PTC Inc. (PTC) Bundle
A Brief History of PTC
PTC Inc., founded in 1985, has evolved significantly over the years, establishing itself as a leader in the industrial software sector. The company is known for its innovative solutions that help manufacturers and product companies digitally transform their operations.
Financial Performance Overview
As of the fiscal year 2024, PTC reported a total revenue of $2.298 billion, reflecting a 10% increase from the previous year’s revenue of $2.097 billion.
| Financial Metric | FY 2024 | FY 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $2,298 million | $2,097 million | 10% |
| Operating Income | $588 million | $458 million | 28% |
| Net Income | $376 million | $246 million | 53% |
| Earnings Per Share (EPS) | $3.12 | $2.06 | 51% |
| Free Cash Flow | $736 million | $587 million | 25% |
Annual Recurring Revenue (ARR)
In FY 2024, PTC's ARR reached $2.255 billion, which is a 14% increase compared to $1.979 billion in FY 2023. This growth indicates a strong subscription model performance.
| Metric | FY 2024 | FY 2023 | Year-over-Year Change |
|---|---|---|---|
| ARR | $2,255 million | $1,979 million | 14% |
Recent Developments
PTC has actively engaged in strategic acquisitions to bolster its market position. Notably, the company acquired ServiceMax in FY 2023 for $1.448 billion, enhancing its service lifecycle management capabilities. Additionally, in FY 2024, PTC acquired pure-systems for $93 million.
Guidance for FY 2025
Looking ahead, PTC has set ambitious guidance for FY 2025, expecting revenue to range between $2.505 billion and $2.605 billion, representing a growth rate of 9% to 13%. The forecasted EPS for FY 2025 is projected to be between $3.68 and $4.57.
| FY 2025 Guidance Metric | Projected Amount |
|---|---|
| Revenue | $2,505 - $2,605 million |
| Earnings Per Share (EPS) | $3.68 - $4.57 |
| Free Cash Flow | $835 - $850 million |
Stock Performance and Share Repurchase
As part of its commitment to returning value to shareholders, PTC announced a new $2 billion share repurchase authorization, effective through the end of fiscal 2027. This move underscores the company's confidence in its financial health and growth prospects.
PTC continues to focus on enhancing its product offerings and market reach, leveraging its robust financial performance to invest in future growth opportunities.
A Who Owns PTC Inc. (PTC)
Ownership Structure
As of 2024, PTC Inc. (NASDAQ: PTC) has a diverse ownership structure with significant holdings by institutional investors. The largest shareholders include investment firms and mutual funds, which collectively own a substantial percentage of the company's outstanding shares. Below is a detailed breakdown of the ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 9.5% | Institutional Investor |
| BlackRock, Inc. | 8.2% | Institutional Investor |
| SSgA Funds Management, Inc. | 6.4% | Institutional Investor |
| Fidelity Management & Research Company | 5.9% | Institutional Investor |
| Wellington Management Group LLP | 5.0% | Institutional Investor |
| Other Institutional Investors | 40.0% | Various |
| Insider Ownership | 2.5% | Company Executives and Board Members |
| Public Float | 12.5% | Retail Investors |
Recent Shareholder Activity
In 2024, PTC announced a new $2 billion share repurchase authorization through the end of fiscal 2027, indicating a commitment to returning capital to shareholders. This decision reflects the company's strategy to enhance shareholder value amid strong financial performance.
Financial Performance Overview
PTC has shown robust financial performance, with reported revenue of $2.298 billion for the fiscal year 2024, a 10% increase from $2.097 billion in fiscal year 2023. The company reported an increase in operating cash flow to $750 million, up from $611 million year-over-year. The earnings per share (EPS) for FY 2024 was $3.12, a 51% increase compared to $2.06 in FY 2023.
Institutional Investor Trends
Institutional investors have shown increasing interest in PTC, with total institutional ownership reaching approximately 80% as of early 2024. This trend indicates confidence in PTC's business model and growth potential, particularly in the software sector focused on digital transformation for manufacturing and industrial companies.
Insider Ownership and Executive Compensation
Insider ownership is reported at 2.5%, consisting mainly of company executives and board members. Compensation packages for executives have also been aligned with performance metrics, including stock options and bonuses tied to company growth. For instance, stock-based compensation for FY 2024 was approximately $223 million.
Market Capitalization
As of 2024, PTC's market capitalization is approximately $8.5 billion, reflecting its strong position within the software industry. The company's stock has shown resilience, with a recent trading range between $70 and $80 per share, indicating a stable investment environment for shareholders.
Shareholder Communication
PTC maintains active communication with its shareholders, providing regular updates through earnings calls and investor presentations. The latest earnings call held on November 6, 2024, highlighted the company's growth strategies and financial outlook.
PTC Inc. (PTC) Mission Statement
Overview
PTC Inc. is a global software company that focuses on enabling industrial and manufacturing companies to digitally transform their operations. The mission statement emphasizes the commitment to innovation and customer success through advanced technology solutions.
Annual Recurring Revenue (ARR)
As of the end of fiscal year 2024, PTC reported an ARR of $2.255 billion, reflecting a year-over-year growth of 14% compared to $1.979 billion in FY 2023.
Financial Performance Highlights
| Metric | FY 2024 | FY 2023 | Year-over-Year Change |
|---|---|---|---|
| Operating Cash Flow | $750 million | $611 million | 23% |
| Free Cash Flow | $736 million | $587 million | 25% |
| Revenue | $2,298 million | $2,097 million | 10% |
| Non-GAAP EPS | $5.08 | $4.34 | 17% |
| GAAP EPS | $3.12 | $2.06 | 51% |
Guidance for FY 2025
For fiscal year 2025, PTC has provided guidance indicating expected ARR growth of 9% to 10% year-over-year, with a projected revenue range of $2.505 billion to $2.605 billion.
Strategic Initiatives
- PTC plans to allocate approximately $300 million for stock repurchases in FY 2025.
- The company aims to align its go-to-market strategy to enhance customer engagement and drive growth.
- Investments are expected to focus on expanding the product portfolio and enhancing service capabilities.
Key Performance Metrics
| Metric | Q4 FY 2024 | Q4 FY 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $627 million | $547 million | 15% |
| Operating Margin | 31% | 22% | 880 bps |
| Non-GAAP Operating Margin | 44% | 37% | 740 bps |
| Net Income | $126 million | $45 million | 175% |
| Cash and Cash Equivalents | $266 million | $288 million | (8%) |
Commitment to Shareholders
PTC has a long-term goal of returning approximately 50% of free cash flow to shareholders through stock repurchases, supporting shareholder value amidst a disciplined financial strategy.
Conclusion of Mission Statement
The mission of PTC Inc. reflects a strong commitment to leveraging technology to support the digital transformation of manufacturing and industrial sectors while ensuring sustainable growth and value for shareholders.
How PTC Inc. (PTC) Works
Business Model
PTC Inc. is a global software company specializing in product lifecycle management (PLM), computer-aided design (CAD), and Internet of Things (IoT) solutions. The company operates primarily through a subscription-based model, generating revenue from software licenses, support services, and cloud solutions. As of the end of fiscal year 2024, PTC reported a total revenue of $2.298 billion, reflecting a 10% year-over-year growth from $2.097 billion in fiscal year 2023.
Annual Recurring Revenue (ARR)
In Q4 FY2024, PTC reported an ARR of $2.255 billion, an increase of 14% compared to $1.979 billion in Q4 FY2023. The constant currency ARR grew by 12% year-over-year.
Financial Highlights
The following table summarizes key financial metrics for PTC Inc. for fiscal year 2024:
| Metric | FY2024 | FY2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $2,298 million | $2,097 million | 10% |
| Operating Cash Flow | $750 million | $611 million | 23% |
| Free Cash Flow | $736 million | $587 million | 25% |
| Earnings Per Share (GAAP) | $3.123 | $2.063 | 51% |
| Non-GAAP Earnings Per Share | $5.084 | $4.344 | 17% |
| Operating Margin | 26% | 22% | 370 bps |
| Non-GAAP Operating Margin | 39% | 36% | 270 bps |
Cost Structure
PTC's operating expenses for FY2024 were noted as follows:
| Expense Type | FY2024 (in millions) | FY2023 (in millions) |
|---|---|---|
| Sales and Marketing | $558.95 | $530.13 |
| Research and Development | $433.05 | $394.37 |
| General and Administrative | $232.38 | $233.52 |
Cash Flow and Liquidity
For FY2024, PTC reported:
- Cash and Cash Equivalents: $266 million
- Gross Debt: $1.753 billion, a reduction of 25% from $2.322 billion in FY2023.
- Operating Cash Flow: $750 million
- Free Cash Flow: $736 million
Future Guidance
For FY2025, PTC has provided guidance indicating expected revenue between $2.505 billion and $2.605 billion, with an anticipated growth rate of 9% to 13% year-over-year. The company expects to allocate approximately $300 million for stock repurchases throughout FY2025.
Market Position and Strategy
PTC focuses on enhancing customer value and shareholder returns through a differentiated product portfolio. In FY2024, the company emphasized investment in its go-to-market strategy to better serve customers and drive growth.
How PTC Inc. (PTC) Makes Money
Revenue Streams
PTC Inc. generates its revenue through various streams, primarily focusing on software solutions for product development, manufacturing, and service. The key areas of revenue include:
- Recurring Revenue: This includes subscription-based services and support, which accounted for $2,134 million in FY 2024, up from $1,907 million in FY 2023.
- License Revenue: This is derived from perpetual licenses, which totaled $32 million in FY 2024.
- Professional Services: Revenue from consulting and implementation services was $132 million in FY 2024.
| Revenue Category | FY 2024 Revenue ($ million) | FY 2023 Revenue ($ million) | Year-over-Year Change (%) |
|---|---|---|---|
| Recurring Revenue | 2,134 | 1,908 | 11.87 |
| License Revenue | 32 | 39 | -17.95 |
| Professional Services | 132 | 150 | -12.00 |
| Total Revenue | 2,298 | 2,097 | 9.59 |
Annual Recurring Revenue (ARR)
As of September 30, 2024, PTC reported an ARR of $2,255 million, representing a 14% increase compared to $1,979 million in the previous year. The constant currency ARR growth for FY 2024 was 12%.
Operating Performance
PTC's operating cash flow for FY 2024 was $750 million, up 23% from $611 million in FY 2023. Free cash flow also saw a significant increase, reaching $736 million, a 25% rise from $587 million in the previous year.
| Performance Metric | FY 2024 ($ million) | FY 2023 ($ million) | Year-over-Year Change (%) |
|---|---|---|---|
| Operating Cash Flow | 750 | 611 | 22.77 |
| Free Cash Flow | 736 | 587 | 25.38 |
Profitability Metrics
PTC's operating margin improved to 26% in FY 2024 from 22% in FY 2023. The non-GAAP operating margin also increased to 39%, compared to 36% in the prior year.
The earnings per share (EPS) for FY 2024 was $3.12, a 51% increase from $2.06 in FY 2023. The non-GAAP EPS was $5.08, up 17% from $4.34 in FY 2023.
| Profitability Metric | FY 2024 | FY 2023 | Year-over-Year Change (%) |
|---|---|---|---|
| Operating Margin | 26% | 22% | 18.18 |
| Non-GAAP Operating Margin | 39% | 36% | 8.33 |
| GAAP EPS | $3.12 | $2.06 | 51.46 |
| Non-GAAP EPS | $5.08 | $4.34 | 17.06 |
Debt and Cash Position
As of September 30, 2024, PTC's total cash and cash equivalents stood at $266 million, down from $288 million in FY 2023. The gross debt decreased to $1,753 million from $2,322 million in the previous year, reflecting a 25% reduction.
| Balance Sheet Item | FY 2024 ($ million) | FY 2023 ($ million) | Year-over-Year Change (%) |
|---|---|---|---|
| Cash and Cash Equivalents | 266 | 288 | -7.64 |
| Gross Debt | 1,753 | 2,322 | -24.45 |
Future Outlook
For FY 2025, PTC anticipates revenue between $2,505 million and $2,605 million, representing a growth rate of 9% to 13%. The guidance for ARR growth is set at 9% to 10% year-over-year.
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Resources:
- PTC Inc. (PTC) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of PTC Inc. (PTC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PTC Inc. (PTC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.