It was another strong month for the Altium Limited (ASX: ALU) share price in April.
The electronic design software company's shares jumped almost 20% higher during the month.
Why did the Altium share price jump 20% higher in April?
Investors were buying Altium's shares last month due to improving investor sentiment and the release of a strong company update.
Early in April the company advised that the electronic design market is anticipated to be relatively resilient and weather the prevailing and unfolding market conditions caused by the coronavirus pandemic.
In addition to this, the market responded positively to news that it is accelerating the rollout of its new cloud platform Altium 365.
This platform was created in response to worldwide demand growing rapidly for cloud-based collaborative tools across all sectors and all regions.
The timing of its release has proven to be very favourable for Altium. Management notes that it has become particular relevant right now for engineers during COVID-19 lockdowns.
It is also expected to play a key role in its aim of transforming the industry, dominating the market, and achieving 100,000 subscribers and US$500 million in revenue by 2025.
Speaking of revenue. The company acknowledged that the situation remains uncertain due to the unknown duration of the pandemic and the potential business impacts that may arise. As a result, it withdrew its earnings guidance for the financial year.
However, it advised that it remains firmly committed to its long-established aspirational market leadership target of US$200 million in revenue for FY 2020. This represents an increase of 16.4% on FY 2019's revenue.
Should you invest?
Although Altium's shares were on fire in April, I wouldn't let that put you off investing with a long term view. After all, they are still down by 21% from their 52-week high.
I think this leaves them trading at an attractive level. Especially given Altium's outstanding long term outlook thanks to the increasing demand for its award-winning software due to the Internet of Things boom.
