Pivot to the Cloud With Growing Momentum for a Stronger Second Half
Sydney, Australia - 15 February 2021 - Electronic design software company Altium Limited (ASX:ALU) has announced its results for the half year ended 31 December 2020.
After eight consecutive years of double-digit revenue growth, Altium experienced a decline in first half revenue for fiscal 2021 of 4% to US$89.6 million, compared with the same period one year earlier (pre-COVID).
This atypical decline reflects the economic slowdown caused by extreme COVID conditions in the US and Europe, and a challenging environment, post COVID in China, for license compliance activities.
Additionally, Altium undertook its hard pivot to the cloud. Boards and Systems revenue for the second quarter was, however, stronger than first quarter revenue and that trend is continuing with early signs of growing momentum into the second half of fiscal 2021.
Highlights for the first half included:
~ Strong adoption of Altium 365 continues with over 9,300 active monthly users and 4,400 monthly active accounts (up 83% and up 69% respectively since July).
~Octopart grew strongly by 19% to US$10.8 million, as electronic manufacturing rebounded during the half.
~Altium subscription business grew by 12% year-on-year to reach 52,157 subscribers.
~ Term-based license more than doubled over the half, which bodes well for Altium’s goal of 80% recurring revenue by 2025.
DISC : Previously held
ALU is down $1.295 to $29.365 at 3:18pm
