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Jun 30, 2023

PTC Q3 2023 Earnings Report

PTC delivered strong ARR and cash flow results that exceeded guidance ranges.

Key Takeaways

PTC reported strong ARR and cash flow results for Q3 2023, exceeding guidance. ARR growth was 25% on both a reported and constant currency basis, with organic growth of 14% and ServiceMax contributing 11 points. Cash from operations was $169 million, up 45% year-over-year, and free cash flow was $164 million, up 46% year-over-year.

Delivered strong ARR and cash flow results that exceeded guidance ranges.

ARR growth was 25% on both a reported and constant currency basis.

Cash from operations was $169 million, up 45% year over year.

Free cash flow was $164 million, up 46% year over year.

Total Revenue
$542M
Previous year: $462M
+17.3%
EPS
$0.99
Previous year: $0.97
+2.1%
ARR
$1.93B
Previous year: $1.54B
+24.9%
Gross Profit
$426M
Previous year: $360M
+18.3%
Cash and Equivalents
$282M
Previous year: $322M
-12.7%
Free Cash Flow
$164M
Previous year: $112M
+46.6%
Total Assets
$6.21B
Previous year: $4.61B
+34.8%

PTC

PTC

PTC Revenue by Segment

Forward Guidance

PTC raised its full year guidance midpoint for ARR and its guidance for cash flow, while investing in long-term growth opportunities.

Positive Outlook

  • Raising full year ARR guidance midpoint to $1,935 - $1,950 million.
  • Raising full year cash from operations guidance to ~$605 million.
  • Raising full year free cash flow guidance to ~$585 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income