Loading...
•
Dec 31, 2024
PTC Q1 2025 Earnings Report
PTC reported solid year-over-year constant currency ARR growth of 11% and cash flow growth above 25% in its first fiscal quarter ended December 31, 2024.
Key Takeaways
PTC delivered solid financial results in Q1'25, with constant currency ARR growth of 11% and cash flow growth exceeding 25%, aligning with guidance. The company's differentiated strategy and go-to-market realignment are key to driving business transformation and enhancing shareholder returns.
Constant currency ARR grew 11% year-over-year, reaching $2,277 million.
Operating cash flow increased by 27% year-over-year to $238 million.
Free cash flow grew 29% year-over-year, totaling $236 million.
The company resumed share repurchases, buying back $75 million worth of stock in Q1.
Revenue by Segment
Forward Guidance
For Q2'25, PTC expects constant currency ARR growth of approximately 9.5% and free cash flow of approximately $270 million. The company plans to continue share repurchases, with approximately $75 million of buybacks expected.
Positive Outlook
- Expected constant currency ARR growth of approximately 9.5% in Q2'25.
- Anticipated free cash flow of approximately $270 million in Q2'25, supported by ARR growth and disciplined budgeting.
- Intention to continue share repurchase program, with approximately $75 million of buybacks expected in Q2'25.
- FY'25 GAAP operating expenses expected to increase approximately 4% and non-GAAP operating expenses approximately 5%, primarily due to investments to drive future growth.
- Long-term goal to return approximately 50% of free cash flow to shareholders via share repurchases, assuming Debt/EBITDA ratio is below 3x.
Challenges Ahead
- Go-to-market changes are expected to take time to have their intended effect.
- FY'25 cash flow guidance includes approximately $20 million of outflows related to go-to-market realignment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...