PTC Announces Fourth fiscal Quarter and Full Year 2023 Results

 

$ in millions

FY'23

FY'22

YoY Change


FY'23
Guidance

Operating cash flow

$611

$435

40 %


~$605

Free cash flow

$587

$416

41 %


~$585

Revenue1

$2,097

$1,933

8 %


$2,090 - $2,120

Operating margin1

22 %

23 %

 -130 bps



Non-GAAP operating margin1

36 %

38 %

-170 bps



Earnings per share1

$2.062

$2.65

(22 %)


$2.14 - $2.45

Non-GAAP earnings per share1

$4.342

$4.58

(5 %)


$4.07 - $4.38


In FY'23, revenue growth was 12% 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.

2 In FY'23, both EPS and non-GAAP EPS were impacted by increased interest expense. FY'23 EPS included an impact of
$0.18 related to a non-cash tax charge.


Fiscal 2024 Guidance and Mid-Term Targets

"Despite a challenging backdrop, our financial results in FY'23 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. Our Q4'23 ARR was slightly below the mid-point of our guidance range, as we had lower in-year starts and ended the year with more deferred ARR than we had modeled. At the start of FY'24, deferred ARR with contractually committed start dates over the next 12 months was approximately $20 million higher than at the start of FY'23. Given that, we are raising the low end of our previously communicated ARR growth range and establishing a FY'24 ARR guidance range of 11% to 14%. We continue to expect approximately $725 million of free cash flow in FY'24," said Kristian Talvitie, CFO, PTC.

Neil Barua, CEO-elect, added, "We continue to target mid-teens growth over the medium term. While the macroeconomic environment could impact any given period, we believe our differentiated product portfolio and market position put us in a good position to drive sustainable top line growth. Given the stability of our subscription license model, we expect non-GAAP operating expense growth at roughly 50% of ARR growth over the medium term, as we continue to invest in our product portfolio. In terms of free cash flow, we are providing targets through FY'26 that represent a three-year CAGR of approximately 20%."

  $ in millions

FY'23
Actual

FY'24
Guidance

FY'24 YoY Growth
Guidance

Q1'24
Guidance



Constant currency ARR (FY'24 Plan FX rates)

$1,979

$2,190 - $2,250

11% - 14%

$1,995 - $2,010


Operating cash flow

$611

~$745

~22%

~$1852


Free cash flow1

$587

~$725

~23%

~$1802


Revenue

$2,097

$2,270 - $2,360

8% - 13%

$520 - $550


Earnings per share

$2.06

$2.42 - $3.32

18% - 61%

$0.26 - $0.49


Non-GAAP earnings per share 1

$4.34

$4.50 - $5.20

4% - 20%

$0.80 - $1.00




Refer to the non-GAAP reconciliation table on page 13.


Includes the $30 million imputed interest payment related to the ServiceMax deferred acquisition payment.



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