ALTR - Earnings call transcript Q4 2021

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Operator

Good day. And thank you for sending by. Welcome to the Altair Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Dave Simon, Chief Administrative Officer of Altair. ahead. go Please

Dave Simon

Officer and and and call Welcome, be full release investor.altair.com. we XXXX for the section this website our Altair's quarter the Financial Jim market Chief XXXX the attending December details performance on After with Good call full and for Officer. conclusion fourth with the website This and the the following thank a regarding Relations Matt guidance year first fourth recorded, issued conference are Administrative on Simon, being IR Dave for XXXX. Founder year a year and today, Altair. our quarter earnings section at press Investor And is our XX, call. of of me XXXX, accessed replay of Chairman afternoon. Scapa, and call available I'm quarter you of CEO; will and closed ended Chief which can on full Brown, be

During results any the actual today. earlier in a to any statements that These summarized of today's differ variety expectations. obligation considered any securities be and representative related not federal These from to as forward-looking risks views that forward-looking release to disclaim views under are we cause may to laws. statements business should that materially subsequent our update are we of reflect as of uncertainties date. subject be our considered statements only today outlook. will of We our statements or call, could make risks These press and issued our

that that in material please have actual the filed may time. and the reports our from refer as filed other discussion factors file or to further a risks our and documents to contained as of results, well other SEC time annual we with quarterly those affect For could important

is included of reconciliation GAAP release. in non-GAAP certain measures course to financial our will we today's of the measures. A non-GAAP press During call, refer to

times are in of Please prepared or or our into to responses metrics questions, our comments the to that additional to usual that, incremental we turn insight at to that With may presentation your let offer dynamics our greater provide Finally, our in the the advised business prepared detail results. we may may Jim not continue provide future. this call remarks. me to his quarterly be Jim? for over or

Jim Scapa

are we strong year fourth numbers of in company overall you, welcome Thank Dave. had everyone Programming results XXXX, I Altair for the on And recent key of our above and, the received early all call. and guidance our excellent and will ranges. the XXXX. in momentum the year awards additional experiencing an quarter to XXXX full full QX Today, coming our World and acquisitions with discuss for some

science with vision driving computational decisions Our customers. for is intelligence and artificial resonating with smarter

Our including and footprint quarter expanding $XXX.X representing QX revenue a products $XX for continue to the million, product XXXX Adjusted we EBITDA XX% software million. $XXX.X was our for of are Total XX.X% grew XXXX to verticals. $XXX.X compared to million software XXXX. $XXX.X for $XXX.X in and in year year full million to full XXXX, the XX.X% for revenue $XXX.X grew compared revenue Total the margin. XXXX million EBITDA across was gain revenue market million, share, million adjusted to product all

XX% cash EBITDA million Adjusted XXXX $XX.X was recurring to high software at XXXX of XX% XXX% $XX.X full million XXXX. from to license compared to in for product year. total XXXX. the Free grew of flow $XX.X million in for year compared growth representing XXXX the million, in rate revenue remained for And XX.X% of Software XXXX. during revenue XX.X% represented our $XX.X

a WPS to compile enterprises, MLOps and a with while transition investments best within modern develop, in of and technology. will the a of into develop, Altair execution be older compile leverage WPS the for with XXXX applications improvement XX% over creates easy solution UK-based World enterprise Programming preserving software Altair the open XXXX. or such World programs. and applications to significant into adjusted and SaaS execute EBITDA in Python architecture In access and Altair's to languages help of the Analytics the models to margin programmers December analytics Programming, using and year powerful grew see in Our data of as and Altair's as SaaS environment. Altair a unique millions straightforward giving supports offering this SaaS of requirements the the technology adjusted SaaS EBITDA to LEPS environment, and written open and analytics full XX%, acquired XXXX, Programming's of learning available aligns to opportunity developing company, analytics software brings as data world's the written Hub, philosophy, language. technology elements leaders. combined critical make modern language business productionized world-class in data of the companies. the machine as solutions models, including the Altera's scientists technology language leading The companies flexible WPS thought significant team World made, business integrated SaaS SQL under a significant [ph] of Analytics, in data language ability to simple interpret used and well statisticians, suite acquisition popular data it and to in a of ability built languages, programming technologies development will language, strong Units. applications. the of platform, and incorporated customers We programs solutions Analytics acquisition Altair and Programming including intuitive by low-code address great mathematicians, many the analysts World scientists, specializing

and product technology under quality manufacturing, named by and Newsweek's these best second the quarter a entire a are Magazine's together in management will The and and widely string XXXX. digital simulations. Altair language environment, traditional the platforms critical As about this Cassini's best a Altair being the processes the strong through to manages to Inc. Industry We acquisition platform integration chain, was the growing comprehensive analytics English India, product AI Engineering the view simulation U.S.A. market. the important complexity continued most enormous read vision. and pillars: passionate simulation of Cassini especially best Cassini, the within life order will business providing the XXXX, top of to sector. a to simulation data XXX-degree workplace by, recently capabilities Altair XX X.X. named for four talented teams best-in-class engineering, data activities top-down workplace believe concept Most on from and science-based awards service board were seamlessly top data our review harness offering physics Along the in people One with in and business experience software value the platform of model, technology will sees and for Altair digital world's data provide for number mechanical our and thread significant results broadens customers bringing Kununu, newspaper, capabilities, enabled leading XX customers creating digital Cassini's native, next-generation grow ESG Investor's a view cloud appreciate XXXX, and player XXXX, end-to-end be respect both earlier fourth companies. of company a cycle Units the Times, as very Daily of native will we announced electrical our of Altair deliver, awarded we the data, reduced aspects validation models. brand of an and We XXX bring management each with After key and the bring customer simulation. list conceptualized employer are integrated Altair bottom-up and of in its models, site Cassini Economic mechanical with cloud recently Altair Altair provide region. PLM and the Business in the we augmented a platform data. of requirements. to in closed-loop Workplace product the power a team a value electronics innovation and Both and Loved deep with branding corporate on technology, One's into in employer cloud our for thread customers named the of data and XXXX. manage be and to different DOCK Altair One ranked and sensor Altair both increasingly product

put they place of for values our We and culture all. are as suite of and help a hard global awards to value the our the work set. Customers forward of recognize proud world Altair's and the increasingly these sustainable analytics teams and recognize power more data enduring better strength product the and be

of software high-value multiyear services majority concurrent in new and licensing over. the team two units in enterprise analytics the asking banking wins data including leverage our wins had benefits and Our products industry. quarter, switch and licenses seven-figure fourth notable units the many the licensing customers model several The including of are users, to existing customer and all financial access deals to floating see

of existing footprint is customer trend with solutions market and Altair in Altair as As also a our its active hundreds licenses customers. Altair's examples, licenses to a converting visualization Units. major range AI, including preparation, data of the all we their of to portfolio to grow the converted to across users and retail real-time This important Units. with bank available existing committed users recently applications, A analytics expand

Beyond simulation help engineering new Altair's analytics is leverage giving suite, disrupt including its company connect, models licenses and resulting conditions. data AI modeling and predictions predictive and the quality in Momentum cases, licensing increased Altair began CAE conversions supplier data our analytics team analytics for simulation manufacturer part use us their us ability past major separate to of data automotive data accelerating. APAC, to to models. collect revenue, convergence the a the team In can from cost to software An and manufacturing purchased demonstrate deals our on customer, create easily using units and surrounding these automotive the build long-time and with tools based computational engineering manufacturing traditional model how science market competition. within

is historical analytics These with few using to simulation and used data processes, supports continues Another for mechanical are and create technical The and our these best we that to and/or manipulation and platform for conceptual more analytics to accurate quotes data true simulation-driven the for just experience intelligence. a computational manufacturing parts. is of is performance. improved matches tools the creation compare financial faster more resulting in becoming of significantly new release, significantly Vision choice geometry data solution Inspire examples design. utilize every design evolve. converging, often show believe supplier When selecting organizations types historic in applications, data and

in our also now design employed available and design as studio a Math spice workflow rearchitecting simulation the strong customer solution selected overall and fourth embracing to and and within had by complex computer-aided Digital released by the radar SimSolid design. implementing wins Systems been workflow. simulations. believe high-level driven IC our vehicle many development. perform customer for Our analysis And design process XG HPC market. applications customers, and e-motor has integrated electric are cost-efficient is platform, synthesize with A & our simulation. is highly the basis to their the Europe We antennas wave for to by propagation driven now to capability And platform as related SimSolid leads This Spice quarter our multiple HyperWorks Inspire for and Twin designs, simulate best-in-class previously new simulation their in solution Inspire in for optimization new major technology including and multidisciplinary for ADAS Solver complex

rail passenger the and and which capabilities advancing focused recently this supplier Altair this players continues new proportion critical well client a the match the the used in resulted victory their its are happening are AEC is and market, solution recognize experienced to choice of as base the market. on safety unique of with wins forward company for manufacturing had we sector, capabilities up applications. user commercial SimSolid X combined rail several And emerging at displacing Tier a Each decided usage simulation country, acquiring are sector, a customers. users quickly. quarter large newly to grow processes. where company, was design Altair. gains With solid solution two significant by role and of to within analysis OEM at market. as speed a manufacturer, groups. to the Europe SimSolid vehicle its a has And crash simulation a major only in codes, across Some plastics rail fourth In a in which and dramatically unable one our believe a saw APAC transportation merger performance in Usage energy SIMSOLID with in ability as played the in several as traditional wins engineering both CAE different core embraced other selected the the the go leading the performance. are being solution their in company from manufacturing of Altair vehicle

solution Enterprise systems announced between HPE U.S. HPC to XXXX we and workloads diverse PBS leadership manager, the hours Supported ALCF's completing as ensure to machine and HPE's most supercomputers. workload researchers Aurora strongly intense multiyear second. computing calculations quintillion behind avoided and it global and and the Argon a the to Laboratory more simultaneously the thousands quicker, Polaris next-generation for size. ensure Polaris licenses including support at system The suite to while nearly Aurora, HPC run manage cloud test has including teams institutes. optimize HPC capable and which and more scheduled and Altair's a application and the XX-year administration HPC simplifying Packard Our workflow as an a the We usage and will agreement offer systems solution high-performance research improving Altair's resources computing years success Altair, Altair's grew and tasks, that team fastest and can and workload node HPC utilization many in of for of strengthens software scalable in downtime will of and the with Argon supercomputers relationship project. hundreds the for the to solution easily recently supercomputing. optimizing learning to help hours HPC technology, job includes forward jobs workload It's data-intensive bed is scheduling could robust be the of with productivity, facility, in replaces has of handling of any together. agreement more technology critical be organization's across Hewlett put management will the The system research make ALCF, and The default most performing the allow efficiency announced important discoveries. differentiator Altair capable scientific HPC specialists, for companies researchers simulation. Altair's business management will with per look on-prem efficiently of technology computing by and it National utilize Cobalt leading-edge hexascale efficient become of Professional, efficient a

solutions team We multiyear of global Unlimited excited to predecessor move deal establishing secured and part and of The deal the XX%. to enabling deal science dynamics, renewal By at quickly appliance proposition forward. Altair fluid was a of Altair include and Unlimited electromagnetics. are This a and expansion a a was the European billings quarter Altair seven-figure, benchmarks, the of our demonstrating of evident. the global customers automotive at Unlimited fourth scalability pure value deployed HPC system supplier. solver material honored Significant a applications division computational a in appliance of We be a structures major notable represents HPC successful supplier.

Altair Solver solutions. applications, and Carter Directors. to random of example pleased prediction of I analysis fatigue power components, welcomed a including productivity nonlinear is and of high-performance customer response-based to Board analysis. to material the computing and This an great have characterization, convergence of plastic boost of Sandy impact excellent simulation am Altair's life

technology, the in knowledge, inclusive XX, forward progress Chairman to President XX tremendous technical extraordinary was As the executive many supply geopolitical set the Marketing in carries against offers industry targets Chief including in future. Day. and Forbes this Masters for on in remain developed XXXX we Her to sector. May of Sandy, great against and to through success Senior fast-growing computational S-FRAME, and unstoppable our good executive smart excellent chain, tight We Intech. made geographies. across added and and XXXX AWS new global with with addition we the can former year global five from and fourth year talent, prior We some named an Global and are interesting issues artificial our of powerful and innovative Analyst women excited and of verticals, management science the negative about XXXX well technology I domains at and in CNN's new Board. both labor provide we the acquisitions, a including opportunities our variants, the Girls Channel style we digital in list performed finish areas marketing which to XX sincerely We products our technology the She COVID-XX the forward confident And AEC inflation, pioneer intelligence. Board from revolution quarter uncertainty. most Top the tech. uncertainties customers, the a value same internally a and at and We teams challenges energy, ones, economy. broad year throughout of for driving business of out years, and effects our macro Vice experienced momentum appreciative am the and high-level carry backdrop decisions believe some

call to guidance our more quarter and our the for performance the I XXXX. to on financial will first Now Matt year full and details Matt? provide turn over

Matt Brown

in everyone what to another was Thank the you Altair's most fantastic history. XX-year you, call. the Jim. on one of for years thank in quarter joining Hello was And QX us. successful

$XXX.X expectations XXXX. revenue achieving QX and to company's We million, of an on for EBITDA high Total fourth in across quarter board, continued to X.X% of were the for wins any history. the adjusted beating the significant streak notching record compared our our quarter billings increase way

retention and renewal once base. strong three in driven in growth by again BFSI new all geographic on verticals. regions high We opportunities strength technology and in our strength saw particular and billings expansion Our the and was software

and the growth is with in products our revenue expectations In analytics from a software QX down slightly Services and total, data strength in total to there simulation product with expectations, traction which year. trend quarter. are exceeding continuing HPC, other prior for we resulted were outpacing Our year. and billings in all the line in gain saw fourth the billings

increase to compared an $XXX.X Software revenue, product in includes $XXX.X X.X% QX services X.X% or revenue, was compared or Total which of was other and increase XXXX. an revenue million, to QX XXXX. million,

Our that to be product the percentage approximately which year. at continues strong recurring for billings are is rate, of recurring, software software license XX% the

increase quarter. as expense, of higher carries which was reminder, XXX revenues in our over a portion points the As than quarter year, prior QX stock-based just Non-GAAP U.S. which significant Relative the to impacted of a and dollar rates compensation XXXX, during margin, and restructuring XX.X% FX the margin gross in mix, are, other unfavorably basis gross revenue. impacted million changes a by rates. total our revenue of billed software our an percentage revenues were are as currencies FX changes in of excludes to XX.X% by fourth in in compared therefore, the $X increased

Software in XX.X% QX revenue compared prior was XX.X% of total to revenue year. in XXXX the

to outpace overperformance a primarily to result of stock-based shift billings increase in looking ago growth year expanding the Non-GAAP the continue QX commissions other year, our at we as marketing XX.X% increase revenue. concentrated quarter $XX.X for compared software driven the revenue towards our or out compared disciplined the the year quarter our the while were growth prior and expense That of reflecting double-digit incredible the expenses, the well revenue EBITDA on Adjusted compensation, the margin. adjusted on intangible as was XX.X% $XX.X there revenue with the prior back of will was by a spending. in software was year-over-year to of which sales or expect product in we've million $XX.X charges, increase achieve quarter. to It's revenue expenses, made. we compared million restructuring At relative year. in entire period. XXXX mix term, amortization EBITDA excludes vision worth $XX.X year and in as laid in services expectations operating million million Over total to assets year as progress long combined beginning general and a This to increased

analytics the We our awareness And off. XX.X% market. $XXX.X an customers. our revenue software revenue to paid an total and XX.X% product XXXX. focus efforts simulation, marketing the of data in and sales year, product for computing, the increase we in brand million heavily invested compared our best And Our technology These and elevating artificial high-performance the help in year, million to motion, bringing we intelligence achieved development, of of $XXX.X to increase XXXX. drive for to compared invested

we profit. Combined in XXXX, were of what wins our able growth. awards digits, the $XX.X in increased truly for revenue gross the grow in In invested invest a to to gross year, Our profit select our profit or drive of EBITDA EBITDA our acquisitions XXXX. cash in we fuel a minutes revenue in growth greater XXXX business a gross or several in and to revenue set adjusted freeing to year-over-year XX.X% adjusted reducing which important margin grow than This our to $XX.X of in million up XX.X%, increase double in At future $XXX.X free point $XX.X than doubled operating is XX.X% cash and of than or the increase $XXX.X other an beginning million profit areas million, mentioned was to that's driving million persistently ago, is and an basis while to compared or to some growth non-GAAP to XX.X% Jim increase million XXXX. growth notable XXXX. costs. more in the remarkable grow exactly in XXXX flow, in competitive margin which this compared to out And expenses, greater of with we increase few compared history. XX.X% our is helped adjusted year And XXX This EBITDA do.

prior and the cash to in The partially $XX WPL, from a due of quarter-over-quarter cash the Turning million approximately million equivalents, approximately year approximately million to quarter. of is sheet. primarily flow. balance ended $X decrease free with cash our related $XXX.X by to $XX outflow million decrease acquisition We the offset

As by a cash typically most QX. significant our our year seasonal QX in flows reminder, quarter, flow with the are cash throughout nature, being followed

provided turn guidance press our of Let's which today. including We've and GAAP in for XXXX. tables guidance earnings release to was detailed to QX close reconciliations full market after year comparable amount, issued

QX, X.X% For $XXX are of or range year-over-year to in to $XXX growth of year expecting year-over-year of to we products software XX.X%. growth and of full million or X.X% the $XXX million range million X.X% million XXXX to $XXX in the

We be down other expect XXXX. slightly services and to revenue compared to

a growth expect a unfavorably to QX prior XXXX. year-over-year of million growth impacting that revenue X.X% or approach we've range $XXX QX million perspective, of X.XX approximately carry range year and X.X% been $XXX to XXXX X full As in for million to percentage in into $XXX to result, to disciplined growth million approximately we X.X% impacting year $XXX to points. total or total points changes our the From XXXX to year-over-year and X.X%. spending approach Currency of and in expect revenue year-over-year total the are of year-over-year revenue by by growth the relative cost percentage unfavorably successful

free to part million litigation XX.X% expect was of captured we to to $X liability for revenue XX.X% payment million we which or we to XXXX. revenue million total In XXXX, EBITDA QX, in million, million flow of total our XXXX, WPL range XX.X% XXXX. expecting range total XX.X% adjusted the $XX expect against the compared million year full adjusted in XX.X% to XXXX to in we XX.X% of For EBITDA $XX result, million $XX.X or million $XX we period. of of or are to revenue total the the or revenue in million free cash in in the $XX a as compared the $XX.X judgment acquisition. flow January year of as And $XX.X $XXX range ago of assumed existing for in This is of satisfied of and cash

operations We flow overall are year-over-year, pleased growth our cash our free increase benefiting is core from with profitability. in in from which

which the expectations half a cash from cash inflow to of and seasonally. the our the shown patterns, In pattern historical free first litigation we're has flow continue QX reminder, collection free year, I and a this fluctuate As year. are the particular, just a settlement in mentioned, billings our primarily half billings sensitive QX to the expecting in and on second that collections amount, year. Besides of pattern outflow smaller from cash

nimble gives today, approved repurchase our of addition, In still us of business our allows in Board program we to shareholders, this Directors investing while announced to share $XX in Having the to program. million capital place goal has on to a return our our be and drive primary us flexibility opportunistically focusing growth.

to capital be we'd as team in accomplish to ahead. We that, what XXXX, part of was small Operator? lies share take extremely able have couldn't I not prouder what our this excited I'm being program With committed balanced strategy. this overall about to allocation questions. specific volumes view or your happy and a and prices of be

Operator

Our Munda Berenberg. line Instructions] question come first of from Gal [Operator

begin. may You

Gal Munda

my for taking you question. Hey, thank

revenue on different The of data And activity trend lot developing In partner seeing if are of figures, you. when more physics, to if first the but also while. mentioned the you a where side, maybe the side is enterprise trend provider the than other rather what you're a with kind you've across things there you're a more bundling have not to token over about one types tool I that a kind just, in see go in for words, said and deals you than some thinking these and you of trying – that, Jim, seven been of is was the customers of the of just just works? the Thank past. like SimSolid becoming

Jim Scapa

a That's good Gal. Thanks, question.

look So is it as number the and in going track the are track but many lot We you, a fact the for if doing. And we a increasing. customers. and in much metric of at that deals, that deals direction. you we're more talking fact, don't in of many, large-scale constantly about, we are internally, are we It's There's very it numbers what you're strategic right more.

solutions of that's We selling not point the just part our and of are typically, solutions entire portfolio why. a big

So yes, thanks question. nice the for softball

Gal Munda

No.

Okay.

expect would to well, I as you're continue you going saying? of that Just kind forward guess,

Jim Scapa

yes. on strategic I'm accounts. very focused do, I

So yes.

Gal Munda

Right. Right. Right. Yes.

follow-up, Markets to in out here you out if improvement next you a Matt, to you margin faster year-on-year. percentage you getting again last X set just very, than progression thinking Capital the progressing for very there May impressive your do again, like about, at year? what – a Day. Or growth? look If looks going question you close As points than target see we you're the like, into set more earlier think you get is year, in potentially you maybe you expected, are that My reinvesting be could bit that than said,

MattBrown

Gal. Yes. Thanks,

So, you're right.

think trying But ahead are really of well how about to profit progressed, XXXX. sacrificing we if to to careful you been look our get and we've not on exiting I goal we've XX% our of of way growth. kind at

technology to wanted sales and and really in investing our So, be balanced really, we in motion. our

That about to started of XXXX. kind the two-thirds so, we guide the way where on And if way XX.X% the of at that is for you XX.X% to about midpoint perspective, of through look from our at XX%. EBITDA

for plan, years adjust we may to we're want for we want the our on the and adapt that. we line. out And nice to continue that a a so, save about time. around – three-year – through be Two-thirds invest of a continuing for and chance good we may make long long-term. to of a But being we bit move three bottom way think I the feel there's do along, extra way sure two the We as we to that little to

Gal Munda

a lot That makes of sense.

Jim Scapa

you. Thank

Gal Munda

will Congrats a other the I great ask you. let question. on quarter. Thank

Jim Scapa

Thank you.

Operator

Our next JPMorgan. will from Jackson of question the Ader come line from

may begin. You

Jackson Ader

guys question. Hey Great. for thanks my taking

Jim one segment. first on and Crash Impact the The is for

is big automotive? real So, then in Impact vertical market? relatedly, stronger of a what's your for think Radioss you rail mentioned traction gaining curious, underlying And the fit the solver rather becoming rail be I rail. that would – there and within kind than maybe just solver how why Crash some reason in entire I'm

Jim Scapa

I to significant So, managed bit rail, when and smaller. you it's outside the important still don't it's U.S., to go capture the a an answer mean we've the I size of obviously it. actually quite know sector, It's but

related to across there's all because these more we a that – products very world footprint have In have. of relationships simulation, it markets. sticky think that of strong the of and is I the are all we

applications there more is Crash so, and tend to position. electronics, strong Impact in get some Impact very been product, We've and there, in we Crash the a superb We China, strong in don't strong and been in the more the for and is example, or change sector. changing. that do automotive But for in greenfield strong a doing They tools in are And number been the successful very bit lot for areas in the opportunities in Radioss obviously, place greenfield But well. it's understand whole sector. it's example, a automotive we good a have to – of different product to have very used they're they managed relationships. little where as a and rail, very

Jackson Ader

overall how to number XXXX? recent two, then I how purchase did do then And was much I And I this simply Great. on that number the acquisition was mean, guess, the price, – acquisitions that assume just made obviously, Okay. known when Number you to of the WPL. litigation acquisitions in one, one? those expect factor contribute that for Matt. revenue you a follow-up But into,

Matt Brown

Yes. Thanks, Jackson.

So that cash our just function litigation made accredit operating of when cash that then that from when this It yes, is perspective. acquisition Yes. against liability. The goes rather was the was acquisition movement flow the liability you It an where is from happens activities absolutely cash expect purchase accounting. the a we through flowing in it activities just to liability and so see did know acquired price. the than finance might

adjust of range And end so, and deal growth to million XX% you $XX to XX%. free our of thesis. of it that was cash up And at flow for which cash out built into free of a $XX model is with sort million, you our flow, year-on-year when

historically the XXXX, that revenues we're of and in WPL had we're a With $XX to acquisitions so range. flow million So, but precise expecting guide. sort normalized cash numbers, revenue giving it's the respect more into not or free

year represents extremely of our It not couple significant points. it's full guide. a so, percentage to And

We that that expect to growth see get some number not ramp in and expecting business we that potentially as XXXX. we're that from invest in we'll up, years. But future see to into growth

Jim Scapa

in the, data do very I to growing see Matt fast add And that, Jackson, I very, for and remarks can mentioned just we earlier, it analytics think – his if is us. we

pretty look at overall. is market growth data If fast data a us simulation, you for and analytics, analytics HPC

So their just and fits that within WPL space. technology

Jackson Ader

on side, acquisition then And the Great. Okay. contribution? the other Cassini

Matt Brown

the No XXXX revenue as Yes. into guide. that incremental on acquisition

Jackson Ader

All you. right. Thank

Jim Scapa

a will. technology equity you and is if That hire,

Jackson Ader

Thanks guys. Understood. Got right. All you.

Jim Scapa

you. Thank

Operator

Thank you.

Our line Securities. Blair from will of the question Abernethy from next Rosenblatt come

You begin. may

Blair Abernethy

you Thank guys. quarter, and nice

just profile force just this Just had following now? products? go-to-market you're they your what's forth. have of describe, to and on And existing so the planning Programming, like – Obviously, the of the integration the rest must looks Jim, with sort can sales how you World with the what – an

Jim Scapa

get all everyone comfortable than fits the So, culturally teams you well. more very pretty sort for integration – technical It's almost watch, data will. a pretty that easily as it's to a different culture. and easy integrated, time when it But integrate to if one is a are we of that. pretty sales us. takes This little integrated development teams nice the expect already Obviously, are products entirely

were how As far the they on go, as focused very, very products programmers.

science data about sort an different think of of enterprise, you and you users. if So, have types two

low-code down technology guts and applications. science code. of into have the really who business use have programmers that to the and then You are sort programmers, writing build of you code auto-generate types that out And data deep want analysts the

a the compiler piece they And probably big and a programmers And SaaS SQL and interpreter very really have nice because code have have important that's And there's the many code important SaaS that languages, lot SaaS really And these then is written that of they at some they really or focused of still were companies language. in unique built more in language. great lot more capabilities support want move programming. have, also differentiator lot they R the So, Python access. a and that's built companies so for to of of a well but you a modern they to can and of language. technology that

of and of the a that So, and address sort to well tools, all written being was both of with see support integration these the programmers of environment also mix SaaS that. with It's now of in they as, support tools mix legacy has business types really the modern you code. which enterprise able for and analysts an environment as building in communities their And a great language. if we codes will some technology language

Blair Abernethy

That's very update Jim, gears where just Switching seeing an on are along? just helpful. where a XXXX, – you channel that doing Thank some give Great. us been work you've – little, come you're partner some you. seeing your on the that's in traction? the you can how And –

Jim Scapa

continuing the indirect supporting I be much is get making organization to And critical But have substantial, business. as to numbers, the like really more component within with is it we next that to to gain. really And in go at going scale, to faster, to you and to if partners, I'd have committed can to look a our I we're working if business level really partners. on So, region think that importantly, every indirect engaged us. that the the more that. an is get we progress. really you really think – that's it's To be

but I'd coming. progress priorities it's real was X made year, there to one I So, last and think come Number like of our really faster, it a it's for XXXX.

Blair Abernethy

much. Great. Thanks very

Operator

Hedberg line Capital Markets. from come of will question Matt next RBC from the Our

Dan Bergstrom

Matt softball for and calls. Thanks last Jim, Dan seeing chain from chips what your question. I to and maybe you, customers? the this Hey, Bergstrom for on around provided updated in around love thoughts the for context another it's hearing good You've would taking Hedberg. supply you're several get

love Just as update you're would enter an we XXXX seeing here? what

Jim Scapa

impact mean, be is sort impact that because business of lead direct components for semiconductor I the don't one where the honest. when them. we're lighting which just we perfectly very think significant other probably a to ordering us, actually there's have on time a I So, is it's one-year business line, place that Actually,

product many and So into impact. a of me customers supply And it what with, particularly you a that of big haven't gives are if my you dealing a have where established line managing sort chains. is view new pretty the really

older have lighting our we much for products, difficulty line less designs. but example, newer So,

software think that's much and we're But chains business us, compatriots, for huge Newer those Altair for products for it's that. seen suspect certainly the in haven't don't impact a where my again, establishing I supply of we and I harder. most

Dan Bergstrom

strong are into of That's I out great. us? the but that software down point drill quarter. strength particular again any then really know for is And this was strength there areas broad-based, or maybe could you

Jim Scapa

strong more component, to time it's because U.S. The going that, the still overseas to mean overseas, and it more regions first auto of actually. to that's going WPL a – but investing is with off-road and aero business three all with We and in we markets it's is are lot has particular regions, areas. I really really all are I it we pretty growth shift. obvious think but the across stronger Technology I growing all, more spent – take actually. are do and defense think I of Data strong very and and that's for help. think us, analytics substantially

So, board. it is really across the

Sorry that answer. boring

Dan Bergstrom

you. great hear. It's No. to Thank

Jim Scapa

Thank you.

Operator

will Wong Guggenheim. question next Ken from of the line Our come from

begin. You may

Unidentified Analyst

from taking This Ken. and for questions congrats on is quarter. question Thanks on the the me. for Nancy Two

year. just guided slightly you next down services, So,

as that look business meaningful we years, to first wondering of if So, the and activity models? was can there's in XQ kind we be of then at forward there about build our beyond? we In pull-forward fiscal we going aware XXXX quarter, out as in aware be of? Thanks. any secondly, how think should any dynamics And

Jim Scapa

take Matt that. let I'll

Matt Brown

that. take Yes, Yes. happy to

still in a we're CES There's we as actually, when services we of there, really bit XXXX. head bit our an underneath little COVID of other at a struggle And QX. So, look to impact it. that business, and we're business hangover have from get into particularly it's you seeing seeing a so kind the

As continue at expect, back off we in to business to of bit to we in low- term starts and year, around least sort level going and it get long come a through bit make to the that range. our the do way better. the But a is grow that mid-single-digit

services included in doing that Software-related other and actually is pretty that's services well.

that bucket down. So, I forgot it's question. you... apologize. overall CES kind bringing really your And that's Can of follow-up I

Unidentified Analyst

pull-forward activity there Was helpful. in That XQ? was any

Matt Brown

Right. year meaningful and to predict close. No, least outside the quarter, deals there wasn't crossing we're any at can't when heading into any are substantial pull-forward we activity did But see going not always of the end quarters the When you activity. down norm. of

Operator

question next our the Bhavan Blair. of from comes from And line Suri William

You may begin.

Dylan Becker

an or thinking you maybe about that, approach additional maybe Matt, then functionality, as that those or as this of trended some potentially some kind like these expanding of there has broader of free design-focused kind of technical Are for well? engineers. with think, I viewed guys. you a being of quarter any conversions new the of kind to and two-parter other at with maybe some less guys it's It design users? sounds free and onboard kind I of the strong for capabilities across appreciate of PCB the could of year. share kind Maybe the, offering Dylan in some premium-based tools metrics that's maybe Bhavan. platform for guys, solution? here a of opportunity congrats adoption users. anything all the giving And follow-on you with is you squeezing more on some favorably way around us how offer usage to Thanks the a the up we've And and on Hey into as seen and here like so

Jim Scapa

lot market, interest. the and the So, that talking you're a – I mean, strategy of in around free LTM we've out solution there's the put about

super point. to is offering. that positive. in we there. think lot we of too of our grow offering to way that a this what we're the at of So And measure trying early But It's visibility there's value sort are

deal to a It's very I mean of and lot And the sort the to community And visibility. of in we about of of users, feeling and a seeing so from traction a it's now. get freemium yes, really We're a strategy enterprise large to get strategy see expect a there. separate good good some customers continues traction we're the for whole evolve sort LTM to for PCB it. also large offering solution new

Matt Brown

Yes.

probably But too early. tracking think as in in far at promising it And opportunity, the metrics to just and too the about metrics, early. honestly, not market. really We're be on excited a is really that it's As we do likelihood, all future. we're it's just this point, providing something is going it

Dylan Becker

us in. seeing for guys, Thanks, Congrats again quarter. Great. the on

Jim Scapa

Thank you.

Matt Brown

Thank you.

Operator

not closing like I'd call any further queue. showing Scapa for I'm in to And remarks. questions over Jim any the turn the back to

Jim Scapa

my CFO, on support the year. as fantastic my team to want Matt, industrial community else and appreciation also, the appreciation as everyone really job, did team, did just express well. from a as year to all first great well. to Really And

So, thanks, everyone.

forward, very, very feel a the great future. like we're excited place. about Looking in I

thank So, you.

Operator

for call. And this participating. concludes today's you conference Thank

great have Everyone, disconnect. day. now may You a

Altair Engineering (ALTR) 26 Feb 222021 Q4 Earnings call transcript