| * | Amounts include stock-based compensation expense as follows (in thousands): |
| (Unaudited) | |||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||
| Cost of revenue – software | $ | 684 | $ | 384 | $ | 1,602 | $ | 727 | |||
| Research and development | 2,428 | 674 | 5,686 | 1,611 | |||||||
| Sales and marketing | 1,949 | 625 | 3,949 | 1,562 | |||||||
| General and administrative | 1,173 | 609 | 2,702 | 1,684 | |||||||
| Total stock-based compensation expense | $ | 6,234 | $ | 2,292 | $ | 13,939 | $ | 5,584 | |||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Nine Months Ended September 30, | |||||||
| (In thousands) | 2020 | 2019 | |||||
| OPERATING ACTIVITIES: | |||||||
| Net loss | $ | (12,698 | ) | $ | (6,040 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 16,916 | 15,836 | |||||
| Provision for credit loss | 930 | 472 | |||||
| Amortization of debt discount and issuance costs | 8,067 | 3,044 | |||||
| Stock-based compensation expense | 13,939 | 5,584 | |||||
| Deferred income taxes | (5,441 | ) | (741 | ) | |||
| Other, net | 13 | (16 | ) | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | 16,213 | 10,185 | |||||
| Prepaid expenses and other current assets | (1,055 | ) | (8,718 | ) | |||
| Other long-term assets | 867 | (1,443 | ) | ||||
| Accounts payable | (3,321 | ) | (420 | ) | |||
| Accrued compensation and benefits | 1,274 | (2,111 | ) | ||||
| Other accrued expenses and current liabilities | (5,847 | ) | 2,110 | ||||
| Operating lease right-of-use assets and liabilities, net | (26 | ) | 188 | ||||
| Deferred revenue | (2,452 | ) | 12,075 | ||||
| Net cash provided by operating activities | 27,379 | 30,005 | |||||
| INVESTING ACTIVITIES: | |||||||
| Payments for acquisition of businesses, net of cash acquired | (32,279 | ) | (709 | ) | |||
| Capital expenditures | (4,006 | ) | (8,120 | ) | |||
| Payments for acquisition of developed technology | (433 | ) | (473 | ) | |||
| Other investing activities, net | 152 | 16 | |||||
| Net cash used in investing activities | (36,566 | ) | (9,286 | ) | |||
| FINANCING ACTIVITIES: | |||||||
| Borrowings under revolving commitment | 30,000 | 96,991 | |||||
| Proceeds from the exercise of stock options | 1,094 | 1,441 | |||||
| Proceeds from issuance of convertible senior notes, net of underwriters' discount and commissions | — | 223,101 | |||||
| Payments on revolving commitment | — | (127,941 | ) | ||||
| Payments for issuance costs of convertible senior notes | — | (1,233 | ) | ||||
| Other financing activities | (401 | ) | (399 | ) | |||
| Net cash provided by financing activities | 30,693 | 191,960 | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 676 | (1,065 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 22,182 | 211,614 | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 223,497 | 35,685 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 245,679 | $ | 247,299 | |||
| Supplemental disclosure of cash flow: | |||||||
| Interest paid | $ | 320 | $ | 385 | |||
| Income taxes paid | $ | 12,142 | $ | 7,163 | |||
| Supplemental disclosure of non-cash investing and financing activities: | |||||||
| Issuance of common stock in connection with acquisitions | $ | 1,638 | $ | — | |||
| Finance leases | $ | 117 | $ | 588 | |||
| Property and equipment in accounts payable, other current liabilities and other liabilities | $ | 208 | $ | 1,827 | |||
