Artificial Intelligence
Altair Announces Third Quarter 2022 Financial Results
TROY, Mich., Nov. 03, 2022 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global leader in computational science and artificial intelligence (AI), today released its financial results for the third quarter ended September 30, 2022.
“Altair had a solid third quarter, showing exceptional momentum despite significant macro-economic uncertainty, led by double digit growth in billings on a constant currency basis and strong demand across all geographies,” said James Scapa, founder, chairman and chief executive officer of Altair. “Our dedicated global teams continue to push forward with outstanding technology developments and applications.”
“We’re very pleased with the third quarter, continuing the success we had in the first half of the year,” said Matt Brown, chief financial officer of Altair. “Our third quarter revenue was at the high end of our guidance range, despite significant currency headwinds, while our profitability exceeded our expectations. These strong results give us the confidence to raise our full year 2022 guidance in constant currency.”
Third Quarter 2022 Financial Highlights
- Software product revenue was $103.8 million compared to $102.3 million for the third quarter of 2021, an increase of 1.4% in reported currency and 10.1% in constant currency
- Total revenue was $119.4 million compared to $121.3 million for the third quarter of 2021, a decrease of 1.6% in reported currency and an increase of 6.3% in constant currency
- Net loss was $(33.2) million compared to $(8.1) million for the third quarter of 2021. Diluted net loss per share was $(0.42) based on 79.2 million diluted weighted average common shares outstanding, compared to diluted net loss per share of $(0.11) for the third quarter of 2021, based on 75.8 million diluted weighted average common shares outstanding. Net loss margin was -27.9% compared to -6.7% for the third quarter of 2021
- Non-GAAP net income was $4.3 million, compared to non-GAAP net income of $9.6 million for the third quarter of 2021, a decrease of 55.7%. Non-GAAP diluted net income per share was $0.05 based on 88.1 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net income per share of $0.12 for the third quarter of 2021, based on 81.1 million non-GAAP diluted common shares outstanding
- Adjusted EBITDA was $6.8 million compared to $14.8 million for the third quarter of 2021, a decrease of 54.0%. Adjusted EBITDA margin was 5.7% compared to 12.2% for the third quarter of 2021
- Cash provided by operating activities was $8.5 million, compared to $0.9 million for the third quarter of 2021
- Free cash flow was $5.2 million, compared to $(0.5) million for the third quarter of 2021.
Business Outlook
Based on information available as of today, Altair is issuing the following guidance for the fourth quarter and full year 2022:
| (in millions) | Fourth Quarter 2022 | Full Year 2022 | ||||||||||||||
| Software Product Revenue | $ | 126.0 | to | $ | 131.0 | $ | 488.0 | to | $ | 493.0 | ||||||
| Total Revenue | $ | 143.0 | $ | 148.0 | $ | 555.0 | $ | 560.0 | ||||||||
| Net Loss | $ | (15.0 | ) | $ | (12.1 | ) | $ | (70.3 | ) | $ | (67.4 | ) | ||||
| Non-GAAP Net Income | $ | 15.5 | $ | 17.8 | $ | 63.8 | $ | 66.0 | ||||||||
| Adjusted EBITDA | $ | 22.0 | $ | 25.0 | $ | 92.0 | $ | 95.0 | ||||||||
| Net Cash Provided by Operating Activities | $ | 23.0 | $ | 27.0 | ||||||||||||
| Free Cash Flow | $ | 14.0 | $ | 18.0 | ||||||||||||
The following table provides a reconciliation of 2022 Full Year guidance to the last guidance provided in August:
| (Unaudited) | ||||||||||||||||
| Full Year 2022 | ||||||||||||||||
| (in millions) | Midpoint of Guidance in August |
Increase/ (Decrease) |
Currency Fluctuations from Prior Guidance |
Midpoint of Guidance in November |
||||||||||||
| Software Product Revenue | $ | 492.5 | $ | 4.2 | $ | (6.2 | ) | $ | 490.5 | |||||||
| Total Revenue | $ | 560.5 | $ | 3.7 | $ | (6.7 | ) | $ | 557.5 | |||||||
| Adjusted EBITDA | $ | 94.0 | $ | 1.0 | $ | (1.5 | ) | $ | 93.5 | |||||||
Conference Call Information
| What: | Altair’s Third Quarter 2022 Financial Results Conference Call | |
| When: | Thursday, November 3, 2022 | |
| Time: | 5 p.m. ET | |
| Webcast: | http://investor.altair.com (live & replay) | |
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.
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.
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 as defined starting with Q1 2022, includes the diluted weighted average shares outstanding per GAAP regardless of whether the Company is in a loss position. All periods presented will be adjusted to align with this new definition.
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.
Free cash flow consists of cash flow from operations less capital expenditures.
Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense, restructuring expense and other special items as identified by management and described elsewhere in this press release.
Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
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 leader in computational science and artificial intelligence (AI) that provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, 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 fourth quarter and full year 2022, our statements regarding our expectations for 2022, 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]
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
||||||||
| September 30, 2022 | December 31, 2021 | |||||||
| (In thousands) | (Unaudited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 311,853 | $ | 413,743 | ||||
| Accounts receivable, net | 119,921 | 137,561 | ||||||
| Income tax receivable | 10,465 | 9,388 | ||||||
| Prepaid expenses and other current assets | 23,492 | 27,529 | ||||||
| Total current assets | 465,731 | 588,221 | ||||||
| Property and equipment, net | 38,938 | 40,478 | ||||||
| Operating lease right of use assets | 32,627 | 28,494 | ||||||
| Goodwill | 455,211 | 370,178 | ||||||
| Other intangible assets, net | 86,080 | 99,057 | ||||||
| Deferred tax assets | 7,605 | 8,495 | ||||||
| Other long-term assets | 38,736 | 28,352 | ||||||
| TOTAL ASSETS | $ | 1,124,928 | $ | 1,163,275 | ||||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 6,235 | $ | 6,647 | ||||
| Accrued compensation and benefits | 37,036 | 42,307 | ||||||
| Current portion of operating lease liabilities | 9,996 | 9,933 | ||||||
| Other accrued expenses and current liabilities | 50,686 | 122,226 | ||||||
| Deferred revenue | 94,523 | 93,160 | ||||||
| Convertible senior notes, net | — | 199,705 | ||||||
| Total current liabilities | 198,476 | 473,978 | ||||||
| Operating lease liabilities, net of current portion | 23,466 | 19,550 | ||||||
| Deferred revenue, non-current | 22,017 | 12,872 | ||||||
| Convertible senior notes, net | 305,158 | — | ||||||
| Other long-term liabilities | 40,282 | 42,894 | ||||||
| TOTAL LIABILITIES | 589,399 | 549,294 | ||||||
| Commitments and contingencies | ||||||||
| MEZZANINE EQUITY | — | 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 52,377 and 51,524 shares as of September 30, 2022, and December 31, 2021, respectively | 5 | 5 | ||||||
| Class B common stock, authorized 41,203 shares, issued and outstanding 27,745 shares as of September 30, 2022, and December 31, 2021 | 3 | 3 | ||||||
| Additional paid-in capital | 715,736 | 724,226 | ||||||
| Accumulated deficit | (133,642 | ) | (102,087 | ) | ||||
| Accumulated other comprehensive loss | (46,573 | ) | (8,950 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 535,529 | 613,197 | ||||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $ | 1,124,928 | $ | 1,163,275 | ||||
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenue | ||||||||||||||||
| License | $ | 67,245 | $ | 67,603 | $ | 256,102 | $ | 230,630 | ||||||||
| Maintenance and other services | 36,520 | 34,686 | 105,453 | 100,758 | ||||||||||||
| Total software | 103,765 | 102,289 | 361,555 | 331,388 | ||||||||||||
| Software related services | 6,706 | 7,650 | 23,143 | 23,229 | ||||||||||||
| Total software and related services | 110,471 | 109,939 | 384,698 | 354,617 | ||||||||||||
| Client engineering services | 7,355 | 10,060 | 22,414 | 31,005 | ||||||||||||
| Other | 1,525 | 1,308 | 4,676 | 5,760 | ||||||||||||
| Total revenue | 119,351 | 121,307 | 411,788 | 391,382 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| License | 2,579 | 4,694 | 11,386 | 13,706 | ||||||||||||
| Maintenance and other services | 13,025 | 11,770 | 38,628 | 35,368 | ||||||||||||
| Total software * | 15,604 | 16,464 | 50,014 | 49,074 | ||||||||||||
| Software related services | 5,240 | 5,707 | 16,739 | 17,560 | ||||||||||||
| Total software and related services | 20,844 | 22,171 | 66,753 | 66,634 | ||||||||||||
| Client engineering services | 5,835 | 7,982 | 18,390 | 25,163 | ||||||||||||
| Other | 1,230 | 1,348 | 3,892 | 5,072 | ||||||||||||
| Total cost of revenue | 27,909 | 31,501 | 89,035 | 96,869 | ||||||||||||
| Gross profit | 91,442 | 89,806 | 322,753 | 294,513 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development * | 48,781 | 35,839 | 138,352 | 112,872 | ||||||||||||
| Sales and marketing * | 39,244 | 30,589 | 114,042 | 94,568 | ||||||||||||
| General and administrative * | 24,677 | 22,196 | 72,613 | 67,983 | ||||||||||||
| Amortization of intangible assets | 6,571 | 4,432 | 18,682 | 13,924 | ||||||||||||
| Other operating income, net | (2,835 | ) | (1,324 | ) | (9,383 | ) | (2,526 | ) | ||||||||
| Total operating expenses | 116,438 | 91,732 | 334,306 | 286,821 | ||||||||||||
| Operating (loss) income | (24,996 | ) | (1,926 | ) | (11,553 | ) | 7,692 | |||||||||
| Interest expense | 1,566 | 3,037 | 2,851 | 8,998 | ||||||||||||
| Other expense, net | 2,107 | 124 | 26,082 | 1,667 | ||||||||||||
| Loss before income taxes | (28,669 | ) | (5,087 | ) | (40,486 | ) | (2,973 | ) | ||||||||
| Income tax expense | 4,579 | 3,022 | 15,008 | 4,424 | ||||||||||||
| Net loss | $ | (33,248 | ) | $ | (8,109 | ) | $ | (55,494 | ) | $ | (7,397 | ) | ||||
| Loss per share: | ||||||||||||||||
| Net loss per share attributable to common stockholders, basic | $ | (0.42 | ) | $ | (0.11 | ) | $ | (0.70 | ) | $ | (0.10 | ) | ||||
| Net loss per share attributable to common stockholders, diluted | $ | (0.42 | ) | $ | (0.11 | ) | $ | (0.70 | ) | $ | (0.10 | ) | ||||
| Weighted average shares outstanding: | ||||||||||||||||
| Weighted average number of shares used in computing net loss per share, basic | 79,207 | 75,750 | 79,205 | 75,226 | ||||||||||||
| Weighted average number of shares used in computing net loss per share, diluted | 79,207 | 75,750 | 79,205 | 75,226 | ||||||||||||
* Amounts include stock-based compensation expense as follows (in thousands):
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Cost of revenue – software | $ | 2,332 | $ | 1,411 | $ | 6,265 | $ | 3,791 | ||||||||
| Research and development | 10,243 | 3,894 | 26,580 | 11,223 | ||||||||||||
| Sales and marketing | 7,806 | 3,673 | 22,505 | 10,800 | ||||||||||||
| General and administrative | 2,329 | 1,955 | 7,174 | 5,415 | ||||||||||||
| Total stock-based compensation expense | $ | 22,710 | $ | 10,933 | $ | 62,524 | $ | 31,229 | ||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Employee stock-based compensation plans | $ | 15,490 | $ | 10,194 | $ | 43,622 | $ | 29,009 | ||||||||
| Equity issued in connection with acquisitions | 7,220 | 739 | 18,902 | 2,220 | ||||||||||||
| Total stock-based compensation expense | $ | 22,710 | $ | 10,933 | $ | 62,524 | $ | 31,229 | ||||||||
| ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) |
||||||||
| Nine Months Ended September 30, | ||||||||
| (In thousands) | 2022 | 2021 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (55,494 | ) | $ | (7,397 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 24,092 | 19,355 | ||||||
| Provision for credit loss | 183 | 330 | ||||||
| Amortization of debt discount and issuance costs | 1,330 | 8,513 | ||||||
| Stock-based compensation expense | 62,524 | 31,229 | ||||||
| Deferred income taxes | 4 | (510 | ) | |||||
| Gain on mark-to-market adjustment of contingent consideration | (7,482 | ) | — | |||||
| Expense on repurchase of convertible senior notes | 16,621 | — | ||||||
| Other, net | 153 | 40 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 13,859 | 26,770 | ||||||
| Prepaid expenses and other current assets | 1,906 | (7,612 | ) | |||||
| Other long-term assets | 3,134 | (5,018 | ) | |||||
| Accounts payable | (270 | ) | (2,432 | ) | ||||
| Accrued compensation and benefits | (3,639 | ) | 481 | |||||
| Other accrued expenses and current liabilities | (48,698 | ) | 483 | |||||
| Deferred revenue | 18,311 | (8,638 | ) | |||||
| Net cash provided by operating activities | 26,534 | 55,594 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Payments for acquisition of businesses, net of cash acquired | (134,130 | ) | (5,472 | ) | ||||
| Capital expenditures | (6,721 | ) | (6,811 | ) | ||||
| Other investing activities, net | (10,322 | ) | (628 | ) | ||||
| Net cash used in investing activities | (151,173 | ) | (12,911 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of convertible senior notes, net of discounts and commissions | 224,265 | — | ||||||
| Repurchase of convertible senior notes | (192,422 | ) | — | |||||
| Proceeds from employee stock purchase plan contributions | 6,549 | 2,110 | ||||||
| Repurchase and retirement of common stock | (4,387 | ) | — | |||||
| Proceeds from the exercise of common stock options | 2,840 | 2,059 | ||||||
| Payments of debt issuance costs | (1,523 | ) | — | |||||
| Proceeds from private placement of common stock | — | 200,000 | ||||||
| Payments on revolving commitment | — | (30,000 | ) | |||||
| Other financing activities | (170 | ) | (434 | ) | ||||
| Net cash provided by financing activities | 35,152 | 173,735 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12,142 | ) | (1,951 | ) | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (101,629 | ) | 214,467 | |||||
| Cash, cash equivalents and restricted cash at beginning of year | 414,012 | 241,547 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 312,383 | $ | 456,014 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 296 | $ | 344 | ||||
| Income taxes paid | $ | 6,818 | $ | 8,077 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Property and equipment in accounts payable, other current liabilities and other liabilities | $ | 707 | $ | 480 | ||||
Financial Results
The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net loss and net loss per share – diluted, the most comparable GAAP financial measures:
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net loss | $ | (33,248 | ) | $ | (8,109 | ) | $ | (55,494 | ) | $ | (7,397 | ) | ||||
| Stock-based compensation expense | 22,710 | 10,933 | 62,524 | 31,229 | ||||||||||||
| Amortization of intangible assets | 6,571 | 4,432 | 18,682 | 13,924 | ||||||||||||
| Non-cash interest expense | 501 | 2,876 | 1,339 | 8,513 | ||||||||||||
| Restructuring expense | — | (124 | ) | — | 4,954 | |||||||||||
| Impact of non-GAAP tax rate (1) | 3,079 | (366 | ) | (1,878 | ) | (10,044 | ) | |||||||||
| Special adjustments and other (2) | 4,657 | — | 22,886 | — | ||||||||||||
| Non-GAAP net income | $ | 4,270 | $ | 9,642 | $ | 48,059 | $ | 41,179 | ||||||||
| Net loss per share, diluted | $ | (0.42 | ) | $ | (0.11 | ) | $ | (0.70 | ) | $ | (0.10 | ) | ||||
| Non-GAAP net income per share, diluted | $ | 0.05 | $ | 0.12 | $ | 0.55 | $ | 0.51 | ||||||||
| GAAP diluted shares outstanding | 79,207 | 75,750 | 79,205 | 75,226 | ||||||||||||
| Non-GAAP diluted shares outstanding (3) | 88,100 | 81,063 | 86,708 | 80,345 | ||||||||||||
(1) The Company uses a non-GAAP effective tax rate of 26%.
(2) The three months ended September 30, 2022, includes $6.8 million currency losses on acquisition-related intercompany loans and a $2.2 million gain from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2022, includes $16.6 million expense on the repurchase of convertible senior notes, $13.7 million currency losses on acquisition-related intercompany loans and a $7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition.
(3) The Non-GAAP diluted shares outstanding for the three and nine months ended September 30, 2021, has been changed to align with the current definition.
The following table provides a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net loss | $ | (33,248 | ) | $ | (8,109 | ) | $ | (55,494 | ) | $ | (7,397 | ) | ||||
| Income tax expense | 4,579 | 3,022 | 15,008 | 4,424 | ||||||||||||
| Stock-based compensation expense | 22,710 | 10,933 | 62,524 | 31,229 | ||||||||||||
| Interest expense | 1,566 | 3,037 | 2,851 | 8,998 | ||||||||||||
| Depreciation and amortization | 8,273 | 6,175 | 24,092 | 19,355 | ||||||||||||
| Restructuring expense | — | (124 | ) | — | 4,954 | |||||||||||
| Special adjustments, interest income and other (1) | 2,949 | (102 | ) | 20,878 | (275 | ) | ||||||||||
| Adjusted EBITDA | $ | 6,829 | $ | 14,832 | $ | 69,859 | $ | 61,288 | ||||||||
(1) The three months ended September 30, 2022, includes $6.8 million currency losses on acquisition-related intercompany loans and a $2.2 million gain from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2022, includes $16.6 million expense on the repurchase of convertible senior notes, $13.7 million currency losses on acquisition-related intercompany loans and a $7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition.
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 September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net cash provided by operating activities (1) | $ | 8,493 | $ | 872 | $ | 26,534 | $ | 55,594 | ||||||||
| Capital expenditures | (3,264 | ) | (1,420 | ) | (6,721 | ) | (6,811 | ) | ||||||||
| Free cash flow (1) | $ | 5,229 | $ | (548 | ) | $ | 19,813 | $ | 48,783 | |||||||
(1) The nine months ended September 30, 2022, includes a $65.9 million payment in January 2022 for a legal judgement acquired in December 2021.
The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Gross profit | $ | 91,442 | $ | 89,806 | $ | 322,753 | $ | 294,513 | ||||||||
| Stock-based compensation expense | 2,332 | 1,411 | 6,265 | 3,791 | ||||||||||||
| Restructuring expense | — | (10 | ) | — | 926 | |||||||||||
| Non-GAAP gross profit | $ | 93,774 | $ | 91,207 | $ | 329,018 | $ | 299,230 | ||||||||
| Non-GAAP gross margin | 78.6 | % | 75.2 | % | 79.9 | % | 76.5 | % | ||||||||
The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Total operating expense | $ | 116,438 | $ | 91,732 | $ | 334,306 | $ | 286,821 | ||||||||
| Stock-based compensation expense | (20,378 | ) | (9,522 | ) | (56,259 | ) | (27,438 | ) | ||||||||
| Amortization | (6,571 | ) | (4,432 | ) | (18,682 | ) | (13,924 | ) | ||||||||
| Gain on mark-to-market adjustment of contingent consideration | 2,178 | — | 7,482 | — | ||||||||||||
| Restructuring expense | — | 114 | — | (4,028 | ) | |||||||||||
| Non-GAAP operating expense | $ | 91,667 | $ | 77,892 | $ | 266,847 | $ | 241,431 | ||||||||
The following table provides our revenue and Adjusted EBITDA on a constant currency basis:
| (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Increase/ (Decrease) % |
||||||||||||||||||||||
| (in thousands) | As reported | Currency changes |
As adjusted for constant currency |
As reported | As reported | As adjusted for constant currency |
||||||||||||||||||
| Software revenue | $ | 103.8 | $ | 8.8 | $ | 112.6 | $ | 102.3 | 1.4 | % | 10.1 | % | ||||||||||||
| Total revenue | $ | 119.4 | $ | 9.6 | $ | 129.0 | $ | 121.3 | -1.6 | % | 6.3 | % | ||||||||||||
| Adjusted EBITDA | $ | 6.8 | $ | 2.0 | $ | 8.8 | $ | 14.8 | -53.9 | % | -40.5 | % | ||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
Increase/ (Decrease) % |
||||||||||||||||||||||
| (in thousands) | As reported | Currency changes |
As adjusted for constant currency |
As reported | As reported | As adjusted for constant currency |
||||||||||||||||||
| Software revenue | $ | 361.6 | $ | 18.3 | $ | 379.9 | $ | 331.4 | 9.1 | % | 14.7 | % | ||||||||||||
| Total revenue | $ | 411.8 | $ | 20.2 | $ | 432.0 | $ | 391.4 | 5.2 | % | 10.4 | % | ||||||||||||
| Adjusted EBITDA | $ | 69.9 | $ | 4.2 | $ | 74.1 | $ | 61.3 | 14.0 | % | 20.9 | % | ||||||||||||
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 December 31, 2022 |
Year Ending December 31, 2022 |
|||||||||||||||
| (in thousands) | Low | High | Low | High | ||||||||||||
| Net loss | $ | (15,000 | ) | $ | (12,100 | ) | $ | (70,300 | ) | $ | (67,400 | ) | ||||
| Stock-based compensation expense | 21,600 | 21,600 | 84,100 | 84,100 | ||||||||||||
| Amortization of intangible assets | 10,100 | 10,100 | 28,800 | 28,800 | ||||||||||||
| Non-cash interest expense | 400 | 400 | 1,800 | 1,800 | ||||||||||||
| Impact of non-GAAP tax rate | (1,600 | ) | (2,200 | ) | (3,500 | ) | (4,200 | ) | ||||||||
| Special adjustments and other(1) | — | — | 22,900 | 22,900 | ||||||||||||
| Non-GAAP net income | $ | 15,500 | $ | 17,800 | $ | 63,800 | $ | 66,000 | ||||||||
(1) Year ending December 31, 2022, includes $16.6 million expense on the repurchase of convertible senior notes, $13.7 million currency losses on acquisition-related intercompany loans and $7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition.
The following table provides a reconciliation of projected Adjusted EBITDA to projected net loss, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
| Three Months Ending December 31, 2022 |
Year Ending December 31, 2022 |
|||||||||||||||
| (in thousands) | Low | High | Low | High | ||||||||||||
| Net loss | $ | (15,000 | ) | $ | (12,100 | ) | $ | (70,300 | ) | $ | (67,400 | ) | ||||
| Income tax expense | 3,900 | 4,000 | 18,900 | 19,000 | ||||||||||||
| Stock-based compensation expense | 21,600 | 21,600 | 84,100 | 84,100 | ||||||||||||
| Interest (income) expense | (300 | ) | (300 | ) | 500 | 500 | ||||||||||
| Depreciation and amortization | 11,800 | 11,800 | 35,900 | 35,900 | ||||||||||||
| Special adjustments and other(1) | — | — | 22,900 | 22,900 | ||||||||||||
| Adjusted EBITDA | $ | 22,000 | $ | 25,000 | $ | 92,000 | $ | 95,000 | ||||||||
(1) Year ending December 31, 2022, includes $16.6 million expense on the repurchase of convertible senior notes, $13.7 million currency losses on acquisition-related intercompany loans and $7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition.
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, 2022 |
||||||||
| (in thousands) | Low | High | ||||||
| Net cash provided by operating activities (1) | $ | 23,000 | $ | 27,000 | ||||
| Capital expenditures | (9,000 | ) | (9,000 | ) | ||||
| Free cash flow (1) | $ | 14,000 | $ | 18,000 | ||||
(1) Includes $65.9 million payment in January 2022 for legal judgement acquired in December 2021.
Artificial Intelligence
IBM, Government of Canada, Government of Quebec Sign Agreements to Strengthen Canada’s Semiconductor Industry
Up to $187M CAD to be invested to progress expansion of chip packaging capacity and capabilities and to strengthen R&D at IBM Canada’s Bromont plant
BROMONT, QC, April 26, 2024 /PRNewswire/ — IBM (NYSE: IBM), the Government of Canada, and the Government of Quebec today announced agreements that will strengthen Canada’s semiconductor industry, and further develop the assembly, testing and packaging (ATP) capabilities for semiconductor modules to be used across a wide range of applications including telecommunications, high performance computing, automotive, aerospace & defence, computer networks, and generative AI, at IBM Canada’s plant in Bromont, Quebec. The agreements reflect a combined investment valued at approximately $187M CAD.
“Today’s announcement is a massive win for Canada and our dynamic tech sector. It will create high-paying jobs, invest in innovation, strengthen supply chains, and help make sure the most advanced technologies are Canadian-made. Semiconductors power the world, and we’re putting Canada at the forefront of that opportunity,” said the Right Honourable Justin Trudeau, Prime Minister of Canada
In addition to the advancement of packaging capabilities, IBM will be conducting R&D to develop methods for scalable manufacturing and other advanced assembly processes to support the packaging of different chip technologies, to further Canada’s role in the North American semiconductor supply chain and expand and anchor Canada’s capabilities in advanced packaging.
The agreements also allow for collaborations with small and medium-sized Canadian-based enterprises with the intent of fostering the development of a semiconductor ecosystem, now and into the future.
“IBM has long been a leader in semiconductor research and development, pioneering breakthroughs to meet tomorrow’s challenges. With the demand for compute surging in the age of AI, advanced packaging and chiplet technology is becoming critical for the acceleration of AI workloads,” said Darío Gil, IBM Senior Vice President and Director of Research. “As one of the largest chip assembly and testing facilities in North America, IBM’s Bromont facility will play a central role in this future. We are proud to be working with the governments of Canada and Quebec toward those goals and to build a stronger and more balanced semiconductor ecosystem in North America and beyond.”
IBM Canada’s Bromont plant is one of North America’s largest chip assembly and testing facilities, having operated in the region for 52 years. Today, the facility transforms advanced semiconductor components into state-of-the-art microelectronic solutions, playing a key role in IBM’s semiconductor R&D leadership alongside IBM’s facilities at the Albany NanoTech Complex and throughout New York’s Hudson Valley. These agreements will help to further establish a corridor of semiconductor innovation from New York to Bromont.
“Advanced packaging is a crucial component of the semiconductor industry, and IBM Canada’s Bromont plant has led the world in this process for decades,” said Deb Pimentel, president of IBM Canada. “Building upon IBM’s 107-year legacy of technology innovation and R&D in Canada, the Canadian semiconductor industry will now become even stronger, allowing for robust supply chains and giving Canadians steady access to even more innovative technologies and products. This announcement represents just one more example of IBM’s leadership and commitment to the country’s technology and business landscape.”
Chip packaging, the process of connecting integrated circuits on a chip or circuit board, has become more complex as electronic devices have shrunk and the components of chips themselves get smaller and smaller. IBM announced the world’s first 2 nanometer chip technology in 2021 and, as the semiconductor industry moves towards new methods of chip construction, advances in packaging will grow in importance.
“Semiconductors are part of our everyday life. They are in our phones, our cars, and our appliances. Through this investment, we are supporting Canadian innovators, creating good jobs, and solidifying Canada’s semiconductor industry to build a stronger economy. Canada is set to play a larger role in the global semiconductor industry thanks to projects like the one we are announcing today. Because, when we invest in semiconductor and quantum technologies, we invest in economic security.” — The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
“This investment by IBM in Bromont will ensure that Quebec continues to stand out in the field of microelectronics. An increase in production capacity will solidify Quebec’s position in the strategic microelectronics sector in North America.” — The Honourable Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister responsible for Regional Economic Development and Minister responsible for the Metropolis and the Montreal region
About IBMIBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in semiconductors, AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Media ContactLorraine BaldwinIBM [email protected]
Willa HahnIBM [email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/ibm-government-of-canada-government-of-quebec-sign-agreements-to-strengthen-canadas-semiconductor-industry-302128212.html
Artificial Intelligence
HITACHI ACQUIRES MA MICRO AUTOMATION OF GERMANY IN EFFORT TO ACCELERATE GLOBAL EXPANSION OF ROBOTIC SI BUSINESS IN THE MEDICAL AND OTHER FIELDS
HOLLAND, Mich., April 26, 2024 /PRNewswire/ — Hitachi Ltd. (TSE: 6501, “Hitachi”) has signed a stock purchase agreement on April 26 to acquire all shares of MA micro automation GmbH (“MA micro automation”, headquartered in St. Leon-Rot, Germany) from MAX Management GmbH (a subsidiary of MAX Automation SE). MA micro automation is a leading provider of robotic and automation technology (robotic SI) including high-speed linear handling systems, high-precision assembly lines, and high-speed vision inspection technology for Europe, North America, and Southeast Asia, for EUR 71.5M million. The transaction is expected to close in the second half of 2024, pending completion of the customary regulatory filings. After the acquisition is completed, MA micro automation will join JR Automation Technologies, LLC (“JR Automation”), a market leader in providing advanced automation solutions and digital technologies in the robotic system integration business for North America, Europe, and Southeast Asia as a continued effort to expand the company’s global presence.
MA micro automation is a technology leader for automation solutions within micro-assembly. Through its state-of-the-art proprietary high-speed and high-precision automation know-how, combined with unique optical image inspection capabilities, MA micro automation serves high-growth med-tech automation end-markets, covering the production, assembly, and testing medical and optical components including contact lenses, IVD and diabetes diagnostics consumables, and injection molding for medical use. The company was established in 2003 through a carve-out from Siemens*1 and since 2013 has been part of the MAX Automation group.
JR Automation is a leading provider of intelligent automated manufacturing technology solutions, serving customers across the globe in a variety of industries including automotive, life sciences, e-mobility, consumer and industrial products. With over 20 locations between North America, Europe, and Southeast Asia, the leading integrator offers nearly 2 million square feet (185,806 sq. m) of available build and engineering floorspace. This acquisition allows JR Automation to further grow and strengthen both the company’s geographical footprint and their continued commitment on expanding support capabilities within the European region and medical market vertical.
“MA micro automation provides engineering, build and support expertise with established capabilities in complex vision applications, high-speed and high-precision automation technologies. When integrated with JR Automation’s uniform global process and digital technologies, this partnership will further enhance our ability to deliver added value and support to all of our customers worldwide and continue to grow our capabilities in the medical market,” says Dave DeGraaf, CEO of JR Automation. “As we integrate this new dimension, impressive talents and abilities of the MA micro automation team we further enhance our ability to serve our customers, creating a more robust and globally balanced offering.”
With this acquisition, Hitachi aims to further enhance its ability to provide a “Total Seamless Solution*2” to connect manufacturer’s factory floors seamlessly and digitally with their front office data, allowing them to achieve total optimization and bringing Industry 4.0 to life. This “Total Seamless Solution” strategy links organizations’ operational activities such as engineering, supply chain, and purchasing to the plant floor and allows for real time, data-driven decision-making that improves the overall business value for customers.
Kazunobu Morita, Vice President and Executive Officer, CEO of Industrial Digital Business Unit, Hitachi, Ltd. says, “We are very pleased to welcome MA micro automation to the Hitachi Group. The team is based in Europe, providing robotic SI to global medical device manufacturing customers with its high technological capabilities and will join forces with JR Automation and Hitachi Automation to strengthen our global competitiveness. Hitachi aims to enhance its ability to provide value to customers and grow alongside them by leveraging its strengths in both OT, IT, including robotic SI, and “Total Seamless Solution” through Lumada*3’s customer co-creation framework.”
Joachim Hardt, CEO MA micro automation GmbH says, “Following the successful establishment and growth of MA micro automation within the attractive automation market for medical technology products, we are now opening a new chapter. Our partnership with Hitachi will not only strengthen our global competitive position, but we will also benefit from joint technological synergies and a global market presence. We look forward to a synergistic partnership with Hitachi and JR Automation.”
Outline of MA micro automation
Name
MA micro automation GmbH
Head Office
St. Leon-Rot, Germany
Representative
Joachim Hardt (CEO)
Outline of Business
Automation solutions within micro-assembly
Total no. of Employees:
Approx. 200 (As of April 2024)
Founded
2003
Revenues (2023)
€ 46.5 million
Website
*1
“Siemens” is a registered trademark or trademark of Siemens Trademark GmbH & Co. KG in the U.S. and other countries.
*2
“Total Seamless Solution” is a registered trademark of Hitachi, Ltd. in the U.S. and Japan.
*3
Lumada: A collective term for solutions, services and technologies based on Hitachi’s advanced digital technologies for creating value from customers’ data accelerating digital innovation. https://www.hitachi.com/products/it/lumada/global/en/index.html
About JR AutomationEstablished in 1980, JR Automation is a leading provider of intelligent automated manufacturing technology solutions that solve customers’ key operational and productivity challenges. JR Automation serves customers across the globe in a variety of industries, including automotive, life sciences, aerospace, and more.
In 2019, JR Automation was acquired by Hitachi, Ltd. In a strategic effort towards offering a seamless connection between the physical and cyber space for industrial manufacturers and distributers worldwide. With this partnership, JR Automation provides customers a unique, single-source solution for complete integration of their physical assets and data information, offering greater speed, flexibility, and efficiencies towards achieving their Industry 4.0 visions. JR Automation employs over 2,000 people at 21 manufacturing facilities in North America, Europe, and Asia. For more information, please visit www.jrautomation.com.
About Hitachi, Ltd.Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.
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Artificial Intelligence
$10 million Artificial Intelligence Mathematical Olympiad Prize appoints further advisory committee members
D. Sculley, Kevin Buzzard, Leo de Moura, Lester Mackey and Peter J. Liu appointed to the advisory committee for the Artificial Intelligence Mathematical Olympiad Prize.
LONDON, April 26, 2024 /PRNewswire/ — XTX Markets’ newly created Artificial Intelligence Mathematical Olympiad Prize (‘AIMO Prize’) is a $10mn challenge fund designed to spur the creation of a publicly shared AI model capable of winning a gold medal in the International Mathematical Olympiad (IMO).
XTX Markets is delighted to announce the appointment of five further advisory committee members. This group brings great expertise in machine learning, including D. Sculley, the CEO of Kaggle; Lester Mackey, a Principal Researcher at Microsoft Research and a Macarthur Fellow; and Peter J. Liu, a research scientist at Google DeepMind.
Prolific mathematicians Kevin Buzzard, who achieved a perfect score in the International Mathematical Olympiad, and Leo De Moura who is the Chief Architect for Lean, the automated reasoning tool, also join the advisory group.
They join the existing advisory committee members Terence Tao and Timothy Gowers, both winners of the Fields Medal, as well as Dan Roberts, Geoff Smith and Po-Shen Loh.
The AIMO Advisory Committee will support the development of the AIMO Prize, including advising on appropriate protocols and technical aspects, and designing the various competitions and prizes.
Simon Coyle, Head of Philanthropy at XTX Markets, commented:
“We are thrilled to complete the AIMO Advisory Committee with the appointments of D., Kevin, Leo, Lester and Peter. Together, they have enormous experience in machine learning and automated reasoning and are already bringing expertise and wisdom to the AIMO Prize. We look forward to announcing the winners of the AIMO’s first Progress Prize soon, and then publicly sharing the AI models to support the open and collaborative development of AI.”
Further information on the AIMO Prize
There will be a grand prize of $5mn for the first publicly shared AI model to enter an AIMO approved competition and perform at a standard equivalent to a gold medal in the IMO. There will also be a series of progress prizes, totalling up to $5mn, for publicly shared AI models that achieve key milestones towards the grand prize.
The first AIMO approved competition opened to participants in April 2024 on the Kaggle competition platform. The first progress prize focuses on problems pitched at junior and high-school level maths competitions. There is a total prize pot of $1.048m for the first progress prize, of which at least $254k will be awarded in July 2024, There will be a presentation of progress held in Bath, England in July 2024, as part of the 65th IMO.
For more information on the AIMO Prize visit: https://aimoprize.com/ or the competition page on Kaggle: https://www.kaggle.com/competitions/ai-mathematical-olympiad-prize/
Advisory Committee member profiles:
D. Sculley
D. is the CEO at Kaggle. Prior to joining Kaggle, he was a director at Google Brain, leading research teams working on robust, responsible, reliable and efficient ML and AI. In his career in ML, he has worked on nearly every aspect of machine learning, and has led both product and research teams including those on some of the most challenging business problems. Some of his well-known work involves ML technical debt, ML education, ML robustness, production-critical ML, and ML for scientific applications such as protein design.
Kevin Buzzard
Kevin a professor of pure mathematics at Imperial College London, specialising in algebraic number theory. As well as his research and teaching, he has a wide range of interests, including being Deputy Head of Pure Mathematics, Co-Director of a CDT and the department’s outreach champion. He is currently focusing on formal proof verification, including being an active participant in the Lean community. From October 2024, he will be leading a project to formalise a 21st century proof of Fermat’s Last Theorem. Before joining Imperial, some 20 years ago, he was a Junior Research Fellow at the University of Cambridge, where he had previously been named ‘Senior Wrangler’ (the highest scoring undergraduate mathematician). He was also a participant in the International Mathematical Olympiad, winning gold with a perfect score in 1987. He has been a visitor at the IAS in Princeton, a visiting lecturer at Harvard, has won several prizes both for research and teaching, and has given lectures all over the world.
Leo de Moura
Leo is a Senior Principal Applied Scientist in the Automated Reasoning Group at AWS. In his spare time, he dedicates himself to serving as the Chief Architect of the Lean FRO, a non-profit organization that he proudly co-founded alongside Sebastian Ullrich. He is also honoured to hold a position on the Board of Directors at the Lean FRO, where he actively contributes to its growth and development. Before joining AWS in 2023, he was a Senior Principal Researcher in the RiSE group at Microsoft Research, where he worked for 17 years starting in 2006. Prior to that, he worked as a Computer Scientist at SRI International. His research areas are automated reasoning, theorem proving, decision procedures, SAT and SMT. He is the main architect of several automated reasoning tools: Lean, Z3, Yices 1.0 and SAL. Leo’s work in automated reasoning has been acknowledged with a series of prestigious awards, including the CAV, Haifa, and Herbrand awards, as well as the Programming Languages Software Award by the ACM. Leo’s work has also been reported in the New York Times and many popular science magazines such as Wired, Quanta, and Nature News.
Lester Mackey
Lester Mackey is a Principal Researcher at Microsoft Research, where he develops machine learning methods, models, and theory for large-scale learning tasks driven by applications from climate forecasting, healthcare, and the social good. Lester moved to Microsoft from Stanford University, where he was an assistant professor of Statistics and, by courtesy, of Computer Science. He earned his PhD in Computer Science and MA in Statistics from UC Berkeley and his BSE in Computer Science from Princeton University. He co-organized the second place team in the Netflix Prize competition for collaborative filtering; won the Prize4Life ALS disease progression prediction challenge; won prizes for temperature and precipitation forecasting in the yearlong real-time Subseasonal Climate Forecast Rodeo; and received best paper, outstanding paper, and best student paper awards from the ACM Conference on Programming Language Design and Implementation, the Conference on Neural Information Processing Systems, and the International Conference on Machine Learning. He is a 2023 MacArthur Fellow, a Fellow of the Institute of Mathematical Statistics, an elected member of the COPSS Leadership Academy, and the recipient of the 2023 Ethel Newbold Prize.
Peter J. Liu
Peter J. Liu is a Research Scientist at Google DeepMind in the San Francisco Bay area, doing machine learning research with a specialisation in language models since 2015 starting in the Google Brain team. He has published and served as area chair in top machine learning and NLP conferences such as ICLR, ICML, NEURIPS, ACL and EMNLP. He also has extensive production experience, including launching the first deep learning model for Gmail Anti-Spam, and using neural network models to detect financial fraud for top banks. He has degrees in Mathematics and Computer Science from the University of Toronto.
About XTX Markets:
XTX Markets is a leading financial technology firm which partners with counterparties, exchanges and e-trading venues globally to provide liquidity in the Equity, FX, Fixed Income and Commodity markets. XTX has over 200 employees based in London, Paris, New York, Mumbai, Yerevan and Singapore. XTX is consistently a top 5 liquidity provider globally in FX (Euromoney 2018-present) and is also the largest European equities (systematic internaliser) liquidity provider (Rosenblatt FY: 2020-2023).
The company’s corporate philanthropy focuses on STEM education and maximum impact giving (alongside an employee matching programme). Since 2017, XTX has donated over £100mn to charities and good causes, establishing it as a major donor in the UK and globally.
In a changing world XTX Markets is at the forefront of making financial markets fairer and more efficient for all.
View original content:https://www.prnewswire.co.uk/news-releases/10-million-artificial-intelligence-mathematical-olympiad-prize-appoints-further-advisory-committee-members-302128542.html
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