While many even the big companies are struggling with the recession, inflation and losing profits, PTC, a Massachusetts-based SaaS company, is reporting growth. Marketing for SaaS products is helping them do just that.
In its November earnings report, PTC said it beat its annual recurring revenue target for the fourth quarter of fiscal year 2022. ARR was up 7% year over year, rising from nearly $1.5 billion in Q4 2021 to nearly $1.6 billion this year. Revenue was $508 million in the fourth quarter of 2022, up 6% from the $481 million reported in the fourth quarter of 2021.
Christian Talvitie, PTC’s chief financial officer, attributed the company’s results in part to its customer base of industrial product companies, which he said are generally consistent in their research and development spending.
“From a top-level perspective, we serve industrial products companies. And research and development in those companies tends to be pretty sustainable, so we have a favorable background. We’ve also successfully transitioned to a subscription business model, and our products are very tied to our customers,” Talvitie told investors.
The firm’s customer base includes medical device, industrial goods and aerospace manufacturers that use what it calls “digital transformation software.” Its software is designed to work throughout the product lifecycle, from research and development to deployment.