$ in millions | FY'24 | FY'23 | YoY Change |
| FY'24
|
Operating cash flow | $750 | $611 | 23 % |
| ~$740 |
Free cash flow | $736 | $587 | 25 % |
| ~$725 |
Revenue1 | $2,298 | $2,097 | 10%2 |
| $2,270 to $2,320 |
Operating margin1 | 26 % | 22 % | 370 bps |
|
|
Non-GAAP operating margin1 | 39 % | 36 % | 270 bps |
|
|
Earnings per share1 | $3.123 | $2.063 | 51 % |
| $2.78 to $3.35 |
Non-GAAP earnings per share1 | $5.084 | $4.344 | 17 % |
| $4.85 to $5.21 |
|
|
|
1 | Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
2 | In FY'24, revenue grew 9% year over year on a constant currency basis. |
3 | FY'24 GAAP EPS included a non-cash tax benefit of $4.4 million or $0.04, primarily associated with the effects of IRS procedural guidance issued in May 2024. FY'23 GAAP EPS included a non-cash tax charge of $21.8 million or $0.18 per share. |
4 | FY'24 non-GAAP EPS included a non-cash tax benefit of $4.4 million or $0.04. |
"In a selling environment that continued to be challenging, our ARR was solid, growing 12% year over year on a constant currency basis. Our FY'24 free cash flow was also solid, growing 25% year over year, driven by ARR growth and a disciplined process for incremental investment in our business," said Kristian Talvitie, CFO.
"Given our differentiated product portfolio, the resilience of our subscription business model, the actions we have taken over time to align our investments with market opportunities, and allowing for the potential near-term impacts of our go-to-market changes, we are establishing FY'25 constant currency ARR guidance of 9% to 10% year over year growth. Supported by ARR growth, the predictability of our cash collections, and the disciplined budgeting structure we have in place, we are establishing FY'25 free cash flow guidance of $835 million to $850 million, which absorbs the impact of approximately $20 million of outflows related to our go-to-market realignment. Additionally, as we indicated we would a quarter ago, we are resuming share repurchases, and we currently expect to repurchase approximately $300 million worth of our stock in FY'25, commencing in Q1," Talvitie concluded.
Full Fiscal Year 2025 and First Fiscal Quarter Guidance
$ in millions | FY'24
| FY'25
| FY'25 YoY Growth
|
| Q1'25
|
Constant currency ARR (FY'25 Plan FX rates1) | $2,255 | 9% to 10% growth | 9% to 10% |
| ~10.5% growth |
Operating cash flow | $750 | $850 to $8652 | 13% to 15% |
| ~$2342 |
Free cash flow | $736 | $835 to $8502 | 14% to 16% |
| ~$230 2 |
| Revenue | $2,298 | $2,505 to $2,605 | 9% to 13% |
| $540 to $570 |
| Earnings per share | $3.12 | $3.68 to $4.57 | 18% to 47% |
| $0.28 to $0.52 |
| Non-GAAP earnings per share | $5.08 | $5.60 to $6.30 | 10% to 24% |
| $0.75 to $0.95 |
|
|
|
| 1 | On a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods. |
| 2 | FY'25 cash flow guidance includes approximately $20 million of outflows related to go-to-market realignment, of which approximately $12 million is expected in Q1'25. |
