Altium Limited financial results for the half year to 31 December 2023

Altium Limited (ASX: $ALU) has announced its financial results for the half year ended 31 December 2023. The company achieved strong growth in the enterprise market and delivered a solid financial performance, with key highlights including a 16% increase in group revenue and a 30% growth in annual recurring revenue.

Executive commentary on financial performance and strategic outlook

Altium CEO Mr. Aram Mirkazemi highlighted the company's strong business performance in the enterprise market and the adoption of their cloud platform. He also mentioned the proposed acquisition of Altium by Renesas Electronics Corporation as a significant milestone. Interim CFO Mr. Richard Leon commented on the encouraging growth in annual recurring revenue and the rapid adoption of higher value products. He also addressed the challenges faced by Octopart and the strategic acquisition of Valispace, emphasizing its significance in launching Altium's Software-as-a-Service (SaaS) business.

Summary of financial results and future outlook

Altium reported a 16% increase in group revenue and a 30% growth in annual recurring revenue for the half year ended 31 December 2023. The company remains committed to its vision of transforming the global electronics industry through cloud-enablement and aims to achieve its fiscal 2026 targets of US$500 million revenue, underlying EBITDA margin of 38-40%, and 100,000 software seats on subscription. Due to the proposed acquisition by Renesas Electronics Corporation, Altium has suspended providing forward-looking guidance. The company declared a partially franked, interim dividend of AUD 30 cents per share for the half year and will host a conference call to discuss the investor presentation and provide an update on the business strategy and financial performance.