NASDAQ$PTC

PTC Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

PTC reported strong ARR, revenue, EPS, and cash flow performance for the fourth quarter and full year 2021.

PTC announced its fiscal fourth-quarter and full-year 2021 results, showcasing strong performance with double-digit organic ARR growth and significant increases in operating and free cash flow. The company saw growth across all product segments and geographies, driven by strong execution and the impact of up-front license revenue recognition.

  • ARR was $1.47 billion at the end of Q4'21, representing growth of 16% compared to Q4'20.
  • Revenue was $481 million in Q4'21, a 23% increase compared to $391 million in Q4'20.
  • Earnings per share was $2.46 in Q4'21, compared to $0.46 in Q4'20.
  • Free cash flow was $32 million in Q4'21, compared to $29 million in Q4'20.

Headline financials

Total Revenue

$481M

Previous: $391M+22.9%
EPS (adj)

$1.10

Previous: $0.78+41.0%
ARR as reported

$1.47B

Previous: $1.27B+15.7%
Capital Expenditures

$13.1M

Previous: $4.78M+172.8%
Free Cash Flow

$32.3M

Previous: $29M+11.3%
Net Income

$293M

Previous: $53.4M+448.5%
Operating Income

$115M

Previous: $66.5M+73.2%
Gross Profit

$381M

Previous: $306M+24.3%
Cash & Equivalents

$327M

Previous: $335M-2.5%
Total Assets

$4.52B

Previous: $3.38B+33.5%
Stock-Based Comp

$43.4M

Previous: $41.5M+4.5%

Revenue & EPS history

PTC · Revenue · Quarterly

$481M

Q4 2021+22.9%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

PTC · $51.3M total across 2 segments · Q4 2021

  • Professional services
    $40.9M
  • Perpetual license
    $10.4M

Forward guidance

PTC expects to deliver ARR growth of 10% to 13%, approximately $430 million of cash from operations and approximately $400 million of Free Cash Flow in FY22.

Tailwinds

  • ARR growth is expected to be approximately 15% in Q1'22.
  • Churn is expected to improve by approximately 100 basis points over FY'21.
  • GAAP operating expenses to increase approximately 4-5%.
  • Non-GAAP operating expense to increase approximately 2-3%.
  • Target to return approximately 25% of our free cash flow excluding restructuring payments to our shareholders through share repurchases.

Headwinds

  • The accelerated reorganization and investments are expected to de-risk our path towards delivering on our mid-term cash flow targets.
  • We will record a $45 to $50 million restructuring charge in Q1.
  • Costs are expected to ramp throughout the year due to hiring and increased SaaS investments.
  • Total estimated pre-tax adjustments of $275 million - $280 million outlined below, as well as any additional tax effects and discrete tax items.
  • Cash outflows for restructuring payments of approximately $50 million to $55 million, with approximately two-thirds occurring in H1'22 and the majority of the remaining payments in Q3'22.

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 Q4 2021

Historical avgQ4 2021

+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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