NASDAQ$PTC

PTC Inc. · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

PTC delivered solid ARR and cash flow, with revenue growth driven by strong performance in recurring revenue.

PTC announced its Q4 and full fiscal year 2024 results, highlighting solid ARR and cash flow growth. The company's ARR grew by 14% as reported and 12% on a constant currency basis. Revenue increased by 15% year-over-year, with significant growth in operating cash flow and free cash flow.

  • ARR grew 14% year-over-year as reported and 12% on a constant currency basis.
  • Revenue increased 15% year-over-year, driven by recurring revenue.
  • Operating margin improved to 31% from 22% in the prior year.
  • The company announced a new $2 billion share repurchase authorization through the end of fiscal 2027.

Headline financials

Total Revenue

$627M

Previous: $547M+14.6%
EPS (adj)

$1.54

Previous: $1.20+28.3%
ARR as reported

$2.26B

Previous: $1.98B+13.9%
Constant currency ARR

$2.26B

No prior period
Operating margin

31.0%

No prior period
Non-GAAP operating margin

44.0%

No prior period
Capital Expenditures

-$4.54M

Previous: -$6.58M+31.0%
Net Income

$127M

Previous: $45.6M+177.4%
Operating Income

$194M

Previous: $121M+60.1%
Gross Profit

$514M

Previous: $431M+19.3%
R&D Expense

$110M

No prior period
Stock-Based Comp

$62.2M

Previous: $58.9M+5.7%

Revenue & EPS history

PTC · Revenue · Quarterly

$627M

Q4 2024+14.6%vs Q4 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 provided guidance for FY25, including constant currency ARR growth of 9% to 10% and free cash flow between $835 million and $850 million. The guidance incorporates the impact of go-to-market realignment and assumes continued low churn.

Tailwinds

  • Constant currency ARR growth of 9% to 10% is expected.
  • Free cash flow is projected to be between $835 million and $850 million.
  • Share repurchases are expected to be approximately $300 million in FY25.
  • Operating cash flow is projected between $850 million to $865 million.
  • GAAP and non-GAAP tax rates are expected to be approximately 25%.

Headwinds

  • Cash flow guidance includes approximately $20 million of outflows related to go-to-market realignment.
  • Capital expenditures are expected to be approximately $15 million.
  • Cash interest payments are expected to be approximately $90 million.
  • Cash tax payments are expected to be approximately $110 million.
  • FY'25 GAAP operating expenses are expected to increase approximately 4% and FY'25 non-GAAP operating expenses are expected to increase approximately 5%.

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 2024

Historical avgQ4 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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