PTC Q4 2020 Earnings Report
Key Takeaways
PTC reported a strong Q4 2020 with solid bookings and revenue growth. The company's ARR reached $1.27 billion, a 14% year-over-year increase. Revenue for the quarter was $391 million, a 17% increase compared to the same period last year. The company's performance was driven by strength across its Core and Growth businesses.
ARR was $1.27 billion, growing 14% year-over-year, or 11% in constant currency.
Q4 revenue reached $391 million, a 17% increase compared to Q4 2019.
Operating margin was 17% in Q4 2020, while non-GAAP operating margin was 32%.
Free cash flow was $29 million in Q4 2020.
PTC
PTC
Forward Guidance
PTC provided its fiscal year 2021 financial outlook, including assumptions for macroeconomic conditions, churn improvement, and ARR growth, expecting revenue between $1.55 billion and $1.60 billion.
Positive Outlook
- Macroeconomic conditions related to the COVID-19 crisis remain stable near-term with conditions improving in the second-half of FY'21.
- Churn improves approximately 100 bps at the midpoint of guidance.
- ARR growth includes a ~2% headwind from lower backlog for FY'21 exiting FY'20, resulting primarily from COVID-19-related bookings pressure in FY'20.
- ARR YoY growth rates, on a constant currency basis, are expected to be approximately linear each quarter throughout FY'21.
- Operating cash flow and free cash flow tailwinds of approximately $60 million, reflecting lower restructuring, interest-related, and acquisition-related cash expenditures.
Challenges Ahead
- Macroeconomic conditions related to the COVID-19 crisis remain stable near-term with conditions improving in the second-half of FY'21.
- Churn improves approximately 100 bps at the midpoint of guidance.
- ARR growth includes a ~2% headwind from lower backlog for FY'21 exiting FY'20, resulting primarily from COVID-19-related bookings pressure in FY'20.
- ARR YoY growth rates, on a constant currency basis, are expected to be approximately linear each quarter throughout FY'21.
- Revenue growth decelerates in FY'21 reflecting the impact of ASC 606 and related business policy changes that benefited revenue in FY'20.