Altium delivered a strong second-half performance to meet its full-year revenue guidance. Second half revenue performance of 16% overall growth supported the delivery of full-year revenue guidance of US$191.1 million. Despite significant investment in cloud and product development, the company achieved an underlying EBITDA margin of 36.1%, just shy of full-year margin guidance of 37%.
The rapid adoption of its cloud platform, Altium 365, is enhancing the value of maintenance subscriptions for customers and delivers SaaS-like subscription benefits, reducing subscription churn. The platform is also catching the attention of the industry and attracting strategic partners.
Its Octopart and China businesses both delivered strong growth and the company noted momentum is rebuilding in its core PCB business. Octopart growth had been buoyed by the shortage in the semiconductor industry increasing searches for electronic components and parts search activity. This is expected to continue. China recovered strongly to deliver 47% revenue growth in the second half after a slow first-half performance, as its licence compliance business focused on mid-tier and large organisations in its pipeline as opposed to small businesses which helped to increase the proportion of deals won.
Altium’s strong second-half performance and robust ARR growth support a positive outlook. Altium’s ARR grew by 29% as they continued to transition the business model from perpetual to term-based and from on-premise to cloud. As a result, they upgraded revenue expectations to 16-20% growth for FY22, returning back to strong pre-COVID growth. Those estimates put revenue guidance at US$209 million to US$217 million revenue for FY22.
Altium’s CEO Aram Mirkazemi said, “Our focus in fiscal 2022 will be to continue with our cloud adoption and to scale our high-end professional sales through strategic partnerships for significant TAM expansion within the PCB market. With growth coming back earlier than expected, and the rising popularity of Altium 365 driving strategic interest in Altium, our confidence in our US$500 million revenue target is high.”