Altair Engineering (ALTR) Q4 2024 earnings summary

Executive summary

• Software revenue grew 15.0% year-over-year to $179.4M in Q4 2024 and 11.3% to $611.9M for the full year.

• Total revenue increased 12.3% year-over-year to $192.6M in Q4 and 8.7% to $665.8M for the year.

• Net income for Q4 was $1.0M (down from $19.7M in Q4 2023); full-year net income was $14.2M, reversing a prior year loss.

• Non-GAAP net income rose to $47.4M in Q4 and $119.6M for the year; adjusted EBITDA reached $61.0M in Q4 and $149.9M for the year.

• Pending acquisition by Siemens expected to close in H1 2025; Altair suspends financial guidance and earnings calls.

Financial highlights

• Q4 adjusted EBITDA margin was 31.7% (up from 31.2%); full-year margin was 22.5% (up from 21.1%).

• Q4 free cash flow was $33.2M (up from $19.3M); full-year free cash flow was $140.0M (up from $117.1M).

• Q4 non-GAAP net income per share, diluted, was $0.52 (up from $0.47); full-year was $1.35 (up from $1.17).

• Q4 net income margin dropped to 0.5% from 11.5% year-over-year; full-year net income margin improved to 2.1% from -1.5%.

• Q4 and full-year results include $22.3M in merger-related expenses and currency losses on acquisition-related loans.

Outlook and guidance

• Quarterly and annual financial guidance suspended due to pending Siemens acquisition.