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PTC Inc (PTC - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings per share (EPS) of $1.2, down 5% on a year-over-year basis. However, the figure surpassed the Zacks Consensus Estimate by 5.3%.
Revenues came in at $547 million, up 8% year over year (up 6% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.3%.
The year-over-year improvement in the top line was driven by steady demand for its product lifecycle management (PLM). Continued momentum in Onshape and Arena will further assist the company in the SaaS transition.
Recurring revenues of $500.2 million rose 8% year over year. Perpetual licenses increased 4.7% to $8.2 million.
Revenues by License, Support and Services
License revenues (33.7% of total revenues) were $184.3 million, down 16.2% from the year-ago quarter’s figure.
Support and cloud services revenues (59.3%) of $324.1 million increased 29.1% year over year.
Professional services revenues (7%) were $38.1 million, up 3.3% year over year.
Revenues by Product Group
PLM and CAD businesses continue to witness healthy growth. In the fiscal fourth quarter, PLM revenues were $358 million, rising 17% year over year. CAD revenues were $189 million, down 7% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $1.979 billion, up 26% year over year (up 23% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the fiscal fourth quarter, PLM and CAD ARR were $1,188 million and $752 million, rising 36% and 12% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 170 basis points (bps) on a year-over-year basis to 81.6%.
Total operating expenses increased $43.2 million year over year to $309.6 million.
Operating income on a non-GAAP basis decreased 1.5% year over year to $201 million.
Operating margin on a non-GAAP basis decreased 350 bps on a year-over-year basis to 37%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash, cash equivalents and marketable securities were $288.1 million compared with $281.5 million as of Jun 30, 2023.
Total debt, net of deferred issuance costs, was $1.695 billion as of Sep 30, 2023, compared with $1.738 billion as of Jun 30, 2023.
Cash provided by operating activities was $49.7 million compared with the prior-year quarter’s figure of $38.5 million.
The free cash flow was $44 million compared with $29 million reported in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at cc.
Revenues for fiscal 2024 are projected in the range of $2.270-$2.360 billion, indicating a rise of 8-13% year over year.
For fiscal 2024, cash from operations is projected to be $745 million, indicating a rise of 22% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year.
For the fiscal first quarter, PTC expects ARR between $1.995 and $2.010 billion. Cash from operations is projected to be $185 million, and free cash flow is forecasted to be $180 million.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 51% in the past year.
The Zacks Consensus Estimate for Flex’s 2023 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 21% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has increased 0.3% in the past 60 days to $3.36.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 3.2% in the past year.
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PTC's Q4 Earnings Beat Estimates, Revenues Increase Y/Y
PTC Inc (PTC - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings per share (EPS) of $1.2, down 5% on a year-over-year basis. However, the figure surpassed the Zacks Consensus Estimate by 5.3%.
Revenues came in at $547 million, up 8% year over year (up 6% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.3%.
The year-over-year improvement in the top line was driven by steady demand for its product lifecycle management (PLM). Continued momentum in Onshape and Arena will further assist the company in the SaaS transition.
PTC Inc. Price, Consensus and EPS Surprise
PTC Inc. price-consensus-eps-surprise-chart | PTC Inc. Quote
Top Line in Detail
Recurring revenues of $500.2 million rose 8% year over year. Perpetual licenses increased 4.7% to $8.2 million.
Revenues by License, Support and Services
License revenues (33.7% of total revenues) were $184.3 million, down 16.2% from the year-ago quarter’s figure.
Support and cloud services revenues (59.3%) of $324.1 million increased 29.1% year over year.
Professional services revenues (7%) were $38.1 million, up 3.3% year over year.
Revenues by Product Group
PLM and CAD businesses continue to witness healthy growth. In the fiscal fourth quarter, PLM revenues were $358 million, rising 17% year over year. CAD revenues were $189 million, down 7% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $1.979 billion, up 26% year over year (up 23% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the fiscal fourth quarter, PLM and CAD ARR were $1,188 million and $752 million, rising 36% and 12% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 170 basis points (bps) on a year-over-year basis to 81.6%.
Total operating expenses increased $43.2 million year over year to $309.6 million.
Operating income on a non-GAAP basis decreased 1.5% year over year to $201 million.
Operating margin on a non-GAAP basis decreased 350 bps on a year-over-year basis to 37%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash, cash equivalents and marketable securities were $288.1 million compared with $281.5 million as of Jun 30, 2023.
Total debt, net of deferred issuance costs, was $1.695 billion as of Sep 30, 2023, compared with $1.738 billion as of Jun 30, 2023.
Cash provided by operating activities was $49.7 million compared with the prior-year quarter’s figure of $38.5 million.
The free cash flow was $44 million compared with $29 million reported in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at cc.
Revenues for fiscal 2024 are projected in the range of $2.270-$2.360 billion, indicating a rise of 8-13% year over year.
For fiscal 2024, cash from operations is projected to be $745 million, indicating a rise of 22% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year.
For the fiscal first quarter, PTC expects ARR between $1.995 and $2.010 billion. Cash from operations is projected to be $185 million, and free cash flow is forecasted to be $180 million.
Zacks Rank & Stocks to Consider
Currently, PTC carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Asure Software (ASUR - Free Report) , Flex (FLEX - Free Report) and Wix.com (WIX - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 51% in the past year.
The Zacks Consensus Estimate for Flex’s 2023 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 21% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has increased 0.3% in the past 60 days to $3.36.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 3.2% in the past year.