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PTC Inc. PTC reported second-quarter fiscal 2025 non-GAAP earnings per share (EPS) of $1.79, beating the Zacks Consensus Estimate by 29.7%. The company reported non-GAAP EPS of $1.46 in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Revenues came in at $636 million, rising 6% year over year (up 8% at constant currency or cc). The top line beat the consensus estimate by 4.6%. Management projected revenues in the $590-$620 million band. Despite a challenging selling environment, strong performance across its five key areas: PLM, ALM, SLM, CAD and SaaS, drove the upside. The quarter is marked by customer support, progress in go-to-market transformation and continued advancement of its leading product portfolio and generative AI strategy.
However, the company remains wary of growing global trade and macro volatility. While interest in digital transformation stays strong, customer decisions may slow down, so the ARR range was adjusted to reflect possible delays in deal timing and size.
PTC Inc. Price, Consensus and EPS Surprise
PTC Inc. price-consensus-eps-surprise-chart | PTC Inc. Quote
Top-Line Details
Recurring revenues of $601.5 million rose 6.6% year over year.
Perpetual licenses decreased 13.6% to $5.8 million.
Revenues by License, Support and Services
License revenues (40% of total revenues) were $254.4 million, up 8.6% from the year-ago quarter figure.
Support and cloud services revenues (55.5%) of $353 million increased 4.9% year over year.
Professional services revenues (4.5%) were $29 million, down 10.3% year over year.
Revenues by Product Group
PLM and CAD businesses continue to experience healthy demand momentum. In the fiscal second quarter, PLM revenues were $396 million, up 6% year over year. CAD revenues were $240 million, up 5% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $2.29 billion, up 10% year over year. At constant currency, ARR was $2.326 billion, up 10% year over year. The uptick was driven by strong performance across all divisions and geographies.
In the fiscal second quarter, PLM and CAD ARR were $1,429 million and $897 million, rising 11% and 8% year over year, respectively.
Operating Details
Total operating expenses decreased 2.2% year over year to $306.6 million.
Operating income on a non-GAAP basis rose 17.8% year over year to $299.3 million.
Operating margin on a non-GAAP basis increased 490 basis points year over year to 47%.
Balance Sheet & Cash Flow
As of March 31, 2025, cash and cash equivalents were $235 million compared with $196 million as of Dec. 31, 2024.
Total debt, net of deferred issuance costs, was $1.39 billion as of March 31, 2025, compared with $1.544 billion as of Dec. 31, 2024.
Cash provided by operating activities was $281 million compared with the prior-year quarter figure of $251 million.
The free cash flow was $279 million compared with $247 million reported in the year-ago quarter.