Ptc Inc. · NASDAQ:PTC
Ptc — Investor Presentation (September 2019)
15 slides from Ptc's investor presentation, Sep 4, 2019
Slide 1: PTC Investor Relations
PTC Investor Relations September 2019
Slide 2: Safe Harbor Statement
@ pic SAFE HARBOR STATEMENT This presentation includes forward-looking statements regarding PTC's future financial and growth expectations that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include: the macroeconomic and/or glo
Slide 3: Transition to subscription and new reporting metrics
aapsiaaasniaiiean @ pic On January 15, 2019 PTC ended sales of perpetual software licenses for substantially all products on a global basis, which was the final stage in the company’s transition to selling subscription-based software. * Customers have readily migrated to our subscription offerings a
Slide 4: Guidance and Reporting Metrics
GUIDANCE AND REPORTING METRICS S ptc FY'19 FY’20 * Perpetual Equivalent Bookings (PEB) e Subscription ACV « ARR (as defined on slide 5) Operating * Subscription % of PEB * ASC 606 P&L * ASC 605 P&L ¢ Free Cash Flow * ASC 606 P&L Highlights ne) O fe 5 (S fs * Free Cash Flow
Slide 5: ARR Re-defined
“ARR” RE-DEFINED @ pic + Beginning in FY'20 we are revising our ARR definition. ARR will represent the annualized value of our portfolio of recurring customer arrangements as of the end of the reporting period, including subscription software, cloud, and support contracts. This is a change from our
Slide 6: FY'20 ARR Growth Sensitivity Model
FY'20 ARR GROWTH SENSITIVITY MODEL S pte + The sensitivity model is based on assumed FY’19 ending ARR of ~$1.134B, assumed new ARR of ~$198M and assumed net churn of ~$72M (or 7%). Change in New ARR - FY'20 YoY -5% 5% 10% 11% 12% 12% 13% 14% 15% 16% 17% s 10% = 1% 11% 12% 138% 14% = 15% 16% + ARR gr
Slide 7: Free Cash Flow Model
FREE CASH FLOW MODEL FY'18 ASC 605 FY'19 ASC 605") FY'19 ASC 606" Annualized Recurring Revenue (ARR) 1,009 1,009 1,134 1,134 1,134 1,134 GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP Perpetual revenue 110 110 74 74 1 n Professional services revenue 153 169 159 159 167 167 Cash generation 1,272 1,288 1,3
Slide 8: ARR Business Trends (One-Time Snapshot)
@ pic ARR BUSINESS TRENDS (ONE-TIME SNAPSHOT)
Slide 9: CAD ARR Growing 9% in FY'19
CAD ARR GROWING 9% IN FY’19 @ pic $Millions 500 9% YoY $493M 10% YoY $454M $412M * CAD ARR is expected to grow 9% in FY’19, 208 despite softer sales in the six countries where we discontinued perpetual license 300 sales on January 1, 2019. * CAD ARR is benefitting from solid new a ARR and improving
Slide 10: PLM ARR Growth Accelerating in FY'19
PLM ARR GROWTH ACCELERATING IN FY’19 S ptc $Millions ee 15% YoY $522M 300 12% YoY $281M $251M 200 * PLM ARR growth is expected to accelerate from 12% to 15% YoY in FY'19, 20 driven by strong new ARR along with v0 improving churn. * Industry analysts estimate PLM market 100 growth of 6%. 50 0 FY'I7 F
Slide 11: Solid IoT and Augmented Reality ARR Growth
SOLID IOT AND AUGMENTED REALITY ARR GROWTH = @ pte $Millions 160 $141M 140 33% YoY 120 $106M * ARR is expected to grow 33% YoY in 100 39% YoY FY’19. Subscription ARR is expected to : grow ~35% YoY in FY'19, in a market 80 $76M estimated to be growing 30% to 40%. 60 * Kepware perpetual licenses do no
Slide 12: Productivity Zone ARR Growing Despite Headwinds
PRODUCTIVITY ZONE ARR GROWING DESPITE @ pic HEADWINDS 7” $Millions 200 6% YOY $178M 180 5% YOY $168M $160M « ARR growth in our Productivity Zone businesses is expected to remain in the mid-single digits in FY’19. “ « ARR growth driven by strong product 108 positioning and healthy retention rates in
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Slide 14: Reconciliation Between GAAP and Non-GAAP Financial Measures
RECONCILIATION BETWEEN GAAP AND NON-GAAP pic FINANCIAL MEASURES 7” PIC Inc. NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) {in millions) FY'18 Fg Fy19 ASC 605 ASC 605 ASC 606 GAAP professional services revenue $ 153 $ 159 $ 167 Fair value adjustment of acquired deferred services revenue
Slide 15: Operating and Non-GAAP Financial Measures
OPERATING AND NON-GAAP FINANCIAL MEASURES @ptc We provide operating and non-GAAP financial measures to supplement our GAAP financial results. These measures are not a substitute for our GAAP financial results and should be used in conjunction with our GAAP financial statements. Annualized Recurring