Slide 1: PTC Prepared Remarks Third Quarter Fiscal 2020
PTC PREPARED REMARKS THIRD QUARTER FISCAL 2020 July 29, 2020 Please refer to the “Important Information About Our Operating and Non-GAAP Financial Measures” below for important information about those measures, definitions and reconciliation to the nearest GAAP measures, and other important disclosu
Slide 2: Key Highlights of Operating and Financial Measures
Key Highlights of Operating and Financial Measures In millions, except Q3’20 YoY YoY CC Management Comments per share amounts ARR growth of 10% CC was slightly above expectations, driven by strong renewals performance and higher-than-expected New ACV bookings, resulting in double-digit CC ARR grow
Slide 3: Operating Performance
Operating Performance Operating expense and operating margin are impacted by the adoption of ASC 606 and related business policy changes. YoY In millions Q3’20 YoY Management Comments CC GAAP and non-GAAP operating expenses reflect Operating continued financial discipline, and the impact of Expens
Slide 4: ARR Performance by Product Group
ARR Performance by Product Group YoY In millions Q3’20 YoY Management Comments CC ARR growth YoY CC was above the high single-digit market growth rate for the 11th quarter in a row. PLM delivered double-digit ARR growth with broad- Core $869 9% 10% based strength across all major geos. (CAD & PL
Slide 5: Software Revenue Performance by Product Group
Software Revenue Performance by Product Group YoY In millions Q3’20 YoY Management Comments CC Software revenue growth for our Core products was driven by mid-30% growth in recurring software revenue. Core $230 33% 34% Substantially all our Core product software revenue (CAD & PLM) is recurring.
Slide 6: Other Highlights in Quarterly Operating Performance
Other Highlights in Quarterly Operating Performance Cash, cash equivalents, and marketable securities totaled $435 million as of June 27, 2020. As of June 27, 2020, gross borrowings totaled $1.1 billion, including $1.0 billion of senior notes and $138 million outstanding under our revolving cred
Slide 7: Revised Fiscal 2020 Guidance
In millions except per Previous Revised YoY Comments share amounts Guidance Guidance ARR $1,220 - $1,255 $1,235 - $1,255 11% - 12% Increased $7M at the midpoint to reflect modestly higher bookings at the low end and Fx, partially offset by churn. Cash from Operations ~$222 ~$232 ~(19)% Increased $10
Slide 8: Non-GAAP Financial Measures and Reconciliations
PTC Inc. NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) (in thousands, except per share data) Three Months Ended Nine Months Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 GAAP revenue $ 351,721 $ 295,486 $ 1,067,434 $ 920,626 Fair value adjustment of acquired deferred re
Slide 9: Important Disclosures
Important Disclosures Important Information About Our Non-GAAP Financial Measures PTC provides non-GAAP supplemental financial information to its financial results. We use these non- GAAP financial measures, and we believe that they assist our investors, to make period-to-period comparisons of our o
Slide 10: Operating Measure
Operating Measure ARR - To help investors understand and assess the performance of our business as on-premise subscription company, we provide an ARR operating measure. On September 5, 2019, we revised the ARR definition. ARR represents the annualized value of our portfolio of renewable customer arr