-
Solid execution in Q3'25
- Constant Currency ARR Growth of 9.3%; at higher end of guidance range
- Operating and Free Cash Flow Growth of 14%; exceeded guidance ranges
- Raising guidance for ARR, Free Cash Flow, Revenue, EPS, and Non-GAAP EPS
-
Proceeding with share repurchases under our
$2 billion authorization - Continuing to build a strong foundation for AI-driven and verticalized growth
"Q3 was another solid quarter of execution for PTC. Our strategy of enabling product data foundations and extending the value of that data across the enterprise is resonating with customers across our verticals and geographies," said
"In Q3, we continued to advance our go-to-market transformation, and I can say with confidence that we are structurally stronger. We also progressed our five focus areas of CAD, PLM, ALM, SLM, and SaaS with new product offerings and enhancements and key customer wins. While the macroeconomic picture still poses some uncertainty for our customers, we sense that we are past the point of maximum disruption, and look forward to productive customer engagements throughout Q4," concluded Barua.
Third Fiscal Quarter 2025 Key Operating and Financial Metrics1
|
$ in millions, except per share amounts |
Q3'25 |
Q3'24 |
YoY Change |
|
Q3'25 |
|
ARR as reported |
|
|
14 % |
|
|
|
Constant currency ARR (FY'25 Plan FX rates2) |
|
|
9.3 % |
|
8.5% to 9.5% |
|
Operating cash flow |
|
|
14 % |
|
|
|
Free cash flow |
|
|
14 % |
|
|
|
Revenue3 |
|
|
24%4 |
|
|
|
Operating margin3 |
33 % |
18 % |
1,410 bps |
|
|
|
Non-GAAP operating margin3 |
44 % |
32 % |
1,260 bps |
|
|
|
Earnings per share3 |
|
|
106 % |
|
|
|
Non-GAAP earnings per share3 |
|
|
68 % |
|
|
|
Total cash and cash equivalents |
|
|
(20 %) |
|
|
|
Debt, net of deferred issuance costs |
|
|
(32 %) |
|
|
|
|
|
|
1 |
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. |
|
2 |
On a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of |
|
3 |
Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
|
4 |
In Q3'25, revenue grew 22% year over year on a constant currency basis. |
|
5 |
In Q3'24, GAAP EPS included a non-cash tax benefit of |
"In Q3'25, the selling environment remained challenging. Against this backdrop, our constant currency ARR was solid, growing 9.3% year over year. Our Q3'25 cash flow was also solid, with operating cash flow and free cash flow both growing 14% year over year, driven by our ARR growth, subscription business model, and diligent financial management. Additionally, as planned, we repurchased
"We have updated our FY'25 guidance ranges to reflect our year-to-date results and our expectations for Q4'25. Supported by our updated guidance of 8% to 9% constant currency ARR growth, the predictability of our cash collections, the disciplined budgeting structure we have in place, and being mindful of foreign exchange rate fluctuations, we expect approximately
Full Fiscal Year 2025 and Fourth Fiscal Quarter Guidance
|
$ in millions except per share amounts % rounded to the nearest half |
FY'25 Previous |
FY'25 |
FY'25 YoY |
|
Q4'25 |
|
Constant currency ARR (FY'25 Plan FX rates1) |
7% to 9% |
8% to 9% |
8% to 9% |
|
8% to 9% |
|
Operating cash flow |
|
|
~15% |
|
|
|
Free cash flow |
|
|
~16% |
|
|
|
Revenue |
|
|
12% to 14% |
|
|
|
Earnings per share |
|
|
53% to 68% |
|
|
|
Non-GAAP earnings per share |
|
|
31% to 38% |
|
|
|
|
|
1 On a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of |
Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance
|
$ in millions |
FY'25 |
Q4'25 |
|
|
|
|||
|
Operating cash flow |
|
|
|
|
Capital expenditures |
|
|
|
|
Free cash flow |
|
|
|
Reconciliation of EPS Guidance to Non-GAAP EPS Guidance
|
|
FY'25 |
Q4'25 |
|
|
|
|||
|
Earnings per share |
|
|
|
|
Stock-based compensation |
|
|
|
|
Amortization of acquired intangibles |
|
|
|
|
Impairment and other charges (credits), net |
|
|
|
|
Acquisition and transaction-related charges |
|
|
|
|
Income tax adjustments |
( |
( |
|
|
Non-GAAP Earnings per share |
|
|
|
FY'25 financial guidance includes the following assumptions:
- We provide ARR guidance on a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of
September 30, 2024 ) for all periods. - We expect churn to remain low.
- For cash flow, due to largely similar invoicing seasonality, and consistent with the past 4 years, we expect the majority of our collections to occur in the first half of our fiscal year and for fiscal Q4 to be our lowest cash flow generation quarter.
- Compared to FY'24, given our FY'25 ARR guidance range, FY'25 GAAP operating expenses are expected to increase approximately 3% and FY'25 non-GAAP operating expenses are expected to increase approximately 3%, primarily due to investments to drive future growth.
- FY'25 cash flow guidance includes approximately
$18 million of outflows related to go-to-market realignment, of which$17 million was paid out during the first three quarters of FY'25, and approximately$1 million is expected to be paid out in Q4'25. - Capital expenditures are expected to be approximately
$10 million . - Cash interest payments are expected to be approximately
$80 million . - Cash tax payments are expected to be approximately
$110 million to$120 million . - GAAP and non-GAAP tax rates are expected to be approximately 20% to 25%.
- GAAP P&L results are expected to include the items below, totaling approximately
$299 million to$309 million , as well as their related tax effects:- approximately
$210 million to$220 million of stock-based compensation expense, - approximately
$79 million of intangible asset amortization expense, - approximately
$8 million of impairment charges to right-of-use lease assets related to facilities subleasing activities, and - approximately
$2 million related to acquisition and transaction-related expenses.
- approximately
- We intend to repurchase approximately
$300 million of our common stock in FY'25, of which$225 million was repurchased during the first three quarters of FY'25, and approximately$75 million is expected to be repurchased in Q4'25. - We expect our fully diluted share count to be approximately flat in FY'25.
PTC's Third Fiscal Quarter Results Conference Call
The Company will host a conference call to discuss results at
Important Information About Our Operating and Non-GAAP Financial Measures
Non-GAAP Financial Measures
We provide supplemental non-GAAP financial measures to our financial results. We use these non-GAAP financial measures, and we believe that they assist our investors, to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.
Non-GAAP operating expense, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income and non-GAAP EPS exclude the effect of the following items: stock-based compensation; amortization of acquired intangible assets; acquisition and transaction-related charges included in general and administrative expenses; impairment and other charges (credits), net; non-operating charges (credits), net shown in the reconciliation provided; and income tax adjustments. Additional information about the items we exclude from our non-GAAP financial measures and the reasons we exclude them can be found in "Non-GAAP Financial Measures" in our Annual Report on Form 10-K for the fiscal year ended
In Q2'25, we changed the income statement caption of Restructuring and other charges (credits), net to Impairment and other charges (credits), net to reflect that the amounts presented are mainly impairment charges rather than restructuring charges. We correspondingly revised the caption with respect to the list of items excluded from our non-GAAP financial measures and, as reflected below, the list of items covered under that caption to reflect the primary charges and credits included in the adjustment. All charges and credits under the captioned line item remain the same.
Impairment and other charges (credits), net are charges associated with disposal or exit activities, including lease impairment and abandonment charges, net charges or income related to impaired or exited facilities, restructuring severance charges resulting from substantial employee reduction actions, and other related costs.
Free Cash Flow: We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings and to evaluate our performance against our announced long-term goals and intent to return excess cash to shareholders via stock repurchases. Free cash flow is cash provided by (used in) operations net of capital expenditures. Free cash flow is not a measure of cash available for discretionary expenditures.
Constant Currency (CC): We present CC information to provide a framework for assessing how our underlying business performed excluding the effects of foreign currency exchange rate fluctuations. To present CC information, FY'25 and comparative prior period results for entities reporting in currencies other than
Operating Measure
ARR: ARR (Annual
- We consider a contract to be active when the product or service contractual term commences (the "start date") until the right to use the product or service ends (the "expiration date"). Even if the contract with the customer is executed before the start date, the contract will not count toward ARR until the customer right to receive the benefit of the products or services has commenced.
- For contracts that include annual values that change over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include any future committed increases in the contract value as of the date of the ARR calculation.
- As ARR includes only contracts that are active at the end of the reporting period, ARR does not reflect assumptions or estimates regarding future customer renewals or non-renewals.
- Active contracts are annualized by dividing the total active contract value by the contract duration in days (expiration date minus start date), then multiplying that by 365 days (or 366 days for leap years).
We believe ARR is a valuable operating measure to assess the health of a subscription business because it is aligned with the amount that we invoice the customer on an annual basis. We generally invoice customers annually for the current year of the contract. A customer with a one-year contract will typically be invoiced for the total value of the contract at the beginning of the contractual term, while a customer with a multi-year contract will be invoiced for each annual period at the beginning of each year of the contract.
ARR increases by the annualized value of active contracts that commence in a reporting period and decreases by the annualized value of contracts that expire in the reporting period.
As ARR is not annualized recurring revenue, it is not calculated based on recognized or unearned revenue and is not affected by variability in the timing of revenue under ASC 606, particularly for on-premises license subscriptions where a substantial portion of the total value of the contract is recognized as revenue at a point in time upon the later of when the software is made available, or the subscription term commences.
ARR should be viewed independently of recognized and unearned revenue and is not intended to be combined with, or to replace, either of those items. Investors should consider our ARR operating measure only in conjunction with our GAAP financial results.
Forward-Looking Statements
Statements in this document that are not historic facts, including statements about our future operating, financial and growth expectations, and potential stock repurchases, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include: the macroeconomic and/or global manufacturing climates may not improve or may deteriorate due to, among other factors, the effects of recently imposed import tariffs, threats of additional and reciprocal import tariffs, global trade tensions and uncertainty, volatile foreign exchange rates, high interest rates or increases in interest rates, inflation, tightening of credit standards and availability, geopolitical uncertainty, including the effects of the conflicts between
About PTC (NASDAQ: PTC)
PTC (NASDAQ: PTC) is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture, and service the physical products that the world relies on. Headquartered in
PTC Investor Relations Contact
SVP, Investor Relations
mshimao@ptc.com
investor@ptc.com
|
|
|
||||||||||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
|
||||||||||||||
|
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Recurring revenue |
$ |
613,583 |
|
|
$ |
481,559 |
|
|
$ |
1,739,443 |
|
|
$ |
1,551,600 |
|
|
Perpetual license |
|
7,763 |
|
|
|
7,050 |
|
|
|
23,004 |
|
|
|
22,243 |
|
|
Professional services |
|
22,591 |
|
|
|
30,030 |
|
|
|
82,984 |
|
|
|
98,082 |
|
|
Total revenue (1) |
|
643,937 |
|
|
|
518,639 |
|
|
|
1,845,431 |
|
|
|
1,671,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of revenue (2) |
|
110,025 |
|
|
|
111,916 |
|
|
|
328,084 |
|
|
|
331,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gross margin |
|
533,912 |
|
|
|
406,723 |
|
|
|
1,517,347 |
|
|
|
1,339,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Sales and marketing (2) |
|
141,756 |
|
|
|
140,318 |
|
|
|
424,319 |
|
|
|
411,763 |
|
|
Research and development (2) |
|
116,647 |
|
|
|
110,253 |
|
|
|
343,186 |
|
|
|
323,034 |
|
|
General and administrative (2) |
|
54,145 |
|
|
|
49,659 |
|
|
|
162,457 |
|
|
|
180,391 |
|
|
Amortization of acquired intangible assets |
|
11,536 |
|
|
|
10,672 |
|
|
|
34,356 |
|
|
|
31,459 |
|
|
Impairment and other charges (credits), net (3) |
|
- |
|
|
|
- |
|
|
|
4,213 |
|
|
|
(802) |
|
|
Total operating expenses |
|
324,084 |
|
|
|
310,902 |
|
|
|
968,531 |
|
|
|
945,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating income |
|
209,828 |
|
|
|
95,821 |
|
|
|
548,816 |
|
|
|
394,089 |
|
|
Other expense, net |
|
(16,152) |
|
|
|
(28,448) |
|
|
|
(56,737) |
|
|
|
(95,372) |
|
|
Income before income taxes |
|
193,676 |
|
|
|
67,373 |
|
|
|
492,079 |
|
|
|
298,717 |
|
|
Provision (benefit) for income taxes |
|
52,348 |
|
|
|
(1,605) |
|
|
|
105,875 |
|
|
|
48,907 |
|
|
Net income |
$ |
141,328 |
|
|
$ |
68,978 |
|
|
$ |
386,204 |
|
|
$ |
249,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
$ |
1.18 |
|
|
$ |
0.58 |
|
|
$ |
3.22 |
|
|
$ |
2.09 |
|
|
Weighted average shares outstanding |
|
119,913 |
|
|
|
119,893 |
|
|
|
120,106 |
|
|
|
119,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted |
$ |
1.17 |
|
|
$ |
0.57 |
|
|
$ |
3.20 |
|
|
$ |
2.07 |
|
|
Weighted average shares outstanding |
|
120,461 |
|
|
|
120,822 |
|
|
|
120,815 |
|
|
|
120,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) See supplemental financial data for revenue by license, support and cloud services, and professional services. |
|
(2) See supplemental financial data for additional information about stock-based compensation. |
|
(3) Caption has been changed from "Restructuring and other charges (credits), net" to reflect that impairment is now the primary component of the charge. Additional information about this change can be found in the "Non-GAAP Financial Measures" section of this document. |
|
|
|
||||||||||||||
|
SUPPLEMENTAL FINANCIAL DATA FOR REVENUE AND STOCK-BASED COMPENSATION |
|
||||||||||||||
|
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue by license, support and services is as follows: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
License revenue (1) |
$ |
251,479 |
|
|
$ |
149,104 |
|
|
$ |
678,628 |
|
|
$ |
567,423 |
|
|
Support and cloud services revenue |
|
369,867 |
|
|
|
339,505 |
|
|
|
1,083,819 |
|
|
|
1,006,420 |
|
|
Professional services revenue |
|
22,591 |
|
|
|
30,030 |
|
|
|
82,984 |
|
|
|
98,082 |
|
|
Total revenue |
$ |
643,937 |
|
|
$ |
518,639 |
|
|
$ |
1,845,431 |
|
|
$ |
1,671,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) License revenue includes the portion of subscription revenue allocated to license. |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
The amounts in the income statement include stock-based compensation as follows: |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
Cost of revenue |
$ |
5,291 |
|
|
$ |
5,856 |
|
|
$ |
16,711 |
|
|
$ |
15,979 |
|
|
Sales and marketing |
|
15,059 |
|
|
|
15,167 |
|
|
|
46,672 |
|
|
|
46,023 |
|
|
Research and development |
|
17,788 |
|
|
|
13,101 |
|
|
|
48,334 |
|
|
|
41,275 |
|
|
General and administrative |
|
15,894 |
|
|
|
13,914 |
|
|
|
49,678 |
|
|
|
57,965 |
|
|
Total stock-based compensation |
$ |
54,032 |
|
|
$ |
48,038 |
|
|
$ |
161,395 |
|
|
$ |
161,242 |
|
|
|
|
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) |
|
||||||||||||||
|
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP gross margin |
$ |
533,912 |
|
|
$ |
406,723 |
|
|
$ |
1,517,347 |
|
|
$ |
1,339,934 |
|
|
Stock-based compensation |
|
5,291 |
|
|
|
5,856 |
|
|
|
16,711 |
|
|
|
15,979 |
|
|
Amortization of acquired intangible assets included in cost of |
|
8,178 |
|
|
|
9,685 |
|
|
|
24,609 |
|
|
|
28,835 |
|
|
Non-GAAP gross margin |
$ |
547,381 |
|
|
$ |
422,264 |
|
|
$ |
1,558,667 |
|
|
$ |
1,384,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP operating income |
$ |
209,828 |
|
|
$ |
95,821 |
|
|
$ |
548,816 |
|
|
$ |
394,089 |
|
|
Stock-based compensation |
|
54,032 |
|
|
|
48,038 |
|
|
|
161,395 |
|
|
|
161,242 |
|
|
Amortization of acquired intangible assets |
|
19,714 |
|
|
|
20,357 |
|
|
|
58,965 |
|
|
|
60,294 |
|
|
Acquisition and transaction-related charges |
|
1,597 |
|
|
|
154 |
|
|
|
2,422 |
|
|
|
2,962 |
|
|
Impairment and other charges (credits), net (2) |
|
- |
|
|
|
- |
|
|
|
4,213 |
|
|
|
(802) |
|
|
Non-GAAP operating income (1) |
$ |
285,171 |
|
|
$ |
164,370 |
|
|
$ |
775,811 |
|
|
$ |
617,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP net income |
$ |
141,328 |
|
|
$ |
68,978 |
|
|
$ |
386,204 |
|
|
$ |
249,810 |
|
|
Stock-based compensation |
|
54,032 |
|
|
|
48,038 |
|
|
|
161,395 |
|
|
|
161,242 |
|
|
Amortization of acquired intangible assets |
|
19,714 |
|
|
|
20,357 |
|
|
|
58,965 |
|
|
|
60,294 |
|
|
Acquisition and transaction-related charges |
|
1,597 |
|
|
|
154 |
|
|
|
2,422 |
|
|
|
2,962 |
|
|
Impairment and other charges (credits), net (2) |
|
- |
|
|
|
- |
|
|
|
4,213 |
|
|
|
(802) |
|
|
Non-operating charges, net (3) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,000 |
|
|
Income tax adjustments (4) |
|
(19,260) |
|
|
|
(19,538) |
|
|
|
(65,650) |
|
|
|
(48,162) |
|
|
Non-GAAP net income |
$ |
197,411 |
|
|
$ |
117,989 |
|
|
$ |
547,549 |
|
|
$ |
427,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP diluted earnings per share |
$ |
1.17 |
|
|
$ |
0.57 |
|
|
$ |
3.20 |
|
|
$ |
2.07 |
|
|
Stock-based compensation |
|
0.45 |
|
|
|
0.40 |
|
|
|
1.34 |
|
|
|
1.34 |
|
|
Amortization of acquired intangibles |
|
0.16 |
|
|
|
0.17 |
|
|
|
0.49 |
|
|
|
0.50 |
|
|
Acquisition and transaction-related charges |
|
0.01 |
|
|
|
0.00 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
Impairment and other charges (credits), net (2) |
|
- |
|
|
|
- |
|
|
|
0.03 |
|
|
|
(0.01) |
|
|
Non-operating charges, net (3) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
Income tax adjustments (4) |
|
(0.16) |
|
|
|
(0.16) |
|
|
|
(0.54) |
|
|
|
(0.40) |
|
|
Non-GAAP diluted earnings per share |
$ |
1.64 |
|
|
$ |
0.98 |
|
|
$ |
4.53 |
|
|
$ |
3.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Operating margin impact of non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
GAAP operating margin |
|
32.6 |
% |
|
|
18.5 |
% |
|
|
29.7 |
% |
|
|
23.6 |
% |
|
Stock-based compensation |
|
8.4 |
% |
|
|
9.3 |
% |
|
|
8.7 |
% |
|
|
9.6 |
% |
|
Amortization of acquired intangibles |
|
3.1 |
% |
|
|
3.9 |
% |
|
|
3.2 |
% |
|
|
3.6 |
% |
|
Acquisition and transaction-related charges |
|
0.2 |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
Impairment and other charges (credits), net (2) |
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.2 |
% |
|
|
0.0 |
% |
|
Non-GAAP operating margin |
|
44.3 |
% |
|
|
31.7 |
% |
|
|
42.0 |
% |
|
|
37.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(2) Caption has been changed from "Restructuring and other charges (credits), net" to reflect that impairment is now the primary component of the charge. Additional information about this change can be found in the "Non-GAAP Financial Measures" section of this document. |
|
(3) In the first nine months of FY'24, we recognized an impairment loss of |
|
(4) Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. Additionally, in the first nine months of FY'25 and FY'24, adjustments exclude a |
|
|
|
||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|
||||||
|
(in thousands) |
|
||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
2025 |
|
|
2024 |
|
||
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Cash and cash equivalents |
$ |
199,321 |
|
|
$ |
265,808 |
|
|
Accounts receivable, net |
|
712,710 |
|
|
|
861,953 |
|
|
Property and equipment, net |
|
65,102 |
|
|
|
75,187 |
|
|
|
|
4,341,831 |
|
|
|
4,359,367 |
|
|
Lease assets, net |
|
128,854 |
|
|
|
133,317 |
|
|
Other assets |
|
781,235 |
|
|
|
687,910 |
|
|
|
|
|
|
|
|
||
|
Total assets |
$ |
6,229,053 |
|
|
$ |
6,383,542 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Deferred revenue |
$ |
777,352 |
|
|
$ |
775,274 |
|
|
Debt, net of deferred issuance costs |
|
1,233,412 |
|
|
|
1,748,572 |
|
|
Lease obligations |
|
178,307 |
|
|
|
181,754 |
|
|
Other liabilities |
|
527,099 |
|
|
|
463,544 |
|
|
Stockholders' equity |
|
3,512,883 |
|
|
|
3,214,398 |
|
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders' equity |
$ |
6,229,053 |
|
|
$ |
6,383,542 |
|
|
|
|
||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
||||||||||||||
|
(in thousands) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income |
$ |
141,328 |
|
|
$ |
68,978 |
|
|
$ |
386,204 |
|
|
$ |
249,810 |
|
|
Stock-based compensation |
|
54,032 |
|
|
|
48,038 |
|
|
|
161,395 |
|
|
|
161,242 |
|
|
Depreciation and amortization |
|
25,540 |
|
|
|
27,128 |
|
|
|
76,803 |
|
|
|
81,272 |
|
|
Amortization of right-of-use lease assets |
|
8,294 |
|
|
|
7,684 |
|
|
|
24,459 |
|
|
|
23,143 |
|
|
Operating lease liability |
|
(2,273) |
|
|
|
(3,145) |
|
|
|
(4,869) |
|
|
|
(13,438) |
|
|
Accounts receivable |
|
45,585 |
|
|
|
23,915 |
|
|
|
173,557 |
|
|
|
131,422 |
|
|
Accounts payable and accruals |
|
40,377 |
|
|
|
64,831 |
|
|
|
(10,329) |
|
|
|
35 |
|
|
Deferred revenue |
|
(51,004) |
|
|
|
(32,578) |
|
|
|
(16,472) |
|
|
|
8,393 |
|
|
Income taxes |
|
16,844 |
|
|
|
(19,882) |
|
|
|
22,409 |
|
|
|
(1,795) |
|
|
Other |
|
(34,795) |
|
|
|
28,830 |
|
|
|
(49,491) |
|
|
|
11,786 |
|
|
Net cash provided by operating activities |
|
243,928 |
|
|
|
213,799 |
|
|
|
763,666 |
|
|
|
651,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capital expenditures |
|
(1,887) |
|
|
|
(1,639) |
|
|
|
(7,462) |
|
|
|
(9,841) |
|
|
Acquisition of businesses, net of cash acquired(1) |
|
(6,532) |
|
|
|
- |
|
|
|
(6,532) |
|
|
|
(93,457) |
|
|
Borrowings (payments) on debt, net(2) |
|
(156,583) |
|
|
|
(195,125) |
|
|
|
(516,708) |
|
|
|
109,049 |
|
|
Repurchases of common stock |
|
(74,987) |
|
|
|
- |
|
|
|
(224,987) |
|
|
|
- |
|
|
Deferred acquisition payment(3) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(620,040) |
|
|
Net proceeds associated with issuance of common stock |
|
- |
|
|
|
- |
|
|
|
13,307 |
|
|
|
12,709 |
|
|
Payments of withholding taxes in connection with vesting of stock- |
|
(18,890) |
|
|
|
(21,405) |
|
|
|
(71,761) |
|
|
|
(92,589) |
|
|
Settlement of net investment hedges |
|
(26,820) |
|
|
|
6,050 |
|
|
|
(14,560) |
|
|
|
3,826 |
|
|
Other financing & investing activities |
|
- |
|
|
|
- |
|
|
|
(1,410) |
|
|
|
- |
|
|
Foreign exchange impact on cash |
|
5,923 |
|
|
|
(2,832) |
|
|
|
(125) |
|
|
|
(2,003) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net change in cash, cash equivalents, and restricted cash |
|
(35,848) |
|
|
|
(1,152) |
|
|
|
(66,572) |
|
|
|
(40,476) |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
235,742 |
|
|
|
249,474 |
|
|
|
266,466 |
|
|
|
288,798 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
199,894 |
|
|
$ |
248,322 |
|
|
$ |
199,894 |
|
|
$ |
248,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash paid for interest(3) |
$ |
13,910 |
|
|
$ |
18,375 |
|
|
$ |
59,062 |
|
|
$ |
112,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) In Q1'24, we acquired pure-systems for |
|
(2) In the first nine months of FY25, net repayments include borrowings on our credit facility revolver to fund the |
|
(3) In Q1'24, we made a payment of |
|
|
|
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) |
|
||||||||||||||
|
(in thousands) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
Cash provided by operating activities |
$ |
243,928 |
|
|
$ |
213,799 |
|
|
$ |
763,666 |
|
|
$ |
651,870 |
|
|
Capital expenditures |
|
(1,887) |
|
|
|
(1,639) |
|
|
|
(7,462) |
|
|
|
(9,841) |
|
|
Free cash flow |
$ |
242,041 |
|
|
$ |
212,160 |
|
|
$ |
756,204 |
|
|
$ |
642,029 |
|
View original content:https://www.prnewswire.com/news-releases/ptc-announces-third-fiscal-quarter-2025-results-302517745.html
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