Financial Data and Key Metrics Changes - For Q1 2025, the company's constant currency ARR was $2.277 billion, reflecting an 11% year-over-year increase [42] - Free cash flow for Q1 was $236 million, up 29% year-over-year, despite absorbing $11 million related to go-to-market realignment [43][46] - The company ended Q1 with cash and cash equivalents of $196 million and gross debt of $1.548 billion, maintaining a leverage ratio of 1.7 times [45][46] Business Line Data and Key Metrics Changes - Constant currency ARR growth was 9% in CAD, driven primarily by Creo, and 11% in PLM, primarily driven by Windchill, Codebeamer, IoT, and ServiceMax [44] - The ARR growth was 9% in the Americas and 12% in both Europe and Asia Pacific [44] Market Data and Key Metrics Changes - The company continues to experience a challenging selling environment, impacting close rates, but remains optimistic about future growth [42][41] - The macroeconomic environment is showing signs of improvement, with manufacturing PMI bouncing back above 50, which could positively influence sales [90] Company Strategy and Development Direction - The company is focused on a go-to-market transformation, emphasizing vertical alignment to capture long-term growth opportunities [9][12] - Key leadership changes have been made, including the appointment of a new Chief Revenue Officer to enhance sales performance and alignment across teams [10][11] - The company is concentrating on five core areas: PLM, ALM, SLM, CAD, and SaaS, to drive customer value [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about exiting fiscal 2025 with increased momentum, driven by product releases and AI initiatives [7][39] - The company expects to achieve low-double-digit ARR growth over the medium term, supported by a resilient subscription model and low churn rates [12][41] Other Important Information - The company is investing in AI capabilities across its product portfolio, with upcoming launches in ServiceMax and Codebeamer [22][25] - The company plans to return approximately 50% of free cash flow to shareholders through share repurchases, with a target of $300 million in fiscal 2025 [48] Q&A Session Summary Question: Comments on AI product organization and investment - The company is evolving its AI development efforts, with a focus on practical applications and alignment across product segments [72] Question: Competitive environment in PLM - The company is actively competing in the PLM space, focusing on the integration of Windchill and Codebeamer to enhance product development cycles [80] Question: Trajectory of net new ARR - The company anticipates a back-half loaded year, with expectations for improved performance in Q4 as go-to-market changes take effect [86][90] Question: Progress on go-to-market alignment - The company is pleased with the progress made in Q1 regarding go-to-market changes and is optimistic about future execution [125] Question: AI product launches across the portfolio - The company plans to expand AI capabilities beyond just Codebeamer and ServiceMax, with more developments expected across the entire product line [130]

Core Insights - PTC Inc. reported revenue of $565.13 million for the quarter ended December 2024, reflecting a year-over-year increase of 2.7% [1] - The company's EPS was $1.10, slightly down from $1.11 in the same quarter last year, but exceeded the consensus estimate of $0.91 by 20.88% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $551.92 million, resulting in a surprise of 2.39% [1] Financial Performance Metrics - Annual Recurring Revenue (ARR) was reported at $2.21 billion, below the three-analyst average estimate of $2.28 billion [4] - Recurring Revenue reached $524.31 million, exceeding the four-analyst average estimate of $515.94 million, with a year-over-year increase of 3.6% [4] - Professional Services revenue was $31.41 million, slightly above the four-analyst average estimate of $31.14 million, but showed a year-over-year decline of 12.1% [4] - Perpetual License revenue was reported at $9.41 million, significantly above the four-analyst average estimate of $6.76 million, marking an 11.4% year-over-year increase [4] Stock Performance - PTC Inc. shares have returned 4.4% over the past month, outperforming the Zacks S&P 500 composite's 1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

PTC Inc. (PTC) came out with quarterly earnings of $1.10 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.88%. A quarter ago, it was expected that this product development software maker would post earnings of $1.43 per share when it actually produced earnings of $1.54, delivering a surprise of 7.69%.Over the last four quar ...

[PTC First Fiscal Quarter 2025 Results](index=1&type=section&id=PTC%20First%20Fiscal%20Quarter%202025%20Results) This section outlines PTC's Q1 FY2025 financial performance and strategic initiatives [Q1 FY2025 Performance Highlights](index=1&type=section&id=Q1%20FY2025%20Performance%20Highlights) PTC reported solid Q1 FY2025 results, meeting guidance with 11% constant currency ARR growth and over 25% cash flow growth, alongside strategic realignment and share repurchases Q1 FY2025 Key Financial Metrics | Metric | Q1'25 | Q1'24 | YoY Change | Q1'25 Guidance | | :--- | :--- | :--- | :--- | :--- | | **Constant Currency ARR** | $2,277M | $2,059M | 11% | ~10.5% growth | | **Operating Cash Flow** | $238M | $187M | 27% | ~$234M | | **Free Cash Flow** | $236M | $183M | 29% | ~$230M | | **Revenue** | $565M | $550M | 3% | $540M to $570M | | **GAAP EPS** | $0.68 | $0.55 | 23% | $0.28 to $0.52 | | **Non-GAAP EPS** | $1.10 | $1.11 | (0%) | $0.75 to $0.95 | - Management highlighted solid performance with **11% constant currency ARR growth** and **over 25% cash flow growth**, which was in line with guidance[3](index=3&type=chunk) - The company initiated a go-to-market organization realignment to better serve vertical industries and drive consistent growth[4](index=4&type=chunk) - PTC resumed its share repurchase program, repurchasing **$75 million** of its stock in Q1 FY2025[8](index=8&type=chunk) [Fiscal Year 2025 and Second Quarter Guidance](index=2&type=section&id=Fiscal%20Year%202025%20and%20Second%20Quarter%20Guidance) PTC reaffirmed FY2025 constant currency ARR and free cash flow guidance, lowered EPS, and provided Q2 FY2025 projections including continued share repurchases FY2025 and Q2'25 Guidance | Metric | FY'25 Guidance | FY'25 YoY Growth | Q2'25 Guidance | | :--- | :--- | :--- | :--- | | **Constant Currency ARR Growth** | 9% to 10% | 9% to 10% | ~9.5% | | **Operating Cash Flow** | $850M to $865M | 13% to 15% | ~$274M | | **Free Cash Flow** | $835M to $850M | 14% to 16% | ~$270M | | **Revenue** | $2,430M to $2,530M | 6% to 10% | $590M to $620M | | **GAAP EPS** | $3.36 to $4.24 | 8% to 36% | $0.79 to $1.05 | | **Non-GAAP EPS** | $5.30 to $6.00 | 4% to 18% | $1.30 to $1.50 | - FY2025 cash flow guidance includes approximately **$20 million** in outflows for go-to-market realignment, with **$11 million** paid in Q1 and **$4 million** expected in Q2[11](index=11&type=chunk) - The company plans to repurchase approximately **$300 million** of common stock and retire **$500 million** in senior notes in FY2025[15](index=15&type=chunk) - Q2 FY2025 guidance includes approximately **9.5% constant currency ARR growth** and **$75 million** in share buybacks[9](index=9&type=chunk) [Key Metrics and Non-GAAP Measures](index=4&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Measures) PTC utilizes key operating metrics like ARR and non-GAAP financial measures to evaluate performance and facilitate period-to-period comparisons - **ARR** is a key operating measure representing the annualized value of active subscription software, SaaS, hosting, and support contracts[20](index=20&type=chunk) - **Free Cash Flow** is defined as cash provided by operations net of capital expenditures, assessing the ability to generate cash without external financing[18](index=18&type=chunk) - **Constant Currency (CC)** information excludes foreign currency exchange rate fluctuations to assess underlying business performance, using rates as of September 30, 2024[19](index=19&type=chunk) - **Non-GAAP financial measures** exclude items such as stock-based compensation and amortization of acquired intangible assets to facilitate period-to-period comparisons of operating performance[17](index=17&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) Q1 FY2025 unaudited financial statements reveal a 3% revenue increase, significant net income growth, reduced cash and debt, and a 27% increase in operating cash flow [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Q1 FY2025 Consolidated Statements of Income show a 2.7% increase in total revenue and a 23.9% increase in net income year-over-year Q1 FY2025 Income Statement Highlights (in thousands) | Line Item | Q1 2025 (Dec 31, 2024) | Q1 2024 (Dec 31, 2023) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $565,128 | $550,214 | +2.7% | | Recurring Revenue | $524,311 | $506,027 | +3.6% | | Gross Margin | $453,331 | $440,194 | +3.0% | | Operating Income | $115,524 | $118,713 | -2.7% | | **Net Income** | $82,232 | $66,387 | +23.9% | | **Diluted EPS** | $0.68 | $0.55 | +23.6% | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets indicate decreased cash and total assets, reduced net debt, and increased stockholders' equity Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Sep 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $196,338 | $265,808 | -$69,470 | | Total assets | $6,075,364 | $6,383,542 | -$308,178 | | Debt, net | $1,543,991 | $1,748,572 | -$204,581 | | Stockholders' equity | $3,229,821 | $3,214,398 | +$15,423 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows show a 27.3% increase in operating cash flow, with significant outflows for debt repayment and stock repurchases Q1 FY2025 Cash Flow Highlights (in thousands) | Line Item | Q1 2025 (Dec 31, 2024) | Q1 2024 (Dec 31, 2023) | YoY Change | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | $238,429 | $187,341 | +27.3% | | Capital expenditures | ($2,767) | ($4,563) | -39.4% | | **Free cash flow** | $235,662 | $182,778 | +28.9% | | Borrowings (payments) on debt, net | ($205,125) | $558,404 | N/A | | Repurchases of common stock | ($75,000) | $0 | N/A | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP to Non-GAAP financial measures, primarily adjusting for stock-based compensation and amortization of acquired intangible assets Q1 FY2025 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Operating Income** | $115,524 | +$75,806 | $191,330 | | **Operating Margin** | 20.4% | +13.5% | 33.9% | | **Net Income** | $82,232 | +$51,115 | $133,347 | | **Diluted EPS** | $0.68 | +$0.42 | $1.10 | - Primary adjustments for Non-GAAP operating income include **$55.9 million** in stock-based compensation and **$19.7 million** in amortization of acquired intangible assets[34](index=34&type=chunk)

Solid ARR and Cash FlowBOSTON, Feb. 5, 2025 /PRNewswire/ -- PTC (NASDAQ: PTC) today reported financial results for its first fiscal quarter ended December 31, 2024."In Q1'25, we delivered solid year-over-year constant currency ARR growth of 11% and cash flow growth above 25%, which was in-line with our guidance. Our differentiated strategy leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity. It's an exciting time because our products are ...

Group 1 - Analysts expect PTC Inc. to report quarterly earnings of $0.91 per share, reflecting an 18% year-over-year decline [1] - Revenue is anticipated to be $551.92 million, which represents a 0.3% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] Group 2 - Analysts project 'Revenue- Recurring Revenue' to be $515.94 million, indicating a 2% year-over-year increase [4] - 'Revenue- Professional Services' is expected to reach $31.14 million, showing a decline of 12.9% from the previous year [4] - Total Software revenue (License + Support & Cloud Services) is forecasted at $522.72 million, reflecting a 1.6% year-over-year growth [4] Group 3 - 'Revenue- Perpetual License' is estimated at $6.76 million, indicating a 20% decrease from the prior-year quarter [5] - The average prediction for 'ARR as reported' stands at $2.28 billion, up from $2.06 billion reported in the same quarter last year [5] - PTC Inc. shares have increased by 2.7% over the past month, outperforming the Zacks S&P 500 composite's 1% increase [5]

PTC Inc (PTC) is scheduled to report first-quarter fiscal 2025 results on Feb. 5.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.For the quarter, PTC anticipates revenues between $540 million and $570 million. Non-GAAP EPS is expected in the range of 75 cents to 95 cents.The Zacks Consensus Estimate for revenues is pegged at $551.9 million, indicating an increase of 0.3% from the year-ago reported number. The consensus estimate for earnings is pegged at 91 cents per share, down 18% ...

BOSTON, Jan. 15, 2025 /PRNewswire/ -- PTC (Nasdaq: PTC) will release its fiscal 2025 first quarter results on Wednesday, February 5th after the stock market closes. Senior management will host a live webcast and conference call to review the results on Wednesday, February 5th at 5 pm Eastern Time. The earnings press release, accompanying earnings presentation, and financial data tables will be accessible prior to the conference call and webcast on the Investor Relations section of the Company's website at P ...

Core Insights - PTC Therapeutics reported unaudited total revenue of approximately $814 million for 2024, exceeding guidance [1][5][11] - The company submitted four regulatory approval applications to the FDA in 2024, with significant upcoming decisions expected in 2025 [1][5][11] - PTC is preparing for the global launch of sepiapterin for PKU, targeting a market opportunity of $1 billion, with regulatory opinions expected in 2025 [1][5] - A collaboration agreement with Novartis for the PTC518 program has been finalized, providing substantial upfront proceeds and potential milestone payments [1][5][11] Financial Performance - The unaudited net product revenue for 2024 was approximately $601 million, with strong contributions from the DMD franchise, including $340 million from Translarna and $207 million from Emflaza [5][11] - The cash balance as of December 31, 2024, was approximately $1.1 billion, bolstered by $1.0 billion from the Novartis collaboration [5][11] - PTC anticipates total revenues for 2025 to range between $600 million and $800 million, including in-line products and potential new launches [12] Regulatory and Clinical Developments - PTC's regulatory submissions include Kebilidi, which was approved in November 2024, and sepiapterin, with an FDA action date set for July 29, 2025 [5][11] - The company expects results from the PIVOT-HD Phase 2 study of PTC518 in Q2 2025, with NDA acceptance for vatiquinone anticipated in Q1 2025 [11] - The CHMP opinion on sepiapterin's MAA is expected in Q2 2025, indicating ongoing regulatory engagement [5][11] Strategic Collaborations - The collaboration with Novartis includes a $1.0 billion upfront payment, potential for up to $1.9 billion in milestones, and a 40% profit share on U.S. sales [5][11] - Novartis will take over global development and commercialization responsibilities for PTC518 following the completion of the placebo-controlled portion of the PIVOT-HD study [5][11]

He also leads the investing group IPO Edge , which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to init ...