Super quick: no PLMish pre-announcements yet, and PTC says things are … good
You probably know that a lot of companies’ financial quarters ended on June 30 and many of us have been waiting for announcements –good or bad– to give a preview of what to expect when the financial news starts flying later this month. So far, the news isn’t awful. Hexagon and PTC have announced normal dates for their earnings releases, with no ominous language. If things were dire, they’d be saying things like “the quarter came in unexpectedly weak” to warn investors of bad news to come. And when those preannouncements happen, they usually happen quickly, right after the end of a quarter. So far, based on a teeny sample, it doesn’t look like the PLMish world collapsed in the April/May/June quarter.
PTC even added a bit of upbeat commentary to its “save the date” announcement:
PTC expects to deliver fiscal third-quarter [ended June 30-Ed] 2020 ARR growth of 9% year over year, 10% in constant currency. The company also expects to deliver double-digit revenue and free cash flow year-over-year growth for the fiscal third quarter 2020.
“Given the ongoing global pandemic, we felt it was prudent to continue to proactively communicate with our stakeholders, and we look forward to providing full fiscal third-quarter results, and discussing our fiscal fourth quarter outlook on July 29, 2020,” said James Heppelmann, President and CEO, PTC.
Double-digit revenue growth, when everything is topsy turvy and uncertain, is awesome. Free cash flow (sometimes abbreviated to FCF) is the cash left over after accounting for expenditures like salaries, interest and rent. Earnings and net income include non-cash expenses; free cash flow is a measure of profitability that more closely relates to how we might run our personal lives. If there’s more cash in than out, that’s good. If the net free cash available is up over last year, that’s better than good because it means the company is spending less than it brings in.
We’ll know a lot more on Wednesday, July 29th, 2020 at 5:00PM ET, when PTC holds its investor call.
Hexagon said it would announce results on July 24 — and a lot of other companies have previously-scheduled dates, that seem to be holding.
Based on the tiny sample so far, of two companies that said something and many that have (so far) left their earnings dates along, the June quarter might not have been a disaster. Stay tuned!