Slide 1: Q2'25 Financial Results
Q2’25 FINANCIAL RESULTS Neil Barua CEO Kristian Talvitie CFO April 30, 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: 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 4
Slide 5: Kristian Talvitie, CFO
KRISTIAN TALVITIE, CFO
Slide 6: Solid ARR and Cash Flow Results
SOLID ARR AND CASH FLOW RESULTS ARR $ in millions Q2'25 Q2'24 YoY Change Q2'25 Guidance ARR as reported $2,290 $2,0 88 10 % 1 Constant currency ARR at FY'25 Plan FX rates $2,326 $2,119 10 % ~9.5% grow th CASH FLOW $ in millions Q2'252 Q2'24 YoY Change Q2'25 Guidance Operating cash flow $281 $251 12%
Slide 7: 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 $897 $1,429 $1,410 $880 +8% +11% $ in millions +11% +8% $829 $1,291 $1,275 $814 As Constant Reported Currency Q2'24 Q2'25 Q2'24 Q2'25 Americas1 Europe1 APAC
Slide 8: Balance Sheet and Share Repurchase Program
BALANCE SHEET AND SHARE REPURCHASE PROGRAM Balance sheet $ in millions Q2'25 Q1'25 Change Cash and cash equivalents $ 235 $ 196 $ 39 Senior notes w ith a fixed interest rate of 4.0 % as of Q2'25 $ 50 0 $ 1,0 0 0 $ (50 0 ) Term loan w ith a variable interest rate of 5.9% as of Q2'25 $ 481 $ 488 $ (7)
Slide 9: FY'25 and Q3'25 Guidance
FY’25 AND Q3’25 GUIDANCE FY’25 FY’25 FY’25 YoY Growth Q3’25 $ in millions; % rounded to the nearest half Previous Guidance Guidance Guidance Guidance Constant currency ARR at FY'25 Plan FX rates1 9% to 10 % growth 7% to 9% growth 7% to 9% 8.5% to 9.5% growth Operating cash flow $850 to $8653 $855 to
Slide 10: Illustrative Constant Currency ARR Model
ILLUSTRATIVE CONSTANT CURRENCY ARR MODEL What does PTC need to deliver to achieve our constant currency ARR guidance? Using FX rates as of W hat you W hat you September 30 , 20 24 need to need to Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual believe believe $ in m illions Q1'
Slide 11: 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 12: Q&A
iM Q&A
Slide 13: Thank You
THANK YOU ptc.com p tc . com A white
Slide 14: Appendix
APPENDIX
Slide 15: 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 16: PLM Competitive Displacement and Continued Expansion at a MedTech Company
APPENDIX: PLM COMPETITIVE DISPLACEMENT AND CONTINUED EXPANSION AT A MEDTECH COMPANY Goal This MedTech company specializes in heart valves and focuses on innovative solutions. They see the potential to improve time to market and strengthen their regulatory compliance processes by moving from their le
Slide 17: PLM Competitive Displacement at the Aerospace Division of a European Conglomerate
APPENDIX: PLM COMPETITIVE DISPLACEMENT AT THE AEROSPACE DIVISION OF A EUROPEAN CONGLOMERATE Goal The aerospace division of this European industrial conglomerate is a leader in landing gear systems and on-board systems for aerospace. They see an opportunity to accelerate time to market while ensuring
Slide 18: Codebeamer for Software Defined Vehicles at Leading Automobile Manufacturers
APPENDIX: CODEBEAMER FOR SOFTWARE DEFINED VEHICLES AT LEADING AUTOMOBILE MANUFACTURERS 3 cross-sell deals at global auto companies 1 win at a top 10 auto manufacturer (by revenue) and 1 win at a top 10 auto manufacturer (by market cap) 18
Slide 19: Digital Transformation and ServiceMax Cross-Sell at a Global Industrial Company
APPENDIX: DIGITAL TRANSFORMATION AND SERVICEMAX CROSS-SELL AT A GLOBAL INDUSTRIAL COMPANY Goal This customer is a global industrial conglomerate that focuses on measurement, control, and automation solutions. They have a long-term target to drive growth, based on strengthening their engineering and
Slide 20: CAD and PLM Competitive Displacement at a Federal, Aerospace, and Defense Company
APPENDIX: CAD AND PLM COMPETITIVE DISPLACEMENT AT A FEDERAL, AEROSPACE, AND DEFENSE COMPANY Goal This customer is a leading global defense company that specializes in simulation technologies and training services for civil aviation and the defense industry. They are focused on driving growth and pro
Slide 21: FX Impact on ARR
APPENDIX: FX IMPACT ON ARR Using FX rates as of September 30 , 20 24 (FY'25 Plan FX rates) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Guidance Q4'25 Guidance $ in m illions Constant Currency ARR by Product Group CAD (product data authoring) $ 80 6 $ 829 $ 846 $ 868 $ 881 $ 897 PLM (product data m ana
Slide 22: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this document that are not historic facts, including statements about our future operating, financial and growth expectations, and potential stock repurchases, are forward-looking statements that involve risks and uncertainties that could cause actual results
Slide 23: 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 24: 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 25: 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 26: Reconciliation of Non-GAAP Financial Measures to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP Free Cash Flow $ in millions Q2'24 Q2'25 Q3'25 Guidance FY'25 Guidance Operating Cash Flow $251 $281 $234 to $239 $855 to $865 Capital expenditures ($4) ($3) ~($4) ~($15) Free cash flow $247 $279 $230 to $235 $840 to $850 Diluted Earnings per Sha