Citrix caps off FY 2019 with strong demand across Workspace, Networking

Citrix and Texas Instruments published their fourth quarter results, while PTC published its first quarter financial results.

Citrix finished off its fiscal year with better-than-expected financial results, bringing momentum into 2020 as it continues to implement three, simultaneous business transformations -- shifting from products to platforms, from on-premise to cloud, and from perpetual business to a subscription model. Its strong Q4 and FY2019 results reflected strong demand across both of Citrix's Workspace and Networking solutions. 

For the fourth quarter, non-GAAP diluted earnings per share came to $1.71 on revenue of $810 million. For the full year, non-GAAP diluted EPS2 was $5.69 on revenue of $3 billion. 

Wall Street was looking for Q4 earnings of $1.68 on revenue of $802.03 million. 

Fourth quarter subscription ARR was $743 million, up 41 percent year-over-year, while SaaS ARR was $520 million, up 49 percent year-over-year. Q4 subscription bookings as a percentage of total product bookings was 69 percent, up from 51 percent in Q4 2018. 

For the full year, subscription bookings as a percentage of total product bookings was 62 percent, up from 42 percent in 2018.  

In a letter to stakeholders, CEO David Henshall highlighted the intelligent features Citrix added to Citrix Workspace in the fourth quarter, calling them "arguably the most significant functionality added to the Workspace in Citrix's history."

"Looking ahead to 2020 and beyond, I am enthusiastic about our opportunity to create the Workspace category and position Citrix to become the preferred way in which people work globally, across all industries," Henshall said. "The opportunity for Citrix is large and growing – and our product position has never been better. With Citrix Workspace with intelligence, we have an opportunity to both continue to grow our historical VDI business – and meaningfully grow broadly across an employee base, beyond our traditional knowledge worker end users."

Citrix also reported that its board of directors increased its share repurchase authorization by $1 billion, bringing the total remaining authorization to approximately $1.75 billion. 

Meanwhile, industrial IOT leader PTC reported its first quarter financial results, beating expectations thanks in part to to momentum in its core CAD and PLM business. 

Non-GAAP earnings per share came to 57 cents on revenue of $356.11 million.

Wall Street was looking for earnings of 44 cents on revenue of $342.16 million. 

"PTC is entering this new decade with a robust portfolio that positions us to deliver an impressive combination of growth and profitability," CEO James Heppelmann said in a statement. 

In addition to highlighting PTC's core business, Heppelmann noted that the company's IOT and AR businesses continue to generate very strong growth.

PTC's ARR was $1.16 billion, up 11 percent compared to Q1 2019. 

Texas Instruments published its fourth quarter financial report, with mixed results. 

The company, which makes analog and embedded semiconductor chips, reported Q4 earnings per share of $1.12. Revenue came to $3.35 billion, down 10 percent from the same quarter a year ago. 

Full-year earnings came to $5.24 on revenue of $14.38 million. 

Analysts were looking for Q4 earnings of $1.02 on revenue of $3.22 billion. 

Within Texas Instruments' core businesses, Analog revenue declined 5 percent in Q4, while Embedded Processing declined 20 percent from the same quarter a year ago.

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