Slide 1: Q3'24 Financial Results
Q3’24 FINANCIAL RESULTS Neil Barua CEO Kristian Talvitie CFO July 31, 2024
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, and expected effects of strategic investments and initiatives. Because such statements deal with future ev
Slide 3: Neil Barua, CEO
NEIL BARUA, CEO
Slide 4: Our unique portfolio helps customers accelerate time to market and manage complexity
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 4
Slide 5: PLM expansion at an automotive industry supplier
PLM EXPANSION AT AN AUTOMOTIVE INDUSTRY SUPPLIER Goal This customer, a supplier of cabling and wiring harness solutions to the automotive industry, is benefitting from the rise of software defined vehicles and the importance of electronic wiring systems and wants to drive faster growth. Solution and
Slide 6: Digital thread at a medical equipment company
DIGITAL THREAD AT A MEDICAL EQUIPMENT COMPANY Goal This medical equipment company has been a Creo CAD and Windchill PLM customer for years. After being a Codebeamer ALM customer for about a year, they now want to take the next step and embark on a digital thread initiative to unlock further value. S
Slide 7: Services scalability at a power systems company
SERVICES SCALABILITY AT A POWER SYSTEMS COMPANY Goal This customer engineers, manufactures, and services industrial electrical power systems. They have a CEO-led initiative to better leverage their installed based to grow aftermarket revenue in a repeatable and cost- effective manner. Solution and I
Slide 8: Kristian Talvitie, CFO
KRISTIAN TALVITIE, CFO
Slide 9: Solid ARR and cash flow results
SOLID ARR AND CASH FLOW RESULTS ARR: Solid growth across geographic regions and product groups Q3'24 $ in millions Q3'24 Q3'23 YoY Change Guidance ARR as reported $2,126 $1,929 10% Constant currency ARR $2,125 $1,904 12% $2,115 - $2,130 CASH FLOW: Solid growth driven by ARR increase and operating ef
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 $1,302 $1,300 $824 $824 $ in millions +12% +13% +8% +10% $1,165 $764 $1,153 $752 As Constant Reported Currency Q3'23 Q3'24 Q3'23 Q4'24 Americas Europe APAC
Slide 11: Balance sheet and share repurchase program
BALANCE SHEET AND SHARE REPURCHASE PROGRAM Balance sheet update $ in millions Q3'24 Q2'24 Change Cash and cash equivalents $ 248 $ 249 $ (1) Senior notes with an aggregate interest rate of 3.8% $ 1,000 $ 1,000 $ - Term loan with a variable interest rate of 6.9% $ 494 $ 497 $ (3) $1,250 revolving cre
Slide 12: FY'24 and Q4'24 Guidance
FY’24 AND Q4’24 GUIDANCE FY’24 YoY FY’24 Previous FY’24 Q4’24 $ in millions Growth Guidance Guidance Guidance Guidance Constant currency ARR (FY'24 Plan FX rates)1 $2,200 - $2,240 $2,200 - $2,220 11% - 12% $2,200 - $2,220 Operating cash flow ~$745 ~$740 ~21% ~$88 Free cash flow2 ~$725 ~$725 ~23% ~$8
Slide 13: Q4'24 illustrative constant currency ARR model
Q4’24 ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve the midpoint of Q4’24 constant currency ARR guidance? Using FX rates as of September 30, 2023 What you need to Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual believe $ in millions Q1
Slide 14: Q&A
Slide 15: Thank You
© otc ptc.com iD finfe THANK YOU
Slide 16: Appendix
APPENDIX
Slide 17: FY'24 guidance includes the following assumptions
FY’24 GUIDANCE INCLUDES THE FOLLOWING ASSUMPTIONS We provide ARR guidance on a constant currency basis, using our FY’24 Plan foreign exchange rates (rates as of September 30,2023) for all periods. We expect churn to remain low. For cash flow, due to invoicing seasonality, and consistent with the pas
Slide 18: FX impact on ARR
FX IMPACT ON ARR Using FY'24 Plan FX rates as of Sept 30, 2023 FY'23 FY'24 In millions Quarter Ended Quarter Ended 30-Jun 30-Sep Guidance Guidance Constant Currency ARR by Product Group 31-Dec 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar Midpoint Midpoint CAD (product data authoring) $ 712 $ 730 $ 752 $ 769 $
Slide 19: 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 and potential stock repurchases, are forward-looking statements that involve risks and uncertainties that could cause actual results
Slide 20: Operating Measure
OPERATING MEASURE ARR: ARR (Annual Run Rate) represents the annualized value of our portfolio of active subscription software, cloud, SaaS, 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 contra
Slide 21: 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 22: 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 23: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Free Cash Flow Q4'24 FY'24 In millions Q3'23 Q3'24 Guidance Guidance Net cash prov ided by (used in) operating activ ities $169 $214 ~$88 ~$740 Capital expenditures (5) (2) (5) (15) Free cash flow $164 $212 ~$83 ~$725 Earnings per share FY'24 Q4'