TROY, Mich. - Altair (NASDAQ:ALTR), a company specializing in computational intelligence, has been included in the S&P MidCap 400 Index, a notable benchmark for mid-sized companies. This inclusion, effective before the opening of trading on June 24, reflects Altair's consistent growth and its established position in the fields of simulation and design, data analytics, artificial intelligence (AI), and high-performance computing (HPC).
The S&P MidCap 400 Index is recognized for measuring the performance of 400 mid-sized companies, capturing the unique risk and return characteristics of this important market segment. Altair's addition to the index is seen as a validation of its business strategy and performance.
James R. Scapa, founder and CEO of Altair, expressed that the company's addition to the index is a testament to its "strong and steady growth" and "demonstrated leadership" in its core business areas. Altair provides software and cloud solutions that enable organizations across various industries to compete more effectively and make smarter decisions in a connected world.
The company's focus on creating a greener, more sustainable future is also a key aspect of its operations. As Altair continues to innovate and expand its offerings, its inclusion in the S&P MidCap 400 serves as a significant corporate milestone.
In other recent news, Altair Engineering Inc. has reported a strong first quarter in 2024, exceeding its own projections. The company's total revenue reached $172.9 million, with software revenue accounting for $158.4 million, marking a 6.9% increase from the previous year. Adjusted EBITDA was reported at $45.8 million, and the firm ended the quarter with a cash reserve of $557.6 million.
Altair has been focusing on expansion and innovation, as evidenced by its strategic acquisitions and the anticipated launch of Altair SimSolid for electronics. The company also won the 2024 Google (NASDAQ:GOOGL) Cloud North America Partner of the Year Award for Diversity, Equity, and Inclusion. Despite some underperformance in Q2 due to external factors, the company remains optimistic about strong software revenue growth and adjusted EBITDA for the rest of 2024.
Altair is also expanding into new sectors such as healthcare, heavy industry, and consumer electronics, and is making strategic moves in the aerospace and defense sectors.
InvestingPro Insights
Altair's (NASDAQ:ALTR) inclusion in the S&P MidCap 400 Index is complemented by noteworthy financial metrics that underscore its market position and growth potential. With a robust market capitalization of $8.17 billion, Altair's scale is significant within the mid-cap space. The company's revenue has grown to $619.58 million in the last twelve months as of Q1 2024, marking a 7.11% year-over-year increase, which aligns with the steady growth that CEO James R. Scapa highlighted.
In terms of profitability, Altair's gross profit margin stands impressively high at 80.64%, reflecting the company's ability to maintain cost-effective operations while scaling its revenue. This is particularly relevant for investors looking at the efficiency and sustainability of Altair's business model as it continues to innovate in AI and HPC.
InvestingPro Tips suggest that while Altair's P/E ratio is currently high at 919.97, the adjusted P/E ratio based on the last twelve months as of Q1 2024 has decreased to 775.34, potentially indicating a more favorable earnings perspective moving forward. Additionally, the company's stock has experienced a 33.01% total return over the past year, which may attract investors seeking growth in their portfolios.
For those considering deeper analysis, InvestingPro offers even more detailed insights. There are currently multiple additional InvestingPro Tips available that could provide further guidance on Altair's financial health and investment potential. To access these tips and enhance your investment strategy, take advantage of the special offer with the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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