"In our first fiscal quarter, we again delivered solid ARR and cash flow results. I am confident that PTC is well positioned to continue delivering durable and consistent ARR and cash flow growth under the leadership of Neil Barua," said James Heppelmann, CEO, PTC.
Neil Barua, CEO-elect, added, "We have a differentiated strategy that leverages our unique product portfolio to help our customers along their digital transformation journeys. I am looking forward to working with the team to continue enhancing PTC's already strong market position and execution by continuing to invest significantly in technologies that meet the evolving needs of our customers."
First Quarter 2024 Highlights
Key operating and financial highlights are set forth below. The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release.
$ in millions | Q1'24 | Q1'23 | YoY Change |
| Q1'24
|
ARR as reported | $2,057 | $1,663 | 24 % |
|
|
Constant currency ARR | $2,016 | $1,636 | 23 % |
| $1,995 - $2,010 |
Organic ARR as reported | $1,883 | $1,663 | 13 % |
|
|
Constant currency organic ARR | $1,843 | $1,636 | 13 % |
|
|
Operating cash flow | $1871 | $181 | 4 % |
| ~$185 |
Free cash flow | $1831 | $172 | 6 % |
| ~$180 |
Revenue2 | $550 | $466 | 18 % |
| $520 - $550 |
| Operating margin 2 | 22% 3 | 23 % | ~(90 bps) |
|
|
| Non-GAAP operating margin 2 | 36 % | 36 % | ~60 bps |
|
|
| Earnings per share 2 | $0.55 3 | $0.63 | (13 %) |
| $0.26 - $0.49 |
| Non-GAAP earnings per share 2 | $1.11 | $0.99 | 11 % |
| $0.80 - $1.00 |
| Total cash and cash equivalents | $265 | $388 | (32 %) |
|
|
| Gross debt | $2,267 | $1,359 | 67 % |
|
|
|
|
| 1 In Q1'24, operating cash flow and free cash flow included a $30 million imputed interest payment related to the deferred purchase payment for ServiceMax. |
| 2 In Q1'24, revenue growth was 16% year over year on a constant currency basis. Revenue and, as a result, operating margin, operating profit, and earnings per share are impacted by revenue recognition under ASC 606. |
| 3 In Q1'24, compared to the year-ago period, operating margin and EPS were impacted by an increase in expenses related to stock-based compensation and amortization of acquired intangible assets; see non-GAAP financial measures and reconciliations table on page 9 for details. |
