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Sep 30, 2024
PTC Q4 2024 Earnings Report
PTC delivered solid ARR and cash flow, with revenue growth driven by strong performance in recurring revenue.
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
Revenue by Segment
Perpetual License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com 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