Altair Engineering Reports 8.7% Revenue Growth and Merger Agreement with Siemens Industry

Altair Engineering Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $665.8 million, up from $612.7 million in 2023, marking an 8.7% increase. The software segment, which constitutes the majority of the company's revenue, saw an 11% rise to $611.9 million, driven by strong retention and expansion within existing accounts, particularly in the aerospace and defense sectors. In contrast, revenue from engineering services and other sources decreased by 14% to $53.9 million, attributed to lower customer demand for engineering services.

The company's net income improved to $14.2 million, a turnaround from a net loss of $8.9 million in the previous year. This positive shift was largely due to increased software revenue and interest income, despite rising operating expenses, which grew to $523.3 million from $490.7 million in 2023. Notably, general and administrative expenses surged by 27% to $90.2 million, primarily due to legal and financial advisory costs associated with the pending merger with Siemens Industry.

In terms of strategic developments, Altair announced a merger agreement with Siemens Industry on October 30, 2024, which was unanimously approved by the Board of Directors and subsequently by stockholders on January 22, 2025. Under the terms of the agreement, each share of Altair's common stock will be converted into $113.00 in cash upon the merger's completion, expected in the first half of 2025. The merger is subject to customary closing conditions, including regulatory approvals, and has led to increased scrutiny and litigation from stockholders regarding the transaction.

Operationally, Altair reported a customer base of over 13,000 worldwide, with significant contributions from the automotive and aerospace industries. The company has also expanded its workforce, employing over 3,300 individuals as of December 31, 2024. The firm continues to invest in research and development, with expenses in this area rising to $221.2 million, reflecting a commitment to innovation and product enhancement.

Looking ahead, Altair anticipates that the merger with Siemens will enhance its capabilities and market position, although it acknowledges potential risks associated with the integration process and market conditions. The company remains focused on leveraging its software solutions in simulation, high-performance computing, and artificial intelligence to drive future growth and maintain its competitive edge in the industry.