Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 10

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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2.21 billion as of the end of Q1’25 compared to Q1’24.

Cash provided by operating activities grew 27% to $238 million in Q1'25 compared to Q1'24. Free cash flow grew 29% to $236 million in Q1'25 compared to Q1'24. Our cash flow growth is attributable to resilient top-line growth due to our subscription business model and operational discipline. Interest payments were $29 million lower in Q1'25 compared to Q1'24, mainly due to a Q1'24 payment of $30 million of imputed interest on a deferred acquisition payment associated with our 2023 acquisition of ServiceMax. In Q1'25, we made payments of $11 million, primarily for severance and consulting fees, associated with realigning our go-to-market organization.

Revenue grew 3% (2% constant currency) to $565 million in Q1'25 compared to Q1'24, driven by growth in support and cloud services revenue, offset by lower on-premises license revenue due to the timing and value of new and renewal contracts. Under ASC 606, the timing of revenue recognition for on-premises subscription revenue can vary significantly, impacting reported revenue and growth rates. Operating income was down 3% compared to Q1'24, mainly due to costs related to our go-to-market realignment. Diluted earnings per share grew 23% to $0.68 in Q1'25 compared to Q1'24, primarily driven by lower interest expense and a non-cash tax benefit associated with the release of a tax reserve related to prior years in a foreign jurisdiction.

17

Table of Contents

Results of Operations

    (Dollar amounts in millions, except per share data)
     
    Three months ended

    Percent Change

    December 31, 2024

    December 31, 2023

    Actual

    ConstantCurrency(1)

    ARR
     
    $
    2,205.3

    $
    2,057.2

    7
    %

    11
    %

    Total recurring revenue(2)
     
    $
    524.3

    $
    506.0

    4
    %

    3
    %

    Perpetual license

    9.4

    8.4

    11
    %

    11
    %

    Professional services