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PTC 8-K Report, Financial Results (Feb 5, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 5, 2025
Period End
February 5, 2025
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 February 5, 2025. Cited figures are marked; the original filing is the authoritative source.

PTC Inc. reported results for its fiscal first quarter ended December 31, 2024 in a press release furnished as Exhibit 99.1 to this Form 8-K, filed February 5, 2025.

Revenue was $565.1 milliona, up from $550.2 million a year earlier, and net income rose to $82.2 million from $66.4 million. Diluted EPS was $0.68 versus $0.55, and non-GAAP diluted EPS was $1.10 versus $1.11. CEO Neil Barua cited constant currency ARR growth of 11% year over year, which the company said was in line with guidance, and operating cash flow growth above 25%.

Operating cash flow was $238.4 millionb versus $187.3 million, and free cash flow was $235.7 million versus $182.8 million. Management said it began realigning its go-to-market organization around the vertical industries it serves. For the second fiscal quarter, PTC guided to constant currency ARR growth of approximately 9.5% and free cash flow of approximately $270 million, with about $75 million of share repurchases expected in that quarter.

For full fiscal 2025, the company maintained its constant currency ARR growth guidance of 9% to 10%, and it lowered its revenue guidance to $2,430 million to $2,530 millionc from $2,505 million to $2,605 million. It also lowered GAAP EPS guidance to $3.36 to $4.24 from $3.68 to $4.57, and non-GAAP EPS guidance to $5.30 to $6.00 from $5.60 to $6.30. Free cash flow guidance is $835 million to $850 million, and the company intends to repurchase about $300 million of stock in fiscal 2025 and retire $500 million of senior notes due in the second quarter.

Cash and cash equivalents were $196.3 milliond at December 31, 2024, down from $265.8 million at September 30, 2024. Gross debt was $1,548 million, down from $2,267 million a year earlier. The filing also notes that the revenue guidance reflects the effects of ASC 606 accounting, and that the company expects about $20 million of go-to-market realignment outflows in fiscal 2025.

02—Key points

Key Highlights

  1. Q1 FY25 revenue of $565.1 million, up from $550.2 million; recurring revenue was $524.3 million versus $506.0 million.
  2. Constant currency ARR grew 11% year over year to $2,277 million; reported ARR was $2,205 million, up 7%.
  3. Operating cash flow rose to $238.4 million from $187.3 million, and free cash flow rose to $235.7 million from $182.8 million.
  4. GAAP diluted EPS was $0.68 versus $0.55; non-GAAP diluted EPS was $1.10 versus $1.11, and GAAP EPS included a $5.4 million non-cash tax benefit.
  5. Fiscal 2025 revenue guidance was lowered to $2,430 million to $2,530 million from $2,505 million to $2,605 million, while constant currency ARR growth guidance of 9% to 10% was unchanged.
  6. Non-GAAP EPS guidance for fiscal 2025 was lowered to $5.30 to $6.00 from $5.60 to $6.30.
  7. PTC repurchased $75 million of common stock in Q1 and expects about $300 million of repurchases in fiscal 2025, with $500 million of senior notes due Q2 2025 to be retired.

03—Questions

Frequently Asked Questions

  1. How did PTC perform in its fiscal first quarter of 2025?

    Revenue was $565.1 million, up from $550.2 million. Constant currency ARR grew 11% year over year, and operating cash flow and free cash flow grew 27% and 29%, respectively, on a reported basis. GAAP diluted EPS rose to $0.68 from $0.55, while non-GAAP diluted EPS was $1.10 versus $1.11.

  2. Did PTC change its fiscal 2025 guidance?

    Yes, in part. Revenue guidance was lowered to $2,430 million to $2,530 million from $2,505 million to $2,605 million, and GAAP and non-GAAP EPS guidance were also lowered. Constant currency ARR growth guidance of 9% to 10% and operating cash flow guidance of $850 million to $865 million were unchanged. The filing does not state the reasons for the revenue and EPS changes beyond the go-to-market realignment and related factors.

  3. What is PTC's capital return plan?

    PTC repurchased $75 million of its stock in Q1 fiscal 2025 and expects about $75 million of buybacks in Q2 and about $300 million for the full fiscal year. Its long-term goal is to return approximately 50% of free cash flow to shareholders via share repurchases, assuming a Debt/EBITDA ratio below 3x.

  4. What is the go-to-market realignment?

    In Q1 fiscal 2025, PTC began realigning its go-to-market organization to align with the vertical industries it serves. The company expects approximately $20 million of related cash outflows in fiscal 2025, of which $11 million was paid in Q1 and about $4 million is expected in Q2. Management said the changes are expected to take time to have their intended effect.

  5. What is PTC's outlook for the second fiscal quarter of 2025?

    For Q2 fiscal 2025, PTC expects constant currency ARR growth of approximately 9.5%, free cash flow of approximately $270 million, revenue of $590 million to $620 million, and GAAP EPS of $0.79 to $1.05. Non-GAAP EPS is expected to be $1.30 to $1.50.

04—Continue

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