- PTC Inc.’s 1Q adjusted EPS is $1.10, surpassing estimates of 89 cents but slightly down from $1.11 year-over-year.
- Revenue for the quarter is reported at $565.1 million, marking a 2.7% increase from the previous year, and exceeding the estimate of $554.2 million.
- Recurring revenue grew by 3.6% year-over-year, reaching $524.3 million.
- Perpetual license revenue increased significantly by 11% year-over-year, amounting to $9.41 million, surpassing the $7.05 million estimate.
- Professional services revenue decreased by 12% year-over-year, with $31.4 million reported, below the estimated $32.4 million.
- Annual recurring revenue (ARR) saw a 7.2% year-over-year increase, totaling $2.21 billion.
- Capital expenditure decreased by 39% year-over-year, amounting to $2.77 million, below the estimate of $4.23 million.
- Cash flow from operations is robust at $238.4 million, a 27% increase from last year, exceeding the estimate of $231.9 million.
- Free cash flow stands at $235.7 million, marking a 29% year-over-year growth, above the estimated $227 million.
- FY’25 GAAP operating expenses are expected to rise by approximately 4% and non-GAAP operating expenses by approximately 5%, due to growth investments.
- The fully diluted share count in FY’25 is anticipated to remain approximately unchanged.
- Q1’25 showed strong cash flow with significant growth due to ARR expansion and disciplined investment strategies.
- For Q2’25, PTC Inc. projects free cash flow of approximately $270 million, supported by ARR growth and stable cash collections.
- PTC anticipates Q2’25 constant currency ARR growth of around 9.5%, leveraging its strong product portfolio and resilient subscription model.
- PTC Inc. currently has 14 buy ratings, 7 hold ratings, and no sell ratings from analysts.
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PTC Inc on Smartkarma
Analyst coverage on Smartkarma for PTC Inc by Baptista Research highlights key drivers propelling growth. In the report “PTC Inc.: Product Diversification & Integration As A Pivotal Factor Driving Growth! – Major Drivers,” analysts commend PTC’s resilience amidst economic challenges, showcasing a 25% increase in free cash flow and a 12% growth in constant currency ARR. The focus on core offerings like product lifecycle and application lifecycle management underscores their strategic position in digital transformation.
Furthermore, in the report “PTC Inc.: Expansion of Internet of Things (IoT) and Augmented Reality (AR) Solutions! – Major Drivers,” Baptista Research discusses PTC’s solid performance in fiscal Q3 2024, with a 12% year-over-year constant currency ARR increase and a 29% rise in free cash flow. Despite challenges, the company shows effective operational handling and a promising financial trajectory, reflecting a robust demand for its product portfolio in the midst of economic conditions.
A look at PTC Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
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 a promising long-term outlook based on the Smartkarma Smart Scores. While the company’s valuation scores moderately, its growth and resilience metrics indicate a solid performance. With a strong momentum score, PTC Inc seems to be gaining traction in the market. Although the dividend score is lower, the overall outlook for PTC Inc appears positive, particularly in terms of growth potential and ability to withstand market fluctuations.
PTC Inc‘s focus on developing and delivering innovative software and services for complex product design and maintenance, along with its capability to connect products to the Internet, showcases its commitment to technological advancement in the manufacturing sector. As indicated by the Smartkarma Smart Scores, PTC Inc‘s strength lies in its growth prospects and resilience, positioning it well for long-term success in the dynamic technology market.
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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