PTC Q4 2024 Earnings Report
Key Takeaways
PTC announced its Q4 and full fiscal year 2024 results, highlighting solid ARR and cash flow growth. The company's ARR grew by 14% as reported and 12% on a constant currency basis. Revenue increased by 15% year-over-year, with significant growth in operating cash flow and free cash flow.
ARR grew 14% year-over-year as reported and 12% on a constant currency basis.
Revenue increased 15% year-over-year, driven by recurring revenue.
Operating margin improved to 31% from 22% in the prior year.
The company announced a new $2 billion share repurchase authorization through the end of fiscal 2027.
PTC
PTC
PTC Revenue by Segment
Forward Guidance
PTC provided guidance for FY25, including constant currency ARR growth of 9% to 10% and free cash flow between $835 million and $850 million. The guidance incorporates the impact of go-to-market realignment and assumes continued low churn.
Positive Outlook
- Constant currency ARR growth of 9% to 10% is expected.
- Free cash flow is projected to be between $835 million and $850 million.
- Share repurchases are expected to be approximately $300 million in FY25.
- Operating cash flow is projected between $850 million to $865 million.
- GAAP and non-GAAP tax rates are expected to be approximately 25%.
Challenges Ahead
- Cash flow guidance includes approximately $20 million of outflows related to go-to-market realignment.
- Capital expenditures are expected to be approximately $15 million.
- Cash interest payments are expected to be approximately $90 million.
- Cash tax payments are expected to be approximately $110 million.
- FY'25 GAAP operating expenses are expected to increase approximately 4% and FY'25 non-GAAP operating expenses are expected to increase approximately 5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income