Altair Engineering Inc (ALTR)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	14,175	-8,926	-43,429	-8,794	-10,500
Revenue	US$ in thousands	665,788	612,701	572,221	532,179	469,921
Net profit margin		2.13%	-1.46%	-7.59%	-1.65%	-2.23%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $14,175K ÷ $665,788K
= 2.13%

Altair Engineering Inc's net profit margin has exhibited varying trends over the past five years. In December 2020 and 2021, the company reported negative net profit margins of -2.23% and -1.65% respectively, indicating that the company's profitability was limited during these periods.

However, in December 2022, Altair Engineering Inc experienced a significant decline in net profit margin to -7.59%, signifying a notable decrease in profitability compared to the previous years. This could suggest that the company faced challenges in controlling its costs or generating sufficient revenue during that year.

Subsequently, in December 2023, there was a slight improvement as the net profit margin improved to -1.46%. This could indicate that the company implemented strategies to enhance its profitability, although it remained negative.

Remarkably, in December 2024, Altair Engineering Inc's net profit margin turned positive at 2.13%, signifying a significant turnaround in profitability. This improvement suggests that the company potentially implemented successful cost-cutting measures, increased revenues, or enhanced operational efficiency.

Overall, Altair Engineering Inc's net profit margin witnessed fluctuations over the analyzed period, with the company transitioning from negative profitability to a positive net profit margin by the end of 2024. Investors and stakeholders may view this transformation positively, as it indicates an improvement in the company's financial performance and potential profitability.