Altium anticipates revenue for fiscal 2021 to be at the low end of the guidance range of US$190 million to US$195 million and margin to be at the low end of the guidance range of 37-39% on an underlying basis (excluding one-off acquisition costs and write back of the SolidWorks minimum contractual amount due to termination of the agreement with SolidWorks).
Altium CFO, Mr Martin Ive commented “momentum has returned to Altium’s business with double-digit growth in the second half, however, after a slow first half due to the impact of COVID and our pivot to the cloud, the full year is likely to be at, or slightly below, the low end of our guidance”.
Mr Ive further noted, “Altium’s renewal business is strong, Octopart is set for a record performance and China is delivering a solid performance. Demand is growing for Term Based Licences (TBLs), which is a positive for future recurring revenue, however, Altium’s perpetual licence sales have underperformed relative to our expectations in the key markets of the US and EMEA as our sales organization works through its transition of our new sales model”.
Adoption of the Altium 365 cloud platform has increased and there are now more than 13,100 monthly active users and over 6,300 monthly active accounts.
In an investor presentation released separately to the market, and on an investor call hosted by Altium CEO Mr Aram Mirkazemi, Chairman Mr Sam Weiss and CFO Mr Martin Ive will explain the Company vision and strategy to unify and to transform the electronics indust.

Announcement

It was a great day for Altium shareholders today with an intraday high of $38.26, up over 40% on Friday's closing price. Is it time to take some profits?

While Altium has a wonderful future the share price is now well above the average Strawman intrinsic value.

Altium's fundamentals and guidance have not changed because of the Autodesk $38.50 aquisition offer. However, in the space of few hours Mr Market has revalued Altium 40% higher!

Autodesk might raise it's offer, or it could walk away from the negotiation table. What happens then?

At $38 Altium is trading on a forward (2023) PE of 80 (average consensus of 9 analysts on Simply Wall Street) With forecast growth of 17% per annum over the next 3 years, a forward PE of 80 seems quite high to me.

I am happy to take profits at $38 (sold part today) and buy back under $30. I'm also happy to hold part of the holding in case Autodesk increase their offer. Either way, if you hold Altium shares, 'time is your friend'!

Disc: hold shares