NASDAQ$PTC

PTC Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

PTC demonstrated strong performance in Q2 2022, driven by demand for digital transformation and SaaS, leading to raised FY'22 ARR, Free Cash Flow, and Revenue guidance.

PTC's Q2 2022 results showed strong operating and financial metrics, with organic constant currency ARR growth of 13% year over year, ending the quarter at $1.56 billion. Cash from operations increased by 17% year over year to $142 million, and adjusted free cash flow rose by 22% year over year to $158 million. The company's performance was broad-based across all segments and geographic regions.

  • ARR was $1,532 million, up 11% compared to Q2'21. On a constant currency basis, ARR was $1,564 million, up 13% compared to Q2'21.
  • Cash flow from operations was $142 million, free cash flow was $140 million, and adjusted free cash flow was $158 million.
  • Revenue was $505 million, representing growth of 9%. On a constant currency basis, year-over-year revenue growth was 13%.
  • Earnings per share was $0.76, and non-GAAP earnings per share was $1.39.

Headline financials

Total Revenue

$505M

Previous: $462M+9.4%
EPS (adj)

$1.39

Previous: $1.08+28.7%
ARR as reported

$1.53B

Previous: $1.39B+10.2%
Capital Expenditures

-$5.51M

Previous: -$8.24M+33.1%
Free Cash Flow

$84.2M

Previous: $101M-16.7%
Net Income

$89.7M

Previous: $109M-17.9%
Operating Income

$159M

Previous: $102M+56.5%
Gross Profit

$412M

Previous: $372M+10.6%
Cash & Equivalents

$307M

Previous: $326M-5.9%
Total Assets

$4.38B

Previous: $4.18B+4.7%
Stock-Based Comp

$37.9M

Previous: $44.7M-15.2%

Revenue & EPS history

PTC · Revenue · Quarterly

$505M

Q2 2022+9.4%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

PTC · $52.5M total across 2 segments · Q2 2022

  • Professional services
    $43M+7.4%
  • Perpetual license
    $9.54M+37.8%

Forward guidance

PTC raised its fiscal 2022 guidance for ARR, Free Cash Flow, and Revenue based on Q2 performance and forecast for the remainder of the year.

Tailwinds

  • ARR at Constant Currency: $1,640 - $1,665 million
  • Cash from Operations: ~$430 million
  • Free Cash Flow: ~$405 million
  • Adjusted Free Cash Flow: ~$455 million
  • Revenue: $1,905 - $1,975 million

Headwinds

  • Foreign exchange headwinds are expected to be $34 million relative to constant currency ARR guidance for FY'22.
  • Costs are expected to ramp throughout FY'22 due to hiring and increased SaaS investments.
  • FY'22 GAAP results are expected to include $293 million to $308 million of expenses.
  • P&L charges of $35 million to $40 million related to restructuring.
  • Cash outflows for restructuring payments of $40 million to $45 million.

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 Q2 2022

Historical avgQ2 2022

+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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