Altair Engineering (ALTR) Baird 2024 Global Consumer, Technology, & Services Conference summary

Company evolution and financial performance

• Revenue grew from $245M in 2017 to $600M+ in 2023, with adjusted EBITDA margin rising from 12.2% in 2020 to 21.1% in 2023 and a projected 21.6% in 2024.

• Customer base expanded from 5,000 to over 16,000, with software now accounting for 90% of revenue and a 14.4% CAGR since IPO.

• Vertical concentration in automotive dropped from 50% to just over 30%, with significant growth in aerospace, defense, and BFSI.

• Free cash flow conversion is strong, representing about 90% of adjusted EBITDA.

Product strategy and technology integration

• Unified cloud gateway Altair One integrates simulation, data analytics, and high-performance computing.

• Simulation-driven design and generative design tools (Inspire suite) reduce time to market and manufacturing scrap.

• Electronic and mechanical simulation convergence supports chip, board, and system-level digital twins.

• AI-powered modules like PhysicsAI and ShapeAI accelerate and optimize simulation processes.

Business model and growth drivers

• Revenue growth is driven by usage-based Altair Units, with customers expanding capacity as needs grow.

• Product suites are tailored for different user types, from designers to enterprise, supporting competitive pricing and value capture.

• High-end enterprise accounts often use the full suite, enabling cross-selling and deeper customer relationships.