2020 Second Quarter Revenue Exceeds Guidance
Increases Full Year 2020 Outlook
TROY, Mich., Aug. 06, 2020 (GLOBE NEWSWIRE) -- Altair (Nasdaq: ALTR), a global technology company that provides software and cloud solutions in the areas of product development, high performance computing (HPC) and data analytics, today released its financial results for the second quarter ended June 30, 2020.
“We are very pleased with our second quarter performance, which exceeded our expectations. I am proud to lead an organization which has remained so dedicated and intensely focused on developing great software and helping customers succeed despite the personal hardships brought on by COVID-19,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair.
“Our software product revenue increased to 83% of total revenue, which drove a 400 basis point year over year improvement in gross margins, while our recurring license rate rose to an all-time high of 93%,” said Howard Morof, Chief Financial Officer of Altair. “Moreover, the proactive steps we took to control costs in light of COVID-19 had an immediate positive impact on our operating expenses. Our ongoing digital transformation efforts continue, and as we implement robust processes, we believe the positive impact of these significant investments will drive measurable benefits for the business and support our long-term goals.”
Second Quarter 2020 Financial Highlights
- Software product revenue was $81.8 million compared to $84.4 million for the second quarter of 2019.
- Total revenue was $98.6 million compared to $106.8 million for the second quarter of 2019.
- Net loss was $10.2 million compared to net loss of $3.1 million for the second quarter of 2019. Diluted net loss per share was $0.14 based on 73.0 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $0.04 for the second quarter of 2019, based on 71.4 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $5.7 million, compared to $5.2 million for the second quarter of 2019.
- Non-GAAP net loss was $1.7 million, compared to non-GAAP net income of $3.2 million for the second quarter of 2019. Non-GAAP diluted net loss per share was $0.02 based on 80.7 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.04 for the second quarter of 2019, based on 77.7 million non-GAAP diluted common shares outstanding.
- Free cash flow was $4.5 million for both the second quarters of 2020 and 2019.
Business Outlook
Based on information available as of today, Altair is issuing guidance for the third quarter and full year 2020.
| (in millions) | Third Quarter 2020 | Full Year 2020 | ||||||||||||||
| Software Product Revenue | $ | 80.0 | to | $ | 82.0 | $ | 368.0 | to | $ | 380.0 | ||||||
| Total Revenue | $ | 96.0 | $ | 100.0 | $ | 443.0 | $ | 455.0 | ||||||||
| Net Loss | $ | (20.3 | ) | $ | (18.3 | ) | $ | (36.0 | ) | $ | (31.0 | ) | ||||
| Non-GAAP Net (Loss) Income | $ | (9.0 | ) | $ | (7.0 | ) | $ | 2.2 | $ | 7.2 | ||||||
| Adjusted EBITDA | $ | (2.0 | ) | $ | 0.0 | $ | 33.0 | $ | 38.0 | |||||||
Conference Call Information
