NASDAQ$PTC

PTC Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

PTC delivered solid ARR and cash flow, updating fiscal 2024 and mid-term targets.

PTC reported solid results for its second fiscal quarter, driven by its differentiated strategy and unique product portfolio. The company's consistent ARR and free cash flow growth highlight the value it brings to customers and the stability of its business model. PTC is updating its mid-term ARR targets to low double-digit growth and reiterating its mid-term cash flow targets.

  • Delivered solid results in the second fiscal quarter.
  • ARR and free cash flow growth highlight the value to customers.
  • Updating mid-term ARR targets to low double-digit growth.
  • Reiterating mid-term cash flow targets.

Headline financials

Total Revenue

$603M

Previous: $542M+11.2%
EPS

$0.95

Previous: $1.16-18.1%
ARR as reported

$2.09B

Previous: $1.88B+10.9%
Constant currency ARR

$2.12B

No prior period
Capital Expenditures

-$8.2M

Previous: $3.77M-317.6%
Free Cash Flow

$106M

Previous: $207M-48.7%
Net Income

$114M

Previous: $63.5M+80.2%
Operating Income

$180M

Previous: $123M+46.5%
Gross Profit

$493M

Previous: $429M+15.0%
Cash & Equivalents

$249M

Previous: $320M-22.3%
Total Assets

$6.21B

Previous: $6.3B-1.5%
R&D Expense

$107M

No prior period
Stock-Based Comp

$54.2M

Previous: $52.2M+3.7%

Revenue & EPS history

PTC · Revenue · Quarterly

$603M

Q2 2024+11.2%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

PTC · $46.4M total across 2 segments · Q4 2023

  • Professional services
    $38.1M+3.3%
  • Perpetual license
    $8.22M+4.7%

Forward guidance

PTC narrowed the range of FY'24 constant currency ARR guidance and is maintaining FY'24 free cash flow guidance. For Q3, the ARR guidance range is 11 to 12 percent growth, with free cash flow of approximately $220 million.

Tailwinds

  • ARR guidance range is 11 to 12 percent growth.
  • Free cash flow of approximately $220 million.
  • Maintaining FY'24 free cash flow guidance.
  • Narrowing the range of FY'24 constant currency ARR guidance.
  • Debt to EBITDA ratio was 2.3x at the end of Q2'24

Headwinds

  • Challenging selling environment.
  • Revenue and EPS guidance consistent with updated ARR guidance range and also due to the impact of FX.
  • Macroeconomic climate may not improve as expected.
  • Volatile foreign exchange rates and the relative strength of the U.S. dollar.
  • Tightening of credit standards and availability.

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 2024

Historical avgQ2 2024

+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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