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%."