Altium Limited (ASX: $ALU) H1 FY24 financial report

Altium Limited (ASX: $ALU) has reported a solid financial performance in the first half of financial year 2024. The company's revenue increased by 15.9% to US$138.6 million, and the reported earnings before interest, tax, depreciation, and amortization (EBITDA) were US$44.7 million, with a reported EBITDA margin of 32.3%. The underlying EBITDA margin was 33.4%, reflecting a transition to higher quality recurring revenue and a significant shift to term-based licenses for Altium Designer.

Executive commentary on financial performance and strategic vision

Altium delivered a solid financial performance in H1 FY24, with a 15.9% increase in revenue and an underlying EBITDA margin of 33.4%. The company continues to pursue its ambitious vision to transform the electronics industry through the cloud-enablement of all industry processes involved in the creation of electronics hardware. Altium's focus on recurring revenue growth, enterprise subscription seat value, and the adoption of Altium 365 demonstrates its commitment to achieving its corporate strategy and long-term goals.

Outlook and future aspirations

Altium remains committed to its vision of transforming the global electronics industry through cloud-enablement and aims to achieve its aspirational FY26 targets of US$500 million revenue, underlying EBITDA margin of 38-40%, and 100,000 software seats on subscription. The company's proposed acquisition by Renesas Electronics Corporation through a Scheme Implementation Agreement reflects its strategic direction and potential future developments. Altium's determination to vigorously defend its position in the ATO tax dispute and its focus on innovation and growth indicate a positive outlook for the company's future endeavors.