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Mar 31, 2022
PTC Q2 2022 Earnings Report
PTC demonstrated strong performance in Q2 2022, driven by demand for digital transformation and SaaS, leading to raised FY'22 ARR, Free Cash Flow, and Revenue guidance.
Key Takeaways
PTC's Q2 2022 results showed strong operating and financial metrics, with organic constant currency ARR growth of 13% year over year, ending the quarter at $1.56 billion. Cash from operations increased by 17% year over year to $142 million, and adjusted free cash flow rose by 22% year over year to $158 million. The company's performance was broad-based across all segments and geographic regions.
ARR was $1,532 million, up 11% compared to Q2'21. On a constant currency basis, ARR was $1,564 million, up 13% compared to Q2'21.
Cash flow from operations was $142 million, free cash flow was $140 million, and adjusted free cash flow was $158 million.
Revenue was $505 million, representing growth of 9%. On a constant currency basis, year-over-year revenue growth was 13%.
Earnings per share was $0.76, and non-GAAP earnings per share was $1.39.
PTC
PTC
PTC Revenue by Segment
Revenue by Segment
Perpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
PTC raised its fiscal 2022 guidance for ARR, Free Cash Flow, and Revenue based on Q2 performance and forecast for the remainder of the year.
Positive Outlook
- ARR at Constant Currency: $1,640 - $1,665 million
- Cash from Operations: ~$430 million
- Free Cash Flow: ~$405 million
- Adjusted Free Cash Flow: ~$455 million
- Revenue: $1,905 - $1,975 million
Challenges Ahead
- Foreign exchange headwinds are expected to be $34 million relative to constant currency ARR guidance for FY'22.
- Costs are expected to ramp throughout FY'22 due to hiring and increased SaaS investments.
- FY'22 GAAP results are expected to include $293 million to $308 million of expenses.
- P&L charges of $35 million to $40 million related to restructuring.
- Cash outflows for restructuring payments of $40 million to $45 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income