Altair Engineering Inc (ALTR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	490,910	449,332	402,513	348,616	326,316
Revenue	US$ in thousands	608,222	563,439	519,011	458,323	458,915
Gross profit margin		80.71%	79.75%	77.55%	76.06%	71.11%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $490,910K ÷ $608,222K
= 80.71%

Altair Engineering Inc's gross profit margin has shown a consistent upward trend over the past five years, indicating an improving ability to generate profits from its core business activities. The company's gross profit margin increased from 71.11% in 2019 to 80.71% in 2023, reflecting a strong performance in effectively managing production costs and maximizing revenues. This steady improvement suggests that Altair Engineering Inc has been successful in optimizing its pricing strategy, controlling production costs, and potentially enhancing operational efficiency. A higher gross profit margin is generally interpreted positively by investors and stakeholders as it signifies a healthier financial position and a more profitable business model.