PTC Inc
PTC
$173.52 -2.79%
Exchange: NASDAQ | Sector: Technology | Industry: Software Application
Q4 2024
Published: Nov 14, 2024

Earnings Highlights

  • Revenue of $626.55M up 14.6% year-over-year
  • EPS of $1.05 increased by 179% from previous year
  • Gross margin of 82.0%
  • Net income of 126.52M
  • ""shorten our development time lines as quickly as possible with the highest quality to remain competitive. This includes our hardware, mechanical, electronic and embedded software processes that all need to come together for a final product."" - Neil Barua
PTC
Company PTC

Executive Summary

PTC delivered solid QQ4 2024 results against a challenging macro backdrop, underscoring the resilience of its software subscription model and the strategic importance of its five focus areas (PLM, ALM, SLM, CAD, and SaaS). Revenue of $626.5 million supported a robust gross margin of ~81.99% and an EBITA framework that produced $207.2 million of EBITDA and an operating income of $194.0 million. Importantly, free cash flow for the year reached $736 million, up 25% year-over-year, reflecting disciplined working capital management and a deliberate debt-paydown trajectory. Management anchored the long-term narrative on ARR growth and free cash flow generation, reinforced by a 12% YoY constant-currency ARR uplift to $2.207 billion at quarter-end and a 2Q/3Q run-rate expansion in ARR that supports a mid-to-high single-digit to low-double-digit trajectory over the medium term. The company also announced a $2.0 billion share-repurchase authorization, signaling confidence in intrinsic value and capital allocation discipline amid a transformed GTM. Nevertheless, management cautioned that near-term go-to-market realignment introduces some disruption risk, which is prudently reflected in the FY2025 ARR guidance of 9-10% constant-currency growth and a mid-teens ARR trajectory in the longer horizon depending on execution. The combination of robust FCF, deleveraging progress (1.9x end-of-Q4 leverage), and capital returns highlights PTC’s capacity to sustain investment in R&D while returning capital to shareholders, albeit within a setup that acknowledges FX and macro volatility as continued headwinds for order timing and deal cadence.

Key Performance Indicators

Revenue
Increasing
626.55M
QoQ: 20.81% | YoY: 14.62%
Gross Profit
Increasing
513.72M
81.99% margin
QoQ: 29.71% | YoY: 19.26%
Operating Income
Increasing
193.97M
QoQ: 102.01% | YoY: 60.13%
Net Income
Increasing
126.52M
QoQ: 83.43% | YoY: 177.44%
EPS
Increasing
1.06
QoQ: 82.76% | YoY: 178.95%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 636.37 1.35 +5.5% View
Q1 2025 565.13 0.68 +2.7% View
Q4 2024 626.55 1.05 +14.6% View
Q3 2024 518.64 0.57 -4.4% View
Q2 2024 603.07 0.95 +11.2% View