| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| 2021 | 2020 | |||||||
| Cost of revenue – software | $ | 1,158 | $ | 366 | ||||
| Research and development | 3,186 | 1,428 | ||||||
| Sales and marketing | 3,468 | 727 | ||||||
| General and administrative | 1,836 | 650 | ||||||
| Total stock-based compensation expense | $ | 9,648 | $ | 3,171 | ||||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Three Months Ended March 31, | ||||||||
| (In thousands) | 2021 | 2020 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 14,360 | $ | 6,030 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 6,686 | 5,660 | ||||||
| Provision for credit loss | 89 | 338 | ||||||
| Amortization of debt discount and issuance costs | 2,800 | 2,653 | ||||||
| Stock-based compensation expense | 9,648 | 3,171 | ||||||
| Deferred income taxes | (687 | ) | (6,001 | ) | ||||
| Other, net | (18 | ) | 7 | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 8,768 | 14,463 | ||||||
| Prepaid expenses and other current assets | (805 | ) | 1,184 | |||||
| Other long-term assets | (3,628 | ) | (321 | ) | ||||
| Accounts payable | (767 | ) | (3,001 | ) | ||||
| Accrued compensation and benefits | 2,626 | (2,581 | ) | |||||
| Other accrued expenses and current liabilities | 183 | 8,580 | ||||||
| Operating lease right-of-use assets and liabilities, net | 126 | (17 | ) | |||||
| Deferred revenue | (2,810 | ) | (2,129 | ) | ||||
| Net cash provided by operating activities | 36,571 | 28,036 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (3,039 | ) | (1,644 | ) | ||||
| Payments for acquisition of developed technology | (344 | ) | (433 | ) | ||||
| Other investing activities, net | (68 | ) | 62 | |||||
| Net cash used in investing activities | (3,451 | ) | (2,015 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Payments on revolving commitment | (30,000 | ) | — | |||||
| Proceeds from the exercise of stock options | 271 | 194 | ||||||
| Other financing activities | (107 | ) | (118 | ) | ||||
| Net cash (used in) provided by financing activities | (29,836 | ) | 76 | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,331 | ) | (2,113 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 1,953 | 23,984 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 241,547 | 223,497 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 243,500 | $ | 247,481 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 47 | $ | 15 | ||||
| Income taxes paid | $ | 2,381 | $ | 1,831 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Finance leases | $ | — | $ | 29 | ||||
| Property and equipment in accounts payable, other current liabilities
and other liabilities | $ | 619 | $ | 382 | ||||
