| (Unaudited) | ||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Employee stock-based compensation plans | $ | 15,490 | $ | 10,194 | $ | 43,622 | $ | 29,009 | ||||||||
| Equity issued in connection with acquisitions | 7,220 | 739 | 18,902 | 2,220 | ||||||||||||
| Total stock-based compensation expense | $ | 22,710 | $ | 10,933 | $ | 62,524 | $ | 31,229 | ||||||||
|
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| (In thousands) | 2022 | 2021 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (55,494 | ) | $ | (7,397 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 24,092 | 19,355 | ||||||
| Provision for credit loss | 183 | 330 | ||||||
| Amortization of debt discount and issuance costs | 1,330 | 8,513 | ||||||
| Stock-based compensation expense | 62,524 | 31,229 | ||||||
| Deferred income taxes | 4 | (510 | ) | |||||
| Gain on mark-to-market adjustment of contingent consideration | (7,482 | ) | — | |||||
| Expense on repurchase of convertible senior notes | 16,621 | — | ||||||
| Other, net | 153 | 40 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 13,859 | 26,770 | ||||||
| Prepaid expenses and other current assets | 1,906 | (7,612 | ) | |||||
| Other long-term assets | 3,134 | (5,018 | ) | |||||
| Accounts payable | (270 | ) | (2,432 | ) | ||||
| Accrued compensation and benefits | (3,639 | ) | 481 | |||||
| Other accrued expenses and current liabilities | (48,698 | ) | 483 | |||||
| Deferred revenue | 18,311 | (8,638 | ) | |||||
| Net cash provided by operating activities | 26,534 | 55,594 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Payments for acquisition of businesses, net of cash acquired | (134,130 | ) | (5,472 | ) | ||||
| Capital expenditures | (6,721 | ) | (6,811 | ) | ||||
| Other investing activities, net | (10,322 | ) | (628 | ) | ||||
| Net cash used in investing activities | (151,173 | ) | (12,911 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of convertible senior notes, net of discounts and commissions | 224,265 | — | ||||||
| Repurchase of convertible senior notes | (192,422 | ) | — | |||||
| Proceeds from employee stock purchase plan contributions | 6,549 | 2,110 | ||||||
| Repurchase and retirement of common stock | (4,387 | ) | — | |||||
| Proceeds from the exercise of common stock options | 2,840 | 2,059 | ||||||
| Payments of debt issuance costs | (1,523 | ) | — | |||||
| Proceeds from private placement of common stock | — | 200,000 | ||||||
| Payments on revolving commitment | — | (30,000 | ) | |||||
| Other financing activities | (170 | ) | (434 | ) | ||||
| Net cash provided by financing activities | 35,152 | 173,735 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12,142 | ) | (1,951 | ) | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (101,629 | ) | 214,467 | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 414,012 | 241,547 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 312,383 | $ | 456,014 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 296 | $ | 344 | ||||
| Income taxes paid | $ | 6,818 | $ | 8,077 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Property and equipment in accounts payable, other current liabilities and other liabilities | $ | 707 | $ | 480 | ||||
