Q1 2025 PTC Inc Earnings Call Transcript
Key Points
- PTC Inc (PTC) reported first-quarter results slightly better than anticipated, demonstrating resilience in a challenging macro environment.
- The company has made significant progress in reshaping its go-to-market strategy to be vertically oriented, energizing both the team and customers.
- PTC Inc (PTC) is focusing on five core areas of its product portfolio, which are expected to create significant customer value, including PLM, ALM, SLM, CAD, and SaaS.
- The company is actively integrating AI into its offerings, with new AI-powered features launching soon, starting with ServiceMax.
- PTC Inc (PTC) has a strong cash flow position, with a 29% year-over-year increase in free cash flow, and is actively repurchasing shares under a $2 billion share repurchase program.
- PTC Inc (PTC) continues to face a sluggish selling environment, impacting close rates and necessitating a back-half loaded year for growth.
- The company's go-to-market changes are expected to take time to fully realize their intended effects, potentially delaying growth momentum until later in the fiscal year.
- There is ongoing pressure from foreign exchange fluctuations, which could impact cash flow guidance.
- PTC Inc (PTC) is experiencing some churn in contracts, although these are expected to return to ARR later in the fiscal year.
- The company acknowledges that its net new ARR can be volatile due to various factors, including the timing of bookings and renewals.
Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to PTC's 2025 first-quarter conference call.
(Operator Instructions)
I would now like to turn the call over to Matt Shimao, PTC's Head of Investor Relations. Please go ahead.
Good afternoon. Thank you, Sarah, and welcome to PTC's 2025 first-quarter conference call.
On the call today are Neil Barua, Chief Executive Officer; and Kristian Talvitie, Chief Financial Officer.
Today's conference call is being broadcast live through an audio webcast, and the replay of the call will be available later today at www.ptc.com.
During this call, PTC will make forward-looking statements, including guidance as to future operating results. Because such statements deal with future events, actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to
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