Highlights for the first half include:

 Revenue grew by 28% to US$102 million.

 Altium core PCB business grew by 16% to US$79 million.

 Record revenue growth of 105% to US$22 million for Octopart, backed by tailwinds from the global electronic parts shortage.

 Double-digit revenue growth from all regions, except China, which grew by 6% as it felt the temporary impact of regional COVID lockdowns.

 Term-based licenses (TBL) growth was 132% and made up 30% of all new licenses sold.

 Strong ARR growth of 43% for the half compared with first half last year with recurring revenue now 74% of total revenue compared to 65% in the same period last year.

 Strong adoption of Altium 365 with over 19,700 monthly active users (up 54% since August) and over 7,700 monthly active accounts (up 29% since August).

 Reported and underlying EBITDA margin of 34.1% was up 11% over the first half last year underlying margin of 30.6%.

 Operating cash flow up by 78% to US$33 million and Profit After Tax up by 38% to US$23 million.

 Earnings Per Share (EPS) up by 37% to 17.41 cents.

Altium CEO Mr Aram Mirkazemi said, “Altium delivered a strong performance for the first half of fiscal 2022. Momentum has returned to our core PCB business and our business model transition is going smoother than expected with minimal headwinds. Our Octopart business is performing at its all-time best and the adoption of our cloud platform Altium 365 exceeds our expectations”.

Mr Mirkazemi added, “The overwhelming response to Altium 365 from our customers and the broader engineering software industry is most heartening. We are picking up pace toward market dominance and accelerating our transformative vision to digitally connect electronic design and manufacturing to the broader engineering ecosystem.

“While I am very pleased with our first half performance, we must maintain intensity and focus in the second half, as our first half performance should be compared to a low-base last year that was impacted by COVID and the business and organizational model changes that we made as we pivoted to the cloud”.

Altium is upgrading its revenue guidance for fiscal 2022 to the high-end of the range. The margin is likely to be at the low end of the guided range or thereabouts, as Altium plans to scale up its leadership recruitment including new cloud and enterprise sales roles in an increasingly competitive talent market:

 Revenue between US$213 million to US$217 million (18-20% growth).

 Underlying EBITDA margin of 34-36%.

 ARR growth of 23-27%.

Disc: Not held but on watchlist