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Jun 30, 2022
PTC Q3 2022 Earnings Report
PTC delivered strong results with ARR growth and increased cash flow, leading to raised FY22 guidance.
Key Takeaways
PTC reported strong Q3 2022 results with significant ARR growth, driven by the Codebeamer acquisition and demand for digital transformation and SaaS. The company raised its FY22 constant currency ARR and cash flow guidance.
ARR as reported was $1,544 million, up 9% compared to Q3'21.
On a constant currency basis, ARR was $1,625 million, up 16% compared to Q3'21.
Cash flow from operations was $117 million, up 33% year over year.
Adjusted free cash flow was $132 million, up 23% year over year.
Revenue by Segment
Forward Guidance
PTC is raising its ARR and free cash flow and adjusted free cash flow guidance for fiscal 2022. Due to foreign exchange headwinds, the company is reducing its revenue guidance.
Positive Outlook
- ARR at Constant Currency: $1,660 - $1,690 million
- Cash from Operations: ~$430 million
- Free Cash Flow: ~$410 million
- Adjusted Free Cash Flow: ~$465 million
- Organic churn, excluding the impact of our exit from Russia, to improve by approximately 150 basis points over FY’21.
Challenges Ahead
- Revenue: $1,900 - $1,950 million
- Unfavorable changes in foreign exchange rates have been a headwind to our reported ARR.
- Q4 is our lowest cash flow generation quarter.
- Operating costs are expected to increase in FY’22 due to hiring, increased SaaS investments, merit increases that took effect in Q3’22, and the acquisition of the Codebeamer business in Q3’22
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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