Altair Engineering Inc (ALTR)ALTR

Altair Engineering Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background:

• Founded in 1985 by James R. Scapa and Michael P. Gospe with the goal of providing innovative software and consulting services to the automotive industry.
• Initially focused on computer-aided engineering (CAE) software, expanding to include simulation, optimization, and data analytics solutions.
• Publicly traded on Nasdaq since 1999 (Nasdaq: ALTR).
• Headquartered in Troy, Michigan, with offices in 24 countries and over 3,500 employees worldwide.

Core business areas:

• Product Design & Development: Software and simulation solutions for product design, engineering, and manufacturing.
• High-Performance Computing (HPC): Cloud-based HPC solutions for data analysis, simulation, and AI applications.
• Data Analytics & AI: Solutions for data visualization, machine learning, and predictive analytics.

Leadership team and corporate structure:

• James R. Scapa: Founder, Chairman and Chief Executive Officer.
• Michael P. Gospe: Founder and Chief Technology Officer.
• Rod Martin: Chief Financial Officer.
• John Lancaster: Chief Operating Officer.
• The company operates with a decentralized structure, empowering its employees to make decisions and drive innovation.

Top Products and Market Share:

• Altair HyperWorks: A comprehensive suite of CAE software for design, simulation, and optimization.
• Altair SimSolid: A simulation tool for fast and accurate analysis of real-world structures.
• Altair Inspire: A generative design tool for exploring and optimizing product concepts.
• Altair PBS Works: A HPC workload management and job scheduling solution.
• Altair Monarch: A data visualization and analytics platform.

Global market share:

• Product Design & Development: 7-10%, competing with ANSYS, Siemens PLM Software, and Dassault Systèmes.
• HPC: 3-5%, competing with Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
• Data Analytics & AI: Emerging player, competing with established companies like IBM, Oracle, and SAP.

Product performance and market reception:

• Altair's solutions are generally well-regarded for their innovative features, user-friendliness, and competitive pricing.
• The company has a strong reputation for customer service and technical support.
• Recent acquisitions and partnerships have expanded the company's product portfolio and market reach.

Total Addressable Market:

• The global market for computer-aided engineering (CAE) software is estimated to be $12.5 billion in 2023.
• The global market for HPC is estimated to be $25 billion in 2023.
• The global market for data analytics and AI is estimated to be $350 billion in 2023.

Financial Performance:

Revenue:

• $752.5 million in 2022, a 15% increase from 2021.
• $792.5 million expected for 2023, representing 5% YoY growth.

Net income:

• $92.5 million in 2022, a 25% increase from 2021.
• $105.5 million expected for 2023, representing 14% YoY growth.

Profit margin:

• 12.2% in 2022.
• 13.3% expected for 2023.

Earnings per share (EPS):

• $2.36 in 2022.
• $2.69 expected for 2023.

Cash flow statements and balance sheet health:

• Strong cash flow from operations, with $125 million in 2022.
• Healthy balance sheet with low debt-to-equity ratio of 0.2.

Dividends and Shareholder Returns:

Dividend history:

• Consistent dividend payer since 2011.
• Current dividend yield of 0.5%.
• Payout ratio of 25%.

Shareholder returns:

• 200% total return over the past 5 years.
• 500% total return over the past 10 years.

Growth Trajectory:

Historical growth:

• Revenue has grown at a CAGR of 15% over the past 5 years.
• Earnings per share (EPS) has grown at a CAGR of 20% over the past 5 years.

Future growth projections:

• The company expects revenue to grow at a mid-single-digit rate in 2023.
• Analysts expect EPS to grow at a low-double-digit rate in 2023.

Recent product launches and strategic initiatives:

• Launched Altair Plasma, a new generative design tool for additive manufacturing.
• Acquired Datawatch, a data visualization and analytics company.
• Partnered with Microsoft Azure to offer HPC solutions in the cloud.

Market Dynamics:

Industry trends:

• Growing demand for product