Mission Statement, Vision, & Core Values (2024) of Altair Engineering Inc. (ALTR)

An Overview of Altair Engineering Inc. (ALTR)

General Summary of Altair Engineering Inc.

Altair Engineering Inc. (ALTR) is a technology company that specializes in software and services for product design and development, data analytics, and cloud computing. Founded in 1985, Altair has evolved from a small engineering software provider to a global leader in simulation technology and data analytics. The company serves various industries, including aerospace, automotive, and manufacturing, offering solutions that help organizations optimize their product design processes and improve operational efficiency.

As of 2024, Altair's product suite includes software solutions for simulation, high-performance computing, data analytics, and artificial intelligence. Key products include Altair HyperWorks, Altair Smart Learning, and Altair Smart Manufacturing. The company has seen significant growth in its subscription-based software licenses, which have become a substantial revenue driver.

In terms of sales, Altair reported total revenue of $473.2 million for the nine months ended September 30, 2024, representing a 7.3% increase from $441.2 million during the same period in 2023. Software revenue accounted for 91% of total revenue, reflecting a strong demand for its subscription offerings.

Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, Altair Engineering Inc. achieved record-breaking financial performance. The company reported net income of $13.2 million, a significant turnaround from a net loss of $28.6 million in the same period of 2023. This improvement was primarily driven by an increase in gross profit, which reached $381.7 million, up from $348.6 million in the previous year, marking a 10% increase.

Software revenue for the nine months ended September 30, 2024, totaled $432.5 million, a 10% increase compared to $394.0 million in the same period of 2023. This growth was largely attributed to new business acquisitions and strong customer retention rates.

Introduction to Altair Engineering Inc. as an Industry Leader

Altair Engineering Inc. has established itself as one of the leading companies in the simulation and data analytics industry. The company is recognized for its innovative technology solutions that empower clients to make data-driven decisions and enhance product development processes. Altair's commitment to sustainability and efficiency through advanced simulation techniques places it at the forefront of digital transformation across various sectors.

With a robust portfolio of software solutions and a strong focus on research and development, Altair continues to attract a diverse client base, including major players in aerospace and automotive industries. The company’s recurring software license rate remained high at 92% for the nine months ended September 30, 2024, underscoring its effectiveness in retaining customers and generating predictable revenue streams.

Altair's strategic focus on expanding its cloud-based offerings positions it well to capitalize on emerging trends in the industry, reinforcing its status as a leader in the market. Investors and stakeholders are encouraged to explore further to understand the factors contributing to Altair's ongoing success.

Mission Statement of Altair Engineering Inc. (ALTR)

Mission Statement Overview

Altair Engineering Inc. (ALTR) focuses on providing innovative software solutions and engineering services that empower clients to make informed decisions. The mission statement reflects the company's commitment to advancing technology and optimizing performance across various industries.

Core Component 1: Innovation

Altair emphasizes innovation as a core aspect of its mission. The company invests significantly in research and development (R&D), with R&D expenses amounting to $164.0 million for the nine months ended September 30, 2024, representing a 2% increase from the previous year.

Innovation is crucial for maintaining competitive advantage, particularly in sectors such as aerospace and defense, where Altair has seen strong demand. For instance, software revenue grew by 10% year-over-year, reaching $432.5 million for the nine months ended September 30, 2024.

Core Component 2: Quality

Quality in products and services is a fundamental pillar of Altair's mission. The company reports a gross profit of $381.7 million for the nine months ended September 30, 2024, indicating a gross margin of 81%. This reflects Altair's ability to maintain high-quality standards while expanding its customer base.

The commitment to quality is further illustrated by the 16% increase in gross profit compared to the prior year, driven by enhanced software offerings and customer satisfaction.

Core Component 3: Customer Empowerment

Empowering customers through technology is central to Altair's mission. The company achieved a net income of $13.2 million for the nine months ended September 30, 2024, a significant turnaround from a net loss of $28.6 million in the prior year. This financial improvement is a testament to Altair's focus on delivering value to its clients.

Furthermore, Altair's software solutions have been crucial in driving operational efficiencies for clients, with a reported 10% increase in software license revenue attributed to strong retention and expansions within existing accounts.

Vision Statement of Altair Engineering Inc. (ALTR)

Vision Statement Overview

As of 2024, Altair Engineering Inc. (ALTR) aims to empower organizations to innovate and drive efficiency through advanced simulation, data analytics, and artificial intelligence. This vision emphasizes a commitment to sustainability, innovation, and customer-centric solutions.

Empowering Innovation

Altair's vision focuses on creating an environment where innovation thrives. The company aims to provide tools that facilitate the development of new ideas and technologies, particularly in sectors like aerospace, automotive, and manufacturing. The software revenue for the nine months ended September 30, 2024, reached $432.5 million, a 10% increase from $394.0 million in the same period of 2023.

Sustainability Commitment

Altair is dedicated to promoting sustainability within engineering and design processes. The company’s vision includes integrating sustainable practices into its software solutions, helping clients reduce waste and energy consumption. This aligns with the increasing market demand for environmentally friendly practices. For instance, the gross profit margin increased from 79% in 2023 to 81% in 2024.

Customer-Centric Solutions

Altair prioritizes the needs of its customers by delivering tailored solutions that enhance operational efficiency. The company reports that its recurring software license rate stood at 92% for the nine months ended September 30, 2024, demonstrating strong customer retention and loyalty. This focus on customer satisfaction is pivotal in maintaining a competitive edge in the software industry.

Global Reach and Market Expansion

The vision of Altair includes expanding its global footprint, particularly in emerging markets. With cash and cash equivalents amounting to $513.4 million as of September 30, 2024, the company is well-positioned to invest in growth opportunities and acquisitions. The strategic goal is to enhance its market share in regions like APAC and EMEA, where demand for simulation and data analytics tools is rapidly growing.

Technological Leadership

Altair’s vision includes maintaining its status as a leader in technology innovation. The company invests significantly in research and development, with expenses totaling $164.0 million for the nine months ended September 30, 2024, reflecting a 2% increase from the previous year. This commitment to R&D is crucial for developing cutting-edge solutions that meet the evolving needs of customers.

Strategic Partnerships

To further its vision, Altair actively seeks strategic partnerships that enhance its capabilities and market presence. Collaborations with industry leaders allow Altair to integrate diverse technologies and provide comprehensive solutions. The company’s effective tax rate was reported at 42% for the nine months ended September 30, 2024, impacting its overall financial strategy.

Core Values of Altair Engineering Inc. (ALTR)

Integrity

Integrity is a fundamental core value at Altair Engineering Inc. (ALTR), emphasizing ethical behavior and accountability in all business practices. This value is vital as it fosters trust among clients, employees, and stakeholders.

In 2024, Altair demonstrated its commitment to integrity through various initiatives:

• Implementation of a comprehensive ethics training program for all employees, ensuring adherence to ethical standards and compliance with legal requirements.
• Regular audits and assessments to monitor compliance with internal policies and external regulations, contributing to a transparent operational environment.
• Establishment of a whistleblower policy that encourages employees to report unethical behavior without fear of retaliation.

Innovation

Innovation is at the heart of Altair's mission, driving the development of advanced technologies and solutions. This core value is essential for maintaining competitive advantage and meeting the evolving needs of customers.

Examples of Altair's commitment to innovation in 2024 include:

• Investment of $164 million in research and development, accounting for 35% of consolidated revenue, to enhance product offerings and explore new technologies.
• Launch of new software products that integrate artificial intelligence and machine learning capabilities, improving user experience and operational efficiency.
• Collaboration with universities and research institutions to foster innovation through joint research projects and internships, promoting a culture of creativity and discovery.

Collaboration

Collaboration is a core value that underscores the importance of teamwork and partnership at Altair. This value enhances problem-solving capabilities and drives successful project outcomes.

In 2024, Altair has demonstrated its commitment to collaboration by:

• Establishing cross-functional teams that leverage diverse expertise to tackle complex challenges, resulting in improved project delivery and client satisfaction.
• Implementing collaborative tools and platforms that facilitate communication and knowledge sharing among employees, regardless of geographic location.
• Engaging with clients through regular feedback sessions and co-development initiatives, ensuring that solutions are tailored to meet their specific needs.

Diversity and Inclusion

Diversity and inclusion are integral to Altair's corporate culture, promoting a workplace where all employees feel valued and empowered to contribute their unique perspectives.

In 2024, Altair has made significant strides in advancing diversity and inclusion through:

• Launching initiatives aimed at increasing workforce diversity, with a goal of achieving 50% representation of underrepresented groups in leadership positions by 2026.
• Offering training programs focused on unconscious bias and cultural competency, enhancing employee awareness and fostering an inclusive environment.
• Partnering with organizations that promote STEM education for underrepresented groups, contributing to a more diverse talent pipeline in the engineering and technology sectors.

Customer Focus

Customer focus is a core value that emphasizes the importance of understanding and addressing customer needs. This value is crucial for building long-term relationships and ensuring customer satisfaction.

In 2024, Altair has shown its commitment to customer focus by:

• Achieving a customer satisfaction score of 92%, reflecting a strong commitment to meeting and exceeding client expectations.
• Implementing a customer feedback loop that incorporates insights into product development, ensuring that solutions align with user requirements.
• Providing comprehensive support services, including training and resources, to empower customers in maximizing the value of Altair's solutions.

Altair Engineering Inc.'s core values represent a commitment to ethical practices, innovation, collaboration, diversity, and customer satisfaction, positioning the company as a leader in the engineering and technology sectors.

Article updated on 8 Nov 2024

Resources:

• Altair Engineering Inc. (ALTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Altair Engineering Inc. (ALTR)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Altair Engineering Inc. (ALTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.