ALTR - Earnings call 4 2023 | Altair Engineering Inc.

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Operator

Good day and thank you for standing by. Welcome to the Altair Engineering Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Dave Simon, Altair's Senior Vice President for Investor Relations. Please go ahead.

David Simon

Good afternoon. for of earnings XXXX. XXXX, you the call thank quarter fourth ended and attending conference Altair's for Welcome, December XX, Dave section issued Jim for on SVP Chief Financial CEO; Simon, and close Brown, I'm me today, market with we and Investor Matt XXXX, with of the press the first quarter Founder, Scapa, Relations, are the details guidance and for on investor.altair.com. at regarding Officer.After release website Chairman accessed full our our which a and call year performance Investor be fourth Relations quarter Altair's XXXX can and This related of being and our to may be our be we under this will section the call following call, is of business securities conclusion that a on replay forward-looking laws. website call.During considered IR statements recorded federal make the today's available will of These and views of statements any today subsequent of should not only our our views considered representative as reflect date. as be or obligation We to any disclaim forward-looking update statements outlook. any subject to risks differ expectations. statements actual and materially from These to cause could a results are that our uncertainties of variety that summarized release the press earlier issued risks are These today. in we

please reports For to to reconciliation our GAAP call, of we refer the that of discussion to press time well measures risks to measures. have results, and a documents release. filed those in or we our will important today's that A filed non-GAAP from the annual could our actual course quarterly is may time.During as further file certain included financial non-GAAP contained factors and with the in other material as affect other of refer SEC

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

James Scapa

Thank momentum and $XXX.X to $XXX.X on welcome respectively. year total the carried fourth million everyone Altair positive call. record for full Dave, high The XXXX of million, and you, with revenue and quarter of quarterly

XXXX and top EBITDA grew the computational Altair's XXXX revenue year-over-year of our through of revenue increased growth well QX our to guided with or of the compared XX% revenue year total QX per for million, XX.X% the of above grew full a or constant basis. total X.X% for product last year total XXXX helping revenue XX% within EBITDA to XXX to were organizations adjusted million, in the XX.X% end X.X% results years.Software guidance X XXXX EBITDA the over $XXX.X for revenue, revenue. by range. our XXXX, intelligence.Adjusted Software increasing million, continue both or Adjusted by currency to $XX.X by adjusted path of EBITDA points XX.X% versus basis year on $XXX.X margin continuing succeed trend XXX full product of and

And total Software year to from the an was the during last as technologies to was XX% geographies, XX%, fall recurring released for XX% to years. many the full broad of revenue to percentage XXXX. continues update verticals.In we what XXXX. products in increased XXXX, license XXXX based Altair's our a growth XXXX compared and be believe we of most across XX the in important as product for software rate revenue XX% the increase

under solutions for another Our all simulation of expected upcoming release a to take to framework, as this forward model. spring graphics engine our back-end user common continue we and is data bring leap

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high XX% tool throughout A drove in from credit signed its solutions has value in with aimed substantial AI major for growth, recognizing And and of the usage primary Altair to unions platform, SLC high of analytics.Altair's and largest Altair increased organization. vertical. to data on the a applications performance many use and major its work the renewal U.S. many group analytics computing its consulting banking as activity North organization One clients our European a with to deployment a across technology RapidMiner. American supply chain agreed SLC

power One of annual on Altair's the XXX% not operational based in leading workload renewed EMEA its a but cost software.An order software with leads semiconductor to high increase. the only and field for enhances also XX% placed cost This of given efficiency, companies workflow experiencing throughput application semiconductor increase. company an management EDA savings, a substantial the

self-esteem figures revenue, Parts. technology team to we available also to in look Kamen, our Altair X,XXX based costs.Indirect usage with FIRST in further to effectively overall data leverage We establish Technology founded an along on robotics Now on engineering welcomed example development Dean revenue its leadership Applied by community Indian are free learning. recently EMEA. perfect and through the department applications and represent intelligence.Altair students computing competing and analytics for of of future.Combining simulation Corporate has and X will and the of within high on a a initiative simulation forward students managing in the in year's Social Altair from includes This first Neyond teams electric development with students for Portugal teams is to high its from computing is organization this program e-mobility competition by computing students' school countries collaboration startups, Competition cloud focus focused now and with of performance formalized manufacturer and quarter. and U.S. powered of Altair Altair analytics support the FIRST and agreement while desire Kit of X-year the on grant across advancing XX to goal performance India design our a support Insights where Robotics technology than annual channel to in design. relationship South technologies, Altair's FIRST diverse More semiconductor received partnership is software. with of with citizenship, is Africa technical money building all fourth today Institute technology, sales that We the Altair's have Altair's study regard, access expanded artificial collaboration with continues Altair vehicles. success academic lab infrastructure. experiences our strategic in in will researchers high FIRST new in the the under an of IT skills project-based design Do the Matogen hands-on and both and Exclusively bolster to a commitment they to and both in a the sales focused e-mobility, X collaborative software data have lab's by important Responsibility Altair role partners with to and Madras especially our percentage cloud work Furthering solutions. of

world's alignment partners for Clara, Day the XX focus, are execution ways Altairian and leader portfolio, we IIT our significant the the new Madras, verticals, California, capitalize accomplishments Altair a Santa March steady with appreciative of We into strong the customers, and discuss for the will young and outstanding investments an amidst our advancements, a was our to vision our best our for of brightest am stellar Investor global Altair technology moving work, the We that group the global educating lot future future.We opportunity. market and people economic of believe supporting Altair forward are keeps power benefit minds.XXXX and growing a of year holding technologies, software in and positions clear sales morning in to proud plans team I geopolitical hard and organizational market of us in culmination of on be employees, uncertainty. of the of well our our teams where that in culture from ultimately, individual our pleased combined shareholders.

financial we a what Altair very of prospective I over electronics investors full to and will we Matt I will the provide cover our who the hope turn markets on first technology and believe We analysts the XXXX. compete details investors will the Matt? to our all introduce market. more attend.Now our of as for year well quarter call be as performance and and disruptive also for and exciting guidance to the in

Matthew Brown

and Thank you, on the call, joining everyone you us. thank for Jim. to Hello

We difficult and both reported that foreign of face. the leveraging in year I our changes to the and review customers results exchange are finished of some XXXX, important strong results, reported of QX constant challenges of solve numbers. somewhat were computational we details dollar, which margin our constant to the the in results, $XXX.X rates transacted my they X.X% quarter results, dive therefore, fourth record demonstrate are reported in remarks, growth had pleased with continued long we revenues and intelligence currency.Starting in well EBITDA the a remember than I To established importance impacted quarter for billings with into for and XX% rates. the products may goal other in X.X% environment discussed will macroeconomic year-over-year in exceeding we Despite high XX.X%, reference our million, our our adjusted by the financial currency the of Calculated throughout the in significantly total revenue currencies to throughout with of expenses our increase currency. U.S. our be aid XXXX.As and

we historically X.X% reminder, across heavily had our of saw in that QX particular margin XXXX. X.X% a aerospace rates. The therefore year-over-year in revenue year-over-year in currency QX all geographies, a exited currency As to lower hardware $XXX.X strength fourth and a by million, with most growth been software billings in XXXX compared in increase in in was automotive, billings reported impacting we quarter, led was QX the the technology.Software increase and weighted growth across and constant business verticals

million, increase ago year-over-year and led increase revenue due supported our currency XXXX.Non-GAAP to gross growth new robust the increase fourth X.X% includes which growth quarter, partially QX, customer basis stock-based other reported to to of in prior which compared margin a XXX was in was compared business X.X% existing currency an renewal exit margin, margin present high in QX continues excludes quarter hardware from in year by by have the accounts year was QX year-over-year that services was and points. of non-GAAP revenue, $XXX.X expansion to retention.Total lower revenue very expense, and in gross base was XX.X% XX.X% Software of in the compensation period. a rate constant restructuring that and in the in The in a and

software as revenue, also mix blended of increased to a contributed slightly a higher gross our gross increase revenue. in the non-GAAP total percentage carries Software as margin margin, which

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

in in $XX.X will mix as $XX.X excludes were X.X% the highlighted amortization intangible constant we ever deal vertical, our shift largest to expect or was year the last our at This QX gross of period.Adjusted year, in with growth year deal. long that the profit analytics term, EBITDA of currency. in quarter, the compared compared services disciplined BFSI increase $XX.X in an outpace increase currency million, general to was X-year $XXX.X the the prior spending.Now revenue, ago or by a approach in year in total relative XX.X% combined year-over-year the there of or continue X.X% towards compensation looking million, which QX Over AI the full of to reported operating XX.X%. results million in to which assets, year, were as the was increase a $XX.X and X-figure software well quarter data billings year for Calculated expenses, increase we XXXX. a and Remember of revenue compared for expectations revenue.Non-GAAP million driven to million, stock-based XX.X% a and to in as other prior

$XXX.X currency multiyear a this of in in and So in revenue year-over-year and growth constant increase X.X% significant increase And reported XXXX year for in year the reported was XXXX constant a million, in currency. X.X% $XXX.X total X.X% year-over-year currency. impacting was rates.Software currency million, billings for X.X% the is revenue year-over-year the of deal

clarity amounts. reported to XXXX. and our ability the expectations, both detailed for million We've tables.Over generate to flow.Let's make a currency $XXX.X we've EBITDA or provide adjusted down increase executing cash that year-over-year saw years, flow or increase To the our year approximately in balance year non-GAAP and year-over-year couple provided substantial release, to goal of helped on currency gradual from XX.X%. GAAP cash set a for in The adjusted we've sheet. provided software Our strong margins with of XXX to the ended continues helped of its earnings in This guidance the the percentage QX profitability. operating revenue for in license prior recurring, our recurring rate, XXXX, way base. in tables entire years reconciliations in to We to including for the demonstrates XX.X% increase revenue EBITDA that We to total impact addition, strength is be expenses of million revenue press the rates rallying our our our QX In costs. remaining XX.X% as drive our in of we've growth the continued of the quarters basis to increase.In $XXX.X full $XXX.X non-GAAP in guidance the a more million year XX.X% than approximately reductions our to EBITDA.Turning software was in due year-over-year XX% Free to by and adjusted XXXX, margin cash are our milestone. million and total out gross million, XX% constant which year-over-year our an year, year. increase for or comparable in cash XX.X% and a past software and of XXXX, represents half proud expectations as a X to of seen $XXX.X point year. administrative ago drive achieving total increase from This revenue of a million around XXXX, revenue, exiting percentage to compared in compared $XX.X important free seasonality broaden shift I'm and declined X to the turn at and customer to into for driven general equivalents, team exceed billings year guidance significant this we FX our and $XXX.X away exceeding vision

a to and of We that $XXX in X.X% in million revenue are manner.For expecting currency guided $XXX of and XXXX X.X% increase million, year-over-year in trend X.X% reported QX constant we therefore to an in software QX, to X.X% prudent currency. the of in continue a range to expect increase have revenue

$XXX in the X.X% million in currency.We flat XX.X% to a the the declines in services and XXXX over expect $XXX full past year-over-year constant saw to years. of be XXXX, XX.X% reported to to revenue of range of expect increase currency X.X% and other revenue year-over-year we For year we software to million, compared in couple

the result, a currency X.X% reported to X.X% in to a As we in and in currency.For $XXX X.X% $XXX the year-over-year X.X% million of X.X% total currency. X.X% in increase X.X% of negative million, and million positive to expect reported increase the $XXX full million, constant revenue we QX of for year a X.X% range to to total expect of in $XXX in revenue year-over-year constant XXXX, currency to range

or to of XXXX.And to to to QX For $XXX.X of expect range in total to of QX, million, the EBITDA million XX.X% the adjusted $XXX total to XX.X% of we million or the adjusted year $XX.X year we XX.X% expect to for full we in range million in of XX.X% or $XXX XX.X% $XXX XXXX.For $XX $XXX finally, million of the full revenue EBITDA range XXXX, of in free revenue expect flow compared in million. revenue XXXX, cash XX.X% total $XX revenue million million or total compared

tremendous be sensitive financial we pleased goals with As to on take a seasonally.We billings continue opportunity excited questions. overachieving your lies execute that to as reminder, our we're fluctuate flow that, XXXX, Operator? we'd and cash the future to patterns profitability and targets. With our happy which for ahead are expectations collection are about our

Operator

Oppenheimer. with Wong line from first Instructions] Our Ken [Operator question come will the of

Hoi-Fung Wong

you how kind couldn't and to for technology landscape. might to the pick but I brain of initiatives. wanted help notice exciting current competitive kind Synopsys-ANSYS Altair's market, you're impact about about strategic introducing just wanted electronics kind I merger get thinking kind on on an of Jim, how your of talking your of the the thoughts

James Scapa

and has on not noisily Appreciate direction I last only know, as quietly combination of XX of Synopsys in Thanks, natural been the and in I convergence ANSYS ourselves, now X HPC Ken. probably more mean, the talking And for combination. I or I've years, and don't last, the a been well. here. think and the fairly or XX think much and for investing X couple years actually I'm Altair is here. and both mechanical it. of aggressively electronics and that I simulation AI about

So good I I for a mean, some that I opportunities during where great that think it's because there's comes Honestly, period know a going, remains uncertainty it presents think seen. and us, where to don't are be things combination. for deal us, customers this really of employees but

Hoi-Fung Wong

Got it.

a Okay. That And seasonality. of through dive into year. XQ there in of of sense. of Any just in are it? little thoughts how you little kind looks to then, how to cadence lot playing terms conservatism wanted maybe kind guys seasonal the or makes might of either below share Matt, I a typical bit revenue a maybe on the thinking trends be of kind about any

Matthew Brown

is Thanks, What well seen color in my coming a as the over sure. of give of couple Yes, percentage years somewhat on in last QX we've this. as a remarks little Yes, to I total. the noted Ken. less in revenue of prepared bit

that given little sense we're our And trend it customer in bit. that base. a is what so we're makes how And continuing is seeing XXXX broadening

over And year. causing to auto, be in been few broadened balanced which more heavily result, there. that very historically historically less concentration we're years, quarter, the so revenue time, our concentrated had throughout QX a and a particular had over revenue, we've that's the highest as in and somewhat So we've last

So that's guide. in reflected the

Operator

of will line William Dylan come Blair. Our Becker next from the question with

Dylan Becker

you. for maybe Jim,

the the of industry beyond linearity remarks, remained how kind importance on kind XXXX We You in up plays and we verticalization. and but do those a busy XXXX that of has kind had all platform of sustained that you partnerships, And the well. the prepared and year, pretty touched as of We momentum as sales you in active saw was in business trajectory components the some pretty guess, maybe potentially well? or momentum had overall. maybe setting for of guys. a obviously the some for to revenue force how about We as the of that think pretty of outlook the your I think pieces healthy resilient this year upgrade. layering about

James Scapa

as where a really changes vertical a these about done an lot it teams Last a new Yes, us, of investment between towards extremely year, People And But that know market. work I sure. some made indirect year how actually of products. go Thanks really extent. we've year standpoint, nicely our into the bottom a the the We over Similarly, great lot settled keeping also question. to we year that of very, on to we from sort have things control well. vertical we're operate sort we into the those coming for think a how to very really change We eye added good well. line teams. to this sense they're with really going of couple down to prudent very regions was great ones I released of some an having think this side. for and come optimistic now. We've produce

the great I the feel I feel about So about, go-to-market very, products. and positive very

XXXX, remain prudent very at optimistic but of we're in things. how we about we look sort So

Dylan Becker

it. Got

teams? well. kind I model? of there's an expansion I what through of there kind computational to because think of adoption as kind cases. help makes we lot think as the you sense. intensity? and of across today? platform again, opportunity of again, think usage That about customers, product And think kind guess a ton it proliferation use Okay. I where token the Is conversation expansion the of about about to adoption as greatest it, of it, expansion idea with us are drivers of seeing with a this maybe Is of core Is within the kind of sticking trying are kind the you of incremental kind that then teams drivers guess

James Scapa

kind it's think I actually the board. across of

high base We have this revenues. very huge very, installed with recurring

amount XX%, really growth of our each huge XX% expansion a that base, within So probably comes year. from

getting Twin bringing to engineering finally is huge is starting more traction well. those new great getting I products. into traction. AI get So products really some accounts, The think Digital as

opportunity base. we're vertical of the lot teams within And lot a the installed of means on expansion accounts focus the a the in key. part, and seeing are that's is And most within us. general those strategic within basically That verticals focusing so accounts, those which a for subset, extremely important for really

Operator

next from of will come the line Our Joshua Tilton Wolfe Research. question with

Joshua Tilton

sneaking Can me? for Thanks in. hear me you

James Scapa

Yes.

Joshua Tilton

ones me. quick for Two

think does I outlook put over conservatism think embed you that out environment are of been And talked to since #X how year. for just guidance just maybe this that's out kind within for plays months? baked trying kind the quick is some next year today? assume that the the of getting more I've also dropped. What difficult I -- level XX what this a is to got like follow-up. I understand asked the just or the of macro the results that, a just But next macro of And like question into people you

James Scapa

shot Do to you don't or Why Matt, want there, a you start? take me?

Matthew Brown

and Josh. can you Appreciate finish. I'll Yes, question. start, your Yes.

pragmatic and guidance. a and at looked the took pretty prudent we to year think approach I

we but a to You up in back of see the pretty end we're good and quarter, in up year in seeing some year, first expect revenue pick of the it throughout spot. half can more the the that balanced

anything have So Jim, to there? reasons be from product prudent pretty for very approach we're lots optimistic guide a have But from taking positive feeling do feeling and to a very a perspective, very, our add perspective. go-to-market XXXX. actually of you to we're

James Scapa

Last add. actually. just go-to-market investment the coming on year. the to into expect into this dividends We're investing product to I'll year, both we were here, bit that's on some year, to and ramp up going year. more and side, start little last And pay side a bit we're less maybe we Yes, a starting this

with to along to we going year, that put coming So we you're we'll out. cautious, the to how start think. see guidance are through say, we be trying But

Joshua Tilton

I get do for think year? And Like there either about what's or year different a can sense me then we helpful. is Super is, next baked of way the the follow-up we think how for any growth rates what into I what the core this terms versus what past data year of going of the as would of for of guess simulation the the think growth analytics people business business in forward? rest either is or growing more this

James Scapa

Matt, want me? you that answer to or

Matthew Brown

Sure. question. And it's not a Yes, is Josh, the year same. great every

year in data And you this in for Simulation XXXX, simulation. terms strong way. that may the really So we saw and of growth just us in led there remember XXXX, in led analytics AI the way segment.

be year is little so bit And every different. a going to

lot a We are that these though, expect, of technologies converging.

between them, of And It's starting more difficult and distinguish helps all. And so actually. you're of becoming to blend terms that in see a AI simulation. within growth actually to real them data drivers, analytics more and

success portfolio that helping leveraging to drive our So broad critical the is growth. technology of customers that's are our

from see going even contributions you're to think rate I converge. So they more as so all growth to to X and continue our

James Scapa

just could stuff especially If what's to the think will, in you simulation probably these -- that, agree. model. AI and the really accounts, is, engineering is units up add I'd hard Digital it's Twin with and And fast. our I I Yes, to what AI measure ramping if

Joshua Tilton

helpful. Super

James Scapa

you. Thank

Operator

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

Matthew Hedberg

additional or up front. incremental in focus wanted sort Jim, and some does anything maybe Altair on with guess, of to on partnerships strategically earlier question wondering I of the on on that terms change Just ANSYS. if follow cadence? Synopsys I any changes

James Scapa

mechanical. convergence continuing path we're this a already on think we Matt. of where we of see were I that sort mean, I electronics on and

of In lot be direction. there with you, and honest partnerships what happens players terms To a others. are there electronics sure. market possibilities I'm with I specifically, in different not sure the of guess in I'm that not

that For us, electronics -- And there the can market opportunities unlike invest. that play lot to we're in might we believe opening a are we quite we do of in continuing interestingly. others, feel, we

Matthew Hedberg

you then performance seemingly watching And all feels maybe know on do between simulation question. that decades, your where of But may of this is see high you it Jim. hard invested part? thing. And AI line is Got investment seen you've of sort of you and accelerations on be it -- that on it. just and haven't Like the model. that But some kind there that way maybe its been think in think going NVIDIA tailwinds spend start previously in do you you for given obviously, touched obviously, years maybe we're any compute your to prior helpful, to given some might forward That's you years sort customer like. and said,

James Scapa

I I'm we up is more is what ramp the are to hope we AI. But engineering an and important and And more answer. going earlier, that we not as seeing think around sure. I I call you're right. honest continue become for tailwind us. -- said That activity are to

yes. is the So answer

is typically actually, it's in I actually and think think been showing. winning. I we absolutely by go I that When wave -- several and benchmark, that years, we've front we're think in and of

And happy about very so we're that.

Matthew Hedberg

Got it. Best of luck, guys.

Operator

Company. the Charles from & come will Shi question with of next line Needham Our

Yu Shi

to want do ANSYS. I about plus ask Synopsys apologies, one My more

I to sole as your peer the found -- of of well. want interesting, kind the more combined simulation the less but but your and that's that will I think kind ANSYS it well, this which Synopsys company companies They combination thoughts thought that have to school one of mean legacy said of they they very hypothetically thought? if I could market, the opportunities I -- the they that's two roof, analysis means ANSYS, if the focused with under will from which school think on that that become not become companies. question. case But know speaking, first Altair? indeed for not them. be what think be if the opportunities -- And that's up it you because case for That's the the of which points the turned my focused that are or case, talking more those on don't to out is semis, do But opens agree get

James Scapa

case I the Okay. know either. if don't that's

is going strategies. to of to and the the when of the quite it's think the the the there's and combination direction I natural a tend leadership thinking the company leadership that of drive combined experiences

the the defocus And in we remains case, then some in and opportunities. to certainly, we that it in to seen. of the I markets both legacy new ANSYS certainly think if there's happens, that ANSYS well. continue could legacy But this bit So as ANSYS markets, opportunity a but think have be and markets

the these a types As I ICs, we see be -- XD think this less world electronics and into of bit really reason XD seen. is quite shifting of more the a huge, of type for remains to combination large and

Yu Shi

Got it.

maybe for question So maybe Matt. second a

revenue right? your changing little about were like the QX QX to for base bit broadening a want your kind like this us been shift, thoughts middle. sounds a broadening or QX, You want And and like from a of -- base the has may to are That's QX understand that vertical you in definitely this. vertical, specific, guide. is to the from because bit it's saying customer more the see customer seasonality your changing in little a other automotive we be We Can But of better for difficult light understand heavy. and your bit to pattern. little is little talked that QX it us profile, get better be you bit and QX, kind which QX High bathtub revenue verticals forecast what a just that how heavy?

Matthew Brown

Sure. Thanks, Charles.

it's So BFSI. namely, think and I most significantly,

seen of has years some in more steadily. us X of ago, for and legacy buying intents been older, as more growing than and last the over particular exist So didn't grown, verticals. has are in than vertical for that patterns we've years our couple BFSI, all different the what purposes,

the changes as technology, as you a grows, result, base as seasonality entire revenue such some vertical verticals that example. start But see to in it's And for also true for so as grows.

the and So we've towards somewhat shift these balanced other patterns year even much from tend more into buying that a seen or throughout QX. little verticals away a are have either bit gradual to just auto more loaded back-end that

Yu Shi

Thanks, Matt.

Matthew Brown

No problem.

James Scapa

not broad-based the question, to I seeing very tremendous we of directly technology. verticals and could BFSI. and and just think happen well, but and across in thing that's electronics And I addressing that. just Maybe are going If add to aero one it's as defense a not opportunity the amount

Operator

of line Stephen Morgan. the from come will Tusa question J.P. next Our with

Stephen Tusa

on question a Just EBITDA margins.

some growth You And investing on What's but years? the did revenue is already color you more points. XXXX, margins between of you've XXX Are think in preselling the XXXX. for that that this XXX expected. some noted basis I improvement about bit the bps little difference a Maybe year? just

Matthew Brown

XXX short XX. me bps. Stephen, by thanks. Don't is those It

very XXXX years year half we've nice XXXX having something happy a mean, the and XXXX, us of margin I which is in and of growth. ahead beyond. that over we're so able opportunity the expansion of obviously it's lot about from see XXXX few a really we of yes. last back to to demonstrate margin been in So,

And so investing that in we're reason, areas. just that making the we're for right sure

make what for in to can want product capacity in so as we growth, sales we sure some capitalize see we our investing So development, out opportunities that that in and meaningful in on particular areas we're pretty there. really

like year be every the rest. not is going to So

course, to not rest. that every into is We meaningfully, the makes is the are, in of margins to to year going a of sense lean it the still think And we opportunities but we committed like which have. this be lot year growing

Stephen Tusa

of be I the guess Is to I this at what kind you is XXXX. from going a a would that you here saying? stage of normally was guys in bit So be you're fixed decision showing were kind more cost what perhaps thinking year-to-year little like leveraging

Matthew Brown

over EBITDA what margin look the long of in average when we've in communicated growth you period past. with you're I consistent going adjusted see a think time, to the

or you one probably time to would of another. not I period up too urge So hung get short on

the will think time, play out we've I over described. way that this in

Stephen Tusa

grow just to deliver continue way that a it a partnering company in guys you little follow-up, like discussion not this more with And Great. comfortable are compete, of -- Okay. concerned as saying in getting can this with one changing in Are and you just more landscape then perhaps standalone feels bit you're here. larger because to just all? to up competing back guys is resources? guess, these you're integrated companies a of at interested you And really other you are these I that not consolidation.

James Scapa

But me all to to pretty well take we're we're Want of frankly. one, to quite think that we do I compete, open Stephen. positioned possibilities, think Matt? that kinds

open, but we're down also we're So heads and focused competing. on

Stephen Tusa

answer. Great

Operator

of Our line with next question the from Markets. Capital come Mark will Schappel Loop

Mark Schappel

over about XX just you. I the past a so, maybe in changes little or just or any starting demand seeing could you're of, on mainly bit And in buying what days say, an Jim, talk cycles? you the behavior with Europe. seen in whether demand overall if was From wondering you've also, could comment environment terms sales perspective, you

James Scapa

Yes.

I think some think about investing Europe, the obviously the there's interesting changes with me differentiation part some ask we're as there talking we're why and strength days, seeing on of what over in Europe, some with of specifically. XX happening we these the very, opportunities in this basically of markets. some very the more and we general, market pipeline let bring very is side and So we're you're to in into see last product pleased investing. because the that. we're And on well greater And

Mark Schappel

industrial seeing overall and Just in Europe. over like base demand you're the

James Scapa

strong very for it's general us. think I in

Mark Schappel

along And industry bit know then the about aerospace curious strength saw strength you I that, the continuing earlier you with aerospace was in XXXX, QX. if of talk particularly is the And that Great. little maybe in a strong. into Okay. just just I was could quarter.

James Scapa

those is and organization vertical The sharing on all to and us helps that's and we because -- accounts where enterprise. market much of Yes. really have applications the moving across of the one more that needs our for information aerospace focus

well. brought members And as to we think We've we're put making. and side, defense in difference renewed they're part team strong absolutely going So some those also that's the that quite are vertical. the a emphasis on of a new We make here. on investments defense

Operator

That to call the closing Scapa I'd remarks. like turn concludes today's question-and-answer for back session. Jim to

James Scapa

Liz. Thank you,

make X everyone. California. our up. March our is than We XX,XXX actually March virtual And just XX It's So typically just have Future.Industry have Santa which is two Relations that, sure event. hopefully And events one to on We sooner on to X. It's then that, even I this Investor mentioned we in year. in the more second is coming Day, invite conclusion, which Clara, up and coming to want event. coming annual XX,XXX attendees a I

also and they're products. the using to nice a think of I in what's our see hear a so that's to from opportunity how and And new our products platforms number and our customers

in So forward XXXX you. everyone I thank team for looking great another Thank my year really XXXX. just want having on and to to

Operator

This you concludes participating. today's for conference call. Thank

You now may disconnect.

Altair Engineering (ALTR) 22 Feb 242023 Q4 Earnings call transcript