Altair Engineering Inc (ALTR)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	533,356	516,434	499,916	499,630	490,910	475,159	461,684	454,453	449,332	430,753	429,117	413,950	402,513	395,263	382,877	368,391	348,616	334,793	326,038	328,308
Revenue (ttm)	US$ in thousands	665,788	644,660	627,213	619,579	612,701	601,631	586,979	578,474	572,221	552,585	554,541	541,797	532,179	524,823	509,972	488,621	469,921	460,357	454,307	462,519
Gross profit margin		80.11%	80.11%	79.70%	80.64%	80.12%	78.98%	78.65%	78.56%	78.52%	77.95%	77.38%	76.40%	75.63%	75.31%	75.08%	75.39%	74.19%	72.72%	71.77%	70.98%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $533,356K ÷ $665,788K
= 80.11%

Altair Engineering Inc has shown a consistent improvement in its gross profit margin over the periods from March 31, 2020, to December 31, 2024. The gross profit margin started at 70.98% in March 2020 and steadily increased to reach 80.11% by December 2024.

The trend indicates that Altair Engineering Inc has been effectively managing its cost of goods sold while increasing revenue, resulting in a higher percentage of revenue retained as gross profit. The company's ability to maintain a high gross profit margin could be a reflection of its pricing strategy, effective cost control measures, and operational efficiency.

Furthermore, the slight dip in the gross profit margin in June 2024 may be an anomaly, and it is important to monitor future periods to assess if this is a one-time event or part of a longer-term trend. Overall, the increasing trend in the gross profit margin for Altair Engineering Inc demonstrates positive financial health and efficiency in its core operations.