On July 31, 2024, PTC Inc (PTC, Financial) released its 8-K filing for the third fiscal quarter ended June 30, 2024. PTC, a provider of high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software, as well as Internet of Things and AR industrial solutions, reported mixed results for the quarter.
Performance Overview
PTC Inc (PTC, Financial) reported earnings per share (EPS) of $0.57, meeting the analyst estimate of $0.57. However, the company’s revenue of $519 million fell short of the estimated $533.54 million, marking a 4% year-over-year decline.
Key Financial Achievements
Despite the revenue shortfall, PTC Inc (PTC, Financial) demonstrated robust growth in other key financial metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| ARR as reported | $2,126 million | $1,929 million | 10% |
| Constant currency ARR | $2,125 million | $1,904 million | 12% |
| Operating cash flow | $214 million | $169 million | 26% |
| Free cash flow | $212 million | $164 million | 29% |
| Operating margin | 18% | 20% | (~180 bps) |
| Non-GAAP operating margin | 32% | 34% | (~240 bps) |
| GAAP EPS | $0.57 | $0.51 | 11% |
| Non-GAAP EPS | $0.98 | $0.99 | (1%) |
Income Statement Highlights
PTC Inc (PTC, Financial) reported total revenue of $518.6 million for Q3 2024, down from $542.3 million in Q3 2023. The decline was primarily driven by a decrease in recurring revenue and professional services revenue. The company’s gross margin also decreased to $406.7 million from $426.5 million in the same period last year.
Balance Sheet and Cash Flow
PTC Inc (PTC, Financial) ended the quarter with $248 million in cash and cash equivalents, down from $282 million a year ago. The company’s gross debt decreased significantly to $1.816 billion from $2.365 billion, reflecting a 23% reduction.
Commentary and Future Outlook
“In our third fiscal quarter, we again delivered solid ARR and cash flow, with year-over-year ARR growth in the low double-digits and cash flow growth above 20%. We have a differentiated strategy that leverages our unique product portfolio to help product companies accelerate time to market and manage increasing complexity,” said Neil Barua, CEO of PTC.
Looking ahead, PTC Inc (PTC, Financial) has updated its fiscal 2024 guidance, projecting constant currency ARR growth of 11-12% and maintaining its free cash flow guidance. The company expects FY 2024 revenue to be in the range of $2.270 billion to $2.320 billion, with GAAP EPS between $2.78 and $3.35.
For more detailed financial information and analysis, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from PTC Inc for further details.
