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PTC 8-K Report, Financial Results (May 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 1, 2024
Period End
May 1, 2024
Security
PTC
In the record · 2016–202610-K1010-Q338-K130

PTC filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 130 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jan ’19Jan ’19
  2. Leadership change8-K · Jan ’21Jan ’21
  3. Deal closed8-K · Jan ’23Jan ’23
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.

PTC Inc. reported results for its fiscal second quarter ended March 31, 2024, per Exhibit 99.1 furnished under Item 2.02.

Revenue was $603.1 milliona, up from $542.2 million a year earlier, with the filing stating an 11% year-over-year increase (12% on a constant currency basis for ARR). Reported ARR was $2,088 million versus $1,882 million, and operating cash flow and free cash flow were $251 million and $247 million, respectively, compared with $211 million and $207 million in the prior-year quarter. GAAP diluted EPS was $0.95 versus $0.53, and non-GAAP diluted EPS was $1.46 versus $1.16.

Gross debt was $2,011 millionb, and the CFO stated the debt-to-EBITDA ratio was 2.3x at the end of Q2'24. Management narrowed its FY'24 constant currency ARR guidance to $2,200-$2,240 million (11%-13% growth, from a previous $2,190-$2,250 million) and maintained FY'24 free cash flow guidance at approximately $725 million. FY'24 revenue guidance was lowered to $2,270-$2,340 million from $2,270-$2,360 million, and GAAP EPS guidance was revised to $2.52-$3.22 from $2.42-$3.32, which the company attributed to its updated ARR range and FX impact.

For Q3'24, guidance calls for constant currency ARR of $2,115c-$2,130 million and free cash flow of approximately $220 million. The company updated its mid-term ARR target to low double-digit growth from the prior mid-teens target for FY'25 and FY'26, while reiterating its mid-term cash flow targets of $825-$875 million free cash flow for FY'25 and approximately $1,000 million for FY'26. The company also expects to prioritize paying down debt in FY'24, targeting gross debt of approximately $1.7 billion at fiscal year-end.

02—Key points

Key Highlights

  1. Q2'24 reported ARR of $2,088 million, up 11% year over year from $1,882 million; constant currency ARR was $2,075 million, up 12%.
  2. Q2'24 total revenue of $603.1 million, up 11% year over year from $542.2 million; GAAP operating margin was 30% and non-GAAP operating margin was 42%.
  3. Q2'24 free cash flow of $247 million, up 19% from $207 million, and operating cash flow of $251 million, up 19%.
  4. FY'24 constant currency ARR guidance narrowed to $2,200-$2,240 million (11%-13% growth); free cash flow guidance maintained at approximately $725 million.
  5. FY'24 revenue guidance lowered to $2,270-$2,340 million from $2,270-$2,360 million, and GAAP EPS guidance revised to $2.52-$3.22 from $2.42-$3.32.
  6. Mid-term ARR growth target updated to low double-digit from the prior mid-teens target, while mid-term free cash flow targets were reiterated.
  7. Gross debt fell to $2,011 million, with the CFO stating a debt-to-EBITDA ratio of 2.3x; the company expects to prioritize debt paydown in FY'24 and reach approximately $1.7 billion gross debt at year-end.

03—Questions

Frequently Asked Questions

  1. How did PTC perform in fiscal Q2 2024?

    PTC reported Q2'24 reported ARR of $2,088 million (up 11% year over year), total revenue of $603.1 million (up 11%), operating cash flow of $251 million and free cash flow of $247 million (each up 19%). GAAP diluted EPS was $0.95 and non-GAAP diluted EPS was $1.46.

  2. What changed in PTC's full-year fiscal 2024 guidance?

    Constant currency ARR guidance was narrowed to $2,200-$2,240 million from $2,190-$2,250 million. Revenue guidance was lowered to $2,270-$2,340 million from $2,270-$2,360 million, and GAAP EPS guidance was revised to $2.52-$3.22 from $2.42-$3.32. Free cash flow guidance was maintained at approximately $725 million. The company attributed the revenue and EPS changes to its updated ARR range and FX impact.

  3. What are PTC's mid-term targets?

    The company updated its mid-term ARR growth target to low double-digit percentage growth from the prior mid-teens target. Mid-term cash flow targets were reiterated: free cash flow of $825-$875 million for FY'25 and approximately $1,000 million for FY'26.

  4. How is PTC managing its debt?

    The CFO stated the debt-to-EBITDA ratio was 2.3x at the end of Q2'24. Gross debt was $2,011 million at March 31, 2024, and the company expects to prioritize debt paydown in FY'24 with gross debt of approximately $1.7 billion at fiscal year-end.

  5. What is the outlook for the third quarter of fiscal 2024?

    For Q3'24, constant currency ARR guidance is $2,115-$2,130 million, free cash flow is approximately $220 million, revenue is $525-$540 million, and GAAP EPS is $0.41-$0.54, with non-GAAP EPS of $0.90-$1.00.

04—Continue

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