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PTC's Q3 Earnings Match Estimates, Revenues Decrease Y/Y
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PTC Inc. (PTC - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings per share (EPS) of 98 cents, down 1% on a year-over-year basis. The figure came in line with the Zacks Consensus Estimate.
Revenues were $519 million, declining 4% year over year (down 3% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.7%. A challenging selling environment resulted in the year-over-year decline.
Recurring revenues of $481.6 million fell 3.4% year over year. Perpetual licenses decreased 14.6% to $7.1 million.
Revenues by License, Support and Services
License revenues (28.7% of total revenues) were $149.1 million, down 22.7% from the year-ago quarter’s figure.
Support and cloud services revenues (65.5%) of $339.5 million increased 8.2% year over year.
Professional services revenues (5.8%) were $30 million, down 16% year over year.
Revenues by Product Group
In the fiscal third quarter, PLM revenues were $330 million, falling 6% year over year. CAD revenues were $189 million, down 2%.
ARR Performance
Annualized recurring revenues (ARR) were $2,126 million, increasing 10% year over year. ARR was up 12% on a constant currency basis. The uptick was driven by strong performance across all divisions and regions.
In the fiscal third quarter, PLM and CAD ARR were $1,302 million and $824 million, rising 12% and 8% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 10 basis points (bps) on a year-over-year basis to 81.4%. Total operating expenses decreased 1.8% to $310.9 million. Operating income on a non-GAAP basis fell 11.1% year over year to $164.4 million. Operating margin on a non-GAAP basis declined 240 bps to 31.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash, cash equivalents and marketable securities were $248 million compared with $249 million as of Mar 31, 2024.
Total debt, net of deferred issuance costs, was $1811.2 million as of Jun 30, 2024, compared with $2005.7 million as of Mar 31, 2024.
Cash provided by operating activities was $214 million compared with the prior-year quarter’s figure of $169 million.
The free cash flow was $212 million compared with $164 million in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be in the range of $2.2-$2.22 billion, which indicates a rise of 11-12% year over year at cc.
Revenues for fiscal 2024 are projected to be in the band of $2.27-$2.32 billion, indicating a rise of 8-11% year over year.
For fiscal 2024, cash from operations is projected to be $740 million, indicating a rise of 21% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year, unchanged from the previous guidance.
For the fiscal fourth quarter, PTC expects ARR between $2.20 billion and $2.22 billion. Cash from operations is projected to be $88 million, and free cash flow is forecasted to be $83 million.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 26.2% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.3% in the past 60 days to $7.94. ANET’s long-term earnings growth rate is 16.1%. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 15.02%. Shares of ANET have gained 95.4% in the past year.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP’s long-term earnings growth rate is 10.7%. The company recently reported results for the second quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s level. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million) rose 10% year over year both at nominal and constant currencies basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 58.8% in the past year.
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PTC's Q3 Earnings Match Estimates, Revenues Decrease Y/Y
PTC Inc. (PTC - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings per share (EPS) of 98 cents, down 1% on a year-over-year basis. The figure came in line with the Zacks Consensus Estimate.
Revenues were $519 million, declining 4% year over year (down 3% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.7%. A challenging selling environment resulted in the year-over-year decline.
PTC Inc. Price, Consensus and EPS Surprise
PTC Inc. price-consensus-eps-surprise-chart | PTC Inc. Quote
Top Line in Detail
Recurring revenues of $481.6 million fell 3.4% year over year. Perpetual licenses decreased 14.6% to $7.1 million.
Revenues by License, Support and Services
License revenues (28.7% of total revenues) were $149.1 million, down 22.7% from the year-ago quarter’s figure.
Support and cloud services revenues (65.5%) of $339.5 million increased 8.2% year over year.
Professional services revenues (5.8%) were $30 million, down 16% year over year.
Revenues by Product Group
In the fiscal third quarter, PLM revenues were $330 million, falling 6% year over year. CAD revenues were $189 million, down 2%.
ARR Performance
Annualized recurring revenues (ARR) were $2,126 million, increasing 10% year over year. ARR was up 12% on a constant currency basis. The uptick was driven by strong performance across all divisions and regions.
In the fiscal third quarter, PLM and CAD ARR were $1,302 million and $824 million, rising 12% and 8% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 10 basis points (bps) on a year-over-year basis to 81.4%.
Total operating expenses decreased 1.8% to $310.9 million.
Operating income on a non-GAAP basis fell 11.1% year over year to $164.4 million.
Operating margin on a non-GAAP basis declined 240 bps to 31.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash, cash equivalents and marketable securities were $248 million compared with $249 million as of Mar 31, 2024.
Total debt, net of deferred issuance costs, was $1811.2 million as of Jun 30, 2024, compared with $2005.7 million as of Mar 31, 2024.
Cash provided by operating activities was $214 million compared with the prior-year quarter’s figure of $169 million.
The free cash flow was $212 million compared with $164 million in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be in the range of $2.2-$2.22 billion, which indicates a rise of 11-12% year over year at cc.
Revenues for fiscal 2024 are projected to be in the band of $2.27-$2.32 billion, indicating a rise of 8-11% year over year.
For fiscal 2024, cash from operations is projected to be $740 million, indicating a rise of 21% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year, unchanged from the previous guidance.
For the fiscal fourth quarter, PTC expects ARR between $2.20 billion and $2.22 billion. Cash from operations is projected to be $88 million, and free cash flow is forecasted to be $83 million.
Zacks Rank & Stocks to Consider
Currently, PTC carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Badger Meter, Inc. (BMI - Free Report) , SAP SE (SAP - Free Report) and Arista Networks, Inc. (ANET - Free Report) . BMI presently sports a Zacks Rank #1 (Strong Buy), whereas SAP & ANET both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 26.2% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.3% in the past 60 days to $7.94. ANET’s long-term earnings growth rate is 16.1%. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 15.02%. Shares of ANET have gained 95.4% in the past year.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP’s long-term earnings growth rate is 10.7%. The company recently reported results for the second quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s level. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million) rose 10% year over year both at nominal and constant currencies basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 58.8% in the past year.