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Sep 30, 2020
PTC Q4 2020 Earnings Report
PTC's Q4 2020 earnings reflected strong bookings and revenue growth, driven by the increasing demand for digital transformation solutions.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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