BOSTON, March 13, 2025 /PRNewswire/ -- PTC (NASDAQ: PTC) today announced that it has appointed Trac Pham to its Board of Directors, effective March 17, 2025.Pham is the former Chief Financial Officer of Synopsys, a recognized leader in electronic design automation and semiconductor development. During his tenure as CFO, Pham led Synopsys through two significant transformations that helped scale the company from $2.0B to $5.1B in revenue while expanding operating margins. He is currently on the Board of Dire ...

Group 1 - PTC Therapeutics is facing declining revenues and profitability but is preparing for a turnaround [1] - The company has potential asymmetric upside due to several regulatory catalysts expected in 2025, including the FDA review of vatiquinone for Friedreich's ataxia and sepiapterin [1]

Core Viewpoint - PTC Inc. has reported a mixed performance in its recent earnings, with a notable earnings beat but a decline in share price, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - PTC reported Q1 fiscal 2025 non-GAAP EPS of $1.10, exceeding the Zacks Consensus Estimate by 20.9% [2]. - Revenues reached $565 million, reflecting a 3% year-over-year increase, and beating the consensus estimate by 2.4% [3]. - Recurring revenues were $524.3 million, up 3.6% year over year, while perpetual licenses increased by 11.4% to $9.4 million [5]. - License revenues constituted 30.6% of total revenues at $172.8 million, down 6.1% from the previous year, while support and cloud services revenues increased by 9.2% to $361 million [6]. - Professional services revenues decreased by 12.1% year over year to $31.4 million [7]. - PLM revenues were $353 million, up 1% year over year, and CAD revenues were $212 million, up 5% year over year [8]. Annualized Recurring Revenue (ARR) - ARR was reported at $2.205 billion, a 7% increase year over year, with constant currency ARR at $2.277 billion, up 11% year over year [9]. - PLM and CAD ARR were $1,357 million and $848 million, rising 8% and 5% year over year, respectively [9]. Operating Metrics - Non-GAAP gross margin remained stable at 82.7% year over year [10]. - Total operating expenses increased by $17 million year over year to $338 million, while operating income fell by 4% year over year to $191 million [10]. - Operating margin on a non-GAAP basis improved by 240 basis points year over year to 34% [11]. Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents were $196 million, down from $266 million as of September 30, 2024 [12]. - Total debt decreased to $1.544 billion from $1.748 billion [12]. - Cash provided by operating activities was $238 million, compared to $187 million in the prior year, and free cash flow was $236 million, up from $183 million [12]. Financial Outlook - For Q2 fiscal 2025, PTC estimates revenues between $590 million and $620 million, with non-GAAP EPS projected in the range of $1.30 to $1.50 [13]. - Full-year fiscal 2025 revenue projections are now between $2,430 million and $2,530 million, indicating a 6-10% year-over-year increase [14]. - Non-GAAP EPS for fiscal 2025 is estimated to be between $5.30 and $6.00, suggesting a 4-18% increase [14]. - Cash from operations is projected to be between $850 million and $865 million, indicating a 13% to 15% year-over-year increase [15]. Market Sentiment - Estimates for PTC have trended downward recently, with a consensus estimate shift of -8.27% [16]. - PTC holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [18].

Company Announcements - PTC Therapeutics, Inc. will participate in fireside chats at two upcoming investor conferences: TD Cowen 45th Annual Health Care 2025 Conference on March 4 at 11:10 a.m. ET and Barclays 27th Annual Global Healthcare Conference on March 11 at 12:30 p.m. ET [1] - The presentations will be available for live webcast on PTC's website and will be archived for 30 days after the event [1] Company Overview - PTC Therapeutics is a global biopharmaceutical company focused on discovering, developing, and commercializing clinically differentiated medicines for rare disorders [2] - The company's innovation in identifying new therapies and its ability to globally commercialize products are key drivers of its investment in a diverse pipeline of transformative medicines [2]

Core Insights - PTC Therapeutics has received FDA acceptance for the New Drug Application (NDA) for vatiquinone, targeting a PDUFA action date of August 19, 2025, for the treatment of Friedreich's ataxia (FA) [1][2] - Vatiquinone, if approved, would be the first therapy for pediatric patients with FA and a potential treatment alternative for adults, addressing a significant unmet need [2][4] - The NDA is based on data from the MOVE-FA study and two long-term studies, showing significant evidence of slowing disease progression and demonstrating safety across all age groups [2][5] Company Overview - PTC Therapeutics is a global biopharmaceutical company focused on developing and commercializing medicines for rare disorders, with a robust and diversified pipeline [7] - The company has submitted four approval applications to the FDA in 2024, all of which have been accepted for review [3] Product Information - Vatiquinone is a first-in-class selective inhibitor of 15-Lipoxygenase, aimed at alleviating mitochondrial dysfunction and oxidative stress associated with Friedreich's ataxia [4] - The MOVE-FA trial enrolled 146 patients, primarily under 18 years, and while the primary endpoint was not statistically significant, a significant effect was observed on the upright stability subscale [5] Disease Context - Friedreich's ataxia is a rare, debilitating neuromuscular disorder affecting coordination and muscle strength, primarily caused by a genetic defect in the frataxin gene [6] - Approximately 25,000 individuals are affected by Friedreich's ataxia globally, with symptoms including poor balance, difficulty in speech and swallowing, and serious heart conditions [6]

WARREN, N.J., Feb. 13, 2025 /PRNewswire/ -- PTC Therapeutics, Inc. (NASDAQ: PTCT) today announced that the company will host a webcast conference call to report its fourth quarter and full year 2024 financial results and provide an update on the company's business and outlook on Thursday, Feb. 27, at 4:30 p.m. EST.To access the call by phone, please click here to register and you will be provided with dial-in details. To avoid delays, we recommend participants dial in 15 minutes prior to the start of the ca ...

Core Insights - PTC has launched ServiceMax AI, a field service management assistant powered by generative artificial intelligence (GenAI) to enhance technician productivity and streamline service operations [1][2][6] - The new AI capabilities allow technicians to automate documentation, scheduling tasks, and receive proactive maintenance recommendations based on comprehensive asset history [1][6] Company Overview - PTC is a global software company headquartered in Boston, Massachusetts, with over 7,000 employees and more than 30,000 customers worldwide [4] - The company focuses on enabling manufacturers and product companies to digitally transform their design, manufacturing, and service processes [4] Technology and Features - ServiceMax AI utilizes extensive field service expertise and GenAI technology to modernize workflows and improve technician experiences [2][6] - The solution intelligently searches manuals, troubleshooting guides, and service history to provide answers to technician inquiries and recommend service resolutions [6]

Revenue Growth - ARR grew 7% (11% constant currency) to $2.21 billion as of the end of Q1'25 compared to Q1'24[89] - Revenue increased by 3% (2% constant currency) to $565 million in Q1'25 compared to Q1'24, driven by growth in support and cloud services revenue[91] - Total recurring revenue rose by 4% to $524.3 million in Q1'25 compared to Q1'24[94] - PLM ARR grew 8% (11% constant currency) from Q1'24 to Q1'25[106] - CAD ARR increased by 5% (9% constant currency) from Q1'24 to Q1'25[106] Cash Flow and Operating Activities - Cash provided by operating activities grew 27% to $238 million in Q1'25 compared to Q1'24[90] - Free cash flow increased by 29% to $236 million in Q1'25 compared to Q1'24[90] - Cash provided by operating activities increased by $51.1 million to $238.4 million in Q1'25 compared to $187.3 million in Q1'24, driven by higher collections and lower vendor disbursements[132] - Cash provided by operating activities rose to $238.4 million in Q4 2024, compared to $187.3 million in Q4 2023, marking an increase of 27.3%[151] - Free cash flow improved to $235.7 million in Q4 2024, up from $182.8 million in Q4 2023, representing a growth of 29.0%[151] Earnings and Profitability - Diluted earnings per share rose 23% to $0.68 in Q1'25 compared to $0.55 in Q1'24[91] - Income before income taxes increased by 9% to $93.2 million in Q1'25 compared to $85.6 million in Q1'24, while the provision for income taxes decreased by 43% to $10.9 million[121] - GAAP diluted earnings per share increased to $0.68 in Q4 2024 from $0.55 in Q4 2023, reflecting a growth of 23.6%[151] - Non-GAAP net income for Q4 2024 was $133.3 million, slightly up from $133.0 million in Q4 2023, indicating a stable performance[151] Expenses and Margins - Total operating expenses increased by 5% to $337.8 million in Q1'25 from $321.5 million in Q1'24, driven by a $20 million increase in compensation expenses and a $5 million increase in outside services[113][114] - Total gross margin increased by 3% to $453.3 million in Q1'25 compared to Q1'24[109] - Professional services revenue decreased by 12% to $31.4 million in Q1'25 compared to Q1'24[102] - Professional services gross margin decreased in Q1'25 compared to Q1'24, primarily due to higher compensation costs related to severance from go-to-market realignment[111] - Non-GAAP operating margin decreased to 33.9% in Q4 2024 from 36.2% in Q4 2023, showing a decline of 6.3%[152] Debt and Financing - Total debt decreased to $1,547.5 million as of December 31, 2024, from $1,752.6 million, with $524.9 million classified as current debt[135][136] - Interest expense decreased by 38% to $22.0 million in Q1'25 from $35.3 million in Q1'24 due to lower aggregate debt[117] - Cash used in financing activities in Q1'25 included $205.1 million in net payments on the credit facility and $75.0 million for common stock repurchases[134] Taxation - The effective income tax rate for Q1'25 was 12%, down from 22% in Q1'24, primarily due to changes in the geographic mix of income[121] Capital Expenditures - Capital expenditures for Q4 2024 were $(2.8) million, a decrease from $(4.6) million in Q4 2023, indicating improved capital efficiency[151] Market Risk - The company reported no significant changes in market risk exposure as per the 2024 Annual Report[153]

Core Viewpoint - PTC's shares declined by 8.8% following a disappointing first-quarter 2025 earnings report, but the underlying metrics suggest a potential buying opportunity [1] Group 1: Earnings Performance - Q1 earnings aligned with management's previous guidance, indicating that the earnings themselves were not the issue [2] - The updated full-year guidance raised concerns among investors, particularly due to the company's reorganization of its go-to-market strategy [2][3] Group 2: Full-Year Guidance Changes - PTC's full-year 2025 revenue guidance was revised down from $2,430 million to $2,530 million to a new range of $2,505 million to $2,605 million [4] - Non-GAAP earnings per share guidance was also lowered from $5.30 to $6 to a new range of $5.60 to $6.30 [4] - Annual run rate (ARR) growth and free cash flow guidance remained unchanged, indicating stability in these metrics [4] Group 3: Financial Metrics and Future Outlook - PTC emphasizes free cash flow (FCF) and annual run rate (ARR) as key indicators of progress, which remain on track for 2025 [5][6] - The company argues that traditional accounting standards complicate revenue and earnings forecasting, particularly for on-premise subscription sales [5] - Given the maintained guidance for FCF and ARR, there is potential for stock recovery in the future [6]

Core Insights - PTC Inc reported first-quarter fiscal 2025 non-GAAP EPS of $1.10, exceeding the Zacks Consensus Estimate by 20.9% and showing a slight decrease from $1.11 in the prior-year quarter [1] - Revenues reached $565 million, reflecting a 3% year-over-year increase, and surpassed the consensus estimate by 2.4%, driven by strong demand for PLM and CAD solutions [2] Financial Performance - Recurring revenues amounted to $524.3 million, up 3.6% year over year, while perpetual licenses increased by 11.4% to $9.4 million [4] - License revenues constituted 30.6% of total revenues at $172.8 million, down 6.1% year over year, whereas support and cloud services revenues (63.9%) rose 9.2% to $361 million [5] - PLM revenues were $353 million, up 1% year over year, and CAD revenues were $212 million, up 5% year over year [6] ARR and Growth Metrics - Annualized recurring revenues (ARR) reached $2.205 billion, a 7% increase year over year, with a constant currency ARR of $2.277 billion, up 11% [7] - In the fiscal first quarter, PLM and CAD ARR were $1,357 million and $848 million, rising 8% and 5% year over year, respectively [7] Operating Metrics - Non-GAAP gross margin remained stable at 82.7%, while total operating expenses increased by $17 million year over year to $338 million [8] - Operating income on a non-GAAP basis fell 4% year over year to $191 million, but operating margin improved by 240 basis points to 34% [8] Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents were $196 million, down from $266 million as of September 30, 2024, while total debt decreased to $1.544 billion [10] - Cash provided by operating activities was $238 million, compared to $187 million in the prior-year quarter, and free cash flow increased to $236 million from $183 million [10] Financial Outlook - For the second quarter of fiscal 2025, PTC estimates revenues between $590 million and $620 million, with non-GAAP EPS projected in the range of $1.30 to $1.50 [11] - Full fiscal 2025 revenues are now projected between $2,430 million and $2,530 million, indicating a 6-10% year-over-year rise, with non-GAAP EPS estimated at $5.30 to $6.00 [12] - Cash from operations is expected to be between $850 million and $865 million, reflecting a 13% to 15% year-over-year increase [13]