.comMaintenance and other services Revenue
CapyFin.com Forward Guidance
Due to the pending Siemens acquisition, Altair has suspended its financial guidance.
Positive Outlook
- Continued growth in software revenue, up 15.0% year-over-year.
- Strong non-GAAP net income growth, increasing $6.3 million YoY.
- Improved free cash flow, reaching $33.2 million.
- Increased adjusted EBITDA margin to 31.7%.
- Pending acquisition by Siemens expected to drive strategic synergies.
Challenges Ahead
- Significant decline in GAAP net income from $19.7 million to $1.0 million.
- Lower net income margin of 0.5% compared to 11.5% in Q4 2023.
- Increase in operating expenses, impacting profitability.
- No financial guidance provided due to pending acquisition.
- Potential integration risks associated with Siemens merger.
Revenue & Expenses
Visualization of income flow from segment revenue to net income