Stock Track | PTC Inc. Plunges 5.33% in Pre-Market as Q1 2025 Results and Guidance Disappoint

Stock Track
06 Feb

PTC Inc. (PTC), a leading software company providing solutions for product development and digitalization, saw its stock plummet 5.33% in pre-market trading on Thursday, February 6th, 2025. The significant drop came after the company reported its fiscal Q1 2025 earnings results and provided guidance for the remainder of the year.

According to the earnings call transcript, PTC faced a challenging selling environment in Q1, impacting its close rates. While the company's ARR (Annual Recurring Revenue) and free cash flow results were in line with guidance, investors seemed disappointed with the outlook for the rest of the year.

The key points that may have contributed to the stock's pre-market plunge include:

  • PTC reiterated its 9%-10% constant-currency ARR growth guidance for fiscal 2025, suggesting slower growth compared to previous years.
  • The company expects its go-to-market transformation efforts, including organizational changes and a vertical approach, to take time before yielding desired results, further impacting near-term growth prospects.
  • PTC's Q2 guidance for constant-currency ARR growth of 9.5% and free cash flow of $270 million fell short of investor expectations.

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