PTC Q1 2022 Earnings Report
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
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.