PTC Stock Price Increased By 14.48%: Why It Happened

By Amit Chowdhry ● Jan 29, 2021
  • The stock price of PTC Inc. (NASDAQ: PTC) has increased by 14.48% on Thursday, January 28. This is why it happened.

The stock price of software and services company PTC Inc. (NASDAQ: PTC) has increased by 14.48% on Thursday, January 28 as it went from a previous close of $120.83 to $138.33. Investors are responding to the company’s Q1 2021 earnings. 

The company reported the following details:

– ARR was $1.34 billion (growth of 16%, or 12% in constant currency, compared to Q1 2021, reflecting strong performance in our Core and Growth businesses and in our global channel).

– Revenue was $429 million compared to $356 million in Q1 2020 (growth of 20%, or 17% in constant currency, driven primarily by strong large-deal results and longer contract durations).

– Cash flow from operations was $114 million and free cash flow was $111 million in Q1 2021, compared to Q1 2020 cash flow from operations of $8 million and free cash flow of $3 million.

– Operating margin was 21% in Q1 2021, compared to 9% in Q1 2020; Q1 2021 non-GAAP operating margin was 36%, compared to 26% in Q12020.

  • Total cash and cash equivalents as of the end of Q1 2021 was $399 million; total debt, net of deferred issuance costs, was $988 million.

Fiscal 2021 Guidance

The company provided FY 2021 guidance of $1.69 billion-$1.73 billion in revenue, up from $1.55 billion-$1.6 billion. The FY’21 financial guidance does not include the effect of purchase accounting for Arena Solutions, which is expected to have a material effect on our financial statements.

KEY QUOTES:

“Fiscal 2021 is off to a great start with double-digit top line growth and strong cash flow generation in the first fiscal quarter. PTC’s results reflect strong demand across our product portfolio as customers continue to power their digital transformation initiatives with PTC’s market-leading solutions.”

“With adoption of cloud and SaaS-based technologies accelerating in the industrial market, we believe our investments in product innovation and strategic acquisitions position PTC to take share and expand our leadership position in the markets we serve. The acquisition of Arena Solutions, which closed this month, together with Onshape, create the leading pure-SaaS CAD and PLM solution set in the market today. We are excited to welcome the Arena team, and pleased to complement our strong momentum in the traditional CAD and PLM markets.”

— James Heppelmann, President and CEO, PTC

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.