{"id":809331,"date":"2025-02-05T16:06:09","date_gmt":"2025-02-05T21:06:09","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ptc-announces-first-fiscal-quarter-2025-results\/"},"modified":"2025-02-05T16:06:09","modified_gmt":"2025-02-05T21:06:09","slug":"ptc-announces-first-fiscal-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ptc-announces-first-fiscal-quarter-2025-results\/","title":{"rendered":"PTC ANNOUNCES FIRST FISCAL QUARTER 2025 RESULTS"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n
\n Solid ARR and Cash Flow<\/i>
\n <\/b>\n <\/p>\n

\n
\n BOSTON<\/span>
\n <\/span>, Feb. 5, 2025<\/span><\/span> \/PRNewswire\/ — PTC<\/a>\u00a0(NASDAQ: PTC) today reported financial results for its first fiscal quarter ended December 31, 2024<\/span>.<\/p>\n

\n

\n
\n \"PTC
\n <\/a>\n <\/p>\n<\/p><\/div>\n

“In Q1’25, we delivered solid year-over-year constant currency ARR growth of 11% and cash flow growth above 25%, which was in-line with our guidance. Our differentiated strategy leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity. It’s an exciting time because our products are at the epicenter of driving business transformation at our customers,” said Neil Barua<\/span>, President and CEO, PTC.<\/p>\n

“In order to better serve the needs of our customers and strengthen our ability to drive consistent growth, in Q1’25, we began the realignment of our go-to-market organization to align with the vertical industries we serve. We will continue to focus on optimizing how we operate, so we can increase customer value while also enhancing shareholder returns,” concluded Barua.<\/p>\n

\n First Fiscal Quarter 2025 Highlights<\/b>\n <\/p>\n

Key operating and financial highlights are set forth below. The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n $ in millions<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Q1’25<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Q1’24<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n YoY Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q1’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n ARR as reported<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,205<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,057<\/span>\n <\/p>\n<\/td>\n

\n

\n 7\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Constant currency ARR (FY’25 Plan FX rates1<\/sup>)<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,277<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,059<\/span>\n <\/p>\n<\/td>\n

\n

\n 11\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ~10.5% growth<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $238<\/span>\n <\/p>\n<\/td>\n

\n

\n $187<\/span>\n <\/p>\n<\/td>\n

\n

\n 27\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ~$234<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Free cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $236<\/span>\n <\/p>\n<\/td>\n

\n

\n $183<\/span>\n <\/p>\n<\/td>\n

\n

\n 29\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ~$230<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenue2<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $565<\/span>\n <\/p>\n<\/td>\n

\n

\n $550<\/span>\n <\/p>\n<\/td>\n

\n

\n 3%3<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $540 to $570<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating margin2<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n 20\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 22\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u00a0(110 bps)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Non-GAAP operating margin2<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n 34\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 36\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n

\n (240 bps)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Earnings per share2<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $0.684<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $0.55<\/span>\n <\/p>\n<\/td>\n

\n

\n 23\u00a0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.28 to $0.52<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP earnings per share2<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $1.10<\/span>\n <\/p>\n<\/td>\n

\n

\n $1.11<\/span>\n <\/p>\n<\/td>\n

\n

\n (0\u00a0%)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.75 to $0.95<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total cash and cash equivalents<\/span>\n <\/p>\n<\/td>\n

\n

\n $196<\/span>\n <\/p>\n<\/td>\n

\n

\n $265<\/span>\n <\/p>\n<\/td>\n

\n

\n (26\u00a0%)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Gross debt5<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $1,548<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,267<\/span>\n <\/p>\n<\/td>\n

\n

\n (32\u00a0%)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n 1<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n On a constant currency basis, using our FY’25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 2<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 3<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n In Q1’25, revenue grew 2% year over year on a constant currency basis.\u00a0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 4<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n Q1’25 GAAP EPS included a non-cash tax benefit of $5.4 million or $0.04, due to the release of a tax reserve related to prior years.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 5<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n Gross debt excludes unamortized debt issuance costs.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

“In a selling environment that continued to be challenging, our Q1’25 ARR grew 11% year over year on a constant currency basis. Our Q1’25 cash flow was solid, with operating cash flow growing 27% year over year and free cash flow growing 29% year over year, driven by ARR growth and a disciplined process for incremental investment in our business. Additionally, as we indicated, we resumed share repurchases, buying back $75 million<\/span> worth of our stock in Q1,” said Kristian Talvitie<\/span>, CFO.<\/p>\n

“Given our differentiated product portfolio, the resilience of our subscription business model, the actions we have taken over time to align our investments with market opportunities, and allowing that our go-to-market changes are expected to take time to have their intended effect, we expect Q2’25 constant currency ARR growth of approximately 9.5%. Supported by ARR growth, the predictability of our cash collections, the disciplined budgeting structure we have in place, and being mindful of foreign exchange rate fluctuations, we expect Q2’25 free cash flow of approximately $270 million<\/span>. We also intend to continue to execute on our share repurchase program, with approximately $75 million<\/span> of buy backs expected in Q2’25,” Talvitie concluded.<\/p>\n

\n Full Fiscal Year 2025 and Second Fiscal Quarter Guidance<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n
\n

\n
\n $ in millions<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n FY’25 Previous
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n FY’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n FY’25 YoY
Growth
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q2’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Constant currency ARR (FY’25 Plan FX rates1<\/sup>)<\/span>\n <\/p>\n<\/td>\n

\n

\n 9% to 10% growth<\/span>\n <\/p>\n<\/td>\n

\n

\n 9% to 10% growth<\/span>\n <\/p>\n<\/td>\n

\n

\n 9% to 10%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ~9.5% growth<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $850 to $8652<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $850 to $8652<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n 13% to 15%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ~$2742<\/sup><\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Free cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $835 to $8502<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n $835 to $8502<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n 14% to 16%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ~$2702<\/sup><\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,505 to $2,605<\/span>\n <\/p>\n<\/td>\n

\n

\n $2,430 to $2,530<\/span>\n <\/p>\n<\/td>\n

\n

\n 6% to 10%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $590 to $620<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $3.68 to $4.57<\/span>\n <\/p>\n<\/td>\n

\n

\n $3.36 to $4.24<\/span>\n <\/p>\n<\/td>\n

\n

\n 8% to 36%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.79 to $1.05<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $5.60 to $6.30<\/span>\n <\/p>\n<\/td>\n

\n

\n $5.30 to $6.00<\/span>\n <\/p>\n<\/td>\n

\n

\n 4% to 18%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.30 to $1.50<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n 1<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n On a constant currency basis, using our FY’25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 2<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n FY’25 cash flow guidance includes approximately $20 million of outflows related to go-to-market realignment, of which $11 million was paid out in Q1’25 and approximately $4 million is expected in Q2’25.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance<\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n

\n
\n $ in millions <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n FY’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Q2’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n<\/tr>\n
\n

\n Operating cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $850 to $865<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$274<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Capital expenditures<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$15<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Free cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n $835 to $850<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$270<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n Reconciliation of EPS Guidance to Non-GAAP EPS Guidance<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n FY’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Q2’25
Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n<\/tr>\n
\n

\n Earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $3.36 to $4.24<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.79 to $1.05<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Stock-based compensation expense<\/span>\n <\/p>\n<\/td>\n

\n

\n $1.90 to $1.66<\/span>\n <\/p>\n<\/td>\n

\n

\n $0.48 to $0.40<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Intangible asset amortization expense<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$0.65<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$0.16<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Impairment charges to right-of-use lease assets<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$0.04<\/span>\n <\/p>\n<\/td>\n

\n

\n ~$0.04<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Income tax adjustments related to the reconciling items<\/span>\n <\/p>\n<\/td>\n

\n

\n ($0.65) to ($0.59)<\/span>\n <\/p>\n<\/td>\n

\n

\n ($0.17) to ($0.15)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Non-GAAP Earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n $5.30 to $6.00<\/span>\n <\/p>\n<\/td>\n

\n

\n $1.30 to $1.50<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n FY’25 financial guidance includes the following assumptions:<\/b>\n <\/p>\n