Altium Limited

Altium reported FY23 group revenue of $263.3 million, up 19% year over year. Design software revenue rose 20% to $203 million, or $209.6 million on a constant-currency basis, while cloud platform revenue increased 17% to $60.3 million. Underlying EBITDA margin was 36.5%, with EBITDA of $96 million, up 20%, and net profit after tax of $66.3 million, also up nearly 20%. Design software annual recurring revenue grew 32% to $147.2 million, and average subscription seat value increased 22% to $2,408. For FY24, management guided to total revenue of $315 million to $325 million, design software revenue of $255 million, cloud platform revenue of $65 million to $70 million, and underlying EBITDA margin of 35% to 37%. They also reiterated FY26 aspirational targets of $500 million revenue, 38% to 40% underlying EBITDA margin, and 100,000 software seats on subscription.

Aram Mirkazemi framed the company’s strategy around three transformations: moving the mid-market up the value chain, scaling enterprise wins through Altium 365, and expanding beyond PCB design into broader electronics workflows. He repeatedly emphasized that higher average subscription seat value is being driven by more capable products and term-based licensing, not just pricing, and said the company is entering the “performance zone” in the first two fronts. His tone was confident and long-term oriented, with particular optimism around enterprise traction, industry solutions, and the path toward FY26 targets.

Richard Leon highlighted that FY23 revenue reached $263.3 million and EBITDA margin was 36.5%, while operating expenses increased 18.7% to $160 million as the company invested in leadership and growth initiatives. He said cash was flat at $201 million after $27 million in disputed ATO payments and $45 million in dividends, and noted Altium has zero debt. He also pointed to sticky recurring revenue, with recurring revenue mix rising to 77% of total revenue from 75%, and said FY24 design software guidance assumes 10% to 15% subscription seat growth on the current 61,100 subscriber seats plus $55 million to $60 million of nonrecurring revenue.

Analysts focused on whether Altium’s higher subscription seat values reflect pricing power or product upgrades, and management said it is mainly the latter: customers are moving from standard to pro and enterprise capabilities, alongside the shift from perpetual to term-based licensing. Questions also centered on monetizing Altium 365 and enterprise competition; management said there will be no joining fee for 365, but direct monetization of higher-level capabilities is expected to ramp more meaningfully in FY25 and FY26, with roughly $50 million expected by FY26 from direct monetization. On Octopart, management acknowledged traffic headwinds and said the first half of FY24 may still be weak, but expects a stronger second half as localization, data improvements, integration with Altium 365, and bolt-on M&A improve value and volume.