(Reuters) - PTC (NASDAQ:PTC) Inc on Wednesday forecast its fiscal 2024 revenue below Wall Street estimates, signaling weakness in demand for its industrial design and testing software as companies keep their technology budgets tight.
High interest rates and an uncertain global economy has forced companies to pare their spending on expensive technologies to protect their bottomline and maintain a strong cash balance.
PTC said it sees revenue between $2.27 billion and $2.36 billion for the year ending September 2024, compared to analysts' consensus estimate of $2.36 billion, according to LSEG data.
It forecast annual run rate (ARR), which represents the annualized value of all active subscription software, of between $2.19 billion to $2.25 billion.
Boston, Massachusetts-based PTC has over 25,000 customers including Rockwell Automation (NYSE:ROK) and Indian motorcycle maker Eicher Motors' Royal Enfield.
In the most-recent quarter ended Sept. 30, revenue grew 8% to $547 million, falling short of analysts' expectation of $558 million, according to LSEG data.
ARR grew 26% to $1.98 billion, in line with expectations.
Excluding items, PTC earned $1.20 per share, compared with estimate of $1.14.