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Sep 30, 2021
PTC Q4 2021 Earnings Report
PTC reported strong ARR, revenue, EPS, and cash flow performance for the fourth quarter and full year 2021.
Key Takeaways
PTC announced its fiscal fourth-quarter and full-year 2021 results, showcasing strong performance with double-digit organic ARR growth and significant increases in operating and free cash flow. The company saw growth across all product segments and geographies, driven by strong execution and the impact of up-front license revenue recognition.
ARR was $1.47 billion at the end of Q4'21, representing growth of 16% compared to Q4'20.
Revenue was $481 million in Q4'21, a 23% increase compared to $391 million in Q4'20.
Earnings per share was $2.46 in Q4'21, compared to $0.46 in Q4'20.
Free cash flow was $32 million in Q4'21, compared to $29 million in Q4'20.
PTC
PTC
PTC Revenue by Segment
Revenue by Segment
Perpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
PTC expects to deliver ARR growth of 10% to 13%, approximately $430 million of cash from operations and approximately $400 million of Free Cash Flow in FY22.
Positive Outlook
- ARR growth is expected to be approximately 15% in Q1'22.
- Churn is expected to improve by approximately 100 basis points over FY'21.
- GAAP operating expenses to increase approximately 4-5%.
- Non-GAAP operating expense to increase approximately 2-3%.
- Target to return approximately 25% of our free cash flow excluding restructuring payments to our shareholders through share repurchases.
Challenges Ahead
- The accelerated reorganization and investments are expected to de-risk our path towards delivering on our mid-term cash flow targets.
- We will record a $45 to $50 million restructuring charge in Q1.
- Costs are expected to ramp throughout the year due to hiring and increased SaaS investments.
- Total estimated pre-tax adjustments of $275 million - $280 million outlined below, as well as any additional tax effects and discrete tax items.
- Cash outflows for restructuring payments of approximately $50 million to $55 million, with approximately two-thirds occurring in H1'22 and the majority of the remaining payments in Q3'22.
Revenue & Expenses
Visualization of income flow from segment revenue to net income