Artificial Intelligence
Altair Announces Second Quarter 2021 Financial Results
TROY, Mich., Aug. 05, 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 second quarter ended June 30, 2021.
“Altair had a strong second quarter 2021, with across-the-board success in multiple verticals, regions, and products, reflecting year on year software product revenue growth of 22%,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair. “Customers are investing to grow their businesses as we emerge from the pandemic, and Altair’s products, services, and business models are clearly resonating, gaining market awareness, and increasing market share.”
“Once again we saw customer demand exceed expectations in the second quarter 2021, which enabled us to achieve results above the high end of our guidance range for the third consecutive quarter,” said Matt Brown, Chief Financial Officer of Altair. “The second quarter 2021 reflects solid execution on our strategy of driving strong organic topline revenue growth and profit expansion.”
Second Quarter 2021 Financial Highlights
- Software product revenue was $99.6 million compared to $81.8 million for the second quarter of 2020, an increase of 21.7%
- Total revenue was $119.9 million compared to $98.6 million for the second quarter of 2020, an increase of 21.7%
- Net loss was $13.6 million compared to a net loss of $10.2 million for the second quarter of 2020, an increase of 33.5%. Diluted net loss per share was $0.18 based on 75.3 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $0.14 for the second quarter of 2020, based on 73.0 million diluted weighted average common shares outstanding
- Adjusted EBITDA was $9.5 million compared to $5.7 million for the second quarter of 2020, an increase of 65.2%. Adjusted EBITDA margin was 7.9% compared to 5.8% for the second quarter of 2020
- Non-GAAP net income was $5.6 million, compared to Non-GAAP net income of $3.0 million for the second quarter of 2020, an increase of 86.8%. Non-GAAP diluted net income per share was $0.07 based on 83.4 million non-GAAP diluted common shares outstanding, compared to Non-GAAP diluted net income per share of $0.04 for the second quarter of 2020, based on 80.7 million non-GAAP diluted common shares outstanding
- Free cash flow was $15.8 million, compared to $4.5 million for the second quarter of 2020, an increase of 252.7%
Business Outlook
Based on information available as of today, Altair is issuing the following guidance for the third quarter and full year 2021:
(in millions) | Third Quarter 2021 | Full Year 2021 | ||||||||||||||
Software Product Revenue | $ | 94.0 | to | $ | 97.0 | $ | 434.0 | to | $ | 440.0 | ||||||
Total Revenue | $ | 112.0 | $ | 115.0 | $ | 512.0 | $ | 518.0 | ||||||||
Net Loss | $ | (22.8 | ) | $ | (20.9 | ) | $ | (31.6 | ) | $ | (26.8 | ) | ||||
Non-GAAP Net Income | $ | 0.1 | $ | 1.6 | $ | 40.9 | $ | 44.6 | ||||||||
Adjusted EBITDA | $ | 2.0 | $ | 4.0 | $ | 63.0 | $ | 68.0 | ||||||||
Net Cash Provided by Operating Activities | $ | 43.0 | $ | 48.0 | ||||||||||||
Free Cash Flow | $ | 34.0 | $ | 39.0 |
Conference Call Information
What: | Altair’s Second Quarter 2021 Financial Results Conference Call |
When: | Thursday, August 5, 2021 |
Time: | 5:00 p.m. ET |
Live Call: | (866) 754-5204, Domestic |
(636) 812-6621, International | |
Replay: | (855) 859-2056, Conference ID 4173813, Domestic |
(404) 537-3406, Conference ID 4173813, 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 excludes stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the 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 from period to period.
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, 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 third 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 ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2021 | December 31, 2020 | |||||||
(In thousands) | (Unaudited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 260,098 | $ | 241,221 | ||||
Accounts receivable, net | 91,570 | 117,878 | ||||||
Income tax receivable | 7,949 | 6,736 | ||||||
Prepaid expenses and other current assets | 23,030 | 21,100 | ||||||
Total current assets | 382,647 | 386,935 | ||||||
Property and equipment, net | 39,610 | 36,332 | ||||||
Operating lease right of use assets | 33,395 | 33,526 | ||||||
Goodwill | 262,963 | 264,481 | ||||||
Other intangible assets, net | 66,637 | 76,114 | ||||||
Deferred tax assets | 8,265 | 7,125 | ||||||
Other long-term assets | 26,699 | 25,389 | ||||||
TOTAL ASSETS | $ | 820,216 | $ | 829,902 | ||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | — | $ | 29,962 | ||||
Accounts payable | 6,515 | 8,594 | ||||||
Accrued compensation and benefits | 35,846 | 34,772 | ||||||
Current portion of operating lease liabilities | 10,770 | 10,331 | ||||||
Other accrued expenses and current liabilities | 27,810 | 31,404 | ||||||
Deferred revenue | 81,343 | 85,691 | ||||||
Convertible senior notes, net | 193,926 | — | ||||||
Total current liabilities | 356,210 | 200,754 | ||||||
Convertible senior notes, net | — | 188,300 | ||||||
Operating lease liabilities, net of current portion | 23,785 | 24,323 | ||||||
Deferred revenue, non-current | 7,236 | 9,388 | ||||||
Other long-term liabilities | 32,856 | 27,767 | ||||||
TOTAL LIABILITIES | 420,087 | 450,532 | ||||||
Commitments and contingencies | ||||||||
MEZZANINE EQUITY | 784 | 784 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding | — | — | ||||||
Common stock ($0.0001 par value) | ||||||||
Class A common stock, authorized 513,797 shares, issued and outstanding 46,392 and 44,216 shares as of June 30, 2021, and December 31, 2020, respectively |
4 | 4 | ||||||
Class B common stock, authorized 41,203 shares, issued and outstanding 29,091 and 30,111 shares as of June 30, 2021, and December 31, 2020, respectively |
3 | 3 | ||||||
Additional paid-in capital | 495,824 | 474,669 | ||||||
Accumulated deficit | (92,581 | ) | (93,293 | ) | ||||
Accumulated other comprehensive loss | (3,905 | ) | (2,797 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 399,345 | 378,586 | ||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $ | 820,216 | $ | 829,902 |
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | ||||||||||||||||
License | $ | 66,632 | $ | 51,018 | $ | 163,027 | $ | 128,561 | ||||||||
Maintenance and other services | 32,926 | 30,815 | 66,072 | 61,715 | ||||||||||||
Total software | 99,558 | 81,833 | 229,099 | 190,276 | ||||||||||||
Software related services | 7,481 | 5,444 | 15,579 | 12,378 | ||||||||||||
Total software and related services | 107,039 | 87,277 | 244,678 | 202,654 | ||||||||||||
Client engineering services | 10,268 | 9,640 | 20,945 | 23,518 | ||||||||||||
Other | 2,605 | 1,644 | 4,452 | 3,852 | ||||||||||||
Total revenue | 119,912 | 98,561 | 270,075 | 230,024 | ||||||||||||
Cost of revenue | ||||||||||||||||
License | 3,617 | 2,851 | 9,012 | 8,374 | ||||||||||||
Maintenance and other services | 12,043 | 8,502 | 23,598 | 18,957 | ||||||||||||
Total software * | 15,660 | 11,353 | 32,610 | 27,331 | ||||||||||||
Software related services | 5,731 | 4,656 | 11,853 | 10,145 | ||||||||||||
Total software and related services | 21,391 | 16,009 | 44,463 | 37,476 | ||||||||||||
Client engineering services | 8,293 | 7,789 | 17,181 | 19,107 | ||||||||||||
Other | 2,262 | 1,283 | 3,724 | 2,995 | ||||||||||||
Total cost of revenue | 31,946 | 25,081 | 65,368 | 59,578 | ||||||||||||
Gross profit | 87,966 | 73,480 | 204,707 | 170,446 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development * | 38,757 | 28,970 | 77,033 | 60,437 | ||||||||||||
Sales and marketing * | 31,909 | 25,806 | 63,979 | 53,905 | ||||||||||||
General and administrative * | 21,861 | 20,248 | 45,787 | 42,594 | ||||||||||||
Amortization of intangible assets | 4,615 | 3,692 | 9,492 | 7,532 | ||||||||||||
Other operating income, net | (585 | ) | (944 | ) | (1,202 | ) | (1,835 | ) | ||||||||
Total operating expenses | 96,557 | 77,772 | 195,089 | 162,633 | ||||||||||||
Operating (loss) income | (8,591 | ) | (4,292 | ) | 9,618 | 7,813 | ||||||||||
Interest expense | 2,988 | 2,843 | 5,961 | 5,656 | ||||||||||||
Other expense (income), net | 708 | 320 | 1,543 | (1,070 | ) | |||||||||||
(Loss) income before income taxes | (12,287 | ) | (7,455 | ) | 2,114 | 3,227 | ||||||||||
Income tax expense | 1,361 | 2,768 | 1,402 | 7,420 | ||||||||||||
Net (loss) income | $ | (13,648 | ) | $ | (10,223 | ) | $ | 712 | $ | (4,193 | ) | |||||
(Loss) income per share: | ||||||||||||||||
Net (loss) income per share attributable to common stockholders, basic |
$ | (0.18 | ) | $ | (0.14 | ) | $ | 0.01 | $ | (0.06 | ) | |||||
Net (loss) income per share attributable to common stockholders, diluted |
$ | (0.18 | ) | $ | (0.14 | ) | $ | 0.01 | $ | (0.06 | ) | |||||
Weighted average shares outstanding: | ||||||||||||||||
Weighted average number of shares used in computing net (loss) income per share, basic |
75,263 | 72,999 | 74,959 | 72,811 | ||||||||||||
Weighted average number of shares used in computing net (loss) income per share, diluted |
75,263 | 72,999 | 79,851 | 72,811 |
* Amounts include stock-based compensation expense as follows (in thousands):
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenue – software | $ | 1,222 | $ | 552 | $ | 2,380 | $ | 918 | ||||||||
Research and development | 4,143 | 1,830 | 7,329 | 3,258 | ||||||||||||
Sales and marketing | 3,659 | 1,273 | 7,127 | 2,000 | ||||||||||||
General and administrative | 1,624 | 879 | 3,460 | 1,529 | ||||||||||||
Total stock-based compensation expense | $ | 10,648 | $ | 4,534 | $ | 20,296 | $ | 7,705 |
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Six Months Ended June 30, | ||||||||
(In thousands) | 2021 | 2020 | ||||||
OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | 712 | $ | (4,193 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 13,180 | 11,293 | ||||||
Provision for credit loss | 205 | 589 | ||||||
Amortization of debt discount and issuance costs | 5,631 | 5,342 | ||||||
Stock-based compensation expense | 20,296 | 7,705 | ||||||
Deferred income taxes | (1 | ) | (5,961 | ) | ||||
Other, net | 34 | 3 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 24,852 | 23,264 | ||||||
Prepaid expenses and other current assets | (3,367 | ) | 1,817 | |||||
Other long-term assets | (5,067 | ) | (960 | ) | ||||
Accounts payable | (967 | ) | (3,841 | ) | ||||
Accrued compensation and benefits | 1,548 | 497 | ||||||
Other accrued expenses and current liabilities | 2,999 | 161 | ||||||
Deferred revenue | (5,333 | ) | (2,315 | ) | ||||
Net cash provided by operating activities | 54,722 | 33,401 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (5,391 | ) | (2,530 | ) | ||||
Payments for acquisition of developed technology | (344 | ) | (433 | ) | ||||
Payments for acquisition of businesses, net of cash acquired | — | (2,270 | ) | |||||
Other investing activities, net | (45 | ) | 142 | |||||
Net cash used in investing activities | (5,780 | ) | (5,091 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Payments on revolving commitment | (30,000 | ) | — | |||||
Proceeds from the exercise of stock options | 885 | 477 | ||||||
Other financing activities | (206 | ) | (210 | ) | ||||
Net cash (used in) provided by financing activities | (29,321 | ) | 267 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (847 | ) | (1,148 | ) | ||||
Net increase in cash, cash equivalents and restricted cash | 18,774 | 27,429 | ||||||
Cash, cash equivalents and restricted cash at beginning of year | 241,547 | 223,497 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 260,321 | $ | 250,926 | ||||
Supplemental disclosure of cash flow: | ||||||||
Interest paid | $ | 339 | $ | 306 | ||||
Income taxes paid | $ | 3,744 | $ | 9,491 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Finance leases | $ | — | $ | 100 | ||||
Property and equipment in accounts payable, other current liabilities and other liabilities |
$ | 631 | $ | 343 |
Financial Results
The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income and net income per share – diluted, the most comparable GAAP financial measures:
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net (loss) income | $ | (13,648 | ) | $ | (10,223 | ) | $ | 712 | $ | (4,193 | ) | |||||
Stock-based compensation expense | 10,648 | 4,534 | 20,296 | 7,705 | ||||||||||||
Amortization of intangible assets | 4,615 | 3,692 | 9,492 | 7,532 | ||||||||||||
Non-cash interest expense | 2,837 | 2,689 | 5,637 | 5,337 | ||||||||||||
Restructuring expense | 1,732 | — | 5,078 | — | ||||||||||||
Special adjustments and other | — | 578 | — | 578 | ||||||||||||
Impact of non-GAAP tax rate | (601 | ) | 1,718 | (9,678 | ) | 1,081 | ||||||||||
Non-GAAP net income | $ | 5,583 | $ | 2,988 | $ | 31,537 | $ | 18,040 | ||||||||
Net (loss) income per share – diluted | $ | (0.18 | ) | $ | (0.14 | ) | $ | 0.01 | $ | (0.06 | ) | |||||
Non-GAAP net income per share – diluted | $ | 0.07 | $ | 0.04 | $ | 0.38 | $ | 0.22 | ||||||||
GAAP diluted shares outstanding: | 75,263 | 72,999 | 79,851 | 72,811 | ||||||||||||
Non-GAAP diluted shares outstanding: | 83,400 | 80,700 | 83,400 | 80,700 |
The following table provides a reconciliation of Adjusted EBITDA to net income, the most comparable GAAP financial measure:
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net (loss) income | $ | (13,648 | ) | $ | (10,223 | ) | $ | 712 | $ | (4,193 | ) | |||||
Income tax expense | 1,361 | 2,768 | 1,402 | 7,420 | ||||||||||||
Stock-based compensation expense | 10,648 | 4,534 | 20,296 | 7,705 | ||||||||||||
Interest expense | 2,988 | 2,843 | 5,961 | 5,656 | ||||||||||||
Depreciation and amortization | 6,494 | 5,633 | 13,180 | 11,293 | ||||||||||||
Restructuring expense | 1,732 | — | 5,078 | — | ||||||||||||
Special adjustments, interest income and other | (79 | ) | 194 | (173 | ) | (460 | ) | |||||||||
Adjusted EBITDA | $ | 9,496 | $ | 5,749 | $ | 46,456 | $ | 27,421 |
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 June 30, |
Six Months Ended June 30, |
|||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net cash provided by operating activities | $ | 18,151 | $ | 5,365 | $ | 54,722 | $ | 33,401 | ||||||||
Capital expenditures | (2,352 | ) | (886 | ) | (5,391 | ) | (2,530 | ) | ||||||||
Free cash flow | $ | 15,799 | $ | 4,479 | $ | 49,331 | $ | 30,871 |
Business Outlook
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 September 30, 2021 |
Year Ending December 31, 2021 |
|||||||||||||||
(in thousands) | Low | High | Low | High | ||||||||||||
Net loss | $ | (22,800 | ) | $ | (20,900 | ) | $ | (31,600 | ) | $ | (26,800 | ) | ||||
Stock-based compensation expense | 11,700 | 11,700 | 43,700 | 43,700 | ||||||||||||
Amortization of intangible assets | 4,500 | 4,500 | 17,600 | 17,600 | ||||||||||||
Non-cash interest expense | 2,900 | 2,900 | 11,400 | 11,400 | ||||||||||||
Restructuring expense | 500 | 500 | 5,600 | 5,600 | ||||||||||||
Impact of non-GAAP tax rate | 3,300 | 2,900 | (5,800 | ) | (6,900 | ) | ||||||||||
Non-GAAP net income | $ | 100 | $ | 1,600 | $ | 40,900 | $ | 44,600 |
The following table provides a reconciliation of projected Adjusted EBITDA to projected net loss, the most comparable GAAP financial measure:
(Unaudited) | ||||||||||||||||
Three Months Ending September 30, 2021 |
Year Ending December 31, 2021 |
|||||||||||||||
(in thousands) | Low | High | Low | High | ||||||||||||
Net loss | $ | (22,800 | ) | $ | (20,900 | ) | $ | (31,600 | ) | $ | (26,800 | ) | ||||
Income tax expense | 3,300 | 3,400 | 8,600 | 8,800 | ||||||||||||
Stock-based compensation expense | 11,700 | 11,700 | 43,700 | 43,700 | ||||||||||||
Interest expense | 3,000 | 3,000 | 12,000 | 12,000 | ||||||||||||
Depreciation and amortization | 6,400 | 6,400 | 25,000 | 25,000 | ||||||||||||
Restructuring expense | 500 | 500 | 5,600 | 5,600 | ||||||||||||
Special adjustments, interest income and other | (100 | ) | (100 | ) | (300 | ) | (300 | ) | ||||||||
Adjusted EBITDA | $ | 2,000 | $ | 4,000 | $ | 63,000 | $ | 68,000 |
The following table provides a reconciliation of projected Free Cash Flow to projected net cash provided by operating activities, the most comparable GAAP financial measure:
(Unaudited) | ||||||||||||
Year Ending December 31, 2021 |
||||||||||||
(in thousands) | Low | High | ||||||||||
Net cash provided by operating activities | $ | 43,000 | $ | 48,000 | ||||||||
Capital expenditures | (9,000 | ) | (9,000 | ) | ||||||||
Free cash flow | $ | 34,000 | $ | 39,000 |
Artificial Intelligence
WIO Taps Gracenote to Revolutionize Television Broadcast Reporting
LOS ANGELES, May 11, 2024 /PRNewswire/ — WIO LLC, parent company of the global TV broadcast airings platform, WIOpro™, has announced a new strategic agreement with Gracenote, the global content data business unit of Nielsen, to address the longstanding challenge of accurately tracking and collecting music royalties generated by broadcast television and digital programming, With this agreement, WIO will integrate Gracenote TV program metadata and show airings into its WIOpro™ (“When’s It On – Professional”) platform enabling performance rights organizations, copyright management organizations and other entities to better monitor broadcast schedules and identify when royalties have been earned.
By integrating Gracenote historical program data into WIOpro’s new LookBack™ feature, WIO is enhancing its reporting capabilities and empowering Collection Societies, Rights Management Companies and the royalty-earning community to more easily monitor and export broadcast airings and better understand collections opportunities.
“At WIO, we are committed to empowering collection societies and copyright holders around the world with our platform tools and unprecedented access to the best and most accurate television broadcast and streaming data available,” said Shawn Pierce, Co-Founder and CEO of WIO LLC. “We have enjoyed an incredible relationship with Gracenote for 10 years. With the solidification of this agreement, we are able to deliver an unrivaled dataset to the royalty and residual community in a way that has not been offered before.” said Adam Shafron, Co-Founder and CTO of WIO LLC.
“WIO’s platform developed to solve the difficult matter of royalty tracking only becomes more powerful based on the integration of accurate, timely and comprehensive Gracenote metadata,” said Scott Monahan, Director, Strategic Partnerships, Gracenote. “We look forward to the combination of WIOpro’s technology and Gracenote’s program metadata delivering on the promise of transforming music royalty collection so that rights holders can be fairly compensated for use of their work.”
WIO and Gracenote will be at the MusicBiz 2024 conference in Nashville, TN May 13 – 16. Contact Dave Pelman, COO of WIO LLC at [email protected] for media queries or to book an appointment for a product demonstration.
About WIO:WIO is a technology company dedicated to providing broadcast television and digital programming data tailored specifically for the royalty and residual collection industry. Through its platform WIOpro (wiopro.com), users obtain access to real-time broadcast insights, reporting and curated data delivery.
About Gracenote:Gracenote is the content data business unit of Nielsen providing entertainment metadata, connected IDs and related offerings to the world’s leading creators, distributors and platforms. Gracenote enables advanced content navigation and discovery capabilities helping individuals easily connect to the TV shows, movies, music, podcasts and sports they love while delivering powerful content analytics making complex business decisions simpler.
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Artificial Intelligence
IDTechEx Explores Printed Electronics in Electrified and Autonomous Mobility
BOSTON, May 10, 2024 /PRNewswire/ — Electrification, autonomy, and vehicle ownership saturation are causing a technological revolution in the automotive sector. These automotive meta-trends are driving drastic changes in electronic component requirements and present a high-volume opportunity for printed electronics to capitalize on.
Historically, printed electronics technologies have nurtured a close relationship with the automotive sector, with printed force sensors pioneering passenger safety through seat occupancy and seatbelt detection. As such, the automotive sector continues to represent the lion’s share of the global printed and flexible sensor market, which IDTechEx’s report on the topic evaluates as worth US$421M in 2024. However, if the automotive sector is to continue to be a reliable revenue stream, printed electronics technology providers must adapt to address the emerging technical challenges facing future mobility.
Augmenting autonomous vehicles with printed electronics
As vehicle autonomy levels advance, the increasing number and distribution of spatial mapping sensors required will need continuous performance improvements to ensure passenger safety. Emerging printed electronics technologies can augment these sensors, extending detection bandwidth and maximizing reliability during operation.
Transparent conductive films (TCFs) are being developed to heat and defog LiDAR sensor panels, ensuring the function is unperturbed by external environmental conditions. Properties such as high transparency and low haze are important for defogging. These properties can be easily tuned using the wide variety of material options available for TCFs, including carbon nanotubes and silver nanowires.
IDTechEx identifies printed heating as a leading application of transparent conductive films. This is attributed to diminishing growth prospects in capacitive touch sensing applications. Innovations in thin film coating techniques have enabled indium tin oxide (ITO) to dominate touch sensing applications, all but displacing TCFs completely.
Looking towards the future, printed electronics technologies could play a more active role in advanced autonomous driving. Emerging semiconductive materials, such as quantum dots, printed directly onto conventional silicon image sensor arrays can extend detection range and sensitivity deeper into the infrared region. Augmenting existing image sensor technology with enhanced spectral range could facilitate the competition of hybrid silicon sensors with established InGaAs detectors.
Printed sensors promise granularized battery health monitoring
Vehicle electrification is driving the sustained development and evolution of electronic management systems, particularly in the battery and electric drivetrain. A strong market pull exists for technologies that increase vehicle efficiency, range, and lifetime while reducing recharge times.
Printed pressure and temperature sensors measure battery cell swelling and thermal profiles, providing granularized physical data that can be used to optimize battery deployment and recharging. Moreover, hybrid printed sensors that combine integrated printed heating elements promise a solution to actively address battery temperature. IDTechEx estimates that printed sensor-enabled battery deployment and charging optimizations could be worth up to US$3000 in savings per vehicle.
There remains uncertainty about whether electrification trends will correspond to increased demand for physical sensors in electric vehicle batteries, owing to the utility of existing electronic readouts for managing deployment. Virtual sensors also pose a threat, where AI-enabled software models interpret data to predict and emulate physical sensor functions without the need for discreet components. However, emerging regulations regarding safety and sensor redundancy will likely favor measurable metrics and see automotive makers continue to adopt physical sensors. IDTechEx predicts that virtual sensors are unlikely to displace their physical counterparts – so long as low-cost sensors remain widely available.
Embedding printed electronics in the car of the future
IDTechEx predicts that global car sales will saturate over the next decade, with automakers increasingly looking for premium features and technical innovations to differentiate themselves from the competition. In-cabin technologies will be highly desirable – as the location where passengers reside and interact with the vehicle the most.
Lighting elements are emerging as a prominent differentiator, described as “the new chrome” by Volkswagen’s chief designer. The use of in-mold structural electronics (IMSE) enables the integration of embedded lighting elements using existing manufacturing processes. 3D electronics technologies are intrinsically attractive for automotive integration, as functional layers are conformable and lightweight while easily embedded within existing aesthetic elements.
Despite strong tailwinds, the adoption of in-mold electronics within automotive interiors has been sluggish. This is attributed to the challenges of meeting automotive qualification requirements, as well as stiff competition with less sophisticated alternatives such as applying functional films to thermoformed parts. Nevertheless, momentum is building, with technology providers like Tactotek partnering with Mercedes-Benz and Stallantis to progress the automotive validation of IMSE to TRL5.
Outlook for printed electronics in automotive applications
Just as printed force sensors heralded early passenger safety systems, printed electronics technology is poised to underpin next-generation innovations for the car of the future. But this time, the competition will be stiff. Critical cost requirements must be met, while desirable new functionality must address existing challenges faced by manufacturers. Printed electronics can play a role in supporting emerging electrified and autonomous mobility, such as augmenting LiDAR sensors or optimizing electric battery deployment. Demand for technologies that enhance passenger experience and vehicle aesthetics will continue to grow, and printed electronics can supply low-power, lightweight lighting solutions for these.
Sustained engagement from tier suppliers and manufacturers continues to make the automotive sector key to printed sensor market growth opportunities – a total market IDTechEx predicts will reach US$960M by 2034. Strong partnerships between material providers and printed electronics technology providers are complementary to those of the highly vertically integrated automotive value chains between tier suppliers and OEMs. Leveraging printing techniques to provide solutions that slot into existing manufacturing processes and designs will be crucial. In the medium term, the printed electronics technologies most likely to realize revenue potential are those that can adapt to service emerging challenges already known to the automotive industry.
For more information on IDTechEx’s research on this topic, please see their report, “Printed and Flexible Sensors 2024-2034: Technologies, Players, Markets”. Downloadable sample pages are available for this report.
For the full portfolio of printed and flexible electronics market research from IDTechEx, please visit www.IDTechEx.com/Research/PE.
About IDTechEx:
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact [email protected] or visit www.IDTechEx.com.
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Artificial Intelligence
Identity Threat Detection and Response (ITDR) Market worth $35.6 billion by 2029- Exclusive Report by MarketsandMarkets™
CHICAGO, May 10, 2024 /PRNewswire/ — The growing need for identity-centric security solutions brought on by an increase in cyberattacks and regulatory compliance requirements will define the Identity Threat Detection and Response (ITDR) Market in the future. The growth of ITDR solutions towards more proactive and autonomous security operations is being shaped by several major trends, including integration with IAM platforms, use of AI and ML technologies, and emphasis on UEBA and Zero Trust security.
The global Identity Threat Detection and Response Market size is projected to grow from USD 12.8 billion in 2024 to USD 35.6 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 22.6% during the forecast period, according to a new report by MarketsandMarkets™. The expansion of identity threat detection and response (ITDR) is propelled by the continuously evolving global threat landscape and combating threat-targeting identities and identity systems. ITDR provides response strategies ensuring the protection of sensitive and confidential data.
Browse in-depth TOC on “Identity Threat Detection and Response (ITDR) Market”
266 – Tables 48 – Figures273 – Pages
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Scope of the Report
Report Metrics
Details
Market size available for years
2022-2029
Base year considered
2023
Forecast period
2024-2029
Forecast units
Value (USD) Billion
Segments Covered
By offering deployment mode, organization size, vertical and region
Region covered
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America
Companies covered
Microsoft (US), IBM (US), CrowdStrike (US), Zscaler (US), Tenable (US), Veronis (US), BeyondTrust (US), CyberArk (US), Proofpoint (US), Quest (US), Oort(US), Vectra (US), Proficio (US), Qomplx (US), Adaptive Shield (Israel), Acalvio (US), Authorize (Israel), Illusive (US), Mindfire (UAE), Rezonate (US), Semperis (US), Sentinelone (US), Silverfort (Israel), Netwrix (US), Vericlouds (US), Microminder (UK), Quorum Cyber (UK) and Mix mode (US).
Governments worldwide increasingly emphasize the importance of robust identity threat detection and response (ITDR) solutions to counter growing cyber threats and safeguard critical infrastructure. Key initiatives include funding research and development grants, supporting startups through grants and incubator programs, and enforcing data privacy regulations like GDPR and CCPA. They also promote cybersecurity frameworks, critical infrastructure protection standards, and public awareness campaigns. Collaboration with the private sector, through partnerships and procurement policies, further drives ITDR market growth. These efforts underscore a global recognition of ITDR’s significance in enhancing digital security and compliance with industry regulations.
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By deployment mode, the cloud segment is expected to demonstrate the highest growth rate in the Identity Threat Detection and Response Market during the forecast period.
The Identity Threat Detection and Response (ITDR) Market is experiencing a notable shift towards cloud-based deployments, which are projected to dominate in the coming years. Cloud solutions offer various advantages, including scalability, reduced infrastructure costs, faster deployment, improved accessibility, and automatic updates. With businesses increasingly adopting cloud technologies and prioritizing agility and innovation, cloud-based ITDR solutions align well with this evolving landscape. The cybersecurity skills shortage further drives the preference for cloud solutions, given their built-in automation and ease of management. While on-premises ITDR solutions may still be favored in scenarios with stringent data security requirements, the overall trend favors cloud-based deployments due to their scalability, agility, and cost-effectiveness. Cloud providers continue to innovate and enhance their offerings, making them increasingly attractive to businesses of all sizes, ultimately shaping the dominance of cloud-based ITDR in the foreseeable future.
Based on organization size, the SMEs segment is projected to exhibit the highest growth rate at the highest CAGR during the forecast period.
The Identity Threat Detection and Response (ITDR) Market is set for significant growth, particularly among Small and Medium-Sized Enterprises, driven by several key factors. SMEs face increased vulnerability due to limited security resources, a growing reliance on digital tools, and evolving cyber threats. Heightened awareness of cyber risks and emerging data privacy regulations are pressuring SMEs to invest in ITDR solutions. The affordability and scalability of cloud-based ITDR solutions further contribute to SME adoption. These solutions offer improved threat detection, enhanced user access control, and simplified compliance management, positioning SMEs as pivotal drivers of growth in the ITDR market.
Asia Pacific is anticipated to experience substantial growth with the highest CAGR in the Identity Threat Detection and Response Market during the forecast period.
The Identity Threat Detection and Response (ITDR) Market is experiencing remarkable growth globally, particularly in the Asia-Pacific region, where it is projected to witness the highest Compound Annual Growth Rate. This surge is fueled by several factors specific to the area. APAC’s rapid digital transformation, propelled by adopting cloud computing, mobile technologies, and e-commerce platforms, creates an expanded attack surface for cyber threats. Heightened regulatory focus on data privacy regulations in countries like China, India, and Australia drives the demand for robust ITDR solutions to ensure compliance. The emergence of domestic cybersecurity vendors in APAC and the increasing adoption of cloud-based ITDR solutions contribute to market growth. Government initiatives, such as heavy investments in cybersecurity infrastructure and public-private partnerships, create a supportive environment for the ITDR market’s expansion. Despite facing challenges like a shortage of skilled cybersecurity professionals, the APAC region’s unique dynamics position it as a key driver of ITDR market growth. It is crucial in protecting critical infrastructure and businesses against cyber threats in the digital age.
Top Key Companies in Identity Threat Detection and Response (ITDR) Market:
The major players in the Identity Threat Detection and Response Market are Microsoft (US), IBM (US), CrowdStrike (US), Zscaler (US), Tenable (US), Veronis (US), BeyondTrust (US), CyberArk (US), Proofpoint (US), Quest (US), Oort(US), Vectra (US), Proficio (US), Qomplx (US), Adaptive Shield ( Israel), Acalvio (US), Authomize (Israel), Illusive (US), Mindfire (UAE), Rezonate (US), Semperis (US), Sentinelone (US), Silverfort (Israel), Netwrix (US), Vericlouds (US), Microminder (UK), Quorum Cyber (UK) and Mixmode (US).
Recent Developments
January 2024 – IBM collaborated with ASUS to enhance cybersecurity by utilizing AI-powered security technologies to detect and remediate attacks swiftly. IBM’s QRadar EDR will be integrated directly into ASUS’s business hardware, supported by MDR services from IBM.January 2024 – Aembit integrates its Workload IAM Platform with CrowdStrike Falcon for real-time security posture assessment, enabling dynamic access policy enforcement. This collaboration enhances ITDR capabilities, ensuring secure workload-to-workload access.October 2023 – BeyondTrust partnered with the AWS SaaS Factory team to build their Identity Security Insights solution as a SaaS offering on AWS. This collaboration helped BeyondTrust navigate business and technical decisions for a successful SaaS model launch.September 2023 – CyberArk collaborates with Accenture to deploy CyberArk Privilege Cloud to enhance PAM solutions. This initiative aims to bolster cybersecurity defenses by managing and monitoring privileged access, which is crucial for ITDR. The collaboration leverages CyberArk’s Identity Security Platform, enabling comprehensive security for identities across various IT environments, aligning with ITDR principles by securing access and mitigating risks associated with privileged accounts.July 2023 – Microsoft partnered with CISA by offering expanded cloud logging capabilities at no additional cost. This initiative directly supports ITDR by improving detection and response to identity-related threats, making it easier for organizations to maintain identity integrity and security through better visibility and monitoring of security incidents.Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=259116012
Identity Threat Detection and Response (ITDR) Market Advantages:
ITDR solutions assist avoid security breaches and data loss by enabling organisations to proactively detect and respond in real-time to identity-related threats such account takeovers, credential stuffing, and insider threats.ITDR solutions assist organisations in strengthening their security posture and safeguarding sensitive data and assets from unauthorised access and misuse by continually monitoring user activities, access patterns, and behaviour across digital channels and systems.Rapid incident response is made possible by ITDR systems, which immediately notify security teams of potentially dangerous activity and security issues. This allows the teams to quickly investigate and neutralise threats to minimise the damage to the organisation.By offering thorough visibility, audit trails, and reporting capabilities, ITDR solutions help enterprises comply with legal and regulatory requirements pertaining to identity and access management, data protection, and cybersecurity.ITDR systems with advanced analytics and machine learning capabilities help minimise noise and false positives, allowing security professionals to concentrate on real threats and efficiently prioritise their response efforts.Numerous ITDR systems come with easy-to-use dashboards and interfaces that give security teams the tools and knowledge they need to effectively monitor, assess, and address identity-related threats without the need for in-depth training or specialised knowledge.Organisations may take advantage of their investments and coordinate automated response activities throughout the security ecosystem by integrating ITDR solutions with pre-existing security technologies and systems like SIEM, IAM, CASB, and SOAR platforms.Report Objectives
To describe and forecast the global Identity Threat Detection and Response Market by offering, deployment mode, organization size, vertical, and regionTo forecast the market size of five central regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin AmericaTo analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall marketTo provide detailed information related to significant factors (drivers, restraints, opportunities, and challenges) influencing the growth of the marketTo analyze the opportunities in the market for stakeholders and provide the competitive landscape details of major playersTo profile the key players of the Identity Threat Detection and Response Market and comprehensively analyze their market shares and core competenciesTo track and analyze competitive developments, such as Mergers and Acquisitions (M&A), new product developments, and partnerships and collaborations in the marketTo track and analyze the impact of COVID-19 on the Identity Threat Detection and Response MarketBrowse Adjacent Market: Information Security Market Research Reports & Consulting
Browse Other Reports:
Physical Security Information Management Market- Global Forecast to 2029
Operational Technology Security Market- Global Forecast to 2029
Identity Verification Market- Global Forecast to 2028
Cloud Data Security Market- Global Forecast to 2027
Big Data Security Market- Global Forecast to 2026
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MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
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The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
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