| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Cost of revenue – software | $ | 2,002 | $ | 2,752 | ||||
| Research and development | 6,360 | 8,743 | ||||||
| Sales and marketing | 4,520 | 7,591 | ||||||
| General and administrative | 3,117 | 3,075 | ||||||
| Total stock-based compensation expense | $ | 15,999 | $ | 22,161 | ||||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
|
Three Months Ended
March 31, | ||||||||
| (In thousands) | 2024 | 2023 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 16,547 | $ | (1,959 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 9,619 | 9,750 | ||||||
| Stock-based compensation expense | 15,999 | 22,161 | ||||||
| Loss on mark-to-market adjustment of contingent consideration | 145 | 7,006 | ||||||
| Other, net | 580 | 640 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 60,245 | 39,872 | ||||||
| Prepaid expenses and other current assets | (2,679 | ) | 1,981 | |||||
| Other long-term assets | 9 | (1,944 | ) | |||||
| Accounts payable | (1,667 | ) | (5,362 | ) | ||||
| Accrued compensation and benefits | (8,503 | ) | (12,283 | ) | ||||
| Other accrued expenses and current liabilities | (199 | ) | 2,015 | |||||
| Deferred revenue | (16,646 | ) | (2,678 | ) | ||||
| Net cash provided by operating activities | 73,450 | 59,199 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (2,766 | ) | (1,727 | ) | ||||
| Other investing activities, net | 2 | (1,405 | ) | |||||
| Net cash used in investing activities | (2,764 | ) | (3,132 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from the exercise of common stock options | 19,844 | 9,872 | ||||||
| Proceeds from employee stock purchase plan contributions | 2,182 | 1,868 | ||||||
| Payments for repurchase and retirement of common stock | — | (6,255 | ) | |||||
| Other financing activities | — | (29 | ) | |||||
| Net cash provided by financing activities | 22,026 | 5,456 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,592 | ) | 379 | |||||
| Net increase in cash, cash equivalents and restricted cash | 90,120 | 61,902 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 467,576 | 316,958 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 557,696 | $ | 378,860 | ||||
Change in Presentation of Revenue and Cost of Revenue
