PTC Inc delivered a solid fourth quarter of 2024, supported by double-digit top-line growth and meaningful margin expansion. Revenue reached $626.5 million, up 14.6% year over year and 20.8% quarter over quarter, driven by a stronger software products and services mix and improved pricing/operating leverage. Gross margin stood near 82%, underscoring the favorable shift toward higher-margin software offerings, while operating margin exceeded 31% and net margin approached 20%. Free cash flow remained robust at approximately $93.6 million, aiding deleveraging dynamics despite a meaningful debt load.
From a balance sheet perspective, PTC reported total assets of about $6.38 billion with goodwill of roughly $3.46 billion and intangible assets of about $0.90 billion, reflecting ongoing acquisition-driven investments. The company also maintained a sizable backlog in the form of deferred revenue (current ~$754 million; non-current ~$21 million), which bodes well for revenue visibility in coming periods. Liquidity metrics show a current/quick ratio of 0.78x, indicating near-term liquidity headwinds given a sizable current liabilities base, while total debt stands at ~$1.93 billion with net debt around $1.66 billion, signaling substantial leverage that warrants monitoring as growth investments continue.
Overall, the QQ4 2024 results portray a company in the early stages of a sustainable margin expansion and software transition, with strong cash generation capacity that supports ongoing investments in cloud/SaaS platforms and product lifecycle management solutions. Investors should monitor the pace of software ARR growth, backlog conversion, and the company’s ability to deleverage while funding strategic acquisitions and R&D investments.