PTC (NASDAQ: PTC) reported Q2 EPS of $1.08, $0.38 better than the analyst estimate of $0.70. Revenue for the quarter came in at $462 million versus the consensus estimate of $416.19 million.

"Our performance in the second quarter and the first half of 2021 reflects continued strong execution across all our businesses. We delivered double-digit top line growth with expanding margins, leading to strong operating and free cash flows," said James Heppelmann, President and CEO, PTC.

"I am especially excited about our pure-SaaS CAD and PLM solutions. In its first quarter as part of PTC, Arena Solutions delivered record bookings, while Onshape bookings are tracking to more than 100% growth for the year. These impressive results clearly demonstrate the increasing investment that customers are making in SaaS solutions," said Heppelmann. "With the strong leadership position we have captured in SaaS, PTC is poised to capitalize on this transition in the market."

"Perhaps more importantly, customers continue looking to PTC as a strategic partner in their digital transformation initiatives aimed to reduce costs and time to market, increase productivity, and transform their customer experience and engagement," continued Heppelmann. "Our Core CAD and PLM business continues to outpace the market, and FSG bookings were strong. With our continued investment in differentiated technologies, we look forward to building on our strong performance in the first half of fiscal 2021."

GUIDANCE:

PTC sees FY2021 EPS of $3.18-$3.39, versus the consensus of $3.16. PTC sees FY2021 revenue of $1.71-1.74 billion, versus the consensus of $1.71 billion.

"PTC delivered strong ARR, Revenue, EPS, Operating Cash Flow and Free Cash Flow in the second quarter. We are updating guidance to reflect Q2 performance and the changing currency impact we saw in the quarter. On a constant currency basis, we remain on track to deliver against our full year guidance," said Kristian Talvitie, EVP and CFO, PTC.

Our FY'21 financial guidance includes the assumptions below:

• Macroeconomic conditions related to the COVID-19 crisis improve in the second-half of FY'21.
• Organic ARR growth of 10% to 12% on a constant currency basis and Arena contributes ~400 basis points of ARR growth.
• Changes in foreign currency versus prior guidance effectively eliminate the prior ~200 bps currency tailwind to ARR. Our current guidance assumes that currency effects in FY'21 are now relatively flat with FY20.
• FY'21 ARR growth is inclusive of a ~2% headwind from lower Deferred ARR exiting FY'20, primarily due to lower bookings in FY'20 reflecting the effect of the COVID pandemic.
• ARR YoY growth rates, on an organic constant currency basis, are expected to be approximately linear each quarter throughout FY'21.
• Organic churn improves ~100 bps YoY.
• GAAP tax rate is expected to be ~20%, including a benefit of $42 million related to the tax effects for Arena Solutions and an approximately $34 million tax reserve related to an ongoing tax matter in a non-US jurisdiction. Non-GAAP tax rate is expected to be ~19%.

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