ALTAIR ENGINEERING Reports 6.4% Increase in Total Revenue for Q2 FY2023
August 21, 2023
☀️Earnings Overview
On August 3 2023, ALTAIR ENGINEERING ($NASDAQ:ALTR) announced its financial results for the second quarter of FY2023, with total revenue reported to be USD 141.2 million – a 6.4% increase from the same period in the prior year. Net income for the quarter, however, was USD -22.3 million – a decrease from the previous year’s figure of -33.8 million.
Analysis
GoodWhale has conducted an analysis of ALTAIR ENGINEERING‘s fundamentals, according to Star Chart. The results of this analysis indicate that ALTAIR ENGINEERING is strong in growth and profitability, medium in assets and weak in dividends. Based on these findings, GoodWhale has classified ALTAIR ENGINEERING as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company may be of interest to investors looking for companies that have strong fundamentals and potential for growth. In addition to the position in the Star Chart, GoodWhale also gave ALTAIR ENGINEERING a high health score of 8/10, considering its cashflows and debt. This score indicates that ALTAIR ENGINEERING is capable of paying off its debt and funding future operations. This could be especially attractive to investors looking for stable companies with the potential for growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Altair Engineering. More…
| Total Revenues | Net Income | Net Margin |
| 586.98 | -45.42 | -9.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Altair Engineering. More…
| Operations | Investing | Financing |
| 110.76 | -121.43 | 12.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Altair Engineering. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.26k | 635.59 | 7.68 |
Key Ratios Snapshot
Some of the financial key ratios for Altair Engineering are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | -20.6% | -2.8% |
| FCF Margin | ROE | ROA |
| 16.8% | -1.7% | -0.8% |
Peers
As the global market for computer-aided design (CAD) and product lifecycle management (PLM) software continues to grow, the competition between leading providers Altair Engineering Inc and its competitors Zwsoft Co Ltd (Guangzhou), CI&T Inc, Fukui Computer Holdings Inc is intensifying. While all four companies offer a suite of powerful tools for design and manufacturing, each has its own strengths and weaknesses that give it an edge in certain areas. As the competition between these companies heats up, it is likely that we will see even more innovation and advances in these vital industries.
– Zwsoft Co Ltd (Guangzhou) ($SHSE:688083)
As of 2022, Zwsoft Co Ltd (Guangzhou) has a market cap of 18.79B and a Return on Equity of 2.39%. The company specializes in providing software for the design and creation of 2D and 3D models, drawings, and animations.
– CI&T Inc ($NYSE:CINT)
C&T Inc is a leading provider of information technology services. It has a market cap of 1.06B and a ROE of 14.37%. The company provides a wide range of services, including software development, web development, and enterprise resource planning. It has a strong presence in the United States, Europe, and Asia.
– Fukui Computer Holdings Inc ($TSE:9790)
Fukui Computer Holdings Inc is a Japanese company that specializes in computer hardware and software. The company has a market cap of 72.05B as of 2022 and a Return on Equity of 20.44%. The company’s products include desktop computers, laptop computers, servers, and storage devices. The company also provides IT services, such as cloud computing and data center services.
Summary
ALTAIR ENGINEERING reported strong revenue growth of 6.4% year-over-year for the second quarter of FY2023, ending June 30 2023, with total revenue of USD 141.2 million. However, the company still reported a net income loss of USD -22.3 million, a decrease from the previous year’s figure of -33.8 million. Investors should consider these financials when assessing the potential of ALTAIR ENGINEERING as an investment option, and factor in other relevant factors such as the company’s competitive position and overall industry outlook.
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