Altair Engineering (ALTR) NASDAQ Investor Conference summary

Business evolution and financial performance

• Customer base expanded from 5,000 at IPO in 2017 to over 16,000 globally, maintaining a balanced geographic distribution.

• Software revenue grew from 73% to 90% of total revenue, with services now at 10%.

• Vertical diversification reduced automotive from 50% to 33% of business, with growth in aerospace, defense, and new entry into banking and insurance.

• Software revenue achieved a 14.4% CAGR from 2017 to 2023, supporting margin and profitability growth.

• Margins improved from 12.2% in 2020 to a projected 21.6% in 2024, with free cash flow rising accordingly.

Strategic vision and product innovation

• Focus on computational intelligence by integrating simulation, high-performance computing, and data analytics.

• Product suite includes simulation (HyperWorks), data analytics (RapidMiner), and HPC (HPCWorks), unified via Altair One cloud platform.

• Key industry trends: simulation-driven design, democratization of simulation tools, electrification, and AI-powered engineering.

• AI modules like PhysicsAI enable rapid, AI-informed simulations, reducing design cycles and iterations.

Market positioning and growth opportunities

• Simulation remains 70% of business, with data analytics and HPC comprising the rest; boundaries between these areas are increasingly blurred.

• Data analytics platform proven in banking is being adapted for engineering, leveraging domain expertise for unique solutions.

• Digital twins and predictive analytics present significant opportunities by combining real-world and synthetic data.

• Inspire suite targets designers, integrating AI to make simulation accessible early in the design process.