Press release
PTC ANNOUNCES THIRD FISCAL QUARTER 2024 RESULTS
Solid ARR and Cash Flow in Q3'24 Guiding to 11-12% Constant Currency ARR Growth and Maintaining Free Cash Flow Guidance for FY'24 BOSTON, July 31, 2024
About this update from Ptc Inc.
[{"type":"text","content":"Solid ARR and Cash Flow in Q3'24\nGuiding to 11-12% Constant Currency ARR Growth and Maintaining Free Cash Flow Guidance for FY'24\nBOSTON, July 31, 2024 /PRNewswire/ -- PTC (NASDAQ: PTC) today reported financial results for its third fiscal quarter ended June 30, 2024.\n\n \n \n \n \n \n \n\n \n\"In our third fiscal quarter, we again delivered solid ARR and cash flow, with year-over-year ARR growth in the low double-digits and cash flow growth above 20%. We have a differentiated strategy that leverages our unique product portfolio to help product companies accelerate time to market and manage increasing complexity. It's an exciting time because our products are at the epicenter of driving business transformation at our customers. We are strengthening our ability to scale our business by continuing to align our resources with our five focus areas,\" said Neil Barua, CEO, PTC.\nThird Quarter 2024 Highlights\nKey operating and financial highlights are set forth below. 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\nQ3'24\nQ3'23\nYoY Change\nQ3'24Guidance\nARR as reported\n$2,126\n$1,929\n10 %\nConstant currency ARR\n$2,125\n$1,904\n12 %\n$2,115 - $2,130\nOperating cash flow\n$214\n$169\n26 %\n~$225\nFree cash flow\n$212\n$164\n29 %\n~$220\nRevenue1\n$519\n$542\n(4%)2\n$525 - $540\nOperating margin1\n18 %\n20 %\n(~180 bps)\nNon-GAAP operating margin1\n32 %\n34 %\n(~240 bps)\nEarnings per share1\n$0.573\n$0.51\n11 %\n$0.41 - $0.54\nNon-GAAP earnings per share1\n$0.984\n$0.99\n(1 %)\n$0.90 - $1.00\nTotal cash and cash equivalents\n$248\n$282\n(12 %)\nGross debt5\n$1,816\n$2,3656 \n(23 %)\n1\nRevenue and, as a result, operating margin, operating profit, and earnings per share are impacted under ASC 606.\n2\nIn Q3'24, revenue declined 3% year over year on a constant currency basis.\n3\nIn Q3'24, GAAP EPS included a non-cash tax benefit of $14.2 million or $0.12, primarily associated with the effects of IRS procedural guidance issued in May 2024.\n4\nIn Q3'24, non-GAAP EPS included a non-cash tax benefit of $9.8 million or $0.08, primarily associated with the effects of IRS procedural guidance issued in May 2024.\n5\nGross debt excludes unamo...