PTC - Q4 update (FY25)
Reflections on the outlook for FY26, progress in the GTM transition and the Kepware/ThingWorx sale
Friends of NFTBC.
If you haven’t checked out the PTC deep dive yet, you can do so here (the introduction is free to read). PTC is probably the least out-of-favour of the stocks I’m currently writing about, but it’s also fair to say I’m more bullish than consensus about the nature and durability of PTC’s growth - hence my interest in writing about it. That, and others seem to be fairly quiet about it.
Additionally, the stock can often be cheaper than it looks on the face of it and I wonder if that scares some investors off. The quirky nature of accounting for on-premise subscription software can lead to some pretty weird results. The FY25 Q4 results this week were a good example of this with revenue and EPS coming in 19% and 53% higher than estimates respectively. Looking at PTC’s P/E ratio isn’t much use therefore.
The deep dive went out quite recently and I went into the strategy, the long-term vision and the durability of growth. But PTC is going through a transition in its sales organisation at the moment and this creates some volatility and uncertainty in the nearer-term quarterly dynamics - I’ll spend a bit more time on that in this post.
You can find the relevant financial materials here.
[NFTBC does not give advice - please do your own research. I currently own shares in PTC]
