"In our third fiscal quarter, 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 product portfolio to help product companies accelerate 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. We are strengthening our ability to scale our business by continuing to align our resources with our five focus areas," said Neil Barua, CEO, PTC.
Third Quarter 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 | Q3'24 | Q3'23 | YoY Change |
| Q3'24
|
ARR as reported | $2,126 | $1,929 | 10 % |
|
|
Constant currency ARR | $2,125 | $1,904 | 12 % |
| $2,115 - $2,130 |
Operating cash flow | $214 | $169 | 26 % |
| ~$225 |
Free cash flow | $212 | $164 | 29 % |
| ~$220 |
Revenue1 | $519 | $542 | (4%)2 |
| $525 - $540 |
Operating margin1 | 18 % | 20 % | (~180 bps) |
|
|
Non-GAAP operating margin1 | 32 % | 34 % | (~240 bps) |
|
|
Earnings per share 1 | $0.57 3 | $0.51 | 11 % |
| $0.41 - $0.54 |
| Non-GAAP earnings per share 1 | $0.98 4 | $0.99 | (1 %) |
| $0.90 - $1.00 |
| Total cash and cash equivalents | $248 | $282 | (12 %) |
|
|
| Gross debt 5 | $1,816 | $2,365 6 | (23 %) |
|
|
|
|
|
| 1 | Revenue and, as a result, operating margin, operating profit, and earnings per share are impacted under ASC 606. |
| 2 | In Q3'24, revenue declined 3% year over year on a constant currency basis. |
| 3 | In Q3'24, GAAP EPS included a non-cash tax benefit of $14.2 million or $0.12, primarily associated with the effects of IRS procedural guidance issued in May 2024. |
| 4 | In Q3'24, non-GAAP EPS included a non-cash tax benefit of $9.8 million or $0.08, primarily associated with the effects of IRS procedural guidance issued in May 2024. |
| 5 | Gross debt excludes unamortized debt issuance costs. |
| 6 | Q3'23 gross debt included a deferred acquisition payment related to ServiceMax of $620 million, which was paid in October 2023. |
