PTC (NASDAQ: PTC) reported Q3 EPS of $0.62, $0.18 better than the analyst estimate of $0.44. Revenue for the quarter came in at $352 million versus the consensus estimate of $332.47 million.

“We delivered solid third quarter performance despite the challenging macro environment, reflecting strong execution by our global team, the mission-critical nature of our broad technology portfolio, and the strength of our subscription model. We continue to support our customers with increasingly relevant and strategic solutions that enable global team collaboration, remote asset management, remote collaboration and training of front-line workers, and seamless availability through our SaaS-based technologies,” said James Heppelmann, President and CEO, PTC.

“While the current macro environment headwinds appear likely to persist in the coming quarters, we believe the disruptive nature of this crisis creates a unique opportunity to deepen our customer relationships and drive further innovation across our product portfolio, and that we will emerge even better positioned when the economy recovers,” concluded Heppelmann.

GUIDANCE:

PTC sees FY2020 EPS of $2.28-$2.35, versus the consensus of $2.30. PTC sees FY2020 revenue of $1.235-1.255 billion, versus the consensus of $1.42 billion.

Fiscal 2020 Outlook

“Given the durable nature of our business and continued solid execution, we remain committed to delivering solid results for the remainder of FY’20 while navigating the current backdrop of macroeconomic uncertainty,” said Kristian Talvitie, EVP and CFO, PTC.

Fiscal 2020 Guidance

Our fiscal 2020 financial outlook includes the following assumptions:

• Impact of weak macroeconomic conditions related to COVID-19 crisis.
• New ACV bookings decline ~25% YoY at the midpoint of guidance in the back half of the year, compared to our previous guidance of a ~30% decline YoY.
• Churn of approximately 8%, consistent with our previous guidance.
• Revenue growth slows quarter over quarter in Q4'20, to the mid-single digits, due primarily to the impact of ASC 606 and related business policy changes.
• Operating expense growth in the lower single-digits YoY, consistent with our previous guidance reflecting continued cost discipline related to headcount additions, and lower variable compensation, travel, and marketing expenses.
• GAAP tax rate is expected to be 20%, Non-GAAP tax rate is expected to be 19%.

For earnings history and earnings-related data on PTC (PTC) click here.