"Our ARR and free cash flow results in Q1'24 were solid, driven by the resilience of our subscription license business model, consistent execution, operational discipline, and the actions we have taken over time to align our investments with market opportunities. We continue to rapidly de-lever, with our debt to EBITDA ratio back under 3.0x at the end of Q1. Despite the ongoing challenging macro backdrop, our full year guidance for ARR and FCF remains unchanged, and we believe we have set our Q2 guidance prudently," said Kristian Talvitie, CFO.
$ in millions | FY'24 Previous
| FY'24
| FY'24 YoY Growth
| Q2'24
|
|
|
| |||||
Constant currency ARR | $2,190 - $2,250 | $2,190 - $2,250 | 11% - 14% | $2,050 - $2,065 |
|
Operating cash flow | ~$745 | ~$745 | ~22% | ~$245 |
|
Free cash flow | ~$725 | ~$725 | ~23% | ~$240 |
|
Revenue | $2,270 - $2,360 | $2,270 - $2,360 | 8% - 13% | $560 - $590 |
|
Earnings per share | $2.42 - $3.32 | $2.42 - $3.32 | 18% - 61% | $0.57 - $0.80 |
|
Non-GAAP earnings per share | $4.50 - $5.20 | $4.50 - $5.20 | 4% - 20% | $1.10 - $1.30 |
|
Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance
In millions | FY'24
| Q2'24
|
| |
|
|
| |||
Operating Cash Flow | ~$745 | ~$245 |
|
|
Capital expenditures | (~$20) | (~$5) |
|
|
Free Cash Flow | ~$725 | ~$240 |
|
|
Reconciliation of EPS Guidance to Non-GAAP EPS Guidance
|
| FY'24
| Q2'24
|
|
|
| |||
Earnings per share | $2.42 - $3.32 | $0.57 - $0.80 |
|
Stock-based compensation expense | $1.91 - $1.66 | $0.49 - $0.46 |
|
Intangible asset amortization expense | ~$0.68 | ~$0.17 |
|
Acquisition and transaction-related expense | ~$0.01 | ~$0.00 |
|
Income tax adjustments related to the reconciling items | ($0.52) – ($0.47) | ~($0.13) |
|
Non-GAAP Earnings per share | $4.50 - $5.20 | $1.10 - $1.30 |
|
