PTC Earnings Prediction
The chart below shows how PTC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PTC sees a -2.53% change in stock price 10 days leading up to the earnings, and a +1.75% change 10 days following the report. On the earnings day itself, the stock moves by +0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
PTC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
565.13M
2.71%
-9.80%
Gross Margin
78.19%
0.09%
-2.64%
Operating Margin
20.48%
-6.44%
-33.89%
Net Margin
14.55%
20.55%
-27.93%
EPS
0.68
23.64%
-34.62%
No Data Available
PTC Earnings Analysis
PTC Inc Corporation (PTC.O) Earnings Conference Call
Positive
Earnings Per Share Beat: PTC Inc. reported an EPS of $1.1 for Q1 2025, exceeding expectations of $0.91, indicating strong financial performance.
ARR Growth Resilience: The company's constant currency ARR reached $2.277 billion, reflecting an 11% year-over-year growth, showcasing resilience in a challenging selling environment.
Free Cash Flow Increase: Free cash flow for Q1 2025 was $236 million, up 29% year-over-year, demonstrating effective cash management and operational efficiency.
PLM Segment ARR Growth: ARR growth in the PLM segment was 11%, driven by products like Windchill and Codebeamer, highlighting strong demand in key areas of the business.
Share Repurchase Program Initiated: PTC initiated a $2 billion share repurchase program, repurchasing 383,000 shares for $75 million in Q1, signaling confidence in the company's financial health and commitment to returning value to shareholders.
Negative
Challenging Selling Environment Impact: Constant currency ARR growth in Q1 was impacted by a continuation of a challenging selling environment, resulting in lower close rates and a decrease in new bookings.
Customer Retention Challenges: Churn in Q1 was attributed to a couple of contracts that are expected to return later in the fiscal year, indicating potential instability in customer retention.
ARR Growth Pressure: The need for $44 million of sequential net new ARR growth in Q2 to achieve a 9.5% growth rate highlights the pressure on future performance amid a back-loaded year.
Stagnation in ARR Growth: Fiscal 2025 guidance indicates approximately $20 million less net new ARR compared to fiscal 2024, suggesting stagnation in growth despite previous years' performance.
Go-to-Market Realignment Costs: The $11 million outflow related to the go-to-market realignment in Q1 reflects ongoing costs that may hinder short-term profitability and operational efficiency.
PTC FAQs
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PTC Earning Call Sentiment
PTC Inc. (NASDAQ:PTC) Q1 2025 Earnings Call Transcript
PTC.O
-0.17%Positive
The earnings call summary reveals strong financial performance, with EPS and free cash flow exceeding expectations. The share repurchase program is a positive indicator for shareholder returns. Despite challenges like a sluggish selling environment and FX fluctuations, optimistic guidance on ARR growth and strategic investments in AI and go-to-market realignment provide a positive outlook. The Q&A section shows analysts' interest in AI and competitive positioning, with management's responses indicating confidence in growth potential. Overall, these factors suggest a positive stock price movement in the near term.
