Artificial Intelligence
Altair Announces Fourth Quarter 2020 Financial Results
Record Fourth Quarter and Full Year 2020 Software Product and Total Revenue, Exceeding Expectations
TROY, Mich., Feb. 25, 2021 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global technology company providing software and cloud solutions in the areas of simulation, high-performance computing, data analytics and artificial intelligence today released its financial results for the fourth quarter and full year ended December 31, 2020.
“Altair had an excellent fourth quarter and full year 2020,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “In a year of business disruptions and personal challenges, Altair brought to market broad and deep additions and enhancements to our product portfolio while delivering solid financial performance. I am proud of our global team, and excited about 2021 as we will continue delivering industry-leading technology and expertise aligned with our vision for the convergence of simulation, high-performance computing, and artificial intelligence.”
“Software product revenue increased over 12% from the fourth quarter of 2019 to 85% of total revenue, which drove year over year improvement in gross margin of over 500 basis points for the quarter, while our recurring software license rate rose to 92% for the year,” said Howard Morof, Chief Financial Officer of Altair. “The top line performance coupled with continued discipline managing operating expenses had a very positive impact on our profitability in the quarter.”
Fourth Quarter 2020 Financial Highlights
- Software product revenue was $113.6 million compared to $101.2 million for the fourth quarter of 2019.
- Total revenue was $133.4 million compared to $123.9 million for the fourth quarter of 2019.
- Net income was $2.2 million compared to net loss of $(1.5) million for the fourth quarter of 2019. Diluted net income per share was $0.03 based on 78.5 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.02) for the fourth quarter of 2019, based on 72.2 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $21.7 million, compared to $12.7 million for the fourth quarter of 2019.
- Non-GAAP net income was $14.1 million, compared to Non-GAAP net income of $5.3 million for the fourth quarter of 2019. Non-GAAP diluted net income per share was $0.17 based on 83.0 million non-GAAP diluted common shares outstanding, compared to Non-GAAP diluted net income per share of $0.07 for the fourth quarter of 2019, based on 78.0 million non-GAAP diluted common shares outstanding.
- Free cash flow was $3.4 million, compared to $(0.2) million for the fourth quarter of 2019.
Full Year 2020 Financial Highlights
- Software product revenue was $391.7 million compared to $366.7 million for the full year of 2019.
- Total revenue was $469.9 million compared to $458.9 million for the full year of 2019.
- Net loss was $(10.5) million compared to net loss of $(7.5) million for the full year of 2019. Diluted net loss per share was $(0.14) based on 73.2 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.11) for the full year of 2019, based on 71.5 million diluted weighted average common shares outstanding.
- Adjusted EBITDA was $57.3 million, compared to $39.5 million for the full year of 2019.
- Non-GAAP net income was $25.5 million, compared to Non-GAAP net income of $16.4 million for the full year of 2019. Non-GAAP diluted net income per share was $0.31 based on 83.0 million non-GAAP diluted common shares outstanding, compared to Non-GAAP diluted net income per share of $0.21 for the full year of 2019, based on 78.0 million non-GAAP diluted common shares outstanding.
- Free cash flow was $26.8 million, compared to $21.7 million for the full year of 2019.
Business Outlook
Based on information available as of today, Altair is issuing guidance for the first quarter and full year 2021.
(in millions) | First Quarter 2021 | Full Year 2021 | ||||||||||||||
Software Product Revenue | $ | 118.0 | to | $ | 120.0 | $ | 423.0 | to | $ | 431.0 | ||||||
Total Revenue | $ | 138.0 | $ | 140.0 | $ | 502.0 | $ | 510.0 | ||||||||
Net Loss | $ | (5.4 | ) | $ | (4.5 | ) | $ | (44.0 | ) | $ | (38.3 | ) | ||||
Non-GAAP Net Income | $ | 16.3 | $ | 17.8 | $ | 36.9 | $ | 42.8 | ||||||||
Adjusted EBITDA | $ | 24.0 | $ | 26.0 | $ | 58.0 | $ | 66.0 |
Conference Call Information
What: | Altair’s Fourth Quarter and Full Year 2020 Financial Results Conference Call |
When: | Friday, February 26, 2021 |
Time: | 8:30 a.m. ET |
Live Call: | (866) 754-5204, Domestic (636) 812-6621, International |
Replay: | (855) 859-2056, Conference ID 3056322, Domestic (404) 537-3406, Conference ID 3056322, International |
Webcast: | http://investor.altair.com (live & replay) |
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Share and Free Cash Flow.
Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
Non-GAAP net income – as defined through 2020 results excludes stock-based compensation, amortization of intangible assets related to acquisitions, and special items as identified by management and described elsewhere in this press release.
Non-GAAP net income – as defined starting with 2021 guidance and going forward excludes stock-based compensation, amortization of intangible assets related to acquisitions, non-cash interest expense, impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate form period to period, and special items as identified by management and described elsewhere in this press release.
Non-GAAP diluted common shares includes total outstanding shares plus outstanding equity awards under the Company’s equity award plans.
Free cash flow consists of cash flow from operations less capital expenditures.
Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.
About Altair
Altair is a global technology company that provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics and artificial intelligence. Altair enables organizations across broad industry segments to compete more effectively in a connected world while creating a more sustainable future. To learn more, please visit www.altair.com.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the first quarter and full year 2021, our statements regarding our expectation for 2021, and our reconciliations of projected non-GAAP financial measures. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in our forward-looking statements due to a number of factors, including but not limited to, the risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.
Media Relations
Altair
Dave Simon
248-614-2400 ext. 332
[email protected]
Investor Relations
The Blueshirt Group
Monica Gould
212-871-3927
[email protected]
Lindsay Savarese
212-331-8417
[email protected]
ALTAIR ENGINERING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, | |||||||
(in thousands) | 2020 | 2019 | |||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 241,221 | $ | 223,117 | |||
Accounts receivable, net | 117,878 | 104,984 | |||||
Income tax receivable | 6,736 | 7,264 | |||||
Prepaid expenses and other current assets | 21,100 | 17,092 | |||||
Total current assets | 386,935 | 352,457 | |||||
Property and equipment, net | 36,332 | 36,297 | |||||
Operating lease right of use assets | 33,526 | 28,134 | |||||
Goodwill | 264,481 | 233,683 | |||||
Other intangible assets, net | 76,114 | 67,075 | |||||
Deferred tax assets | 7,125 | 5,791 | |||||
Other long-term assets | 25,389 | 19,708 | |||||
TOTAL ASSETS | $ | 829,902 | $ | 743,145 | |||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Current portion of long-term debt | $ | 30,384 | $ | 430 | |||
Accounts payable | 8,594 | 8,585 | |||||
Accrued compensation and benefits | 34,772 | 30,676 | |||||
Current portion of operating lease liabilities | 10,331 | 9,141 | |||||
Other accrued expenses and current liabilities | 30,982 | 28,603 | |||||
Deferred revenue | 85,691 | 75,431 | |||||
Total current liabilities | 200,754 | 152,866 | |||||
Long-term debt, net of current portion | 188,653 | 178,238 | |||||
Operating lease liabilities, net of current portion | 24,323 | 20,174 | |||||
Deferred revenue, non-current | 9,388 | 8,136 | |||||
Other long-term liabilities | 27,414 | 26,672 | |||||
TOTAL LIABILITIES | 450,532 | 386,086 | |||||
Commitments and contingencies | |||||||
MEZZANINE EQUITY | 784 | 2,352 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued or outstanding | — | — | |||||
Common stock ($0.0001 par value) | |||||||
Class A common stock, authorized 513,797 shares, issued and outstanding 44,216 and 41,271 shares as of December 31, 2020 and 2019, respectively | 4 | 4 | |||||
Class B common stock, authorized 41,203 shares, issued and outstanding 30,111 and 31,131 shares as of December 31, 2020 and 2019, respectively | 3 | 3 | |||||
Additional paid-in capital | 474,669 | 446,633 | |||||
Accumulated deficit | (93,293 | ) | (82,405 | ) | |||
Accumulated other comprehensive loss | (2,797 | ) | (9,528 | ) | |||
TOTAL STOCKHOLDERS’ EQUITY | 378,586 | 354,707 | |||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $ | 829,902 | $ | 743,145 | |||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
(in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenue | |||||||||||||||
License | $ | 76,381 | $ | 64,194 | $ | 259,965 | $ | 244,321 | |||||||
Maintenance and other services | 37,244 | 36,993 | 131,746 | 122,381 | |||||||||||
Total software | 113,625 | 101,187 | 391,711 | 366,702 | |||||||||||
Software related services | 7,906 | 8,941 | 26,454 | 34,576 | |||||||||||
Total software and related services | 121,531 | 110,128 | 418,165 | 401,278 | |||||||||||
Client engineering services | 9,934 | 11,722 | 44,320 | 48,987 | |||||||||||
Other | 1,976 | 2,027 | 7,436 | 8,650 | |||||||||||
Total revenue | 133,441 | 123,877 | 469,921 | 458,915 | |||||||||||
Cost of revenue | |||||||||||||||
License | 6,786 | 8,139 | 19,637 | 21,285 | |||||||||||
Maintenance and other services | 10,105 | 10,892 | 38,688 | 38,401 | |||||||||||
Total software * | 16,891 | 19,031 | 58,325 | 59,686 | |||||||||||
Software related services | 6,102 | 6,497 | 21,243 | 25,640 | |||||||||||
Total software and related services | 22,993 | 25,528 | 79,568 | 85,326 | |||||||||||
Client engineering services | 8,067 | 9,882 | 35,684 | 39,875 | |||||||||||
Other | 1,631 | 1,540 | 6,053 | 7,398 | |||||||||||
Total cost of revenue | 32,691 | 36,950 | 121,305 | 132,599 | |||||||||||
Gross profit | 100,750 | 86,927 | 348,616 | 326,316 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development * | 34,966 | 30,498 | 126,081 | 117,510 | |||||||||||
Sales and marketing * | 30,537 | 27,589 | 111,440 | 106,051 | |||||||||||
General and administrative * | 22,933 | 21,292 | 86,432 | 82,178 | |||||||||||
Amortization of intangible assets | 4,986 | 3,769 | 16,376 | 14,442 | |||||||||||
Other operating loss (income), net | 5 | (370 | ) | (3,426 | ) | (2,072 | ) | ||||||||
Total operating expenses | 93,427 | 82,778 | 336,903 | 318,109 | |||||||||||
Operating income | 7,323 | 4,149 | 11,713 | 8,207 | |||||||||||
Interest expense | 3,008 | 2,785 | 11,598 | 6,371 | |||||||||||
Other income, net | (65 | ) | (849 | ) | (1,917 | ) | (1,552 | ) | |||||||
Income before income taxes | 4,380 | 2,213 | 2,032 | 3,388 | |||||||||||
Income tax expense | 2,182 | 3,715 | 12,532 | 10,930 | |||||||||||
Net income (loss) | $ | 2,198 | $ | (1,502 | ) | $ | (10,500 | ) | $ | (7,542 | ) | ||||
Income per share: | |||||||||||||||
Net income (loss) per share attributable to common stockholders, basic | $ | 0.03 | $ | (0.02 | ) | $ | (0.14 | ) | $ | (0.11 | ) | ||||
Net income (loss) per share attributable to common stockholders, diluted | $ | 0.03 | $ | (0.02 | ) | $ | (0.14 | ) | $ | (0.11 | ) | ||||
Weighted average shares outstanding: | |||||||||||||||
Weighted average number of shares used in computing net income (loss) per share, basic | 74,020 | 72,227 | 73,241 | 71,544 | |||||||||||
Weighted average number of shares used in computing net income (loss) per share, diluted | 78,484 | 72,227 | 73,241 | 71,544 |
* Amounts include stock-based compensation expense as follows (in thousands):
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cost of revenue-software | $ | 871 | $ | 342 | $ | 2,473 | $ | 1,069 | |||||||
Research and development | 2,686 | 1,306 | 8,372 | 2,917 | |||||||||||
Sales and marketing | 2,474 | 688 | 6,423 | 2,250 | |||||||||||
General and administrative | 1,385 | 608 | 4,087 | 2,292 | |||||||||||
Total stock-based compensation expense | $ | 7,416 | $ | 2,944 | $ | 21,355 | $ | 8,528 |
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Year Ended December 31, | |||||||
(in thousands) | 2020 | 2019 | |||||
OPERATING ACTIVITIES: | |||||||
Net loss | $ | (10,500 | ) | $ | (7,542 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 23,806 | 21,522 | |||||
Provision for credit loss | 1,259 | 671 | |||||
Amortization of debt discount and issuance costs | 10,829 | 5,663 | |||||
Stock-based compensation expense | 21,355 | 8,528 | |||||
Deferred income taxes | (10,350 | ) | (950 | ) | |||
Other, net | 118 | 6 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (11,032 | ) | (7,901 | ) | |||
Prepaid expenses and other current assets | (2,131 | ) | (2,396 | ) | |||
Other long-term assets | (4,527 | ) | (2,591 | ) | |||
Accounts payable | (1,839 | ) | (426 | ) | |||
Accrued compensation and benefits | 1,985 | (1,232 | ) | ||||
Other accrued expenses and current liabilities | 5,771 | 513 | |||||
Operating lease right of use assets and liabilities, net | (142 | ) | 102 | ||||
Deferred revenue | 8,280 | 17,426 | |||||
Net cash provided by operating activities | 32,882 | 31,393 | |||||
INVESTING ACTIVITIES: | |||||||
Payments for acquisition of businesses, net of cash acquired | (41,028 | ) | (25,720 | ) | |||
Capital expenditures | (6,093 | ) | (9,660 | ) | |||
Payments for acquisition of developed technology | (2,133 | ) | (473 | ) | |||
Other investing activities, net | 162 | 14 | |||||
Net cash used in investing activities | (49,092 | ) | (35,839 | ) | |||
FINANCING ACTIVITIES: | |||||||
Borrowings under revolving commitment | 30,000 | 96,992 | |||||
Proceeds from the exercise of stock options | 1,710 | 1,510 | |||||
Proceeds from issuance of convertible senior notes, net of underwriters’ discounts and commissions | — | 223,101 | |||||
Payments on revolving commitment | — | (127,941 | ) | ||||
Payments for issuance costs of convertible senior notes | — | (1,233 | ) | ||||
Other financing activities | (460 | ) | (513 | ) | |||
Net cash provided by financing activities | 31,250 | 191,916 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,010 | 342 | |||||
Net increase in cash, cash equivalents and restricted cash | 18,050 | 187,812 | |||||
Cash, cash equivalents and restricted cash at beginning of year | 223,497 | 35,685 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 241,547 | $ | 223,497 | |||
Supplemental disclosures of cash flow: | |||||||
Interest paid | $ | 731 | $ | 664 | |||
Income taxes paid | $ | 12,666 | $ | 7,686 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Issuance of common stock in connection with acquisitions | $ | 3,504 | $ | 7,637 | |||
Promissory notes issued and deferred payment obligations for acquisitions | $ | 1,266 | $ | 497 | |||
Finance leases | $ | 118 | $ | 632 | |||
Property and equipment in accounts payable and other current liabilities | $ | 1,671 | $ | 259 | |||
Financial Results
The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income (loss) and net income (loss) per share – diluted, the most comparable GAAP financial measures:
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
(in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income (loss) | $ | 2,198 | $ | (1,502 | ) | $ | (10,500 | ) | $ | (7,542 | ) | ||||
Stock-based compensation expense | 7,416 | 2,944 | 21,355 | 8,528 | |||||||||||
Amortization of intangible assets | 4,986 | 3,769 | 16,376 | 14,442 | |||||||||||
Special adjustments (1) | — | 7 | (372 | ) | 2,038 | ||||||||||
Income tax effect of non-GAAP adjustments | (451 | ) | 34 | (1,380 | ) | (1,069 | ) | ||||||||
Non-GAAP net income | $ | 14,149 | $ | 5,252 | $ | 25,479 | $ | 16,397 | |||||||
Net income (loss) per share – diluted | $ | 0.03 | $ | (0.02 | ) | $ | (0.14 | ) | $ | (0.11 | ) | ||||
Non-GAAP net income per share – diluted | $ | 0.17 | $ | 0.07 | $ | 0.31 | $ | 0.21 | |||||||
GAAP diluted shares outstanding: | 78,484 | 72,227 | 73,241 | 71,544 | |||||||||||
Non-GAAP diluted shares outstanding: | 83,000 | 78,000 | 83,000 | 78,000 |
(1) | The twelve months ended December 31, 2020, includes $1.0 million of proceeds from settlements related to a historical acquisition and $0.6 million of severance expense. The twelve months ended December 31, 2019, includes $1.0 million of impairment charges for royalty contracts, $0.6 million of acquisition related costs and $0.4 million of severance expense. |
The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure:
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income (loss) | $ | 2,198 | $ | (1,502 | ) | $ | (10,500 | ) | $ | (7,542 | ) | ||||
Income tax expense | 2,182 | 3,715 | 12,532 | 10,930 | |||||||||||
Stock-based compensation expense | 7,416 | 2,944 | 21,355 | 8,528 | |||||||||||
Interest expense | 3,008 | 2,785 | 11,598 | 6,371 | |||||||||||
Depreciation and amortization | 6,890 | 5,686 | 23,806 | 21,522 | |||||||||||
Special adjustments, interest income and other (1) | (2 | ) | (893 | ) | (1,503 | ) | (260 | ) | |||||||
Adjusted EBITDA | $ | 21,692 | $ | 12,735 | $ | 57,288 | $ | 39,549 |
(1) | The twelve months ended December 31, 2020, includes $1.0 million of proceeds from settlements related to a historical acquisition and $0.6 million of severance expense. The twelve months ended December 31, 2019, includes $1.0 million of impairment charges for royalty contracts, $0.6 million of acquisition related costs and $0.4 million of severance expense. |
The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net cash provided by operating activities | 5,503 | 1,388 | 32,882 | 31,393 | |||||||||||
Capital expenditures | (2,087 | ) | (1,540 | ) | (6,093 | ) | (9,660 | ) | |||||||
Free Cash Flow | $ | 3,416 | $ | (152 | ) | $ | 26,789 | $ | 21,733 | ||||||
Business Outlook
Starting with the 2021 guidance presented in this press release (including the reconciliations provided below) and going forward, our definition of Non-GAAP net income now excludes non-cash interest expense and assumes a non-GAAP income tax rate, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period. There are no other changes from our prior definition. We’ve made these changes to reflect how management reviews results of the business and to be more consistent with our peers.
The following table provides a reconciliation of projected Non-GAAP net income to projected net loss, the most comparable GAAP financial measure:
(Unaudited) | |||||||||||||||
Three Months Ending March 31, 2021 |
Year Ending December 31, 2021 |
||||||||||||||
(in thousands) | Low | High | Low | High | |||||||||||
Net loss | $ | (5,400 | ) | $ | (4,500 | ) | $ | (44,000 | ) | $ | (38,300 | ) | |||
Stock-based compensation expense | 11,900 | 11,900 | 44,500 | 44,500 | |||||||||||
Amortization of intangible assets | 4,400 | 4,400 | 17,800 | 17,800 | |||||||||||
Non-cash interest expense | 2,800 | 2,800 | 11,400 | 11,400 | |||||||||||
Special adjustments and other | 4,000 | 5,000 | 5,000 | 7,000 | |||||||||||
Impact of non-GAAP tax rate | (1,400 | ) | (1,800 | ) | 2,200 | 400 | |||||||||
Non-GAAP net income | $ | 16,300 | $ | 17,800 | $ | 36,900 | $ | 42,800 | |||||||
For comparability purposes, the following table provides a reconciliation of the Quarterly Non-GAAP net income results for 2020 to GAAP net income (loss) for 2020, reflecting the 2021 definition:
(Unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
(in thousands) | March 31, 2020 |
June 30, 2020 |
Sept 30, 2020 |
December 31, 2020 |
|||||||||||
Net income (loss) | $ | 6,030 | $ | (10,223 | ) | $ | (8,505 | ) | $ | 2,198 | |||||
Stock-based compensation expense | 3,171 | 4,534 | 6,234 | 7,416 | |||||||||||
Amortization of intangible assets | 3,840 | 3,692 | 3,858 | 4,986 | |||||||||||
Non-cash interest expense | 2,648 | 2,689 | 2,725 | 2,762 | |||||||||||
Special adjustments and other | — | 578 | (950 | ) | — | ||||||||||
Impact of non-GAAP tax rate | (637 | ) | 1,718 | 1,294 | (2,900 | ) | |||||||||
Non-GAAP net income | $ | 15,052 | $ | 2,988 | $ | 4,656 | $ | 14,462 | |||||||
The following table provides a reconciliation of projected Adjusted EBITDA to projected net loss, the most comparable GAAP financial measure:
(Unaudited) | |||||||||||||||
Three Months Ending March 31, 2021 |
Year Ending December 31, 2021 |
||||||||||||||
(in thousands) | Low | High | Low | High | |||||||||||
Net loss | $ | (5,400 | ) | $ | (4,500 | ) | $ | (44,000 | ) | $ | (38,300 | ) | |||
Income tax expense | 4,300 | 4,400 | 15,200 | 15,500 | |||||||||||
Stock-based compensation expense | 11,900 | 11,900 | 44,500 | 44,500 | |||||||||||
Interest expense | 2,900 | 2,900 | 12,000 | 12,000 | |||||||||||
Depreciation and amortization | 6,300 | 6,300 | 25,400 | 25,400 | |||||||||||
Special adjustments, interest income and other | 4,000 | 5,000 | 4,900 | 6,900 | |||||||||||
Adjusted EBITDA | $ | 24,000 | $ | 26,000 | $ | 58,000 | $ | 66,000 |
Artificial Intelligence
NEW PRODUCT, NEW TECHNOLOGY, NEW STRATEGY: NETA AUTO POISED TO SHOCK 2024 BEIJING INTERNATIONAL AUTOMOTIVE EXHIBITION
BEIJING, April 18, 2024 /PRNewswire/ — 2024 Beijing International Automotive Exhibition, the largest international auto show this year, is about to open, attracting global attention. As the leading EV brand in China, NETA has officially announced its participation in this exhibition. From 25th April to 4th May, visitors can experience its latest technologies and brand-new product lineup at booth E405 in CIEC (Shunyi Hall, Beijing).
Adhering to the brand value of “Tech for All” and brand mission of “Touchable Smart EV”, NETA Auto is dedicated to provide high-quality smart EVs and advance technology to global users. At the upcoming exhibition, NETA Auto will introduce a brand-new lineup of products. Not only its existing models, NETA X and NETA S, but also unveil the new model, NETA L.
NETA L will debut in both REEV and EV version. It will be delivered to its first Chinese customer at Beijing auto show and will be launched in over 20 countries worldwide during the second half of this year. NETA L will offer an REEV version with an extraordinary combined range of 1070 kilometers. Additionally, NETA L’s most striking feature is its integration with NETA’s all new AI flagship technology – NETA GPT, which will offer global users with a smarter NETA assistant and will redefine the experience of intelligent cockpits.
At this exhibition, NETA Auto will not only showcase its innovative strength and brand-new product lineup of smart EVs, but also seize opportunities to launch series of overseas activities. This move aims to further drive NETA’s global expansion and bring high-quality smart EVs to global customers in vast markets, such as Southeast Asia, the Middle East, and Latin America.
About NETA Auto
NETA Auto, a brand of Hozon New Energy Automobile Co., Ltd., is a leading innovator in the smart EV industry. With a focus on “Tech for All” and “Touchable Smart EV”, NETA develops high-quality EV and cutting-edge technologies. Its lineup includes popular models such as NETA AYA, NETA X, NETA L, NETA GT, and NETA S.
NETA dedicate to bring smart EV to global mass consumer market, introducing new model each year and covering the A0-B segments. NETA has also developed the “Shanhai Platform,” an intelligent and safe car platform, and HOZI Technology, which is committed to develop advanced technologies to meet user demands continuously.
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View original content:https://www.prnewswire.co.uk/news-releases/new-product-new-technology-new-strategy-neta-auto-poised-to-shock-2024-beijing-international-automotive-exhibition-302120989.html
Artificial Intelligence
Cognivia Secures Strategic 15.5M€ Funding to Empower Drug Development with AI-ML Solutions
Using patient personality traits to pioneer a new era in clinical research.
MONT-SAINT-GUIBERT, Belgium, April 18, 2024 /PRNewswire/ — Cognivia, an innovative AI company dedicated to reshaping pharmaceutical and biotech clinical research through cutting edge AI-ML algorithms, proudly announces a significant investment milestone. Vesalius Biocapital IV, SFPIM (Société Fédérale de Participations et d’Investissement) and WE (Wallonie Entreprendre) have committed strategic investments to drive Cognivia’s mission to “quantify the power of the mind” to optimize and accelerate drug development programs. This infusion of capital will allow Cognivia to deploy its predictive clinical trial solutions that decode the relationship between patient traits and behaviors, thus expediting the development of innovative treatments for patients globally.
Cognivia’s solutions target critical areas that have historically posed significant challenges to drug development, such as the placebo response and medication adherence in clinical trials. Unlike any other, Cognivia is pioneering a quantitative understanding of patients as individuals and integrating these insights into the analysis of clinical trial data and/or optimization of patient engagement strategies. For instance, Placebell™ utilizes predictive algorithms to mitigate the negative impact of the placebo response, enhancing the study power of clinical trials, resulting in increased success rates and reduced clinical trial timelines and costs. Compl-AI predicts the risk of non-compliance and dropout of a patient at screening and during your clinical trial, helping to strengthen and personalize patient engagement strategies.
The capital raised will catalyze Cognivia’s endeavors to introduce its groundbreaking solutions to the market and cement a robust presence in the United States. Through the expansion of its team and the establishment of a subsidiary in the US, Cognivia seeks to foster enhanced commercial and R&D collaborations. In the near future, we plan to fortify our network through strategic alliances, bolstering our advisory board with new members, and building out teams in both the US and EU. This strategic maneuver is in perfect alignment with Cognivia’s steadfast dedication to becoming a leading partner for pharmaceutical and biotechnology companies, empowering them to develop efficacious treatments to address unmet patient needs.
In this latest funding round, Cognivia proudly welcomes the support of three esteemed investors: Vesalius Biocapital IV, a Luxembourg-based venture-capital fund focusing on best-in-class investments in HealthTech and biopharma; SFPIM, the Belgian Sovereign Wealth Fund, providing strategic guidance and financial support for Belgian companies; and WE, contributing to Wallonia’s economic development through financing and support across various sectors.
“We are thrilled to announce Cognivia as the inaugural investment of our fund IV, which focuses on HealthTech and biopharma companies at the forefront of innovation transforming healthcare. We eagerly anticipate partnering with them throughout their commercialization and growth stages.” says Olivier Houben, Partner at Vesalius Biocapital.
“Cognivia’s strategic alliances with Vesalius Biocapital IV, SFPIM and WE signify a pivotal moment in our quest to transform the industry through a unique blend of decades-long industry experience and advanced AI,” remarked Dominique Demolle, CEO/Co-founder of Cognivia. “With this investment and the welcomed addition of new members to our operational team and Company Board and Strategic Advisory Committee, to be announced soon, we are poised to accelerate our efforts in delivering groundbreaking approaches that empower clinicians, researchers and industries to make informed, data-driven decisions, ultimately enhancing outcomes for patients and stakeholders worldwide.”
About Cognivia
Cognivia is the first and only company to combine quantification of patient psychology with artificial intelligence (AI)/machine learning (ML) to improve measurement of therapeutic efficacy in clinical trials – and beyond. Cognivia technologies predict patient behavior and treatment response in clinical trials using predictive ML powered algorithms based on a quantitative understanding of patient psychological traits, expectations and beliefs collected via our own and specific questionnaires developed toward that objective. Cognivia aims at harnessing “the power of the mind” and quantifying this unique phenomenon to improve clinical trial success rates, de-risk drug development and ultimately improve healthcare.
For further details on Cognivia and its groundbreaking AI solutions, please visit cognivia.com or follow @cognivia on LinkedIn.
For media inquiries, please contact: Stephanie AlvarezMarketing Director at [email protected]
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Artificial Intelligence
Sapiens Launches IntegrateAI, the Second Release in its DecisionAI Portfolio
IntegrateAI addresses growing market demand for a single, integrated business application that leverages machine learning models in decision management
ROCHELLE PARK, N.J., April 18, 2024 /PRNewswire/ — Sapiens International Corporation (NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, today announced the launch of IntegrateAI, the newest capability from Sapiens Decision, integrating machine learning models into the business-friendly decision model workbench.
Sapiens Decision users can integrate machine learning models as another component of their decision model diagram, combining declarative and probabilistic constructs into one consistent and explainable model. Enabling non-technical users to incorporate the machine learning models from data science teams into a single decision model dramatically reduces business and technical complexities, driving greater operational control and efficiency.
IntegrateAI follows Sapiens Decision’s recent ModelAI release, which brought a Generative AI (GenAI) copilot to decision modelers with integration to Microsoft Azure’s OpenAI Service. The two releases fulfill the initial AI strategy and roadmap of Sapiens Decision to increase the access, speed, and efficacy of decision automation for business users. Sapiens Decision is planning additional AI based products to support the full lifecycle of the decision modeling process, including ExtractAI (for extracting decision logic from legacy code) and OptimizeAI (to optimize business decisions for specific outcomes).
“Sapiens Decision IntegrateAI enables organizations to implement decision automation with greater transparency, explainability, and efficiency by enabling business users to integrate machine learning models within decision models,” said Ilan Buganim, Sapiens CTIO. “Combined with Sapiens Decision’s copilot ModelAI, which leverages GenAI to automatically convert natural language to decision models, enterprises can now turbocharge their application of decision automation for greater business outcomes.”
Sapiens Decision provides end-to-end decision management capabilities from decision logic extraction from legacy code to decision modeling with no code tools, and deployment through Decision-as-a-Service. Sapiens Decision offers a technology-independent solution to fit any architecture, allowing organizations to reuse their existing infrastructure and governance models.
Sapiens will be showcasing IntegrateAI at Insurance Innovators USA, Nashville, TN on April 22-23, 2024.
About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS) empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. With more than 40 years of industry expertise, Sapiens’ cloud-based SaaS insurance platform offers pre-integrated, low-code capabilities across core, data, and digital domains to accelerate our customers’ digital transformation. Serving over 600 customers in more than 30 countries, Sapiens offers insurers across property and casualty, workers’ compensation, and life insurance markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management. For more information visit https://sapiens.com or follow us on LinkedIn.
Investor and Media Contact Yaffa Cohen-Ifrah Sapiens Chief Marketing Officer and Head of Investor Relations Email: [email protected]
Forward Looking Statements
Certain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; the global macroeconomic environment, including headwinds caused by inflation, relatively high interest rates, potentially unfavorable currency exchange rate movements, and uncertain economic conditions, and their impact on our revenues, profitability and cash flows; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses and epidemics like the coronavirus epidemic, and fluctuations in currency exchange rates; and risks related to our principal location in Israel and our status as a Cayman Islands company.
While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023, to be filed in the near future, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations.
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