Record Fourth Quarter and Full Year 2020 Software Product and Total Revenue, Exceeding Expectations
TROY, Mich., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Altair (Nasdaq: ALTR), a global technology company providing software and cloud solutions in the areas of simulation, high-performance computing, data analytics and artificial intelligence today released its financial results for the fourth quarter and full year ended December 31, 2020.
“Altair had an excellent fourth quarter and full year 2020,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “In a year of business disruptions and personal challenges, Altair brought to market broad and deep additions and enhancements to our product portfolio while delivering solid financial performance. I am proud of our global team, and excited about 2021 as we will continue delivering industry-leading technology and expertise aligned with our vision for the convergence of simulation, high-performance computing, and artificial intelligence.”
“Software product revenue increased over 12% from the fourth quarter of 2019 to 85% of total revenue, which drove year over year improvement in gross margin of over 500 basis points for the quarter, while our recurring software license rate rose to 92% for the year,” said Howard Morof, Chief Financial Officer of Altair. “The top line performance coupled with continued discipline managing operating expenses had a very positive impact on our profitability in the quarter.”
Fourth Quarter 2020 Financial Highlights
- Software product revenue was $113.6 million compared to $101.2 million for the fourth quarter of 2019.
- Total revenue was $133.4 million compared to $123.9 million for the fourth quarter of 2019.
- Net income was $2.2 million compared to net loss of $(1.5) million for the fourth quarter of 2019. Diluted net income per share was $0.03 based on 78.5 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.02) for the fourth quarter of 2019, based on 72.2 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $21.7 million, compared to $12.7 million for the fourth quarter of 2019.
- Non-GAAP net income was $14.1 million, compared to Non-GAAP net income of $5.3 million for the fourth quarter of 2019. Non-GAAP diluted net income per share was $0.17 based on 83.0 million non-GAAP diluted common shares outstanding, compared to Non-GAAP diluted net income per share of $0.07 for the fourth quarter of 2019, based on 78.0 million non-GAAP diluted common shares outstanding.
- Free cash flow was $3.4 million, compared to $(0.2) million for the fourth quarter of 2019.
Full Year 2020 Financial Highlights
- Software product revenue was $391.7 million compared to $366.7 million for the full year of 2019.
- Total revenue was $469.9 million compared to $458.9 million for the full year of 2019.
- Net loss was $(10.5) million compared to net loss of $(7.5) million for the full year of 2019. Diluted net loss per share was $(0.14) based on 73.2 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.11) for the full year of 2019, based on 71.5 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $57.3 million, compared to $39.5 million for the full year of 2019.
- Non-GAAP net income was $25.5 million, compared to Non-GAAP net income of $16.4 million for the full year of 2019. Non-GAAP diluted net income per share was $0.31 based on 83.0 million non-GAAP diluted common shares outstanding, compared to Non-GAAP diluted net income per share of $0.21 for the full year of 2019, based on 78.0 million non-GAAP diluted common shares outstanding.
- Free cash flow was $26.8 million, compared to $21.7 million for the full year of 2019.
Business Outlook
Based on information available as of today, Altair is issuing guidance for the first quarter and full year 2021.
| (in millions) | First Quarter 2021 | Full Year 2021 | ||||||||||||||
| Software Product Revenue | $ | 118.0 | to | $ | 120.0 | $ | 423.0 | to | $ | 431.0 | ||||||
| Total Revenue | $ | 138.0 | $ | 140.0 | $ | 502.0 | $ | 510.0 | ||||||||
| Net Loss | $ | (5.4 | ) | $ | (4.5 | ) | $ | (44.0 | ) | $ | (38.3 | ) | ||||
| Non-GAAP Net Income | $ | 16.3 | $ | 17.8 | $ | 36.9 | $ | 42.8 | ||||||||
| Adjusted EBITDA | $ | 24.0 | $ | 26.0 | $ | 58.0 | $ | 66.0 | ||||||||
