PTC ANNOUNCES THIRD FISCAL QUARTER 2025 RESULTS

Core Insights - PTC reported strong financial results for Q3 FY2025, with significant growth in revenue and operating metrics, indicating effective execution of its strategic initiatives [1][2]. Financial Performance - Annual Recurring Revenue (ARR) reached $2,416 million, a 14% increase from $2,126 million in Q3 FY2024 [3]. - Revenue for Q3 FY2025 was $644 million, representing a 24% year-over-year growth from $519 million [3]. - Operating cash flow increased by 14% to $244 million, while free cash flow also grew by 14% to $242 million [3][5]. - Earnings per share (EPS) rose by 106% to $1.17, compared to $0.575 in Q3 FY2024 [3]. Guidance and Future Outlook - The company raised its guidance for FY2025, expecting constant currency ARR growth of 8% to 9% and free cash flow of approximately $850 million [6][9]. - Q4 FY2025 revenue guidance is set between $725 million and $785 million, with EPS guidance ranging from $1.57 to $2.03 [9]. Strategic Initiatives - PTC is focusing on five key areas: CAD, PLM, ALM, SLM, and SaaS, with new product offerings and enhancements contributing to customer engagement [2][7]. - The company has initiated a share repurchase program, with $75 million planned for Q4 FY2025, completing a $300 million repurchase authorization for the year [8][21]. Market Environment - Despite a challenging selling environment, PTC's constant currency ARR growth of 9.3% indicates resilience and a positive outlook for customer engagements [5][7].