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PTC Inc (PTC - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $1.11, up 12.1% on a year-over-year basis. Also, the figure surpassed the Zacks Consensus Estimate by 13.3%.
Revenues came in at $550 million, up 18% year over year (up 16% at constant currency or cc). The top line beat the Zacks Consensus Estimate by 2.2%.
The year-over-year improvement in the top line was driven by steady demand for its computer-aided design (CAD) and product lifecycle management (PLM). Synergies from the acquisition of pure-systems are a major tailwind.
Recurring revenues of $506 million rose 21.3% year over year. Perpetual licenses decreased 36.3% to $8.2 million.
Revenues by License, Support and Services
License revenues (33.4% of total revenues) were $183.9 million, up 6.5% from the year-ago quarter’s figure.
Support and cloud services revenues (60.1%) of $330.5 million increased 28.3% year over year.
Professional services revenues (6.5%) were $35.7 million, up 0.5% year over year.
Revenues by Product Group
PLM and CAD businesses continue to witness healthy growth. In the fiscal first quarter, PLM revenues were $349 million, rising 25% year over year. CAD revenues were $202 million, up 8% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $2.057 billion, up 24% year over year (up 23% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the fiscal first quarter, PLM and CAD ARR were $1,252 million and $805 million, rising 34% and 11% year over year, respectively.
Operating Details
Non-GAAP gross margin increased 90 basis points (bps) on a year-over-year basis to 82.7%.
Total operating expenses increased $56.2 million year over year to $321.4 million.
Operating income on a non-GAAP basis increased 19.9% year over year to $199 million.
Operating margin on a non-GAAP basis increased 60 bps on a year-over-year basis to 36.2%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash, cash equivalents and marketable securities were $265 million compared with $288 million as of Sep 30, 2023.
Total debt, net of deferred issuance costs, was $2.260 billion as of Dec 31, 2023, compared with $1.695 billion as of Sep 30, 2023.
Cash provided by operating activities was $187 million compared with the prior-year quarter’s figure of $181 million.
The free cash flow was $183 million compared with $172 million reported in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be in the range of $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at cc.
Revenues for fiscal 2024 are projected to be 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 second quarter, PTC expects ARR between $2.050 and $2.065 billion. Cash from operations is projected to be $245 million, and free cash flow is forecasted to be $240 million.
The Zacks Consensus Estimate for Itron’s 2023 EPS has inched up 3.2% in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.
NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 29.5% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.
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PTC's Q1 Earnings Beat Estimates, Revenues Increase Y/Y
PTC Inc (PTC - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $1.11, up 12.1% on a year-over-year basis. Also, the figure surpassed the Zacks Consensus Estimate by 13.3%.
Revenues came in at $550 million, up 18% year over year (up 16% at constant currency or cc). The top line beat the Zacks Consensus Estimate by 2.2%.
The year-over-year improvement in the top line was driven by steady demand for its computer-aided design (CAD) and product lifecycle management (PLM). Synergies from the acquisition of pure-systems are a major tailwind.
PTC Inc. Price, Consensus and EPS Surprise
PTC Inc. price-consensus-eps-surprise-chart | PTC Inc. Quote
Top Line in Detail
Recurring revenues of $506 million rose 21.3% year over year. Perpetual licenses decreased 36.3% to $8.2 million.
Revenues by License, Support and Services
License revenues (33.4% of total revenues) were $183.9 million, up 6.5% from the year-ago quarter’s figure.
Support and cloud services revenues (60.1%) of $330.5 million increased 28.3% year over year.
Professional services revenues (6.5%) were $35.7 million, up 0.5% year over year.
Revenues by Product Group
PLM and CAD businesses continue to witness healthy growth. In the fiscal first quarter, PLM revenues were $349 million, rising 25% year over year. CAD revenues were $202 million, up 8% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $2.057 billion, up 24% year over year (up 23% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the fiscal first quarter, PLM and CAD ARR were $1,252 million and $805 million, rising 34% and 11% year over year, respectively.
Operating Details
Non-GAAP gross margin increased 90 basis points (bps) on a year-over-year basis to 82.7%.
Total operating expenses increased $56.2 million year over year to $321.4 million.
Operating income on a non-GAAP basis increased 19.9% year over year to $199 million.
Operating margin on a non-GAAP basis increased 60 bps on a year-over-year basis to 36.2%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash, cash equivalents and marketable securities were $265 million compared with $288 million as of Sep 30, 2023.
Total debt, net of deferred issuance costs, was $2.260 billion as of Dec 31, 2023, compared with $1.695 billion as of Sep 30, 2023.
Cash provided by operating activities was $187 million compared with the prior-year quarter’s figure of $181 million.
The free cash flow was $183 million compared with $172 million reported in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be in the range of $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at cc.
Revenues for fiscal 2024 are projected to be 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 second quarter, PTC expects ARR between $2.050 and $2.065 billion. Cash from operations is projected to be $245 million, and free cash flow is forecasted to be $240 million.
Zacks Rank & Other Stocks to Consider
Currently, PTC carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , NETGEAR (NTGR - Free Report) and Watts Water Technologies (WTS - Free Report) . NETGEAR and Itron sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has inched up 3.2% in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.
NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 29.5% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.