Comprehensive Financial Analysis of Altair Engineering Inc. (CIK: 0001701732)

Key Insights and Summary

Altair Engineering Inc. has filed its quarterly and annual financial reports for 2024, revealing critical insights into its operational performance, revenue growth, and strategic outlook. This analysis summarizes the key components of the financial report and provides a coherent overview for investors.

Key Financial Metrics for 2024:

• Total Revenue: $665,788,000, up from $612,701,000 in 2023.
• Net Income: $14,175,000, a significant turnaround from a loss of $8,926,000 in 2023.
• Adjusted EBITDA: $149,912,000, showing a robust increase from $129,138,000 in the previous year.
• Earnings Per Share (EPS): Basic EPS improved to $0.17 from a loss of $0.11 in 2023.

Revenue Breakdown:

• Geographic Segmentation:
• United States: $323,905,000 (2024)
• Germany: $46,927,000 (2024)
• Japan: $42,451,000 (2024)
• Revenue from the Americas totaled $342,892,000, with Europe and Asia showing growth.

Expenses Analysis:

• Cost of Revenue: Increased to $90,674,000 in 2024 from $82,625,000 in 2023.
• Research and Development (R&D): R&D costs rose to $187,826,000, reflecting the company’s commitment to innovation.
• Sales and Marketing: Expenses increased to $161,966,000, indicating aggressive market penetration strategies.

Special Adjustments:

• The report highlights $22.3 million in expenses related to the pending merger with Siemens Industry, impacting overall profitability.
• Currency fluctuations caused a $1.9 million loss on acquisition-related intercompany loans.

Future Outlook:

• Liquidity and Capital Structure: Altair Engineering maintains a solid balance sheet with total assets of $665,788,000 and total liabilities of $612,701,000.
• Growth Strategy: The company’s strategic focus on acquisitions and investments in technology positions it well for future growth, despite short-term costs associated with these initiatives.

Conclusion and Recommendation:

Altair Engineering Inc. shows a strong recovery trajectory with improved revenue, profitability, and strategic positioning in the technology sector. Given the company's solid financial performance, growth potential through R&D, and strategic acquisitions, I recommend BUY for investors looking to capitalize on future growth.

Reasons for Recommendation:

• Positive revenue growth and net income turnaround.
• Strong investment in R&D and technology, indicating future innovation.
• Strategic acquisitions aligning with long-term growth objectives.

This comprehensive analysis of Altair Engineering Inc.'s financial report provides investors with insights into the company’s current performance, strategic direction, and growth potential, enabling informed investment decisions.