NASDAQ$PTC

PTC Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

PTC delivered strong results with ARR growth and increased cash flow, leading to raised FY22 guidance.

PTC reported strong Q3 2022 results with significant ARR growth, driven by the Codebeamer acquisition and demand for digital transformation and SaaS. The company raised its FY22 constant currency ARR and cash flow guidance.

  • ARR as reported was $1,544 million, up 9% compared to Q3'21.
  • On a constant currency basis, ARR was $1,625 million, up 16% compared to Q3'21.
  • Cash flow from operations was $117 million, up 33% year over year.
  • Adjusted free cash flow was $132 million, up 23% year over year.

Headline financials

Total Revenue

$462M

Previous: $436M+6.2%
EPS (adj)

$0.97

Previous: $0.83+16.9%
ARR as reported

$1.54B

Previous: $1.42B+8.7%
Capital Expenditures

-$9.98M

Previous: -$11.7M+14.4%
Free Cash Flow

$60.5M

Previous: $39.5M+53.0%
Net Income

$70.5M

Previous: $51.2M+37.6%
Operating Income

$80M

Previous: $73.6M+8.7%
Gross Profit

$360M

Previous: $341M+5.8%
Cash & Equivalents

$322M

Previous: $366M-11.9%
Total Assets

$4.61B

Previous: $4.21B+9.5%
Stock-Based Comp

$49.4M

Previous: $43.1M+14.7%

Revenue & EPS history

PTC · Revenue · Quarterly

$462M

Q3 2022+6.2%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

PTC · $47.3M total across 2 segments · Q3 2022

  • Professional services
    $39.1M-5.2%
  • Perpetual license
    $8.2M+13.0%

Forward guidance

PTC is raising its ARR and free cash flow and adjusted free cash flow guidance for fiscal 2022. Due to foreign exchange headwinds, the company is reducing its revenue guidance.

Tailwinds

  • ARR at Constant Currency: $1,660 - $1,690 million
  • Cash from Operations: ~$430 million
  • Free Cash Flow: ~$410 million
  • Adjusted Free Cash Flow: ~$465 million
  • Organic churn, excluding the impact of our exit from Russia, to improve by approximately 150 basis points over FY’21.

Headwinds

  • Revenue: $1,900 - $1,950 million
  • Unfavorable changes in foreign exchange rates have been a headwind to our reported ARR.
  • Q4 is our lowest cash flow generation quarter.
  • Operating costs are expected to increase in FY’22 due to hiring, increased SaaS investments, merit increases that took effect in Q3’22, and the acquisition of the Codebeamer business in Q3’22
  • FY’22 GAAP P&L results are expected to include the items outlined below, totaling $281 million to $291 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 Q3 2022

Historical avgQ3 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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