Loading...
•
Jun 30, 2021
PTC Q3 2021 Earnings Report
PTC demonstrated strong performance in Q3 2021 with double-digit top line growth and solid operating and free cash flow.
Key Takeaways
PTC reported strong Q3 2021 results, with significant growth in ARR and revenue. The company's performance reflects the resonance of its 'Digital Transforms Physical' strategy and the increasing demand for its solutions. PTC is positioned as a leader in the industrial technology market's shift towards SaaS delivery models.
ARR was $1.42 billion in Q3 2021, representing growth of 18%, or 15% in constant currency, compared to Q3 2020.
Revenue was $436 million in Q3 2021 compared to $352 million in Q3 2020, growth of 24%, or 19% in constant currency.
Cash flow from operations was $88 million and free cash flow was $85 million in Q3 2021.
Operating margin was 17% in Q3 2021, and non-GAAP operating margin was 31%.
PTC
PTC
PTC Revenue by Segment
Revenue by Segment
Perpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
PTC provided revised guidance for fiscal year 2021, reflecting expectations for ARR, Revenue, EPS, Operating Cash Flow and Free Cash Flow.
Positive Outlook
- Year to date, PTC has delivered strong ARR, Revenue, EPS, Operating Cash Flow and Free Cash Flow, consistent with our guidance throughout the year.
- We remain on track to deliver against our full year guidance on a constant currency basis.
- Our current guidance assumes a ~60 bps positive currency effect in FY’21.
- Macroeconomic conditions related to the COVID-19 crisis improve in the second-half of FY’21.
- Organic churn improves ~100 bps YoY.
Challenges Ahead
- Cash from operations and free cash flow include ~$15 million of restructuring payments.
- Cash from operations and free cash flow include ~$15 million of acquisition-related payments.
- Cash from operations and free cash flow include ~$18 million of un-forecasted payments related to the prior period tax exposure from a non-U.S. tax dispute.
- Cash from operations and free cash flow include ~$5 million of incremental interest related to the Arena acquisition.
- Free cash flow is net of capital expenditures of ~$25 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income