Altair Engineering Inc (ALTR, Financial), a global leader in computational science and artificial intelligence, released its financial results for the third quarter and nine months ended September 30, 2023, on November 2, 2023. The company reported a significant increase in software product revenue and total revenue, surpassing the high end of guidance.
Financial Performance
Altair's software product revenue for Q3 2023 was $119.1 million, a 14.8% increase compared to $103.8 million for the same quarter in 2022. Total revenue for the quarter was $134.0 million, marking a 12.3% increase compared to $119.4 million for Q3 2022.
The company reported a net loss of $(4.4) million for Q3 2023, compared to a net loss of $(33.2) million for the same period in 2022. However, non-GAAP net income for the quarter was $12.7 million, a significant increase of 197.0% compared to non-GAAP net income of $4.3 million for Q3 2022.
Financial Highlights
Adjusted EBITDA for Q3 2023 was $15.5 million, a 126.3% increase compared to $6.8 million for the same quarter in 2022. The company's cash provided by operating activities was $16.4 million, compared to $8.5 million for Q3 2022. Free cash flow for the quarter was $14.7 million, compared to $5.2 million for the same period in 2022.
Company Outlook
Based on current information, Altair provided guidance for the fourth quarter and full year 2023. The company expects software product revenue to be between $153 million to $159 million for Q4 2023 and between $547 million to $553 million for the full year 2023. Total revenue is projected to be between $169 million to $175 million for Q4 2023 and between $610 million to $616 million for the full year 2023.
Executive Commentary
James Scapa, founder, chairman and chief executive officer of Altair, commented on the company's performance, stating,
The third quarter of 2023 was excellent for Altair, with software product revenue and total revenue again above the high end of guidance. Our Q3 performance demonstrates the power and veracity of our vision for the convergence of computational science and AI across industries and verticals including engineering, scientific discovery, and business."
Matt Brown, chief financial officer of Altair, also expressed optimism about the company's financial trajectory, stating,
Fiscal 2023 continues to progress in a positive way. Our performance through the first nine months of 2023 gives us confidence we're on track to meet our financial goals for the year."
Explore the complete 8-K earnings release (here) from Altair Engineering Inc for further details.
