PTC, Inc. (PTC) Q2 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 27, 2022 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the PTC's 2022 Second Quarter Conference Call. During today's presentation, all parties will be in a listen-only mode, and following the presentation, the conference will be open for questions.

I would now like to turn the call over to Matt Shimao, PTC's Head of Investor Relations. Please go ahead.

Matt Shimao

Good afternoon. Thank you Savannah and welcome to PTC's 2022 second quarter conference call. On the call today are Jim Heppelmann, Chief Executive Officer; and Kristian Talvitie, Chief Financial Officer. Today's conference call is being broadcast live through an audio webcast and a replay of the call will be available later today at www.ptc.com.

During this call, PTC will make forward-looking statements including guidance as to future operating results. Because such statements deal with future events actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in PTC's annual report on Form 10-K, Form 10-Q and other filings with the US Securities and Exchange Commission as well as in today's press release.

The forward-looking statements including guidance provided during this call are valid only as of today's date April 27, 2022 and PTC assumes no obligation to update these forward-looking statements.

During the call, PTC will discuss non-GAAP financial measures. These non-GAAP measures are not prepared in the quarters with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in today's press release made available on our website.

With that, I'd like to turn the call over to PTC's, Chief Executive Officer, Jim Heppelmann.

Jim Heppelmann

Thanks Matt. Good afternoon everyone and thank you for joining us. To simplify things, please note that throughout my commentary I will be discussing all growth rates in constant currency.

Turning to slide 4. I'm pleased to share that PTC delivered another strong financial performance in fiscal Q2. All of our metrics came in above our guidance and the strength was broad-based across all segments and geographies. Of particular note, we saw organic ARR growth accelerate to 13% despite the self-inflicted churn caused by our decision to exit the Russian market. We ended Q2 with $1.56 billion of ARR. Bookings grew faster than ARR and renewals were very strong.