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PTC's Q1 Earnings & Revenues Top Estimates, Up Y/Y on Market Strength
PTCPTC(PTC) ZACKS·2025-02-06 15:05

Core Insights - PTC Inc reported first-quarter fiscal 2025 non-GAAP EPS of 1.10,exceedingtheZacksConsensusEstimateby20.91.10, exceeding the Zacks Consensus Estimate by 20.9% and showing a slight decrease from 1.11 in the prior-year quarter [1] - Revenues reached 565million,reflectinga3565 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 9.4million[4]−Licenserevenuesconstituted30.69.4 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 361million[5]−PLMrevenueswere361 million [5] - PLM revenues were 353 million, up 1% year over year, and CAD revenues were 212million,up5212 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 2.277billion,up112.277 billion, up 11% [7] - In the fiscal first quarter, PLM and CAD ARR were 1,357 million and 848million,rising8848 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 338million[8]−Operatingincomeonanon−GAAPbasisfell4338 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 196million,downfrom196 million, down from 266 million as of September 30, 2024, while total debt decreased to 1.544billion[10]−Cashprovidedbyoperatingactivitieswas1.544 billion [10] - Cash provided by operating activities was 238 million, compared to 187millionintheprior−yearquarter,andfreecashflowincreasedto187 million in the prior-year quarter, and free cash flow increased to 236 million from 183million[10]FinancialOutlook−Forthesecondquarteroffiscal2025,PTCestimatesrevenuesbetween183 million [10] Financial Outlook - For the second quarter of fiscal 2025, PTC estimates revenues between 590 million and 620million,withnon−GAAPEPSprojectedintherangeof620 million, with non-GAAP EPS projected in the range of 1.30 to 1.50[11]−Fullfiscal2025revenuesarenowprojectedbetween1.50 [11] - Full fiscal 2025 revenues are now projected between 2,430 million and 2,530million,indicatinga6−102,530 million, indicating a 6-10% year-over-year rise, with non-GAAP EPS estimated at 5.30 to 6.00[12]−Cashfromoperationsisexpectedtobebetween6.00 [12] - Cash from operations is expected to be between 850 million and $865 million, reflecting a 13% to 15% year-over-year increase [13]