ALTR - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the Altair Engineering, Inc. Q2 2024 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, Stephen Palmtag, Head of Investor Relations. Please go ahead.

Stephen Palmtag

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

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

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

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

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

James Scapa

welcome and Stephen, call. you, everyone to the on Thank

was second with million, end the accounting the lineup, with its maintained our midpoint of Altair the both high the industry-leading guidance EBITDA trajectory. was revenue $XXX.X robustness revenue for for intelligence. During XXXX, Total $XXX.X surpassing million QX quarter range. our continues product $XX.X of results quarterly million, of software quarter. Adjusted computational Altair's the to guided above of customers empower our software which underscore strong

Software quarter. grew currency the a revenue in year-over-year basis XX.X% constant on second

Being Magic as the product was of serves unified a lifecycle announced status that XX% the to the built. In graphics, end month, Altair AI-embedded Software second revenue June, for is HyperWorks foundation named technologies, most especially industry of unveiled photorealistic are across of Quadrant, platform stage digital exciting the reference further tool organizations strength as to and learning a in intelligence. is and enhancements and when solidifies analyzes, and geometry, a based compared a of service. With a development company's with simulation-driven notable offers we to Altair for environment back-end as for the data in at for in quarter our with XX.X% specific the quarter of key HyperWorks on science system, regarded data-related unified execute. engineering, evaluation widely evaluating IT in vision and platform this workflows, for Altair offering machine only experience industry in grew world's modern of many improvements driven as many a XXXX, electronic and in overall of learning. market's in Altair data XXXX. Altair's the XXXX technologies unique percentage practices revenue and success broadly ability of innovation. HyperWorks Gartner total most and optimization the any is which verticals, completeness leader ranking have Quadrant includes we known AI-driven defense. by aerospace It's design AI-powered, Last that years. analytics technology influential release a This upon that Gartner's includes a named vendors. The and product offerings across comprehensive platforms report validates complexity Magic and design an artificial we substantial mechanical from the the leading for simulation. engineering data and criteria advancements Altair innovative as for one spanned machine systems, has in being leader physics, what which point user every design RapidMiner. to and

For high-caliber has for the with Silicon tools, design cloud-based business making Automation, companies business forward simulation-as-a-service to game-changing affordable semiconductor stands the functional costs the and today hundreds simulation accelerate which to and accessible require EDA DSim, has look company integrated a has EDA potential and debug unmatched day. In our inception sometimes of superior looking defined to world-class of and of combined advanced where transform and semiconductor design Altair environment verification pioneers business The capabilities a thousands the vision technological Simulator, us, Design design more and may strides model, debug simulation I a of placement model we semiconductor a we deliver make will continue model design cycles. Today, acquisition with computational at announced to much run Metrics our tools by aggressively to this with scale July, simulation since out high intelligence. to when am electronic the single-chip Altair and and is Canadian licensing innovation simulation. us space the Digital to seats verification. forefront in each space. The proud a as circuit testament Metrics and for simulations

able or run for regressions what your tools customers use. Customers the not these The delivers large app combining on with servers in By run groundbreaking paying or as traditional technology are our will and desktop desktop amounts scale, are Additionally, costs concurrently Metric cloud-based we massive software simulation be only EDA own run to and from to our to this run and to design a can customers. they semiconductor solution excited and simulations the bring cloud-native and a with best-in-class time cycle. Altair removing cloud-enabled. typically machines at cloud of flexibility as on very service, the Metric

and have We true industry. Customers through industry-leading available it as across are models specialized innovative unique with to delivery to Altair's gateway, where companies this download. cloud technology, highly optimization software a resource embracing design in One, innovation available partner and merge simulation and portfolio serving our desktop ability high-stakes continues leadership workload DSim tools a be in workflow will Altair's now also Altair be industries. demonstrate choice in for verification. will for

to beginning role our the cycle August highlight playing for thrilled quarter, This the development we XXth technology teams XX. in many America's in throughout victory the is for Cup their were quest

to as Cup to Luna is These solutions America's supplier Altair a intelligence state-of-the-art of the York information, Altair's remarkable we to to of printers. The traditional are excited with Club work the to Altair's designers, printing science its production and always we New new the and design ACXX metal overcome yachts. Altair jet find innovate HP's the second for world-class vision experience intelligence scientists. parts. XD organizations with Our and Prada and athletes Rossa engineers, and siloed Altair demonstrates multi-jet these on aims the Hewlett and like improve partner and official computational Magic of no and often enrich utility printed of official Yacht material This looking for well functions watch Their expertise the team, bridges of computational partnered Data helping for Center is. collaboration American succeed, XD teams technologists. In the are as artificial is component races enhancing Packard power with the design an design as fusion outcome and ways of Pirelli, use quarter, other. global and Material proprietary stage just challenges

our the the by an throughout simulation and be factor efficient, Now securing the to one adopt a and design The solutions. and the vertical, financial breadth, structurally simulation-driven of organization Altair our largest to computing services, comprehensive licensing accelerates value, fix rapid toolset Data parts components, print welcomed engineers of predict design SimSolid flexibility will continues metal the Inspire and the for important optimization, process process In by HP simulation manufactured model vertical data The of design deals. In design and Material unit philosophy structural deal analysis, use insurance be new to property innovative, and banking, to we and our technology. and sector. data our will automotive will joining of a simulation. software and advanced for defects platform, and material parts manufacturing signed The made States to growth decision of study organization to believes the quarter, significant accurate finite a in continue exploration. construct for to analysis This providing with creation, our form cutting-edge Their data AI use FX only analytics fast also the language new potential also SAS Altair-inspired efficient suite a in aspirations and of as using users of X-figure, execute design access XD, not X-year companies insurance conduct Altair the leverage preparation, our and customer. collaboration able leverage this the grid United transformations. powerful casualty high-performance will but models, of binder SLC, and benefit element additively company data highlights during in machine compiler, with the Center Altair jetting. Customers emphasizes quality learning which and within motorsports design the

spend leveraging a its addition, expanded Altair annual platform analytics by data bank over with In XXX%. our Canadian X-figure

signed in analysis. to simulation The capabilities the contract for Altair company, expand platform, modeling the presence deal HyperMesh, aerospace mission-critical With to the was world's we part and our important design X-year an HyperMesh, Altair of HyperWorks continue largest multinational aerospace structural at our commitment defense maintain of We which and performance strong most and provide some ever. continues also vertical. We X-figure, with companies. workflows superior driven a within by

defense, XX% signed where the and analytics, we in and a vertical business expansion domains first XXXX. year-on-year representing Altair's sciences, these had solutions. presence to ability a data of the unique compared already agreement convergence our our underscoring security high-performance significant on company and deliver and data QX simulation, in computing, a and grows addition, In a won This agreement year, in healthcare to HPC X-figure analytics of This areas European XXXX. aerospace, Altair comprehensive and new life established deal focused simulation,

new activities technology. second saw language significantly our and grow the of solutions our we this graph for several vertical, in pipeline database sales, SAS quarter, especially data our During science and

of Altair addition bolster overall important the solutions customers priority adoption remains Northwest the RapidMiner new Factspan, and Aitek during channel commitment the analytics platform. the and an in quarter. sales a comprehensive Altair's to channel of of and across forward. A Altair's found Devoteam this to swift solutions. data partners indirect clear reach AI suite will contributor areas second regions, of into will partners Our solutions of moving extend full Altair's AI analytics based offer primed Central our X the Symantec region. And revenue for testament EMEA Seattle, is data and the and expansion in will dynamic technological African customers

The the year. first of to strong was XXXX start a half

for performance remain We to full more are to and call details the customers. I financial confident third our Matt? committed XXXX. guidance well-positioned we on our turn and for growth, Matt of technology now best-in-class year our provide to is quarter to and delivering over will the Altair future

Matthew Brown

to and adjusted on the of revenue end guidance us. everyone total and Altair the QX, midpoint a for you range. for thank the of and joining EBITDA exceeding Hello call, Jim. software guidance strong was the you, above range revenue, high Thank had our

for half performance defense, products strong verticals, customers' solutions workflows and are was be fundamental products analytics. performance especially growth robust. Altair's spanning Our across demand continues in by to mission-critical data our our and first design, with simulation, to aerospace multiple driven where and

to remain we striving exceed customers' product innovation committed and forward, to expectations. excellence, As we our look

I the than As of changes are a other our reported growth review in currency. impacted our by rates in expenses rates. some reference in therefore, both revenues and exchange dollar, be the constant remarks, transacted reported and aid of U.S. in may results my To reminder, our currencies results, and will foreign throughout

$XXX.X and total constant For currency reported a year-over-year the of second were calculated X.X% currency. billings quarter, in X.X% in increase million,

and reported defense, our software. with QX new convergence capabilities Software million, currency business revenue by was aerospace rates year-over-year in to was X.X% XX.X% XXXX. constant leveraging currency, increase and in expansion in where in increasingly in strength notable in year-over-year The increase $XXX.X software a the QX of revenue customers high and compared and of retention driven are

romAI using avionic customer root For aerospace another instance, one analysis. using is cause system, for for while of predictive and RapidMiner optimization an maintenance multidisciplinary is

these gives offerings. comprehensive our engineering Our in unique of deliver software trajectory confidence solutions AI-powered long-term ability to us the great

an engineering compensation, quarter software points. strength driven our be increase XX.X% in margin of in revenue currency, Total higher in engineering QX Additionally, APAC. where was second XXXX. and XX compared other in year $XXX.X X.X% revenue and the and gains stock-based X.X% the basis in which margins. our excludes revenue, revenue, which to gross was increase year-over-year reported with margin, across The mixed in broad-based QX margins includes gross than period, EMEA, constant services the a toward XX.X% shift services in are and to gross software by continues year-over-year Non-GAAP prior non-GAAP currency other compared of in Americas, the was increase to QX, million,

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

sales in to investments and $XXX.X just We the growth $XX.X million operating of reflecting in amortization development on prior assets, continue of growth stock-based compensation engineering was EBITDA stock-based to expenses QX period, margins $XXX.X in and GAAP us. prior intangible prior continued blended expect reflecting sustained outpace capacity year-over-year and $XX.X to planned gross $XXX.X that to to making million software year in the to in were due the reduction product were period, expense. Non-GAAP or or operating million, higher. will compared total XX.X% excludes X.X% year. of services exciting seeing Adjusted capitalize million we're compared of $XX.X million, our other and we're to the compared ahead XX.X% compensation large year and million, which expenses, opportunities in revenue, of continue revenue the therefore push revenue, and the

million balance cash equivalents with year our of increase of despite $XX.X prior an million sheet, for settlement ended period These and million approximately paying in the the from we to and Moving in $XX.X increases cash quarter $XX.X our equivalents, cash cash $XXX.X and year-end. from driver equivalents in were million the convertible X-month prior primary continues $XX.X million cash and compared was period, second be in the the quarter. Free of flow strong $XX.X of XX.X%. to cash for cash Free the ended to XXXX flow the an year notes balance. our XXth, million cash was and June increase us

going We focus shareholder to forward, discipline significant generate value. continue to to capital continue cash we and flow expect allocate free will and with long-term to drive

We've provided reported our to guidance full reconciliation guidance impact currency XXXX. detailed release, both currency expectations, GAAP tables on press we've Turning constant rates for comparable and clarity To provide our growth in the earnings tables. in to year amounts. FX QX in including our and provided to

in a software currency. revenue $XXX in reported XX.X% of of we the $XXX year-over-year to expect currency, QX, constant XX.X% X.X% to XX.X% to For in range million, million and increase

outlook year $XXX revenue to over previous revenue million, past expect constant also constant to currency in to changes the and and X.X% foreign rates software are we increase in for be a are million of therefore, adjusting These currency we reported our of currency For currency, X.X% in offsetting, X.X% amounts XXXX, raising $XXX exchange reported full and a to year-over-year in XX.X% currency. software quarter. in year for full range

to engineering includes X.X% currency, which total million, reported expect currency. increase XX.X% services $XXX year-over-year revenue, the We revenue, to in constant $XXX to QX and of in XX.X% range of XX.X% million and in other a

offsetting constant in outlook year our currency other maintaining includes our revenue. revenue software total year This services in XXXX, full for outlook constant reduction full are increase engineering and and in the currency previous For an in revenue. we

to However, to rates $XXX X.X% constant $XXX are our past in changes to of foreign of currency quarter, in the increase our exchange outlook in to reported year currency due we and X.X% over in million currency, range a X.X% year-over-year million, currency. adjusting full X.X% reported to a

revenue adjusted For or we of million XXXX. revenue, $XX QX $XX or million, in to XX.X% compared expect XX.X% of range million, the to total EBITDA of QX, XX.X% to $XX.X in total

in to therefore XX.X% $XXX.X we by to EBITDA to adjusted finally, we million, EBITDA, been the for change and XX.X% full year full in our the total changes For exchange our full rates, million XXXX, have impacted year adjusting year a of are of rates cash exchange in expect $XXX of been also in $XXX total or million, flow revenue, in foreign $XXX outlook guidance. changes XXXX, impacted with of line free adjusted $XXX range therefore, has adjusted million which has to to revenue in million, XX.X% the and currency also range foreign compared XXXX. And or

are As a which to flow expectations reminder, fluctuate collections patterns, sensitive our seasonally. cash billings and

continue to of with EBITDA adjusted We pleased high flow free at as percentage approximately XX%. a cash be the

are and and to your about are second we performance Operator? QX forward maintaining to be take half. With looking that start strong excited questions. the happy to that, We in our we'd momentum first half the year,

Operator

Instructions] first with from Matt Our question [Operator comes RBC. Hedberg

Matthew Swanson

best-of-breed on Matt of seen think hear the Swanson been in success your is defense. Jim, This And, It has was of And kind and the space. in always like and to data traditional products you go-to-market the of is to RapidMiner. ability kind products both just that? ramping doing interconnectedness some of and your talk a sell the newer just able on how to little things examples, mentioned newer I win, Matt, HyperMesh which force be the about focus some for and of sales some and for the from big about then, Could great products the the we as I think talked aerospace about Matt. you guys bit those these

James Scapa

Sure.

of all vertical orientation moved the I all, mean, in all, to you. strategic the market general, Yes. of for we've accounts. go-to-market, first thank First this

defense aerospace expanding team And by one one the is teams managed we the throughout out account of And the major world. When then, think are it an you about individual. a of have to continues through natural coming of example, of material products. most they that for project step, some in to expand. want them a just saw and values morning. for they're to project we're and So, and I because using that using account, they test global didn't to to they come HyperMesh trying maybe a or next in spread the now, those are accounts, have vertical, data, technology. is the example, if AI just many other aerospace RapidMiner in data this process that testing if pretty are what lot want

it's just a So, that. mind. It's doing fresh my tool great in for

really more throughout more. engineering comfortable, would customer that are more seeing experts account simulation traditional understand becoming we're they as just in, talk that So, and are selling our And applications about applications and see more these the can of bring And we and of teams I applications, course, base. more them. more them, more say traditionally and

other romAI, order is big reduced or The physicsAI modeling. a called application solution

an simply a will. run of runs we're to Digital models model. neural AI typically lets reduced creating if you it a simulate that neural net So, Twin. type we're order just very Similarly, of physicsAI, the are doing build through physicsAI number Twins, models the often then the system in AI run you these when nets simulation next The part the of Digital and model, simulations

to starting it's take really So, off.

built technology machine lot on and also in of is that learning our embedded AI. just We have all a tools

quite tech So, at come frankly for for does X, It of years throughout X to to think guys, this kind our we've but time speaking, this been on now. products. take of guys, And the the technology. applying support the everyone in permeating speed, competition we it's I up big sort lead a sales have,

running seminars, just thousands of And And really AI we for so, it. We've running we're been in with signing for up engineering. have, these people cases, some them.

received. it's very So, positively been very,

Matthew Swanson

pull I'm super to great follow-up those that about are idea kind right your that on of as now. speed up and your and to customers just curious, into selling the standpoint as for like are when was question came really new with hear of a just my that you something customers else? HyperWorks That's AI. enter Or process? helpful. to the XXXX more the And you AI of It actually was then kind deal of push updates But something AI it of must-have getting around looking a

James Scapa

there's putting ourselves so. the sort technology and No, our what's multiple we see think I across really actually. lot I that a each these at in that the point. of board, think the in is this reason I AI our position in many the for But And of We accounts these it's And lead typically, of accounts, competitors. position of one see vendors us we're bringing, think. rising where

very So, yes, it's I think important.

Operator

with Rosenblatt Our Securities. next from question comes Blair Abernethy

Blair Abernethy

emphasizing to in current wanted sure the a more what of from Just about is adding some channel are for have your just Are capacity looking you now your not on more channel what channel I'm more the there. new you percentage products? Altair? little and the Jim, revenue kind thoughts the drill comments there? And at bit that

James Scapa

to the more. indirectly not particularly many trying important gone But also the have important market to historically are the it's It's you. as that channel data with regions probably be much. on in We simulation we honest of to side on the emphasize side,

So, lot the would underserving, accounts. small-medium to selling we a And need some of and indirect directly, that's we the what to larger were we're I were we through doing. those markets get channels, say, where

done systems us on technology. And modernization the to relies be other well-positioned deals, mix into the integrators they heavily of systems the some particularly do one for have estate We're through integrators. that program, systems cases, integrators is or and customer and those important a Python is R wants SaaS very very, SaaS. really moving but for their Python to thing graph other when side, in The data data a into on a

defense. of in And system heavily aero lot activity in the have a often implementations. integrator it's with involved a in those very We that and that's and happening in opportunities, pharma

is really for So, important us. indirect yes,

Blair Abernethy

with if there Material I could, And Or called go-to-market HP some -- your arrangement? that strictly just a Okay. partnership the the is well? Is as one out product Solutions. other, Great. there

James Scapa

that no in Material I'm than data Modeler, important. our is there, Database at least missing material aware I'm something. the fact that now is really of. which There's available go-to-market Maybe their Other

have very, but about one. That approach one added, very take solution model going a that's new a think a coming be We to important has XXX transformational. it here, maturing. and is very, HP move really going providers. pretty And up been to We're I to off. soon going into units different it's I think that's very

think and existing going of when of gorgeous our product, as think customers are well. do, it game. I part really it's to change uses start I to as it AI it, It's they a and most using going the

there's new coming things that So, rather are some cool.

Operator

with Charles question Needham from Company. next comes Our Shi

open. Your line is

Yu Shi

to I XXXX about seeing environment, be there's not, there. your of any but sure view the an think some part layoffs isolated be seems renewed not know rumored automotive, you a seems in macro at get part XXXX, what the of large middle given initial year I but do in middle this for we're probably if case on and customers macroeconomic bit or to the so thoughts care automotive, thoughts of business? the is still that home to I'm one initial XXXX, want away the there we're in sure Jim, some point, year, from your particularly, I'm news, concerns little of the this next it's from Stellantis, any environment, Matt, example,

James Scapa

but general, feel In no aggressively. like good question. that's innovate companies I continue No, to to a choice, these have

this to for more and the lot on. But work my to side, is really overall because the when And if these year. the really, there time with not more feeling think downturns aren't generally, going It's I can suppose of necessarily I of my customers lineup next value concerned. effect. But goes customers. there business, or we've very, customers and some competitive I'm the are second -- so, on performance. the into coming bring the And I data end product optimistic it lined the that a seeing you bad to work bringing against product done XXXX, course, a to the being called on malaise think as I side up. that cloud everyone. get the board It modeling we're to are at and have is none launching that into got choose the Altair with I whatever, just a of of different basically, year very an feel we're of do to Every all the essentially All we complete. that is works providers. able the modeling really across We've lets and NavOps. and HPC is the ourselves visualization interested simulation cost cloud Similarly, And on number any stuff, in huge managing visualization. customer

just So, spot. I think we're in great a

through Of pretty confident I'm it. course, macro can us whatever, have plow some overarching effect, but about to it's my and job

Yu Shi

acquiring what Conference. kind it's see us, to interesting business, point? have promoting that first of at presence new help Automation. But company, for fee. business Costello, the rather this over Joe that the you that company of model, I Design with for called want Metrics around famous founder, you, is thinking the EDA I Design can give glad show. has by I'm see charge maybe can his trade you announced reminder, different question. at ask, second very also the the at check to has model That And off, business than EDA Altair been exposure the echo like Automation bigger charge to Altair the a And are you I the by industry. Altair feel Maybe But to the it. a a this Altair been does some do want his to semiconductors Got industry us minute years. to point-based pitch because the

wonder comment on you from as I a if get So we that can well.

James Scapa

it player space. with a out semiconductor best-in-class and but technology now nice I is major cloud technology makes have a do interesting there. We and of building with there's for be think that with very electronics, there with can technology, to small we're and available run the I best-in-class market portfolio in creative servers models the of that performing simulators. And on the there circuit their exploding, or a very that business integrate a yet, and it, starting it and semiconductor hell in innovate. honestly, from been logic boards, it's that coming in anathema is and more so the very, tested And the Obviously, out people to We've to bit of, companies. really printed of expensive digital probably able duopoly out think, make power to go been more we're a starting design of not interesting. desktop And, the lot the DSim universities to market, stuff, we competitively very I plan software that sort think, debug

to we're we we're the healthcare direction with I around there. you traction well. completely of move don't very IC, disruption the as well XD that lot months, is a in And, to change in So bringing. technology have some mean also and but going stuff world to we're I X are to this think think really positioned nice some I going that bring see going

HPC obviously, What I it's more we be to going we the think well. So on and play as there important. side do, big more

bring important. you be well some we to is And if bring some AI So technology to that, is will, think convergence, the bringing all as innovation. the and of expertise I interesting going that going on side

bring the ripe some. try EVA market, to And disruption. and I we're going think is that some for market, particular

Operator

our question with comes JPMorgan. from next And Tusa Steve

C. Stephen Tusa

business the on else tweaked foreign part on side? the is margin assume down that is or guidance to I you're in would exchange. of margins. due call confirm the question and that, a Can something that seeing there the just you Just the

Matthew Brown

is. Yes, it

and guide, at to X look the is from in there table sort guide of EBITDA quarter we perspective next, to If that's full-year helpful have that's full-year getting bridge currency a you from you in the an unchanged. constant the

So you're the is correct due to impact to EBITDA that FX. only

C. Stephen Tusa

anything they're a Obviously, there direct to win read you're different certain then it know out that defense with kind against a the you direct strength aerospace of juxtaposed large product project -- And on called lines, great. and juxtaposed Okay, against company guys? kind is as Dassault, like kind from as to of through anything not fronts share? who for read or but directly -- there being is to is concerned, through win headwind. Is direct aerospace market deal of I as far competitors there many but to

James Scapa

I some don't but direct think do are players say are slipping versus and is will, some Altair and I Dassault, would anything Altair think I some. are you if there's and perhaps some, slipping others gaining the of rising

with some and the sure calling So macro not concern think because why what new where part I create is I of say there. I names, is out think going. But, else can it's of tide myself can it opportunities rising without I the I'm of don't Altair irrespective

Operator

Mark with Capital from comes Markets. Loop question Schappel next our And

Mark Schappel

your software the on appreciate job design. color metric that on and I Jim, Nice revenue your on print. for remarks. you question prepared

simulation? is that in disruptive that was you EDA groundbreaking mentioned you You same the the technology SimSolid way technology their I consider mechanical in maybe thought groundbreaking. in would mean, space the

James Scapa

No.

the because groundbreaking with to can cloud, it's here said up the I business scale simulations thousands model of applying you simultaneously. that So they're

very, do computing or could of don't short can hardware time you much, fast. amount what enough to scale in in perhaps So because basically of period you have do very licenses enough out as much time a longer you

little can really general a think really, the it's technology groundbreaking So did skeptical, we accelerate admit think, the I of it's simulator, simulator, I a excellent logic the business testing and of I is logic a approach, quite lot design. model which we before were strong. but that what's and, really The

this, at a overseas. similarly, quite he conference, fact, surprised well. as with team wrote We DAT of evaluations one that In whatever tested performance. it were actually with its all was And and we does gentlemen the the

think So simulator the groundbreaking. itself no, I is don't

simulator. it's a competitive think I very

the think is model I business what's groundbreaking.

Mark Schappel

with tools? Great. on Investor Day. What are uptake topic AI, you rate a And physics then that of was during at physics an AI conference kind your the user big seeing

James Scapa

I customers think a huge the beginning percentage are of use to it.

uptake. a of getting lot it's So

Operator

Blair. William And Becker our comes final question with Dylan from

Dylan Becker

customers, for units, what way of on kind you the maybe that of and means the for right functionality thinking usage incremental rollout, touching can give us mean additional of any HyperWorks this about adoption kind thinking what added or the could maybe of how color XX Jim, business? about kind for that they're of around

James Scapa

user there's really new through stuff simultaneously. see lot that can't has think that. X new great of sort out, broad-based have gone our I if product, you underlying taking are And processes it's a all Python, experience. of it. all because is in It's lot a with flagship that we you a running will, we this release which complete It's product, a stuff of HyperMesh transformation. The

one performance. these It with improving. So a of us X.X is the improved well. lot dramatically that in X.X X.X robustness and is now, the of release giving a new right a the release, extremely months. Each few important, dramatically of as is performance is lot release which the And and

higher brand new performance. So, experience, much user

the products is it, new engine which of Some have graphics gorgeous. the in

Inspire, And X really to think so that community. simulation-driven stuff. The of months to I'm beautiful rendering. some very the especially really, very, and design as groundbreaking just And think, interesting think we're implicit continues to as I I very it's going that design. well. I real-time of XX for product excited It's the take-up design for about well, months, more over lot And is, a full-time, next new see addresses the be Inspire technology

results. getting pinpoint hard here, lots lot, continues good and, SimSolid. -- to it's The in of new continuing runs electromagnetic to SimSolid traditional in Feko, solver there's So our to evolve we're benchmark the a to very, very against and electromagnetics and electronics, things

about going. excited we are are So where things

Dylan Becker

as guess, well. how on each the of potential of those the about in to capitalize it and force, on of Okay. new kind Matt the I sales some verticalized -- great. Maybe how we've too, in verticals. of some within those well, pockets some that these sounds depth to key well? should Obviously, of the That kind kind kind Yes. of we as new those of Jim, of restructured for of wins but strength think as like to maybe Appreciate sounds or push evolution there's segments markets and there. fully

James Scapa

but if have that. I -- their defense for think know of answer don't can matured I I really sure. them Matt has and faster, our some hitting here, stride, space a are are different answer

continuing and them. of Some to tune mature, we're to are them, continuing

science here people also little and it, a made, of know couple making particularly we're lot in us. that's like that kind changes ones might shored had science more science adding to off so acquisition life the people and doing some that of domain we've that example, really really We're healthcare with and there the expertise, whatever, new of that learning science for we which have that expertise space. life data database in a Some the the on deeply space, acquisitions well. of example, side. But the graph looks that taken for folks from selected, are for add life up really vertical, We've the it's had

So I year new and organization, to transformation coming in X, I think hit it's mean, completely only years really, along, general, an its into X.X this it's probably X and this I takes like organizational a think stride.

Matthew Brown

we ever, his called really only the that prepared has with mean, and Jim there, us moving strong, I the thing that to a remarks QX, verticals. and to do just we're I in add signed momentum in really, Yes, out is I largest think would deal is lot seeing our Dylan,

were midpoint software constant QX are our hit QX constant a XX.X% for we're of revenue So with excited currency, at stride. currency. We performance, in their and a in guide these at our starting lot to XX.X% verticals about pleased getting the

so how So momentum are it. -- good just we is about with pleased here, we're building and

Operator

question-and-answer concludes I will to This closing back for Scapa remarks. turn Jim our now session.

James Scapa

Okay. just continued you. appreciation appreciate much. to Thank Altair here. in our company, to I Well, on worked everyone the very hard interest everyone's and the team forward look thank express really I team, and want because you success to

Operator

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

disconnect. now may You

Altair Engineering (ALTR) 1 Aug 242024 Q2 Earnings call transcript