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Dec 31, 2021
PTC Q1 2022 Earnings Report
PTC reported a strong Q1 performance with key operating and financial metrics showing positive results. The company raised the low end of its FY'22 constant currency ARR guidance.
Key Takeaways
PTC's Q1 2022 results showed strong performance, with constant currency ARR growth of 16% reaching $1.51 billion. The company's operating cash flow was $138 million, and adjusted free cash flow was $145 million. Due to this performance, PTC raised the low end of its constant currency ARR guidance for FY'22.
ARR was $1,496 million, up 12% compared to Q1'21.
Constant currency ARR was $1,507 million, up 16% compared to Q1'21.
Operating cash flow was $138 million, and adjusted free cash flow was $145 million.
Revenue was $458 million, representing growth of 7%, or 8% in constant currency.
PTC
PTC
PTC Revenue by Segment
Revenue by Segment
Professional Services Revenue
CapyFin.com Forward Guidance
PTC expects approximately $430 million of cash from operations, approximately $400 million of Free Cash Flow, and approximately $450 million of Adjusted Free Cash Flow for the full fiscal year of 2022.
Positive Outlook
- Low end of constant currency FY’22 ARR guidance raised, reflecting our ARR performance in Q1’22 and forecast for the full year.
- Low end of FY’22 revenue guidance raised, reflecting our ARR and professional services performance in Q1’22, as well as our forecast for the full year.
- Collections are expected to be higher in 1H FY22 due to invoicing seasonality
- We expect churn to improve by approximately 100 basis points over FY’21.
- For the remainder of FY’22, we will focus on de-levering.
Challenges Ahead
- Based on foreign exchange rate fluctuations as of the end of Q1’22, we currently expect a $13 million headwind, relative to our constant currency ARR guidance for FY’22.
- Q4 is our lowest cash flow generation quarter due to seasonality
- Costs are expected to ramp throughout the year due to hiring and increased SaaS investments.
- Related to the restructuring, we expect P&L charges of approximately $40 million to $45 million, of which $34 million was incurred in Q1’22.
- Related to the restructuring, we expect Cash outflows for restructuring payments of approximately $45 million to $50 million, of which $11 million was paid in Q1’22.