The Altium Limited (ASX: ALU) share price has been a strong performer on Thursday.
In afternoon trade, the electronic design software company's shares are up 3% to $37.60.
Why is the Altium share price rising?
Investors have been bidding the Altium share price higher on Thursday following the release of the company's annual general meeting update.
As you might have guessed from the performance of its shares today, management revealed that it has started FY 2023 strongly.
Altium's CFO, Richard Leon, commented:
[T]hrough the first four months of FY23 we have seen very good performance. For our PCB business, average revenue per user, or "ARPU" is trending upward as our mainstream customers continue to adopt Pro-level platform subscriptions. Adoption of Altium 365, our cloud platform, also continues to grow, as does the count of users per account, creating a network effect.
Leon revealed that the only thing that isn't going in the company's favour is the strong US dollar, which is causing foreign exchange headwinds. Nevertheless, the CFO believes is "entirely manageable" and not holding Altium back from achieving its half or full year objectives.
Speaking of which, Leon provided some colour on what to expect for FY 2023. He revealed that Altium is on track to achieve its guidance, stating:
We expect total revenue to be between $255 and $265 million USD, with both our PCB software business and cloud platform business growing nicely. And, we expect underlying EBITDA margin to be between 35 and 37% for the full year in FY23.
Long term goals
The company's chairman, Sam Weiss, also provided the market with an update on its longer term goals.
As some readers will be aware, Altium has set itself the goal of achieving revenue of US$500 million and subscribers of 100,000 by 2026.
However, it has now amended this slightly. While it continues to target revenue of US$500 million, it believes it will only need a base of 75,000 to 90,000 subscribers to hit this goal. This is based on an average price of between $3,000 and $3,500 per subscriber.
