| (Unaudited) | ||||||||||||||||
|
Three Months Ended
June 30, |
Six Months Ended
June 30, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Cost of revenue – software | $ | 2,030 | $ | 1,222 | $ | 3,933 | $ | 2,380 | ||||||||
| Research and development | 8,979 | 4,143 | 16,337 | 7,329 | ||||||||||||
| Sales and marketing | 7,664 | 3,659 | 14,699 | 7,127 | ||||||||||||
| General and administrative | 2,527 | 1,624 | 4,845 | 3,460 | ||||||||||||
| Total stock-based compensation expense | $ | 21,200 | $ | 10,648 | $ | 39,814 | $ | 20,296 | ||||||||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Six Months Ended June 30, | ||||||||
| (In thousands) | 2022 | 2021 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (22,246 | ) | $ | 712 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 15,819 | 13,180 | ||||||
| Provision for credit loss | 114 | 205 | ||||||
| Amortization of debt discount and issuance costs | 829 | 5,631 | ||||||
| Stock-based compensation expense | 39,814 | 20,296 | ||||||
| Deferred income taxes | (64 | ) | (1 | ) | ||||
| Gain on mark-to-market adjustment of contingent consideration | (5,304 | ) | — | |||||
| Expense on repurchase of convertible senior notes | 16,621 | — | ||||||
| Other, net | 115 | 34 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 29,270 | 24,852 | ||||||
| Prepaid expenses and other current assets | 2,056 | (3,367 | ) | |||||
| Other long-term assets | 4,397 | (5,067 | ) | |||||
| Accounts payable | (2,070 | ) | (967 | ) | ||||
| Accrued compensation and benefits | (9,742 | ) | 1,548 | |||||
| Other accrued expenses and current liabilities | (61,648 | ) | 2,999 | |||||
| Deferred revenue | 10,080 | (5,333 | ) | |||||
| Net cash provided by operating activities | 18,041 | 54,722 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Payments for acquisition of businesses, net of cash acquired | (37,660 | ) | — | |||||
| Capital expenditures | (3,457 | ) | (5,391 | ) | ||||
| Other investing activities, net | (322 | ) | (389 | ) | ||||
| Net cash used in investing activities | (41,439 | ) | (5,780 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of convertible senior notes,
net of discounts and commissions | 224,265 | — | ||||||
| Repurchase of convertible senior notes | (192,792 | ) | — | |||||
| Proceeds from employee stock purchase plan contributions | 4,431 | — | ||||||
| Repurchase and retirement of common stock | (4,387 | ) | — | |||||
| Proceeds from the exercise of common stock options | 1,689 | 885 | ||||||
| Payments of debt issuance costs | (1,157 | ) | — | |||||
| Payments on revolving commitment | — | (30,000 | ) | |||||
| Other financing activities | (131 | ) | (206 | ) | ||||
| Net cash provided by (used in) financing activities | 31,918 | (29,321 | ) | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (6,226 | ) | (847 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 2,294 | 18,774 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 414,012 | 241,547 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 416,306 | $ | 260,321 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 289 | $ | 339 | ||||
| Income taxes paid | $ | 4,891 | $ | 3,744 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Property and equipment in accounts payable, other current liabilities
and other liabilities | $ | 1,530 | $ | 631 | ||||
