| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2023 | 2022 | ||||||
| Cost of revenue – software | $ | 2,752 | $ | 1,903 | ||||
| Research and development | 8,743 | 7,358 | ||||||
| Sales and marketing | 7,591 | 7,035 | ||||||
| General and administrative | 3,075 | 2,318 | ||||||
| Total stock-based compensation expense | $ | 22,161 | $ | 18,614 | ||||
| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2023 | 2022 | ||||||
| Employee stock-based compensation plans | $ | 18,484 | $ | 13,259 | ||||
| Post combination expense in connection with acquisitions | 3,677 | 5,355 | ||||||
| Total stock-based compensation expense | $ | 22,161 | $ | 18,614 | ||||
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| (In thousands) | 2023 | 2022 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net (loss) income | $ | (1,959 | ) | $ | 11,528 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 9,750 | 7,686 | ||||||
| Stock-based compensation expense | 22,161 | 18,614 | ||||||
| Loss on mark-to-market adjustment of contingent consideration | 7,006 | — | ||||||
| Other, net | 640 | 506 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 39,872 | 21,735 | ||||||
| Prepaid expenses and other current assets | 1,981 | (138 | ) | |||||
| Other long-term assets | (1,944 | ) | 2,139 | |||||
| Accounts payable | (5,362 | ) | (302 | ) | ||||
| Accrued compensation and benefits | (12,283 | ) | (6,896 | ) | ||||
| Other accrued expenses and current liabilities | 2,015 | (61,759 | ) | |||||
| Deferred revenue | (2,678 | ) | 12,673 | |||||
| Net cash provided by operating activities | 59,199 | 5,786 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (1,727 | ) | (2,190 | ) | ||||
| Payments for acquisition of businesses, net of cash acquired | — | (12,971 | ) | |||||
| Other investing activities, net | (1,405 | ) | (343 | ) | ||||
| Net cash used in investing activities | (3,132 | ) | (15,504 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from the exercise of common stock options | 9,872 | 237 | ||||||
| Payments for repurchase of common stock | (6,255 | ) | — | |||||
| Proceeds from employee stock purchase plan contributions | 1,868 | 2,362 | ||||||
| Other financing activities | (29 | ) | (90 | ) | ||||
| Net cash provided by financing activities | 5,456 | 2,509 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 379 | (970 | ) | |||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 61,902 | (8,179 | ) | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 316,958 | 414,012 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 378,860 | $ | 405,833 | ||||
