Press release
PTC Announces Third fiscal Quarter 2023 Results
Strong ARR and Cash Flow Results; Raising ARR and Cash Flow Guidance for FY'23 BOSTON, July 26, 2023 /PRNewswire/ -- PTC (NASDAQ: PTC) today reported
About this update from Ptc Inc.
[{"type":"text","content":"Strong ARR and Cash Flow Results; Raising ARR and Cash Flow Guidance for FY'23\nBOSTON, July 26, 2023 /PRNewswire/ -- PTC (NASDAQ: PTC) today reported financial results for its third fiscal quarter ended June 30, 2023.\n\n \n \n \n \n \n \n\n \n\"In our third fiscal quarter, we again delivered strong ARR and cash flow results that exceeded our guidance ranges. On both a reported and constant currency basis, our ARR growth was 25% – with organic growth of 14% and our ServiceMax® business contributing an additional 11 points of growth. In Q3, our cash from operations was $169 million, up 45% year over year, and our free cash flow was $164 million, up 46% year over year,\" said James Heppelmann, CEO, PTC.\n\"Our strong product portfolio, now increasingly differentiated with the addition of ServiceMax, and our industry-leading SaaS capabilities align well to the manufacturing industry's push for digital transformation. Our strong market position and solid execution, coupled with a subscription model, position PTC to deliver ARR and cash flow growth at peer-leading levels,\" concluded Heppelmann.\nThird Quarter 2023 Highlights\nKey operating and financial highlights are set forth below. For additional details, please refer to the Q3'23 earnings presentation and financial data tables that have been posted to the Investor Relations section of our website at investor.ptc.com. The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release.\n$ in millions\nQ3'23\nQ3'22\nYoY Change\nQ3'23\nGuidance\nARR as reported\n$1,929\n$1,544\n25 %\nARR at constant currency\n$1,868\n$1,496\n25 %\n$1,845 - $1,855\nOrganic ARR as reported\n$1,762\n$1,544\n14 %\nOrganic ARR at constant currency\n$1,703\n$1,496\n14 %\nCash from operations\n$169\n$117\n45 %\n~$160\nFree cash flow\n$164\n$112\n46 %\n~$155\nRevenue1\n$542\n$462\n17 %\nOperating margin1\n20 %\n17 %\n~300 bps\nNon-GAAP operating margin1\n34 %\n34 %\n~40 bps\nEarnings per share1\n$0.512\n$0.602\n-14%2\nNon-GAAP earnings per share1\n$0.992 \n$0.972\n2%2\nTotal cash and cash equivalents\n$282\n$322\n-13 %\nGross debt\n$2,3653\n$1,434\n65 %\n1\nIn Q3'23, revenue growth was 21% year over year on a constant currency basis. Revenue and, ...