PTC Inc (NASDAQ: PTC) in the first quarter of FY 18 has reported the adjusted earnings per share of 31 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents as per Zacks Investment Research. The company had reported the adjusted revenue growth of 6.9 percent to $306.6 million in the first quarter of FY 18, beating the analysts’ estimates for revenue of $299.8 million. As a result, the stock surged over 7.95% in the pre-market session on Jan 18th, 2018.
Moreover, in the first quarter of FY 18, the license and subscription bookings grew 16% to $104 million, year-over-year. The total bookings in the first quarter have exceeded the high end of the company’s guidance by $12 million and subscription bookings comprised 67% of total bookings. Further, the announced discontinuation of new perpetual license sales in the Americas and Western Europe had led to an increase in perpetual license purchases of approximately $4 million in the first quarter, which has affected the subscription mix by approximately 3 percentage points.
Furthermore, the total deferred revenue billed and unbilled, have increased 42% year-over-year and increased $77 million or 7% sequentially to $1.17 billion. Billed deferred revenue has increased 15% year-over year and but declined 6% sequentially, as expected by the company, to $431 million, due to the timing of support billings during the year. Billed deferred revenue can fluctuate quarterly based upon the contractual billings dates in the recurring revenue contracts, as well as the timing of the fiscal reporting periods.
Additionally, PTC’s new software licenses for the core solutions and ThingWorx industrial innovation platform will be available globally only by subscription, effective from January 1st, 2019, with a few exceptions. Those exceptions are applied to China, Korea, Taiwan, Russia, Turkey and India where the company have not announced the end-of-life of perpetual licenses. Also, Kepware will continue to be available under perpetual licensing. In addition, PTC had previously announced the transition to subscription-only licensing in the Americas and Western Europe effective from January 1st, 2018.
For the second quarter of FY 18, PTC expects its per-share earnings to be in the range from 28 cents to 32 cents. The revenue in the second quarter of FY 18 is expected to be in the range of $300 million to $305 million.
PTC expects its full-year earnings in the range of $1.29 to $1.39 per share and the revenue is expected to be in the range of $1.24 billion to $1.25 billion.
PTC stock has risen 35.49% in a year (source: Google Finance).