Fiscal 2023 and Q4'23 Guidance
"Despite a less than ideal macroeconomic backdrop, our financial results in the first nine months of our fiscal year were solid, driven by the resilience of our business model, consistent execution, operational discipline, and the actions we have taken to align our investments with our growth opportunities. Based on our performance in the first nine months of FY'23 and outlook for FY'23, we are raising our full year guidance midpoint for ARR and our guidance for cash flow, while investing in long-term growth opportunities," said Kristian Talvitie, CFO, PTC.
$ in millions | FY'23 Previous Guidance | FY'23 Guidance | FY'23 YoY Growth Guidance | Q4'23 Guidance |
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ARR at Constant Currency | $1,925 - $1,950 | $1,935 - $1,950 | 23% - 24% | $1,935 - $1,950 |
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Cash from Operations | ~$600 | ~$605 | ~39% | ~$44 |
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Free Cash Flow | ~$580 | ~$585 | ~41% | ~$42 |
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Revenue | $2,080 - $2,140 | $2,090 - $2,120 | 8% - 10% | $540 - $570 |
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Earnings per share |
| $2.14 - $2.45 | (19%) - (7%) | $0.47 - $0.77 |
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Non-GAAP earnings per share |
| $4.07 - $4.38 | (11%) - (4%) | $0.95 - $1.25 |
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Reconciliation of Cash from Operations Guidance to Free Cash Flow Guidance
In millions | FY'23 Guidance | Q4'23 Guidance |
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Cash from Operations | ~$605 | ~$44 |
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Capital expenditures | (~$20) | (~$2) |
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Free Cash Flow | ~$585 | ~$42 |
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Reconciliation of EPS Guidance to Non-GAAP EPS Guidance
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| FY'23 Guidance | Q4'23 Guidance |
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Earnings per share | $2.14 - $2.451 | $0.47 - $0.772 |
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Stock-based compensation expense | ~$1.67 | ~$0.43 |
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Intangible asset amortization expense | ~$0.64 | ~$0.18 |
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Acquisition and transaction-related expense | ~$0.16 | ~$0.01 |
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| Other non-operating expenses | ~$0.04 | ~$0.00 |
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| Income tax adjustments related to the reconciling items | ~($0.58) | ~($0.14) |
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| Non-GAAP Earnings per share | $4.07 - $4.38 1 | $0.95 - $1.25 2 |
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| 1 | Our FY'23 EPS and non-GAAP EPS guidance are both inclusive of an expected $120 million in interest expense ($95 million, net of tax) or $1.01 per share ($0.80 per share, net of tax). This compares to interest expense in FY'22 of $51 million ($40 million, net of tax) or $0.43 per share ($0.34 per share, net of tax) with the expected increase in FY'23 primarily due to an increase in debt. |
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| 2 | Our Q4'23 EPS and non-GAAP EPS guidance are both inclusive of an expected $34 million in interest expense ($27 million, net of tax) or $0.29 per share ($0.23 per share, net of tax). This compares to interest expense in Q4'22 of $14 million ($11 million, net of tax) or $0.12 per share ($0.10 per share, net of tax) with the expected increase in Q4'23 primarily due to an increase in debt. |
