PTC(US:PTC)2023-04-26 21:56FY'23 Guidance and Performance - PTC narrowed its Constant Currency ARR guidance range while slightly raising the midpoint, increasing Cash Flow guidance, and increasing investments in long-term growth opportunities in 2H'23[2] - FY'23 Free Cash Flow guidance is approximately $580 million, which is about $20 million above initial guidance[7, 22] - PTC expects FY'23 organic churn to be approximately 5.5%, in-line with FY'22[28] - PTC expects FY'23 revenue from software to be approximately 89% and services to be approximately 11%[13] - PTC expects FY'23 ARR from Americas to be approximately 60%, Europe approximately 31%, and APAC approximately 9%[15] ServiceMax Impact - ServiceMax is expected to contribute approximately $170 million to Constant Currency ARR in FY'23[7, 16] - ServiceMax is expected to generate approximately $140 million in revenue from Q2'23 to Q4'23[16] - ServiceMax is expected to have a Free Cash Flow impact of approximately $5 million accretive to PTC in FY'23[7, 16] Q2'23 Results - Q2'23 Constant Currency ARR grew by 26% year-over-year to $1.814 billion, with organic growth of 13%[59, 60] - Q2'23 Cash from Operations was $211 million, and Free Cash Flow was $207 million, representing a 48% year-over-year increase[61, 63] - Q2'23 Revenue grew by 7% year-over-year to $542 million, or 13% on a constant currency basis[64, 65] Financial Position - As of March 31, 2023, PTC had cash and cash equivalents of $320 million and gross debt of $2.545 billion[66]