Quickie: PTC’s Q4 revenue up 7%

Oct 24, 2019 | Hot Topics

This is going to be very quick, because I haven’t had time to listen to the earnings call replay — but I can report that PTC saw total revenue up 7% (up 9% in constant currencies) in its fiscal Q4 to $335 million, beating Wall Street’s expectations. That, plus the Onshape acquisition has its stock price up 5% or so — investors clearly like the news combo.

Looking ahead to fiscal 2020, PTC expects revenue of $1.41 billion and $1.51 billion, allowing for the added revenue from Onshape but mitigated by any potential impact of weakening of macroeconomic conditions. (It’ll be interesting to hear what the company says about this during its earnings call; there are whispers of possible future slowdowns but I haven’t heard anything concrete like delayed or cancelled orders.)

Revenue in the IoT software category was $41 million in Q4, up 11% as reported over a year ago due to a megadeal signed via strategic partner Rockwell Automation — something else to keep an ear out for on the earnings call. Is this a one-shot, or have the pair found the key to lots of future megadeals? (You’re likely to see a 28% growth rate for IoT in the media; that’s a non-GAAP, constant currency figure.)

Solutions Software, on the other hand, reported revenue of $252 million, flat as reported and up 3% in constant currencies. The company points out that it did see 11% growth in constant currencies in recurring solutions software revenue, but that this was offset by the continuing switch to subscriptions. Was this CAD? PLM? ALM? SLM? Hope to learn on (you guessed it) the earnings call.

More soon –