- PTC Inc.’s 3Q adjusted earnings per share (EPS): reported 98 cents per share, slightly above the estimate of 97 cents but down from 99 cents year-over-year (y/y).
- 3Q revenue: $518.6 million, a 4.4% decline y/y, below the estimated $533.8 million.
- Recurring revenue: $481.6 million, a 3.4% decrease y/y, lower than the estimate of $500.3 million.
- Perpetual license revenue: $7.05 million, a 15% decline y/y, but above the estimate of $6.31 million.
- Professional services revenue: $30.0 million, a 16% drop y/y, slightly above the estimate of $29.8 million.
- Annual recurring revenue: $2.13 billion, a 10% increase y/y, meeting the estimate of $2.12 billion.
- Capital expenditure: $1.64 million, a significant 68% decrease y/y, well below the estimate of $5.19 million.
- Cash flow from operations: $213.8 million, a 26% increase y/y, short of the estimated $223.2 million.
- Free cash flow: $212.2 million, a 29% growth y/y, but below the estimate of $219.4 million.
- FY’24 GAAP tax rate expectation: approximately 17%, with non-GAAP tax rate around 19%.
- Cash tax payments in FY’24 expected to be around $65 million.
- FY’24 GAAP operating expenses expected to increase by about 6%, with non-GAAP operating expenses projected to rise by about 8%, primarily due to growth investments, the acquisition of ServiceMax, and foreign exchange fluctuations.
- Q3’24 annual recurring revenue (ARR) grew 10% y/y, with constant currency ARR increasing by 12% y/y, driven by the company’s strong product portfolio and subscription model.
- Q3’24 free cash flow saw a 29% increase y/y, although slightly below guidance due to timing.
- FY’24 constant currency ARR guidance updated to reflect an 11-12% growth, while FY’24 free cash flow guidance remains unchanged.
- Analyst ratings: 15 buys, 5 holds, 1 sell.
PTC Inc on Smartkarma
Analyst coverage of PTC Inc on Smartkarma by Baptista Research has been quite optimistic. In the report “PTC Inc.: What Is Their Portfolio Strategy and Cross-Selling Approach? – Major Drivers,” it was highlighted that PTC saw robust results in the recent quarter, showing a positive trend in product portfolio resonance with customers. Despite adjusting mid-term targets, the company remains committed to meeting cash flow guidance by updating ARR growth objectives for the mid-term.
Furthermore, in the analysis titled “PTC Inc: Can The ServiceMax Acquisition Be A Game Changer? – Major Drivers,” Baptista Research expressed positivity following PTC’s Q1 results, considering them a strong start to fiscal 2024. The seamless CEO succession process was noted, with incoming CEO Neil Barua earning praise for his understanding of PTC’s business model. Overall, analyst sentiment leans bullish on PTC Inc, reflecting confidence in the company’s strategic moves and leadership transition.
A look at PTC Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
PTC Inc, a company specializing in technology solutions for discrete manufacturers, is positioned for long-term growth based on its Smartkarma Smart Scores. With a strong Growth score of 4, PTC is expected to expand its market presence steadily. Additionally, the company shows promising Momentum with a score of 3, indicating positive trends in stock performance. While PTC scores lower in Value and Resilience, it remains well-positioned to capture opportunities in the evolving tech industry.
Despite a lower Dividend score of 1, PTC Inc‘s focus on innovation and technological advancements bodes well for its future prospects. The company’s ability to connect products to the Internet for data analysis underpins its growth potential. Overall, PTC’s Smart Scores reflect a positive outlook for the company’s continued development and relevance in the tech sector.
Summary: PTC Inc. specializes in developing technology solutions for discrete manufacturers and offers software and services to design, operate, and maintain complex products. The company’s technology also enables the connectivity of products to the Internet for data collection and analysis.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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