NASDAQ$PTC

PTC Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

PTC delivered strong ARR and cash flow results that exceeded guidance ranges.

PTC reported strong ARR and cash flow results for Q3 2023, exceeding guidance. ARR growth was 25% on both a reported and constant currency basis, with organic growth of 14% and ServiceMax contributing 11 points. Cash from operations was $169 million, up 45% year-over-year, and free cash flow was $164 million, up 46% year-over-year.

  • Delivered strong ARR and cash flow results that exceeded guidance ranges.
  • ARR growth was 25% on both a reported and constant currency basis.
  • Cash from operations was $169 million, up 45% year over year.
  • Free cash flow was $164 million, up 46% year over year.

Headline financials

Total Revenue

$542M

Previous: $462M+17.3%
EPS (adj)

$0.99

Previous: $0.97+2.1%
ARR as reported

$1.93B

Previous: $1.54B+24.9%
Capital Expenditures

-$18M

Previous: -$9.98M-80.7%
Free Cash Flow

$43.4M

Previous: $60.5M-28.3%
Net Income

$61.4M

Previous: $70.5M-12.9%
Operating Income

$110M

Previous: $80M+37.4%
Gross Profit

$426M

Previous: $360M+18.3%
Cash & Equivalents

$282M

Previous: $322M-12.7%
Total Assets

$6.21B

Previous: $4.61B+34.8%
Stock-Based Comp

$53.8M

Previous: $49.4M+8.9%

Revenue & EPS history

PTC · Revenue · Quarterly

$542M

Q3 2023+17.3%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

PTC · $43.9M total across 2 segments · Q3 2023

  • Professional services
    $35.7M-8.7%
  • Perpetual license
    $8.25M+0.6%

Forward guidance

PTC raised its full year guidance midpoint for ARR and its guidance for cash flow, while investing in long-term growth opportunities.

Tailwinds

  • Raising full year ARR guidance midpoint to $1,935 - $1,950 million.
  • Raising full year cash from operations guidance to ~$605 million.
  • Raising full year free cash flow guidance to ~$585 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 2023

Historical avgQ3 2023

+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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