TROY, MI – Altair reported third quarter software product revenue of $87.8 million, up 12.9% year-over-year.
Total revenue was $106.5 million, an increase of 6.1% compared to the third quarter of 2019.
Net loss was $8.5 million compared to net loss of $15.9 million for the third quarter of 2019. Adjusted EBITDA was $8.2 million, compared to $(2.3) million in the prior-year period.
“We are very pleased with our third quarter performance, which exceeded our expectations,” said James Scapa, founder, chairman and CEO of Altair. “During the quarter, new customer activity remained relatively strong, and software renewals continued to come in as expected with several significant expansions, including in the automobile and aerospace sectors. We expanded our capabilities in high-performance computing and material modeling with tuck-in acquisitions and the introduction of new internally developed solutions. Our organization continues to do a great job of developing and delivering valuable technology despite macro uncertainties.”
“Software product revenue increased 13% from the third quarter of 2019 to 83% of total revenue, which drove a year-over-year improvement in gross margins of over 400 basis points, while our recurring license rate rose to 92%,” said CFO Howard Morof. “The proactive steps we took to control costs when combined with those impacted by Covid-19 had a positive impact on our operating expenses and profitability.”
Free cash flow during the third quarter was $(7.5) million, compared to $(3.3) million last year.