Altair Engineering (ALTR) The 44th Annual William Blair Growth Stock Conference summary

Company evolution and financial performance

• Founded in 1985, now serving over 16,000 customers with $613M revenue and $129M adjusted EBITDA in FY23.

• Shifted from 73% software revenue at IPO to 90% today, with software revenue CAGR of 14.4% since 2017.

• Diversified verticals beyond automotive to include BFSI, technology, aerospace, and defense.

• Adjusted EBITDA margin grew from 12.2% in 2020 to a projected 21.7% in FY24.

• Gross margin expansion driven by software mix, now above 80% non-GAAP gross margin.

Strategic vision and technology drivers

• Focus on convergence of simulation, high-performance computing, and data analytics as computational intelligence.

• Unified cloud platform, Altair One, integrates simulation, data science, and HPC tools.

• Simulation-driven design and generative design optimize products from sketch to manufacturing.

• Convergence of electronic and mechanical simulation addressed with new SimSolid electronics capabilities.

• AI embedded in products, such as PhysicsAI, accelerates simulation and design decisions.

Market opportunity and customer engagement

• Increasing demand for faster, better product development in competitive markets.

• Digital twin technologies and data analytics enable predictive maintenance and operational efficiency.

• Computer-aided engineering expanding across industries, driving more simulation and data analytics usage.

• Altair Units model offers frictionless cross-sell and capacity-based usage across product suites.

• Resiliency supported by R&D budget alignment and recurring software revenue.