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Here's What Key Metrics Tell Us About PTC Inc. (PTC) Q3 Earnings

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PTC Inc. (PTC - Free Report) reported $542.34 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 17.3%. EPS of $0.99 for the same period compares to $0.97 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $530.35 million, representing a surprise of +2.26%. The company delivered an EPS surprise of -1.98%, with the consensus EPS estimate being $1.01.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how PTC Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • ARR by Product Group - Total: $1.93 billion compared to the $1.89 billion average estimate based on four analysts.
  • Revenue- Recurring Revenue: $498.41 million versus $479.48 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +20% change.
  • Revenue- Total Software (License+Support & cloud services): $506.66 million versus the five-analyst average estimate of $487.46 million.
  • Revenue- Professional Services: $35.68 million compared to the $38.77 million average estimate based on five analysts. The reported number represents a change of -8.7% year over year.
  • Revenue- Perpetual License: $8.25 million compared to the $7.98 million average estimate based on five analysts. The reported number represents a change of +0.6% year over year.
View all Key Company Metrics for PTC Inc. here>>>

Shares of PTC Inc. have returned +3.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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