Company profile

Ticker
ALTR
Exchange
Website
CEO
James Ralph Scapa
Employees
Incorporated in
Location
Fiscal year end
Former names
Altair Engineering Ing.
SEC CIK

ALTR stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

7 May 20
11 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 131.46M 123.88M 100.41M 106.77M
Net income 6.03M -1.5M -15.94M -3.12M
Diluted EPS 0.08 -0.02 -0.22 -0.04
Net profit margin 4.59% -1.21% -15.87% -2.92%
Operating income 12.11M 4.15M -10.51M -3.2M
Net change in cash 24.03M -23.82M -4.89M 212.06M
Cash on hand 247.15M 223.12M 246.94M 251.83M
Cost of revenue 34.5M 36.95M 31.74M 31.02M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 458.92M 396.38M 333.33M 313.24M
Net income -7.54M 15.54M -101.94M 10.16M
Diluted EPS -0.11 0.21 -1.94 0.18
Net profit margin -1.64% 3.92% -30.58% 3.24%
Operating income 8.21M 24.64M -33.26M 15.45M
Net change in cash 187.77M -3.87M 22.34M 2.86M
Cash on hand 223.12M 35.35M 39.21M 16.87M
Cost of revenue 132.6M 115.97M 106.59M 102.6M

Financial data from company earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
6 Jul 20 Dagg James Class A Common Stock Sell Dispose S Yes 39.31 8,000 314.48K 6,054
6 Jul 20 Dagg James Stock Option Class A Common Stock Option exercise Dispose M No 0 8,000 0 616,452
6 Jul 20 Dagg James Class A Common Stock Option exercise Aquire M No 0 8,000 0 14,054
16 Jun 20 Howard N Morof Class A Common Stock Sell Dispose S Yes 38.21 4,000 152.84K 325,555
15 Jun 20 Maitra Raoul Class A Common Stock Option exercise Aquire M No 0.64 2,500 1.6K 9,717
15 Jun 20 Maitra Raoul Stock Option Class A Common Stock Option exercise Dispose M No 0.64 2,500 1.6K 5,500
12 Jun 20 Howard N Morof Class A Common Stock Gift Aquire G No 0 7,774 0 329,555
12 Jun 20 Howard N Morof Class A Common Stock Gift Dispose G No 0 7,774 0 5,392
10 Jun 20 Howard N Morof Class A Common Stock Option exercise Aquire M No 3.64 968 3.52K 13,166
10 Jun 20 Howard N Morof Class A Common Stock Option exercise Aquire M No 5.18 6,806 35.26K 12,198
92.2% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 110 1 +10900.0%
Opened positions 110 0 NEW
Closed positions 1 128 -99.2%
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 2.47B 513K +480604.8%
Total shares 38.56M 500K +7611.5%
Total puts 2.1K 0 NEW
Total calls 18.1K 0 NEW
Total put/call ratio 0.1
Largest owners
Shares Value Change
Matrix Capital Management 4.14M $109.62M NEW
Pictet Asset Management 3.61M $95.57M NEW
Vanguard 3.57M $94.59M NEW
BLK BlackRock 3.28M $86.86M NEW
NEU Neuberger Berman 2.7M $71.5M NEW
JHG Janus Henderson 2.49M $65.98M NEW
Conestoga Capital Advisors 2.03M $53.87M NEW
Bamco 1.89M $50.02M NEW
IPXAF Impax Asset Management 1.82M $47.91M NEW
Primecap Management 1.23M $32.54M NEW
Largest transactions
Shares Bought/sold Change
Matrix Capital Management 4.14M +4.14M NEW
Pictet Asset Management 3.61M +3.61M NEW
Vanguard 3.57M +3.57M NEW
BLK BlackRock 3.28M +3.28M NEW
NEU Neuberger Berman 2.7M +2.7M NEW
JHG Janus Henderson 2.49M +2.49M NEW
Conestoga Capital Advisors 2.03M +2.03M NEW
Bamco 1.89M +1.89M NEW
IPXAF Impax Asset Management 1.82M +1.82M NEW
Primecap Management 1.23M +1.23M NEW

Financial report summary

?
Competition
MSC SoftwareANSYSHPCSiemensAlteryx
Risks
  • We have experienced significant revenue growth and we may fail to sustain that growth rate or may not grow in the future.
  • If we cannot maintain our company culture of innovation, teamwork, and communication our business may be harmed.
  • If our existing customers or users do not increase their usage of our software, or we do not add new customers, the growth of our business may be harmed.
  • Our ability to acquire new customers is difficult to predict because our software sales cycle can be long.
  • Reduced spending on product design and development activities by our customers may negatively affect our revenues.
  • Our business largely depends on annual renewals of our software licenses.
  • We believe our future success will depend, in part, on the growth in demand for our software by customers other than simulation engineering specialists and in additional industry verticals.
  • Our ability to grow our business may be adversely impacted by difficulties we may experience in integrating recent acquisitions or in integrating future acquisitions.
  • We face significant competition, which may adversely affect our ability to add new customers, retain existing customers, and grow our business.
  • Because we derive a substantial portion of our revenues from customers in the automotive industry, we are susceptible to factors affecting this industry.
  • Adverse global conditions, including economic uncertainty, may negatively impact our financial results.
  • Seasonal variations in the purchasing patterns of our customers may lead to fluctuations in the timing of our cash flows.
  • Fluctuations in foreign currency exchange rates could result in declines in our reported revenue and operating results.
  • If we fail to attract new or retain existing third party independent software vendors to participate in the APA, we may not be able to grow the APA program.
  • Licensing under our solidThinking brand is dependent on performance of our distributors and resellers.
  • If we fail to adapt to technology changes our software may become less marketable, less competitive, or obsolete.
  • We believe our long-term value as a company will be greater if we focus on growth, which may negatively impact our profitability in the near term.
  • Our research and development may not generate revenue or yield expected benefits.
  • Our continued innovation may not generate revenue or yield expected benefits.
  • If we lose our senior executives, we may be unable to achieve our business objectives.
  • If we are unable to attract and retain key personnel, we may be unable to achieve our business objectives.
  • Defects or errors in our software could result in loss of revenue or harm to our reputation.
  • Acquisitions may dilute our stockholders, disrupt our core business, divert our resources, or require significant management attention.
  • Failure to protect and enforce our proprietary technology and intellectual property rights could substantially harm our business.
  • Intellectual property disputes could result in significant costs and harm our business.
  • International operations expose us to risks inherent in international activities.
  • We may lose customers if our software does not work seamlessly with our customers’ existing software.
  • Many of our customers use our software and services to design and develop their products, which when built and used may expose us to claims.
  • If we fail to educate and train our users regarding the use and benefits of our software, we may not generate additional revenue.
  • If we are unable to match engineers to open positions in our CES business or are otherwise unable to grow our CES business, our revenue could be adversely affected.
  • Our sales to government agencies and their suppliers may be subject to reporting and compliance requirements.
  • We may require additional capital to support our business, which may not be available on acceptable terms.
  • Our loan agreements contain operating and financial covenants that may restrict our business and financing activities.
  • We operate internationally and must comply with employment and related laws in various countries, which may, in turn, result in unexpected expenses.
  • Changes in government trade, immigration or currency policies may harm our business.
  • Our use of open source technology could impose limitations on our ability to commercialize our software.
  • We currently open source certain of our software and may open source other software in the future, which could have an adverse effect on our revenues and expenses.
  • Our revenue mix may vary over time, which could harm our gross margin and operating results.
  • The estimates of market opportunity and forecasts of market growth included in our periodic reports or other public disclosures may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in compliance with applicable laws.
  • Our business is subject to a wide range of laws and regulations, and our failure to comply with those laws and regulations could harm our business.
  • If we or any of our employees violate the FCPA, the U.K. Bribery Act or similar anti-bribery laws we could be adversely affected.
  • Business interruptions could adversely affect our business.
  • Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States.
  • If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings, which could harm our business.
  • We have significant deferred tax assets in the United States, which we will not use in future taxable periods.
  • If our global tax methodology is challenged our tax expense may increase.
  • New legislation or tax-reform policies that would change U.S. or foreign taxation of international business activities, including uncertainties in the interpretation and application of the 2017 Tax Cuts and Jobs Act, could materially affect our tax obligations and effective tax rate.
  • In addition to our software, we source, distribute and sell products, which may expose us to product liability claims, product recalls, and warranty claims that could be expensive and harm our business.
  • Failure to protect and enforce toggled’s proprietary technology and intellectual property rights could substantially harm toggled’s lighting business.
  • Assertions by third parties of infringement or other violations by toggled of their intellectual property rights, or other lawsuits brought against toggled, could result in significant costs and substantially harm toggled’s business.
  • Our business may collect personal information and is subject to data protection laws.
  • An active public trading market for our Class A common stock may not be sustained.
  • The market price of our Class A common stock can be volatile.
  • We do not intend to pay dividends in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
  • If we fail to maintain effective internal controls, we may not be able to report financial results accurately or on a timely basis, or to detect fraud, which could have a material adverse effect on our business or share price.
  • We cannot predict the impact our capital structure may have on our stock price.
  • Future sales of substantial amounts of our Class A common stock may cause our stock price to decline.
  • The dual class structure of our common stock has the effect of concentrating voting control with certain stockholders who hold shares of our Class B common stock, including our founders, certain of our directors and executive officers and affiliates, who hold in the aggregate approximately 90% of the voting power of our capital stock. This will limit or preclude your ability to influence corporate matters, including the election of directors, amendments of our organizational documents, and any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transaction requiring stockholder approval.
  • Certain provisions in our charter documents and Delaware law could prevent an acquisition of our company, limit attempts by our stockholders to replace or remove members of our board of directors or current management and may adversely affect the market price of our Class A common stock.
  • Our 0.250% Convertible Senior Notes due 2024, or the Convertible Notes, are effectively subordinated to our secured debt and any liabilities of our subsidiaries.
  • The Convertible Notes are our obligations only and a substantial portion of our operations are conducted through, and a substantial portion of our consolidated assets are held by, our subsidiaries.
  • Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.
  • We may still incur substantially more debt or take other actions which would intensify the risks discussed above.
  • Our revolving credit facility limits our ability to pay any cash amount upon the conversion or repurchase of the Convertible Notes.
  • The conditional conversion feature of the Convertible Notes, if triggered, may adversely affect our financial condition and operating results.
  • The accounting method for convertible debt securities that may be settled in cash, such as the Convertible Notes, could have a material effect on our reported financial results.
  • Transactions relating to the Convertible Notes may affect the value of our Class A common stock.
Management Discussion
  • Total revenue increased by $62.5 million, or 16%, for year ended December 31, 2019, as compared to the year ended December 31, 2018. The increase was primarily attributable to an increase in software revenue.
  • The 20% increase in our software revenue for the year ended December 31, 2019, as compared to the year ended December 31, 2018, was primarily the result of an expansion in the number of units licensed by our existing customers under renewed software license agreements, contributions from recent acquisitions and licensing of units to new customers pursuant to new software license agreements.
  • The 6% decrease in our software related services revenue for the year ended December 31, 2019, as compared to the year ended December 31, 2018. This decrease was the result of a decline in revenue from consulting services. On a constant currency basis, our software related services revenue decreased by 3%.
Content analysis ?
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Legalese
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Readability
H.S. sophomore Avg
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