PTC(US:PTC) ZACKSยท2025-02-06 15:05Core 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]