Altair Exceeds Expectations with Unprecedented Revenue in 2022
Altair (ALTR) is a cutting-edge software development company that specializes in data security and protection. Its headquarters are located in Austin, Texas, and it operates in multiple countries across the globe. The company has a strong customer base that comprises large enterprises, government agencies, and various other entities that require high-end data security solutions. Their platform, ALTR Data Security-as-a-Service, helps enterprises improve data governance, compliance, and security with blockchain-based data storage and access controls. The platform allows companies to track and control access to sensitive data across their organization, helping them to meet regulatory compliance requirements and protect against data breaches.
Below is our stock prediction from our 3-month stock forecast (90 days) publicly announcing ALTR as a buy on Dec 8th, 2023 to our subscribers getting exclusive market insights based on artificial intelligence. Subscribers who bought ALTR stock based on our AI forecast for the 3-month time horizon on this date generated a generous profit of 40.35%. The key benefit of employing artificial intelligence for stock market analysis is that it can study more assets objectively and continually throughout the day.
In the past, ALTR faces several challenges in its operations, primarily due to the nature of the industry it operates in. Cyber threats continue to evolve at an unprecedented rate, and companies in this rapidly evolving industry must remain vigilant to stay ahead of the curve. Moreover, ALTR also faces competition from other technology companies that offer similar data security services. The company operates in a highly competitive industry with several established players, including cybersecurity firms such as Symantec (GEN), McAfee (MCFE), and Cisco (CSCO). These companies offer data security solutions that are similar to those provided by ALTR, and they also have well-established customer bases and strong brand recognition. However, despite these challenges, ALTR has demonstrated its ability to compete.
One of ALTR's biggest strengths is its ability to develop innovative data security solutions that offer unparalleled protection for data stored in the cloud. The company's focus on cloud security has enabled it to differentiate itself from its competitors, who often provide traditional on-premise data security solutions. Additionally, ALTR's solutions are designed to be easy to deploy and manage, which has helped it attract customers who value simplicity and ease of use.
This innovation has helped ALTR gain a competitive edge over its rivals and has contributed significantly to the company's growth and success. In addition to this, ALTR has established strong partnerships with leading technology companies and government agencies. Its partnerships with these entities have helped ALTR expand its reach and influence in the industry. These partnerships have also enabled the company to develop and offer new solutions to its customers.
Regarding these strong partnerships, first of all, ALTR has established partnerships with several technology giants, including Microsoft (MSFT), Amazon's (AMZN) Amazon Web Services (AWS), and IBM (IBM). These partnerships have enabled ALTR to integrate its data security solutions with these companies' platforms, thereby expanding its reach and influence in the industry. For instance, ALTR has collaborated with Microsoft to integrate its data security solutions with Azure, Microsoft's cloud computing service. This partnership has allowed ALTR to offer its solutions to Microsoft's vast customer base, thereby expanding its reach and influence in the industry.
Not only private companies but also governmental institutions have also established partnerships with ALTR, such as the United States Department of Defense (DoD). The company's collaboration with the DoD has enabled it to provide its data security solutions to the US military and other defense agencies. This partnership has not only expanded ALTR's reach and influence in the industry but has also helped it gain credibility and recognition as a reliable provider of data security solutions.
Furthermore, ALTR has partnered with the National Institute of Standards and Technology (NIST), a government agency that develops and promotes standards for cybersecurity. ALTR's collaboration with NIST has enabled it to stay up-to-date with the latest cybersecurity standards and guidelines, thereby ensuring that its data security solutions are in line with industry best practices. From private to public, these partnerships have allowed the company to integrate its solutions with popular platforms, gain credibility as a reliable provider of data security solutions, and stay up-to-date with the latest cybersecurity standards and guidelines.
ALTR 4Q22
Overall, the company's fourth quarter 2022 financial results indicate significant growth in revenue, improved net income, and increased cash flow and non-GAAP net income. However, the full-year 2022 results indicate that the company needs to improve its expense management and cash flow to achieve long-term financial sustainability.
The software product revenue increased by 18.5% to $145.0 million, and the total revenue increased by 13.9% to $160.4 million, compared to the fourth quarter of 2021. The company's net income was $12.1 million, compared to a net loss of $(1.4) million in the fourth quarter of 2021. This represents a significant improvement in net income, which increased by $13.5 million. Similarly, the non-GAAP net income increased by 67.5% to $27.5 million.
The adjusted EBITDA also increased by 61.7% to $38.7 million, while cash provided by operating activities was $13.0 million, compared to $6.0 million in the fourth quarter of 2021. Free cash flow also increased significantly to $10.1 million, compared to $5.0 million in the fourth quarter of 2021. These results indicate strong financial performance and improved cash flow management during the quarter.
“We ended 2022 with record high annual revenue and exceeded our profit expectations. We’ve been successful in our disciplined approach to spending and expect to carry that approach into 2023, as we remain committed to exiting the year with 20% EBITDA margin, while continuing to add 200 to 300 basis points of margin per year into the future.”
Looking at the full year 2022, the company experienced growth in revenue, software product revenue, and non-GAAP net income. The software product revenue increased by 11.6% to $506.5 million, and the total revenue increased by 7.5% to $572.2 million, compared to the full year of 2021. Non-GAAP net income increased by 31.2% to $75.6 million, while adjusted EBITDA increased by 27.4% to $108.6 million.
However, the company recorded a net loss of $(43.4) million, compared to a net loss of $(8.8) million in the full year of 2021. The net loss margin was -7.6%, indicating that the company's expenses exceeded its revenue during the year. This may be due to increased operating expenses, including research and development, sales and marketing, and general and administrative expenses. Cash provided by operating activities was $39.6 million, a decrease from $61.6 million in the full year of 2021. Similarly, free cash flow decreased to $29.9 million, compared to $53.8 million in the full year of 2021. These results may suggest that the company experienced cash flow difficulties during the year.
AI Trading
Subscribers who purchased ALTR stock based on our quarterly AI prediction published every trading day would have made a substantial profit of 40.35%. Note this prediction was announced before the impressive fourth-quarter results were announced. That is the advantage of using AI to get enhanced market intelligence. Our AI-powered Decision Support System (DSS) gives you a unique advantage over other trades with insights that you can act on before the rest of the market. This is why smart traders use growthtech.ai, to find the best market opportunities. By merging big data analytics with our AI prediction system, we can improve decision-making, result modeling and forecasting, and market knowledge. This stock prediction has been consistently accessible in numerous predictions during this month as well as in earlier AI forecasts for different time frames, including shorter-term time periods like the weekly or biweekly forecasts. You may spot greater possibilities as a subscriber when you review your daily forecasts by monitoring stock picks that keep appearing regularly in the AI stock predictions. Another indicator is stock picks that appear in multiple anticipated time periods, particularly throughout multiple predictions released each morning by 6:00 AM EST every trading day. As a general rule of thumb, longer-term predictions tend to be much more accurate and the profits generated tend to be more substantial making our AI trading signals ideal for value-based investors. When combined with machine learning, these incredibly intricate mathematical functions for statistical programming and modeling are capable of comparing their current coefficients and algorithms to newly added data and then adapting to improve the models' accuracy through a process of validation and reflection.
Based on the historical accuracy of each prior financial asset forecast as well as current market variables important to stock price, the AI system calculates the Signal Confidence (SC), which is stated as a percentage out of 100%. In this stock prediction, the Signal Confidence (SC) is 80%. The AI stock prediction system analyzes empirical data on financial market irregularities linked to trader overreaction and underreaction to produce circadian forecasts in various frames. Every day, you will be updated with the best potential stock opportunities identified by AI that are offered from the short-term to longer-term time frames
Stock Ticker | Open: Dec 8, 2023 | Close: March 8, 2023 | ROI% |
Altair Engineering Inc. (ALTR) | $47.93 | $67.27 | 40.35% |
As previously noted, this stock received several recommendations throughout a range of time intervals. Remember to always exercise discretion when studying the market. Our AI signals should not be your only criteria for selecting which stocks you purchase. This advanced AI-powered decision support system is designed to drastically enhance your market analysis strategies but not replace them. Prior to putting any financial plans into action, you should always conduct your own due diligence and seek assistance from a licensed financial advisor.
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Sources: 1. Investor Relations Altair, "Altair Announces Fourth Quarter and Full Year 2022 Financial Results" (2023)
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