| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| Cost of revenue – software | $ | 279 | $ | 8 | $ | 343 | $ | 16 | ||||
| Research and development | 579 | 108 | 937 | 155 | ||||||||
| Sales and marketing | 475 | 134 | 937 | 175 | ||||||||
| General and administrative | 747 | 184 | 1,075 | 304 | ||||||||
| Total stock-based compensation expense | $ | 2,080 | $ | 434 | $ | 3,292 | $ | 650 | ||||
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| (In thousands) | 2019 | 2018 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 9,899 | $ | 23,604 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 10,468 | 7,525 | ||||||
| Provision for bad debt | 134 | 269 | ||||||
| Amortization of debt discount and issuance costs | 459 | 12 | ||||||
| Stock-based compensation expense | 3,292 | 650 | ||||||
| Deferred income taxes | (703 | ) | 1,312 | |||||
| Other, net | (17 | ) | (166 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 10,406 | 11,743 | ||||||
| Prepaid expenses and other current assets | (4,952 | ) | (3,454 | ) | ||||
| Other long-term assets | (2,300 | ) | (276 | ) | ||||
| Accounts payable | (2,187 | ) | 335 | |||||
| Accrued compensation and benefits | (2,455 | ) | 73 | |||||
| Other accrued expenses and current liabilities | 1,887 | (4,511 | ) | |||||
| Operating lease right-of-use assets and liabilities, net | 197 | — | ||||||
| Deferred revenue | 7,740 | 197 | ||||||
| Net cash provided by operating activities | 31,868 | 37,313 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (6,667 | ) | (3,130 | ) | ||||
| Payments for acquisition of developed technology | (344 | ) | (2,738 | ) | ||||
| Payments for acquisition of businesses, net of cash acquired | (709 | ) | (7,028 | ) | ||||
| Other investing activities, net | 16 | 38 | ||||||
| Net cash used in investing activities | (7,704 | ) | (12,858 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of convertible senior notes, net of underwriters'
discount and commissions | 223,101 | — | ||||||
| Payments on revolving commitment | (127,941 | ) | — | |||||
| Borrowings under revolving commitment | 96,991 | — | ||||||
| Proceeds from the exercise of stock options | 1,270 | 1,668 | ||||||
| Payments for issuance costs of convertible senior notes | (1,018 | ) | — | |||||
| Payments for follow-on public offering and initial public offering costs | — | (468 | ) | |||||
| Proceeds from issuance of Class A common stock in follow-on public offering,
net of underwriters' discounts and commissions | — | 135,572 | ||||||
| Other financing activities | (259 | ) | (342 | ) | ||||
| Net cash provided by financing activities | 192,144 | 136,430 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 187 | (877 | ) | |||||
| Net increase in cash, cash equivalents and restricted cash | 216,495 | 160,008 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 35,685 | 39,578 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 252,180 | $ | 199,586 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 362 | $ | 41 | ||||
| Income taxes paid | $ | 4,054 | $ | 3,660 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Finance leases | $ | 566 | $ | 1,010 | ||||
| Property and equipment in accounts payable | $ | 417 | $ | 935 | ||||
| Convertible senior notes issuance costs in accounts payable | $ | 216 | $ | — | ||||
| Follow-on public offering costs in accounts payable | $ | — | $ | 88 | ||||
| Promissory notes issued and deferred payment obligations for acquisitions | $ | — | $ | 278 | ||||
