A Look Back at Design Software Stocks’ Q3 Earnings: PTC (NASDAQ:PTC) Vs The Rest Of The Pack

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the design software stocks, including PTC (NASDAQ:PTC) and its peers.

The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.

The 6 design software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was 2.9% below.

While some design software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

PTC (NASDAQ:PTC)

PTC reported revenues of $626.5 million, up 14.6% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with management forecasting accelerating growth but EPS guidance for next quarter missing analysts’ expectations significantly.

"In fiscal year 2024, we again delivered solid ARR and cash flow, with year-over-year ARR growth in the low double-digits and cash flow growth above 20%. We have a differentiated strategy that leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity. It's an exciting time because our products are at the epicenter of driving business transformation at our customers," said Neil Barua, President and CEO, PTC.

Unsurprisingly, the stock is down 4.4% since reporting and currently trades at $189.24.

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Best Q3: ANSYS (NASDAQ:ANSS)

ANSYS reported revenues of $601.9 million, up 31.2% year on year, outperforming analysts’ expectations by 14.9%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and and annual contract value estimates.

ANSYS scored the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $334.71.

Weakest Q3: Adobe (NASDAQ:ADBE)

Adobe reported revenues of $5.41 billion, up 10.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.

Adobe delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15.2% since the results and currently trades at $497.59.

Cadence (NASDAQ:CDNS)

Cadence reported revenues of $1.22 billion, up 18.8% year on year. This result topped analysts’ expectations by 2.9%. It was a very strong quarter as it also logged a solid beat of analysts’ billings and EBITDA estimates.

The stock is up 15.3% since reporting and currently trades at $291.42.

Unity (NYSE:NYSE:U)

Unity reported revenues of $446.5 million, down 18% year on year. This number surpassed analysts’ expectations by 4.3%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ billings estimates but EBITDA guidance for next quarter missing analysts’ expectations.

Unity had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 19.5% since reporting and currently trades at $17.91.

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This content was originally published on Stock Story