Shares of PTC Inc. (NASDAQ:PTC) jumped on Thursday after the software provider reported its fiscal first-quarter results. PTC beat analyst estimates for both revenue and adjusted earnings, and it provided guidance that compared favorably to the analyst consensus. The stock was up about 8.7% at 1:20 p.m. EST, after having been up as much as 11.1% earlier in the day.
PTC reported first-quarter revenue of $356.1 million, up 6.4% year over year and $13.4 million above the average analyst estimate. Recurring revenue soared 21.5% to $305.4 million, while perpetual license revenue sank 78.5% to $9.0 million.
Annualized recurring revenue reached $1.16 billion, up 11% year over year. PTC reported non-GAAP (adjusted) earnings per share of $0.57, up from $0.56 in the prior-year period and $0.13 higher than analysts were expecting.
"PTC is entering this new decade with a robust portfolio that positions us to deliver an impressive combination of growth and profitability. We see a lot of momentum in the core CAD and PLM business, while our IOT and AR businesses continue to generate very strong growth," said PTC CEO James Heppelmann.
For fiscal 2020, PTC expects revenue to grow by 15% to 21%, to a range of $1.445 billion to $1.525 billion. Annualized recurring revenue is expected to hit $1.27 billion to $1.295 billion, up 14% to 16%. Non-GAAP earnings per share (EPS) is expected between $2.15 and $2.65, up 31% to 62% from fiscal 2019. Analysts were expecting EPS guidance of $2.15.
With PTC handily beating expectations and predicting strong double-digit earnings growth this year, investors saw plenty of reasons to bid up the stock.