PTC ANNOUNCES FOURTH FISCAL QUARTER AND FULL FISCAL YEAR 2024 RESULTS
Solid ARR and Cash Flow in Fourth Fiscal Quarter and Full Fiscal Year
"In fiscal year 2024, we again delivered solid ARR and cash flow, with year-over-year ARR growth in the low double-digits and cash flow growth above 20%. We have a differentiated strategy that leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity. It's an exciting time because our products are at the epicenter of driving business transformation at our customers," said
"We continue to focus on increasing customer value while enhancing shareholder returns," Barua continued. "Today we announced a new
Fourth Fiscal Quarter and Full Fiscal Year 2024 Highlights
Key operating and financial highlights are set forth below. The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release.
|
$ in millions |
Q4'24 |
Q4'23 |
YoY Change |
|
Q4'24 |
|
ARR as reported |
|
|
14 % |
|
|
|
Constant currency ARR (FY'24 Plan FX rates1) |
|
|
12 % |
|
|
|
Operating cash flow |
|
|
97 % |
|
|
|
Free cash flow |
|
|
113 % |
|
|
|
Revenue2 |
|
|
15%3 |
|
|
|
Operating margin2 |
31 % |
22 % |
880 bps |
|
|
|
Non-GAAP operating margin2 |
44 % |
37 % |
740 bps |
|
|
|
Earnings per share2 |
|
|
175 % |
|
|
|
Non-GAAP earnings per share2 |
|
|
28 % |
|
|
|
Total cash and cash equivalents |
|
|
(8 %) |
|
|
|
Gross debt6 |
|
|
(25 %) |
|
|
|
|
|
|
1 |
On a constant currency basis, using our FY'24 Plan foreign exchange rates (rates as of |
|
2 |
Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
|
3 |
In Q4'24, revenue grew 15% year over year on a constant currency basis. |
|
4 |
Q4'24 GAAP EPS included a non-cash tax charge of |
|
5 |
Q4'24 non-GAAP EPS included a non-cash tax charge of |
|
6 |
Gross debt excludes unamortized debt issuance costs. |
|
7 |
Q4'23 gross debt included a deferred acquisition payment related to |
|
$ in millions |
FY'24 |
FY'23 |
YoY Change |
|
FY'24 |
|
Operating cash flow |
|
|
23 % |
|
|
|
Free cash flow |
|
|
25 % |
|
|
|
Revenue1 |
|
|
10%2 |
|
|
|
Operating margin1 |
26 % |
22 % |
370 bps |
|
|
|
Non-GAAP operating margin1 |
39 % |
36 % |
270 bps |
|
|
|
Earnings per share1 |
|
|
51 % |
|
|
|
Non-GAAP earnings per share1 |
|
|
17 % |
|
|
|
|
|
|
1 |
Revenue and, as a result, operating margin and earnings per share are impacted under ASC 606. |
|
2 |
In FY'24, revenue grew 9% year over year on a constant currency basis. |
|
3 |
FY'24 GAAP EPS included a non-cash tax benefit of |
|
4 |
FY'24 non-GAAP EPS included a non-cash tax benefit of |
"In a selling environment that continued to be challenging, our ARR was solid, growing 12% year over year on a constant currency basis. Our FY'24 free cash flow was also solid, growing 25% year over year, driven by ARR growth and a disciplined process for incremental investment in our business," said
"Given our differentiated product portfolio, the resilience of our subscription business model, the actions we have taken over time to align our investments with market opportunities, and allowing for the potential near-term impacts of our go-to-market changes, we are establishing FY'25 constant currency ARR guidance of 9% to 10% year over year growth. Supported by ARR growth, the predictability of our cash collections, and the disciplined budgeting structure we have in place, we are establishing FY'25 free cash flow guidance of
Full Fiscal Year 2025 and First Fiscal Quarter Guidance
|
$ in millions |
FY'24 |
FY'25 |
FY'25 YoY Growth |
|
Q1'25 |
|
Constant currency ARR (FY'25 Plan FX rates1) |
|
9% to 10% growth |
9% to 10% |
|
~10.5% growth |
|
Operating cash flow |
|
|
13% to 15% |
|
|
|
Free cash flow |
|
|
14% to 16% |
|
|
|
Revenue |
|
|
9% to 13% |
|
|
|
Earnings per share |
|
|
18% to 47% |
|
|
|
Non-GAAP earnings per share |
|
|
10% to 24% |
|
|
|
|
|
|
1 |
On a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of |
|
2 |
FY'25 cash flow guidance includes approximately |
Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance
|
$ in millions |
FY'25 |
Q1'25 |
|
|
|
|||
|
Operating cash flow |
|
|
|
|
Capital expenditures |
|
|
|
|
Free cash flow |
|
|
|
Reconciliation of EPS Guidance to Non-GAAP EPS Guidance
|
|
FY'25 |
Q1'25 |
|
|
|
|||
|
Earnings per share |
|
|
|
|
Stock-based compensation expense |
|
|
|
|
Intangible asset amortization expense |
|
|
|
|
Income tax adjustments related to the reconciling items |
( |
( |
|
|
Non-GAAP Earnings per share |
|
|
|
FY'25 financial guidance includes the following assumptions:
- We provide ARR guidance on a constant currency basis, using our FY'25 Plan foreign exchange rates (rates as of
September 30, 2024 ) for all periods. - We expect churn to remain low.
- For cash flow, due to invoicing seasonality, and consistent with the past 4 years, we expect the majority of our collections to occur in the first half of our fiscal year and for fiscal Q4 to be our lowest cash flow generation quarter.
- Compared to FY'24, at our FY'25 ARR guidance, FY'25 GAAP operating expenses are expected to increase approximately 4% and FY'25 non-GAAP operating expenses are expected to increase approximately 5%, primarily due to investments to drive future growth and foreign exchange rate fluctuations.
- Cash flow guidance includes approximately
$20 million of outflows related to go-to-market realignment. - Capital expenditures are expected to be approximately
$15 million . - Cash interest payments are expected to be approximately
$90 million . - Cash tax payments are expected to be approximately
$110 million . - GAAP and non-GAAP tax rates are expected to be approximately 25%.
- GAAP P&L results are expected to include the items below, totaling approximately
$279 million to$309 million , as well as their related tax effects:- approximately
$200 million to$230 million of stock-based compensation expense, and - approximately
$79 million of intangible asset amortization expense.
- approximately
- Our long-term goal, assuming our Debt/EBITDA ratio is below 3x, is to return approximately 50% of our free cash flow to shareholders via share repurchases, while also taking into consideration the interest rate environment and strategic opportunities.
- We currently intend to repurchase approximately
$300 million of our common stock in FY'25 and retire the$500 million senior notes due in Q2'25. - We currently expect our fully diluted share count to be approximately flat in FY'25.
- We currently intend to repurchase approximately
PTC's Fiscal Fourth Quarter and Full Year Results Conference Call
The Company will host a conference call to discuss results at
Important Information About Our Operating and Non-GAAP Financial Measures
Non-GAAP Financial Measures
We provide supplemental non-GAAP financial measures to our financial results. We use these non-GAAP financial measures, and we believe that they assist our investors, to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.
Non-GAAP operating expense, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income and non-GAAP EPS exclude the effect of the following items: stock-based compensation; amortization of acquired intangible assets; acquisition and transaction-related charges included in general and administrative expenses; restructuring and other charges and credits, net; non-operating charges and credits shown in the reconciliation provided; and income tax adjustments. Additional information about the items we exclude from our non-GAAP financial measures and the reasons we exclude them can be found in "Non-GAAP Financial Measures" in our Annual Report on Form 10-K for the fiscal year ended
Free Cash Flow: We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings and to evaluate our performance against our announced long-term goals and intent to return approximately 50% of our free cash flow to shareholders via stock repurchases. Free cash flow is cash provided by (used in) operations net of capital expenditures. Free cash flow is not a measure of cash available for discretionary expenditures.
Constant Currency (CC): We present CC information to provide a framework for assessing how our underlying business performed excluding the effects of foreign currency exchange rate fluctuations. To present CC information, FY'24 and comparative prior period results for entities reporting in currencies other than
Operating Measure
ARR: ARR (Annual
- We consider a contract to be active when the product or service contractual term commences (the "start date") until the right to use the product or service ends (the "expiration date"). Even if the contract with the customer is executed before the start date, the contract will not count toward ARR until the customer right to receive the benefit of the products or services has commenced.
- For contracts that include annual values that increase over time as there are additional deliverables in subsequent periods, which we refer to as ramp contracts, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation.
- As ARR includes only contracts that are active at the end of the reporting period, ARR does not reflect assumptions or estimates regarding future customer renewals or non-renewals.
- Active contracts are annualized by dividing the total active contract value by the contract duration in days (expiration date minus start date), then multiplying that by 365 days (or 366 days for leap years).
We believe ARR is a valuable operating measure to assess the health of a subscription business because it is aligned with the amount that we invoice the customer on an annual basis. We invoice customers annually for the current year of the contract. A customer with a one-year contract will typically be invoiced for the total value of the contract at the beginning of the contractual term, while a customer with a multi-year contract will be invoiced for each annual period at the beginning of each year of the contract.
ARR increases by the annualized value of active contracts that commence in a reporting period and decreases by the annualized value of contracts that expire in the reporting period.
As ARR is not annualized recurring revenue, it is not calculated based on recognized or unearned revenue and is not affected by variability in the timing of revenue under ASC 606, particularly for on-premises license subscriptions where a substantial portion of the total value of the contract is recognized at a point in time upon the later of when the software is made available, or the subscription term commences.
ARR should be viewed independently of recognized and unearned revenue and is not intended to be combined with, or to replace, either of those items. Investors should consider our ARR operating measure only in conjunction with our GAAP financial results.
Organic ARR: We provide an organic ARR measure to help investors understand and assess the performance of our business without the distorting effects of ARR from acquisitions in the comparative period. We do not adjust for acquisitions that have an immaterial impact on our ARR results when providing organic ARR results.
Organic Constant Currency ARR: We provide an organic constant currency ARR measure to help investors understand and assess the performance of our business without the distorting effects of ARR from acquisitions in the comparative period and foreign exchange rate fluctuations. We do not adjust for acquisitions that have an immaterial impact on our ARR results when providing organic constant currency ARR results.
Deferred ARR: Deferred ARR is ARR attributable to our portfolio of subscription software, cloud, SaaS and support contracts that are not active as of the end of the reporting period but are contractually committed to commence in a future period.
Because ARR is independent of recognized and unearned revenue, deferred ARR should not be viewed as a measurement of revenue which will be recognized in future periods.
Forward-Looking Statements
Statements in this document that are not historic facts, including statements about our future financial and growth expectations and targets, potential stock repurchases and the expected effect of our go-to-market realignment, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include: the macroeconomic and/or global manufacturing climates may not improve or may deteriorate due to, among other factors, high interest rates or increases in interest rates and inflation, volatile foreign exchange rates, tightening of credit standards and availability, the effects of the conflicts between
About PTC (NASDAQ: PTC)
PTC (NASDAQ: PTC) is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture, and service the physical products that the world relies on. Headquartered in
PTC Investor Relations Contact
SVP, Investor Relations
mshimao@ptc.com
investor@ptc.com
|
|
|
||||||||||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
|
||||||||||||||
|
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Recurring revenue |
$ |
582,430 |
|
|
$ |
500,256 |
|
|
$ |
2,134,030 |
|
|
$ |
1,907,918 |
|
|
Perpetual license |
|
9,953 |
|
|
|
8,223 |
|
|
|
32,196 |
|
|
|
38,640 |
|
|
Professional services |
|
34,164 |
|
|
|
38,141 |
|
|
|
132,246 |
|
|
|
150,495 |
|
|
Total revenue (1) |
|
626,547 |
|
|
|
546,620 |
|
|
|
2,298,472 |
|
|
|
2,097,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of revenue (2) |
|
112,825 |
|
|
|
115,856 |
|
|
|
444,816 |
|
|
|
441,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gross margin |
|
513,722 |
|
|
|
430,764 |
|
|
|
1,853,656 |
|
|
|
1,656,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Sales and marketing (2) |
|
147,191 |
|
|
|
137,452 |
|
|
|
558,954 |
|
|
|
530,125 |
|
|
Research and development (2) |
|
110,013 |
|
|
|
102,025 |
|
|
|
433,047 |
|
|
|
394,370 |
|
|
General and administrative (2) |
|
51,986 |
|
|
|
59,567 |
|
|
|
232,377 |
|
|
|
233,516 |
|
|
Amortization of acquired intangible assets |
|
10,559 |
|
|
|
10,670 |
|
|
|
42,018 |
|
|
|
40,022 |
|
|
Restructuring and other credits, net |
|
- |
|
|
|
(84) |
|
|
|
(802) |
|
|
|
(460) |
|
|
Total operating expenses |
|
319,749 |
|
|
|
309,630 |
|
|
|
1,265,594 |
|
|
|
1,197,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating income |
|
193,973 |
|
|
|
121,134 |
|
|
|
588,062 |
|
|
|
458,474 |
|
|
Other expense, net |
|
(23,728) |
|
|
|
(32,587) |
|
|
|
(119,100) |
|
|
|
(125,908) |
|
|
Income before income taxes |
|
170,245 |
|
|
|
88,547 |
|
|
|
468,962 |
|
|
|
332,566 |
|
|
Provision for income taxes |
|
43,722 |
|
|
|
42,944 |
|
|
|
92,629 |
|
|
|
87,026 |
|
|
Net income |
$ |
126,523 |
|
|
$ |
45,603 |
|
|
$ |
376,333 |
|
|
$ |
245,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
$ |
1.05 |
|
|
$ |
0.38 |
|
|
$ |
3.14 |
|
|
$ |
2.07 |
|
|
Weighted average shares outstanding |
|
120,113 |
|
|
|
118,803 |
|
|
|
119,679 |
|
|
|
118,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted |
$ |
1.04 |
|
|
$ |
0.38 |
|
|
$ |
3.12 |
|
|
$ |
2.06 |
|
|
Weighted average shares outstanding |
|
121,181 |
|
|
|
120,112 |
|
|
|
120,742 |
|
|
|
119,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) See supplemental financial data for revenue by license, support and cloud services, and professional services. |
|
||||||||||||||
|
(2) See supplemental financial data for additional information about stock-based compensation. |
|
||||||||||||||
|
|
|
||||||||||||||
|
SUPPLEMENTAL FINANCIAL DATA FOR REVENUE AND STOCK-BASED COMPENSATION |
|
||||||||||||||
|
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue by license, support and services is as follows: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
License revenue (1) |
$ |
239,448 |
|
|
$ |
184,391 |
|
|
$ |
806,871 |
|
|
$ |
747,022 |
|
|
Support and cloud services revenue |
|
352,935 |
|
|
|
324,088 |
|
|
|
1,359,355 |
|
|
|
1,199,536 |
|
|
Professional services revenue |
|
34,164 |
|
|
|
38,141 |
|
|
|
132,246 |
|
|
|
150,495 |
|
|
Total revenue |
$ |
626,547 |
|
|
$ |
546,620 |
|
|
$ |
2,298,472 |
|
|
$ |
2,097,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) License revenue includes the portion of subscription revenue allocated to license. |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
The amounts in the income statement include stock-based compensation as follows: |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
Cost of revenue |
$ |
5,460 |
|
|
$ |
5,206 |
|
|
$ |
21,439 |
|
|
$ |
20,874 |
|
|
Sales and marketing |
|
22,518 |
|
|
|
16,840 |
|
|
|
68,541 |
|
|
|
56,394 |
|
|
Research and development |
|
18,991 |
|
|
|
17,092 |
|
|
|
60,266 |
|
|
|
58,931 |
|
|
General and administrative |
|
15,250 |
|
|
|
19,753 |
|
|
|
73,215 |
|
|
|
70,260 |
|
|
Total stock-based compensation |
$ |
62,219 |
|
|
$ |
58,891 |
|
|
$ |
223,461 |
|
|
$ |
206,459 |
|
|
|
|
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) |
|
||||||||||||||
|
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP gross margin |
$ |
513,722 |
|
|
$ |
430,764 |
|
|
$ |
1,853,656 |
|
|
$ |
1,656,047 |
|
|
Stock-based compensation |
|
5,460 |
|
|
|
5,206 |
|
|
|
21,439 |
|
|
|
20,874 |
|
|
Amortization of acquired intangible assets included in cost of revenue |
|
9,660 |
|
|
|
9,877 |
|
|
|
38,495 |
|
|
|
35,694 |
|
|
Non-GAAP gross margin |
$ |
528,842 |
|
|
$ |
445,847 |
|
|
$ |
1,913,590 |
|
|
$ |
1,712,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP operating income |
$ |
193,973 |
|
|
$ |
121,134 |
|
|
$ |
588,062 |
|
|
$ |
458,474 |
|
|
Stock-based compensation |
|
62,219 |
|
|
|
58,891 |
|
|
|
223,461 |
|
|
|
206,459 |
|
|
Amortization of acquired intangible assets |
|
20,219 |
|
|
|
20,547 |
|
|
|
80,513 |
|
|
|
75,716 |
|
|
Acquisition and transaction-related charges |
|
144 |
|
|
|
222 |
|
|
|
3,106 |
|
|
|
18,706 |
|
|
Restructuring and other credits, net |
|
- |
|
|
|
(84) |
|
|
|
(802) |
|
|
|
(460) |
|
|
Non-GAAP operating income (1) |
$ |
276,555 |
|
|
$ |
200,710 |
|
|
$ |
894,340 |
|
|
$ |
758,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP net income |
$ |
126,523 |
|
|
$ |
45,603 |
|
|
$ |
376,333 |
|
|
$ |
245,540 |
|
|
Stock-based compensation |
|
62,219 |
|
|
|
58,891 |
|
|
|
223,461 |
|
|
|
206,459 |
|
|
Amortization of acquired intangible assets |
|
20,219 |
|
|
|
20,547 |
|
|
|
80,513 |
|
|
|
75,716 |
|
|
Acquisition and transaction-related charges |
|
144 |
|
|
|
222 |
|
|
|
3,106 |
|
|
|
18,706 |
|
|
Restructuring and other credits, net |
|
- |
|
|
|
(84) |
|
|
|
(802) |
|
|
|
(460) |
|
|
Non-operating charges, net (2) |
|
- |
|
|
|
- |
|
|
|
2,000 |
|
|
|
5,147 |
|
|
Income tax adjustments (3) |
|
(23,043) |
|
|
|
19,017 |
|
|
|
(71,205) |
|
|
|
(33,489) |
|
|
Non-GAAP net income |
$ |
186,062 |
|
|
$ |
144,196 |
|
|
$ |
613,406 |
|
|
$ |
517,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP diluted earnings per share |
$ |
1.04 |
|
|
$ |
0.38 |
|
|
$ |
3.12 |
|
|
$ |
2.06 |
|
|
Stock-based compensation |
|
0.51 |
|
|
|
0.49 |
|
|
|
1.85 |
|
|
|
1.73 |
|
|
Amortization of acquired intangibles |
|
0.17 |
|
|
|
0.17 |
|
|
|
0.67 |
|
|
|
0.63 |
|
|
Acquisition and transaction-related charges |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.03 |
|
|
|
0.16 |
|
|
Restructuring and other credits, net |
|
- |
|
|
|
(0.00) |
|
|
|
(0.01) |
|
|
|
(0.00) |
|
|
Non-operating charges, net (2) |
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
Income tax adjustments (3) |
|
(0.19) |
|
|
|
0.16 |
|
|
|
(0.59) |
|
|
|
(0.28) |
|
|
Non-GAAP diluted earnings per share |
$ |
1.54 |
|
|
$ |
1.20 |
|
|
$ |
5.08 |
|
|
$ |
4.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Operating margin impact of non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
GAAP operating margin |
|
31.0 |
% |
|
|
22.2 |
% |
|
|
25.6 |
% |
|
|
21.9 |
% |
|
Stock-based compensation |
|
9.9 |
% |
|
|
10.8 |
% |
|
|
9.7 |
% |
|
|
9.8 |
% |
|
Amortization of acquired intangibles |
|
3.2 |
% |
|
|
3.8 |
% |
|
|
3.5 |
% |
|
|
3.6 |
% |
|
Acquisition and transaction-related charges |
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
|
0.9 |
% |
|
Restructuring and other credits, net |
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
Non-GAAP operating margin |
|
44.1 |
% |
|
|
36.7 |
% |
|
|
38.9 |
% |
|
|
36.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(2) In FY'24, we recognized an impairment loss of |
|
||||||||||||||
|
(3) Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. Additionally, in the fourth quarter and full year of FY'24, adjustments exclude a tax expense |
|
||||||||||||||
|
|
|
||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|
||||||
|
(in thousands) |
|
||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Cash and cash equivalents |
$ |
265,808 |
|
|
$ |
288,103 |
|
|
Accounts receivable, net |
|
861,953 |
|
|
|
811,398 |
|
|
Property and equipment, net |
|
75,187 |
|
|
|
88,391 |
|
|
|
|
4,359,367 |
|
|
|
4,299,760 |
|
|
Lease assets, net |
|
133,317 |
|
|
|
143,028 |
|
|
Other assets |
|
687,910 |
|
|
|
658,162 |
|
|
|
|
|
|
|
|
||
|
Total assets |
$ |
6,383,542 |
|
|
$ |
6,288,842 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Deferred revenue |
$ |
775,274 |
|
|
$ |
681,550 |
|
|
Debt, net of deferred issuance costs |
|
1,748,572 |
|
|
|
1,695,785 |
|
|
Deferred acquisition payments (1) |
|
- |
|
|
|
620,040 |
|
|
Lease obligations |
|
181,754 |
|
|
|
193,192 |
|
|
Other liabilities |
|
463,544 |
|
|
|
420,985 |
|
|
Stockholders' equity |
|
3,214,398 |
|
|
|
2,677,290 |
|
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders' equity |
$ |
6,383,542 |
|
|
$ |
6,288,842 |
|
|
|
|
|
|
|
|
||
|
(1) FY'23 Deferred acquisition payments represented the fair value of the |
|
||||||
|
|
|
||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
||||||||||||||
|
(in thousands) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income |
$ |
126,523 |
|
|
$ |
45,603 |
|
|
$ |
376,333 |
|
|
$ |
245,540 |
|
|
Stock-based compensation |
|
62,219 |
|
|
|
58,891 |
|
|
|
223,461 |
|
|
|
206,459 |
|
|
Depreciation and amortization |
|
26,847 |
|
|
|
27,817 |
|
|
|
108,119 |
|
|
|
104,760 |
|
|
Amortization of right-of-use lease assets |
|
10,145 |
|
|
|
7,697 |
|
|
|
33,288 |
|
|
|
32,402 |
|
|
Operating lease liability |
|
193 |
|
|
|
(569) |
|
|
|
(13,245) |
|
|
|
(1,929) |
|
|
Accounts receivable |
|
(166,051) |
|
|
|
(198,128) |
|
|
|
(34,629) |
|
|
|
(98,607) |
|
|
Accounts payable and accruals |
|
(15,999) |
|
|
|
12,395 |
|
|
|
(15,964) |
|
|
|
23,763 |
|
|
Deferred revenue |
|
73,006 |
|
|
|
37,876 |
|
|
|
81,399 |
|
|
|
56,572 |
|
|
Income taxes |
|
27,761 |
|
|
|
31,225 |
|
|
|
25,966 |
|
|
|
21,315 |
|
|
Other |
|
(46,530) |
|
|
|
26,962 |
|
|
|
(34,744) |
|
|
|
20,586 |
|
|
Net cash provided by operating activities |
|
98,114 |
|
|
|
49,769 |
|
|
|
749,984 |
|
|
|
610,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capital expenditures |
|
(4,537) |
|
|
|
(5,779) |
|
|
|
(14,378) |
|
|
|
(23,814) |
|
|
Acquisition of businesses, net of cash acquired(1) |
|
- |
|
|
|
- |
|
|
|
(93,457) |
|
|
|
(828,271) |
|
|
Borrowings (payments) on debt, net(2) |
|
(63,125) |
|
|
|
(43,000) |
|
|
|
45,924 |
|
|
|
343,000 |
|
|
Deferred acquisition payment(3) |
|
- |
|
|
|
- |
|
|
|
(620,040) |
|
|
|
- |
|
|
Net proceeds associated with issuance of common stock |
|
12,965 |
|
|
|
11,060 |
|
|
|
25,674 |
|
|
|
21,652 |
|
|
Payments of withholding taxes in connection with vesting of stock-based awards |
|
(9,412) |
|
|
|
(6,959) |
|
|
|
(102,001) |
|
|
|
(82,448) |
|
|
Settlement of net investment hedges |
|
(16,904) |
|
|
|
6,602 |
|
|
|
(13,078) |
|
|
|
(7,602) |
|
|
Credit facility origination costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(13,355) |
|
|
Other financing & investing activities |
|
(4,183) |
|
|
|
(1,119) |
|
|
|
(4,183) |
|
|
|
(6,964) |
|
|
Foreign exchange impact on cash |
|
5,226 |
|
|
|
(3,984) |
|
|
|
3,223 |
|
|
|
2,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net change in cash, cash equivalents, and restricted cash |
|
18,144 |
|
|
|
6,590 |
|
|
|
(22,332) |
|
|
|
15,910 |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
248,322 |
|
|
|
282,208 |
|
|
|
288,798 |
|
|
|
272,888 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
266,466 |
|
|
$ |
288,798 |
|
|
$ |
266,466 |
|
|
$ |
288,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash paid for interest(3) |
$ |
24,641 |
|
|
$ |
37,855 |
|
|
$ |
137,036 |
|
|
$ |
89,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) In FY'24, we acquired pure-systems for |
|
||||||||||||||
|
(2) In FY'24, we borrowed |
|
||||||||||||||
|
(3) In FY'24, we made a payment of |
|
||||||||||||||
|
|
|
||||||||||||||
|
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) |
|
||||||||||||||
|
(in thousands) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
Cash provided by operating activities |
$ |
98,114 |
|
|
$ |
49,769 |
|
|
$ |
749,984 |
|
|
$ |
610,861 |
|
|
Capital expenditures |
|
(4,537) |
|
|
|
(5,779) |
|
|
|
(14,378) |
|
|
|
(23,814) |
|
|
Free cash flow |
$ |
93,577 |
|
|
$ |
43,990 |
|
|
$ |
735,606 |
|
|
$ |
587,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
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