Summary
The company guided all the way out to 2023 on their Q4 conference call and anticipates $2.4 billion of sales.
High growth market segments of augmented reality, artificial intelligence, and internet of things will be the growth levers utilized to hit their loft goal.
An acquisition of AR/AI CAD CAM company Frustum will enhance the software PTC's Creo for designing products in a manufacturing environment.
The Opportunity
PTC Inc. (PTC) has fallen greater than 20% since October 5th and has been dragged down in the broad market sell-off. I had stated in a previous article that the share price had some growth premium in it and was being supported by the high growth opportunities in Internet of Things "IoT". The stock sell-off provides investors an opportunity to own a company poised to capture a large percentage of market share in the IoT, Augmented Realty "AR", and Artificial Intelligence "AI".
The company has been active in M&A and acquired companies for nearly $300 million in cash over the past few years. The most recent acquisition of Frustum for $70 million will become a great value add to PTC's Creo product line and allow customers to expand their product design capabilities. The company's M&A activity has been accretive and part of an overall growth strategy to target high growth market segments.
