PTC today reported financial results for the second quarter ended April 1, 2017.
Overview
Second quarter FY'17 GAAP revenue was $280 million; non-GAAP revenue was $281 million. We recorded a GAAP net loss of $1 million or $0.01per share; non-GAAP net income was $35 million or $0.30 per share.
"We are very pleased with our second fiscal quarter performance," said James Heppelmann, President and CEO, PTC. "Bookings of $95 millionand subscription mix of 71% both exceeded the high end of our guidance for the quarter. Bookings growth of 11% year-over-year was driven by another strong quarter in IoT, with new bookings growing faster than the estimated 40% market growth rate; as well as solid bookings results in CAD and core PLM, which both grew at or above the estimated market growth rates."
Heppelmann added, "Even with the higher than guidance subscription mix in the quarter, which drove down reported revenue in the current period as revenue is deferred and recognized over future periods, revenue and non-GAAP EPS both fell within our guidance ranges. Despite the higher subscription mix, revenue grew year-over-year for the first time in nine quarters, evidencing that we have exited the subscription trough. In addition, total deferred revenue - billed and unbilled - grew $56 million over last quarter, and billed deferred revenue grew $117 million over last quarter."
Heppelmann continued, "Our strong Q2 results are yet another positive step along our journey to create significant long-term value for our customers and shareholders through our transition to a subscription business model. Due to the success of this transition, we have separately announced today a plan to accelerate our transition by offering our core Solutions products and ThingWorx platform only by subscription in the Americas and Western Europe beginning January 1, 2018."