NASDAQ$PTC

PTC Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

PTC's Q1 2020 results demonstrated solid demand and strong sales execution.

PTC reported a solid start to fiscal 2020, with strong demand for its product development and digital transformation technologies. The company saw strong sales execution and expanded its global reach through its partner ecosystem. The addition of Onshape is expected to provide new opportunities for companies seeking cloud-based product development.

  • ARR was $1.16 billion, reflecting 11% growth compared to Q1 2019.
  • Cash flow from operations was $8 million, with free cash flow at $3 million and adjusted free cash flow at $12 million.
  • Operating margin was 9% on a GAAP basis and 26% on a non-GAAP basis.
  • Total cash, cash equivalents, and marketable securities were $294 million.

Headline financials

Total Revenue

$356M

Previous: $335M+6.3%
EPS (adj)

$0.57

Previous: $0.56+1.8%
ARR as reported

$1.16B

Previous: $1.04B+11.1%
Capital Expenditures

-$4.71M

Previous: $30.3M-115.5%
Free Cash Flow

$30.7M

Previous: -$9.12M+437.2%
Net Income

$35.5M

Previous: $21M+69.0%
Operating Income

$30.4M

Previous: $30M+1.3%
Gross Profit

$269M

Previous: $257M+4.4%
Cash & Equivalents

$237M

Previous: $277M-14.4%
Total Assets

$3.28B

Previous: $2.75B+19.1%
Stock-Based Comp

$27.9M

Previous: $29.4M-5.0%

Revenue & EPS history

PTC · Revenue · Quarterly

$356M

Q1 2020+6.3%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

PTC · $356M total across 3 segments · Q1 2020

  • Recurring revenue
    $305M
  • Professional services
    $41.7M
  • Perpetual license
    $9M

Forward guidance

PTC raised its guidance ranges for ARR, Adjusted Free Cash Flow, Revenue and EPS due to solid Q1 performance, visibility into the remainder of fiscal 2020, and favorable foreign exchange rates.

Tailwinds

  • ARR between $1,270 million and $1,295 million, 14% - 16% YoY
  • Free cash flow between $218 million and $238 million
  • Adjusted free cash flow between $260 million and $280 million, 6% - 14% YoY
  • Revenue between $1,445 million and $1,525 million, 15% - 21% YoY
  • Non-GAAP EPS between $2.15 and $2.65, 31% - 62% YoY

Headwinds

  • Operating expenses are expected to grow roughly 9%, slightly elevated due to the Onshape acquisition.
  • Allows for potential impact of moderate weakening of macroeconomic conditions.
  • Free cash flow and adjusted free cash flow exclude capital expenditures of $27 million.
  • Adjusted free cash flow also excludes restructuring payments of $42 million.
  • The FY’20 non-GAAP guidance excludes the estimated expense items outlined in the table below, as well as any tax effects and discrete tax items (which are not known nor reflected).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.6%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+16.9%

Q2 2022

Best reaction

-19.5%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.0%+5.6%+0.2%
Q1 2026+1.7%+7.5%+7.5%
Q4 2025-8.4%-6.3%-8.7%
Q2 2025+0.9%+2.4%+8.6%
Q1 2025-9.6%-11.5%-14.3%
Q4 2024+0.0%+2.2%+5.8%
Q3 2024-0.3%-4.7%+1.5%
Q2 2024-3.9%+0.4%-0.7%
Q1 2024-2.5%-3.7%+2.0%
Q4 2023+4.2%+5.9%+13.5%
Q3 2023+0.7%+1.1%+0.4%
Q2 2023-0.7%+1.1%+5.5%
Q1 2023-1.9%-2.6%-7.4%
Q4 2022+4.4%+6.1%+7.2%
Q3 2022+13.1%+9.8%+3.0%
Q2 2022+16.9%+17.4%+21.2%
Q1 2022-4.2%+1.4%-2.7%
Q4 2021-4.3%+0.0%-10.7%
Q3 2021-7.4%-8.7%-8.1%
Q2 2021-9.7%-11.9%-9.2%
Q1 2021+6.8%+5.8%+5.7%
Q4 2020+1.9%+3.1%+28.9%
Q3 2020+4.0%+5.0%+10.8%
Q2 2020+4.3%+1.2%+15.1%
Q1 2020+7.9%+6.8%+12.4%
Q4 2019+6.1%+2.2%+14.0%
Q3 2019-19.5%-22.2%-28.1%
Q2 2019-9.9%-9.8%-15.3%
Q1 2019-7.1%-5.1%+8.4%
Q4 2018-8.5%-12.9%-7.5%
Q3 2018-1.9%-1.8%-6.7%
Q2 2018+2.2%+2.2%+1.2%
Q1 2018+7.1%+11.6%+12.2%
Q4 2017+5.9%+8.3%+7.7%
Q3 2017-6.8%-4.0%-7.8%
Q2 2017-0.5%+0.2%+3.3%
Q1 2017+6.0%+6.6%+14.6%
Q4 2016+0.2%+4.2%+9.4%
Q3 2016+2.9%+2.7%+8.3%
Q2 2016+11.5%
Q1 2016+3.5%
Q4 2015+0.1%
Q3 2015-6.4%
Q2 2015+4.4%
Q1 2015-0.9%
Q4 2014-3.1%
Q3 2014-1.7%
Q2 2014+0.6%
Q1 2014+0.7%
Q4 2013+9.0%
Q3 2013+0.7%
Q2 2013+1.4%
Q1 2013-1.1%
Q4 2012+5.1%
Q3 2012+13.5%
Q2 2012+15.1%
Q1 2012-0.1%
Q4 2011-4.9%
Q3 2011-0.9%
Q2 2011+0.0%
Q1 2010+1.2%
Q1 2011+2.0%
Q2 2010+0.2%
Q4 2010+0.2%
Q4 2008+0.2%
Q3 2009-1.4%
Q3 2010-1.4%
Q4 2009-1.4%

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