"In fiscal year 2024, we again delivered solid ARR and cash flow, with year-over-year ARR growth in the low double-digits and cash flow growth above 20%. We have a differentiated strategy that leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity. It's an exciting time because our products are at the epicenter of driving business transformation at our customers," said Neil Barua, President and CEO, PTC.
"We continue to focus on increasing customer value while enhancing shareholder returns," Barua continued. "Today we announced a new $2 billion share repurchase authorization through the end of fiscal 2027. We are also strengthening our ability to scale our business by realigning our go-to-market organization to better serve our customers," concluded Barua.
Fourth Fiscal Quarter and Full Fiscal Year 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 | Q4'24 | Q4'23 | YoY Change |
| Q4'24
|
ARR as reported | $2,255 | $1,979 | 14 % |
|
|
Constant currency ARR (FY'24 Plan FX rates1) | $2,207 | $1,979 | 12 % |
| $2,200 to $2,220 |
Operating cash flow | $98 | $50 | 97 % |
| ~$88 |
Free cash flow | $94 | $44 | 113 % |
| ~$83 |
Revenue2 | $627 | $547 | 15%3 |
| $598 to $648 |
Operating margin2 | 31 % | 22 % | 880 bps |
|
|
Non-GAAP operating margin2 | 44 % | 37 % | 740 bps |
|
|
| Earnings per share 2 | $1.04 4 | $0.38 4 | 175 % |
| $0.72 to $1.29 |
| Non-GAAP earnings per share 2 | $1.54 5 | $1.20 5 | 28 % |
| $1.30 to $1.66 |
| Total cash and cash equivalents | $266 | $288 | (8 %) |
|
|
| Gross debt 6 | $1,753 | $2,322 7 | (25 %) |
|
|
|
|
|
| 1 | On a constant currency basis, using our FY'24 Plan foreign exchange rates (rates as of September 30, 2023) for all periods. |
| 2 | Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
| 3 | In Q4'24, revenue grew 15% year over year on a constant currency basis. |
| 4 | Q4'24 GAAP EPS included a non-cash tax charge of $9.8 million or $0.08, primarily associated with a reduction in a previously recorded tax benefit associated with the effects of IRS procedural guidance issued in May 2024. Q4'23 GAAP EPS included a non-cash tax charge of $21.8 million or $0.18 per share. |
| 5 | Q4'24 non-GAAP EPS included a non-cash tax charge of $5.3 million or $0.04, primarily associated with a reduction in a previously recorded tax benefit associated with the effects of IRS procedural guidance issued in May 2024. |
| 6 | Gross debt excludes unamortized debt issuance costs. |
| 7 | Q4'23 gross debt included a deferred acquisition payment related to ServiceMax of $620 million, which was paid in October 2023. |
