| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| 2022 | 2021 | |||||||
| Cost of revenue – software | $ | 1,903 | $ | 1,158 | ||||
| Research and development | 7,358 | 3,186 | ||||||
| Sales and marketing | 7,035 | 3,468 | ||||||
| General and administrative | 2,318 | 1,836 | ||||||
| Total stock-based compensation expense | $ | 18,614 | $ | 9,648 | ||||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Three Months Ended March 31, | ||||||||
| (In thousands) | 2022 | 2021 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 11,528 | $ | 14,360 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 7,686 | 6,686 | ||||||
| Provision for credit loss | 48 | 89 | ||||||
| Amortization of debt discount and issuance costs | 418 | 2,800 | ||||||
| Stock-based compensation expense | 18,614 | 9,648 | ||||||
| Deferred income taxes | (67 | ) | (687 | ) | ||||
| Other, net | 107 | (18 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 21,735 | 8,768 | ||||||
| Prepaid expenses and other current assets | (138 | ) | (805 | ) | ||||
| Other long-term assets | 2,139 | (3,628 | ) | |||||
| Accounts payable | (302 | ) | (767 | ) | ||||
| Accrued compensation and benefits | (6,896 | ) | 2,626 | |||||
| Other accrued expenses and current liabilities | (61,759 | ) | 309 | |||||
| Deferred revenue | 12,673 | (2,810 | ) | |||||
| Net cash provided by operating activities | 5,786 | 36,571 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Payments for acquisition of businesses, net of cash acquired | (12,971 | ) | — | |||||
| Capital expenditures | (2,190 | ) | (3,039 | ) | ||||
| Other investing activities, net | (343 | ) | (412 | ) | ||||
| Net cash used in investing activities | (15,504 | ) | (3,451 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from employee stock purchase plan contributions | 2,362 | — | ||||||
| Proceeds from the exercise of common stock options | 237 | 271 | ||||||
| Payments on revolving commitment | — | (30,000 | ) | |||||
| Other financing activities | (90 | ) | (107 | ) | ||||
| Net cash provided by (used in) financing activities | 2,509 | (29,836 | ) | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (970 | ) | (1,331 | ) | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (8,179 | ) | 1,953 | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 414,012 | 241,547 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 405,833 | $ | 243,500 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 1 | $ | 47 | ||||
| Income taxes paid | $ | 3,187 | $ | 2,381 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Property and equipment in accounts payable, other current liabilities
and other liabilities | $ | 772 | $ | 619 | ||||
