Slide 1: Q1'25 Financial Results
Q1’25 FINANCIAL RESULTS Neil Barua CEO Kristian Talvitie CFO February 5, 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes forward looking statements regarding PTC’s future financial performance, strategic outlook and expectations, anticipated future operations, expected effects of strategic investments and initiatives, and share repurchase expectations. Because such
Slide 3: Neil Barua, CEO
NEIL BARUA, CEO
Slide 4: Scaling Our Business Through Consistent Execution
SCALING OUR BUSINESS THROUGH CONSISTENT EXECUTION Update on our go-to-market realignment: During Q1, we made significant progress aligning our sales, customer success, and marketing resources with vertical market opportunities New Chief Revenue Officer, Rob Dahdah, started in December Realigning our
Slide 5: Our Unique Portfolio Helps Customers Accelerate Time to Market
OUR UNIQUE PORTFOLIO HELPS CUSTOMERS ACCELERATE TIME TO MARKET AND MANAGE INCREASING COMPLEXITY PLM ALM SLM CAD SaaS Product Lifecycle Application Lifecycle Service Lifecycle Computer Aided Software as a Management Management Management Design Service LEVERAGING AI 5
Slide 6: Displacing Competitors and Cross-Selling Codebeamer ALM at a Med Tech Company
DISPLACING COMPETITORS AND CROSS-SELLING CODEBEAMER ALM AT A MED TECH COMPANY Goal This subsidiary of a global med tech company is a leader in technologies to help treat blood- and cell-based diseases and conditions. This customer is expanding their software focus, and needs help managing software v
Slide 7: Creo CAD and Windchill PLM Expansion at a Federal, Aerospace, and Defense Company
CREO CAD AND WINDCHILL PLM EXPANSION AT A FEDERAL, AEROSPACE, AND DEFENSE COMPANY Goal This customer is a leading global defense company. They are focused on continuing to increase their level of production because of the strong growth they are seeing. This customer needs best-in-class CAD and PLM t
Slide 8: Kristian Talvitie, CFO
KRISTIAN TALVITIE, CFO
Slide 9: Solid ARR and Cash Flow Results
SOLID ARR AND CASH FLOW RESULTS ARR $ in millions Q1'25 Q1'24 YoY Change Q1'25 Guidance ARR as reported $2,20 5 $2,0 57 7% 1 Constant currency ARR at FY'25 Plan FX rates $2,277 $2,0 59 11% ~10 .5% grow th CASH FLOW $ in millions Q1'25 Q1'24 YoY Change Q1'25 Guidance Operating cash flow $238 $187 27%
Slide 10: ARR by Product Group and Geographic Region
ARR BY PRODUCT GROUP AND GEOGRAPHIC REGION CAD: Product data authoring software PLM: Product data management and process orchestration software $881 $1,395 +9% $1,357 $848 $ in millions +11% +5% +8% $805 $806 $1,252 $1,254 As Constant Reported Currency Q1'24 Q1'25 Q1'24 Q1'25 Americas1 Europe1 APAC1
Slide 11: Balance Sheet and Share Repurchase Program
BALANCE SHEET AND SHARE REPURCHASE PROGRAM Balance sheet $ in millions Q1'25 Q4'24 Change Cash and cash equivalents $ 196 $ 266 $ (70 ) Senior notes w ith an aggregate interest rate of 3.8% $ 1,0 0 0 $ 1,0 0 0 $ - Term loan w ith a variable interest rate of 5.9% $ 488 $ 491 $ (3) $1,250 revolving cr
Slide 12: FY'25 and Q2'25 Guidance
FY’25 AND Q2’25 GUIDANCE FY’25 FY’25 FY’25 YoY Growth Q2’25 $ in millions Previous Guidance Guidance Guidance Guidance Constant currency ARR at FY'25 Plan FX rates1 9% to 10 % growth 9% to 10 % growth 9% to 10 % ~9.5% growth Operating cash flow $850 to $8653 $850 to $8653 13% to 15% ~$274 3 Free cas
Slide 13: Q2'25 Illustrative Constant Currency ARR Model
Q2’25 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our Q2’25 constant currency ARR guidance? Using FX rates as of September 30 , 20 24 W hat you need to Actual Actual Actual Actual Actual Actual Actual Actual Actual believe $ in m illions Q1'23 Q2'23 Q3'23 Q4'23
Slide 14: FY'25 Illustrative Constant Currency ARR Model
FY’25 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our FY’25 constant currency ARR guidance? Using FX rates as of September 30 , 20 24 W hat you need to Actual Actual Actual believe $ in m illions FY'22 FY'23 FY'24 FY'25 Beginning ARR $ 1,411 $ 1,641 $ 2,0 21 $ 2
Slide 15: Q&A
iM Q&A
Slide 16: Thank You
THANK YOU ptc.com p tc . com A white
Slide 17: Appendix
APPENDIX
Slide 18: Appendix: FY'25 Guidance Includes the Following Assumptions
APPENDIX: FY’25 GUIDANCE INCLUDES THE FOLLOWING ASSUMPTIONS We provide ARR guidance on a constant currency basis, using our FY’25 Plan foreign exchange rates (rates as of September 30, 2024) for all periods. We expect churn to remain low. For cash flow, due to largely similar invoicing seasonality,
Slide 19: Appendix: FX Impact on ARR
APPENDIX: FX IMPACT ON ARR Q2'25 Q4'25 Using FX rates as of September 30 , 20 24 (FY'25 Plan FX rates) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Guidance Q3'25 Guidance Midpoint Midpoint Constant Currency ARR by Product Group CAD (product data authoring) $ 80 6 $ 829 $ 846 $ 868 $ 881 PLM (product data m anagem
Slide 20: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this document that are not historic facts, including statements about our future financial and growth expectations and targets, potential stock repurchases, and the expected effect of our go-to-market realignment, are forward-looking statements that involve r
Slide 21: Operating Measure
OPERATING MEASURE ARR: ARR (Annual Run Rate) represents the annualized value of our portfolio of active subscription software, SaaS, hosting, and support contracts as of the end of the reporting period. We calculate ARR as follows: We consider a contract to be active when the product or service cont
Slide 22: Operating Measure (Continued)
OPERATING MEASURE (CONTINUED) As ARR is not annualized recurring revenue, it is not calculated based on recognized or unearned revenue and is not affected by variability in the timing of revenue under ASC 606, particularly for on-premises license subscriptions where a substantial portion of the tota
Slide 23: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES PTC provides supplemental non-GAAP financial measures 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 operating performance because they provide a view of our op
Slide 24: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Free Cash Flow In millions Q1'24 Q1'25 Q2'25 Guidance FY'25 Guidance Operating Cash Flow $187 $238 ~$274 $850 to $865 Capital expenditures ($5) ($3) ~($4) ~($15) Free cash flow $183 $236 ~$270 $835 to $850 Diluted Earnings per Share: GAAP vs. Non