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    PTC ANNOUNCES THIRD FISCAL QUARTER 2024 RESULTS

    7/31/24 4:01:00 PM ET
    $PTC
    Computer Software: Prepackaged Software
    Technology
    Get the next $PTC alert in real time by email

    Solid ARR and Cash Flow in Q3'24

    Guiding to 11-12% Constant Currency ARR Growth and Maintaining Free Cash Flow Guidance for FY'24

    BOSTON, July 31, 2024 /PRNewswire/ -- PTC (NASDAQ:PTC) today reported financial results for its third fiscal quarter ended June 30, 2024.

    PTC - digital transforms physical. (PRNewsfoto/PTC Inc.)

    "In our third fiscal quarter, we again delivered solid ARR and cash flow, with year-over-year ARR growth in the low double-digits and cash flow growth above 20%. We have a differentiated strategy that leverages our unique product portfolio to help product companies accelerate time to market and manage increasing complexity. It's an exciting time because our products are at the epicenter of driving business transformation at our customers. We are strengthening our ability to scale our business by continuing to align our resources with our five focus areas," said Neil Barua, CEO, PTC.

    Third Quarter 2024 Highlights

    Key operating and financial highlights are set forth below. The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release.

    $ in millions

    Q3'24

    Q3'23

    YoY Change



    Q3'24

    Guidance

    ARR as reported

    $2,126

    $1,929

    10 %





    Constant currency ARR

    $2,125

    $1,904

    12 %



    $2,115 - $2,130

    Operating cash flow

    $214

    $169

    26 %



    ~$225

    Free cash flow

    $212

    $164

    29 %



    ~$220

    Revenue1

    $519

    $542

    (4%)2



    $525 - $540

    Operating margin1

    18 %

    20 %

    (~180 bps)





    Non-GAAP operating margin1

    32 %

    34 %

    (~240 bps)





    Earnings per share1

    $0.573

    $0.51

    11 %



    $0.41 - $0.54

    Non-GAAP earnings per share1

    $0.984

    $0.99

    (1 %)



    $0.90 - $1.00

    Total cash and cash equivalents

    $248

    $282

    (12 %)





    Gross debt5

    $1,816

    $2,3656

    (23 %)









    1

    Revenue and, as a result, operating margin, operating profit, and earnings per share are impacted under ASC 606.

    2

    In Q3'24, revenue declined 3% year over year on a constant currency basis.

    3

    In Q3'24, GAAP EPS included a non-cash tax benefit of $14.2 million or $0.12, primarily associated with the effects of IRS procedural guidance issued in May 2024.

    4

    In Q3'24, non-GAAP EPS included a non-cash tax benefit of $9.8 million or $0.08, primarily associated with the effects of IRS procedural guidance issued in May 2024.

    5

    Gross debt excludes unamortized debt issuance costs.

    6

    Q3'23 gross debt included a deferred acquisition payment related to ServiceMax of $620 million, which was paid in October 2023. 

    Fiscal 2024 and Q4'24 Guidance

    "In a selling environment that continued to be challenging, our Q3'24 ARR grew 10% year over year, and constant currency ARR grew 12% year over year, driven by our differentiated product portfolio, the resilience of our subscription business model, operational discipline, and the actions we have taken over time to align our investments with market opportunities. Our Q3'24 free cash flow growth of 29% was also solid, although slightly below our guidance due to timing. Reflecting our year-to-date performance and our outlook for the fourth quarter, we are updating our FY'24 constant currency ARR guidance range to 11 to 12 percent growth and maintaining our FY'24 free cash flow guidance. We believe we have set our guidance appropriately," said Kristian Talvitie, CFO.

      $ in millions

    FY'24 Previous

    Guidance

    FY'24

    Guidance

    FY'24 YoY Growth

    Guidance

    Q4'24

    Guidance





    Constant currency ARR

    $2,200 - $2,240

    $2,200 - $2,220

    11% - 12%

    $2,200 - $2,220



    Operating cash flow

    ~$745

    ~$740

    ~21%

    ~$88



    Free cash flow

    ~$725

    ~$725

    ~23%

    ~$83



    Revenue

    $2,270 - $2,340

    $2,270 - $2,320

    8% - 11%

    $598 - $648



    Earnings per share

    $2.52 - $3.22

    $2.78 - $3.35

    35% - 63%

    $0.72 - $1.29



    Non-GAAP earnings per share

    $4.60 - $5.10

    $4.85 - $5.21

    12% - 20%

    $1.30 - $1.66



    Reconciliation of Operating Cash Flow Guidance to Free Cash Flow Guidance

      In millions

    FY'24

    Guidance

    Q4'24

    Guidance







      Operating Cash Flow

    ~$740

    ~$88





    Capital expenditures

    (~$15)

    (~$5)





      Free Cash Flow

    ~$725

    ~$83





    Reconciliation of EPS Guidance to Non-GAAP EPS Guidance



    FY'24

    Guidance

    Q4'24

    Guidance





    Earnings per share

    $2.78 - $3.35

    $0.72 - $1.29



    Stock-based compensation expense

    $1.90 - $1.74

    $0.56 - $0.40



    Intangible asset amortization expense

    ~$0.67

    ~$0.17



    Acquisition and transaction-related expense

    ~$0.02

    ~$0.00



    Other non-operating expenses, related to an impairment loss on an

         available for sale debt security

    ~$0.02

    ~$0.00



    Income tax adjustments related to the reconciling items

    ($0.59) – ($0.54)

    ($0.20) – ($0.15)



    Non-GAAP Earnings per share

    $4.85 - $5.21

    $1.30 - $1.66



    FY'24 and Q4'24 financial 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 and payments seasonality, and consistent with the past 3 years, we expect the majority of our collections to occur in the first half of our fiscal year and for fiscal Q4 to be our lowest cash flow generation quarter.
    • Compared to FY'23, at the midpoint of FY'24 ARR guidance, FY'24 GAAP operating expenses are expected to increase approximately 6%, and FY'24 non-GAAP operating expenses are expected to increase approximately 8%, primarily due to investments to drive future growth, the acquisition of ServiceMax, and foreign exchange rate fluctuations.
    • FY'24 GAAP P&L results are expected to include the items below, totaling approximately $295 million to $315 million, as well as their related tax effects:
      • approximately $210 million to $230 million of stock-based compensation expense,
      • approximately $81 million of intangible asset amortization expense,
      • approximately $2 million, net, related to acquisition and transaction-related expense and a restructuring credit, and
      • approximately $2 million of other non-operating expenses, related to an impairment loss on an available-for-sale debt security.
    • Our FY'24 GAAP tax rate is expected to be approximately 17% and our non-GAAP tax rate is expected to be approximately 19%.
    • Cash tax payments are expected to be approximately $65 million in FY'24.
    • Capital expenditures are expected to be approximately $15 million in FY'24.
    • Cash interest payments are expected to be approximately $135 million in FY'24.
    • Our long-term goal, assuming our Debt/EBITDA ratio is below 3x, is to return approximately 50% of our free cash flow to shareholders via share repurchases, while also taking into consideration the interest rate environment and strategic opportunities.
      • We expect to prioritize paying down our debt in FY'24.
      • We expect gross debt of approximately $1.7 billion at the end of FY'24.
      • We expect our fully diluted share count to be approximately 121 million in FY'24.

    PTC's Fiscal Third Quarter Conference Call

    The Company will host a conference call to discuss results at 5:00 pm ET on Wednesday, July 31, 2024. To participate in the live conference call, dial (888) 330-2508 or (240) 789-2735, provide the passcode 7328695, and press # or log in to the webcast, available on PTC's Investor Relations website. A replay will also be available.

    Important Information About Our Operating and Non-GAAP Financial Measures

    Non-GAAP Financial Measures

    We provide supplemental non-GAAP financial measures to our 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 operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.

    Non-GAAP operating expense, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income and non-GAAP EPS exclude the effect of the following items: stock-based compensation; amortization of acquired intangible assets; acquisition and transaction-related charges included in general and administrative expenses; restructuring and other charges and credits, net; non-operating charges and credits shown in the reconciliation provided; and income tax adjustments. Additional information about the items we exclude from our non-GAAP financial measures and the reasons we exclude them can be found in "Non-GAAP Financial Measures" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023.

    Free Cash Flow: We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings and to evaluate our performance against our announced long-term goals and intent to return approximately 50% of our free cash flow to shareholders via stock repurchases. Free cash flow is cash provided by (used in) operations net of capital expenditures. Free cash flow is not a measure of cash available for discretionary expenditures.

    Constant Currency (CC): We present CC information to provide a framework for assessing how our underlying business performed excluding the effects of foreign currency exchange rate fluctuations. To present CC information, FY'24 and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the foreign exchange rate as of September 30, 2023, rather than the actual exchange rates in effect during that period.

    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 contractual term commences (the "start date") until the right to use the product or service ends (the "expiration date"). Even if the contract with the customer is executed before the start date, the contract will not count toward ARR until the customer right to receive the benefit of the products or services has commenced.
    • For contracts that include annual values that increase over time as there are additional deliverables in subsequent periods, which we refer to as ramp contracts, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation.
    • As ARR includes only contracts that are active at the end of the reporting period, ARR does not reflect assumptions or estimates regarding future customer renewals or non-renewals.
    • Active contracts are annualized by dividing the total active contract value by the contract duration in days (expiration date minus start date), then multiplying that by 365 days (or 366 days for leap years).

    We believe ARR is a valuable operating measure to assess the health of a subscription business because it is aligned with the amount that we invoice the customer on an annual basis. We invoice customers annually for the current year of the contract. A customer with a one-year contract will typically be invoiced for the total value of the contract at the beginning of the contractual term, while a customer with a multi-year contract will be invoiced for each annual period at the beginning of each year of the contract.

    ARR increases by the annualized value of active contracts that commence in a reporting period and decreases by the annualized value of contracts that expire in the reporting period.

    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 total value of the contract is recognized at a point in time upon the later of when the software is made available, or the subscription term commences.

    ARR should be viewed independently of recognized and unearned revenue and is not intended to be combined with, or to replace, either of those items. Investors should consider our ARR operating measure only in conjunction with our GAAP financial results.

    Organic ARR: We provide an organic ARR measure to help investors understand and assess the performance of our business without the distorting effects of ARR from acquisitions in the comparative period. We do not adjust for acquisitions that have an immaterial impact on our ARR results when providing organic ARR results.

    Organic Constant Currency ARR: We provide an organic constant currency ARR measure to help investors understand and assess the performance of our business without the distorting effects of ARR from acquisitions in the comparative period and foreign exchange rate fluctuations. We do not adjust for acquisitions that have an immaterial impact on our ARR results when providing organic constant currency ARR results.

    Deferred ARR: Deferred ARR is ARR attributable to our portfolio of subscription software, cloud, SaaS and support contracts that are not active as of the end of the reporting period but are contractually committed to commence in a future period.

    Because ARR is independent of recognized and unearned revenue, deferred ARR should not be viewed as a measurement of revenue which will be recognized in future periods.

    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 to differ materially from those projected. These risks include: the macroeconomic and/or global manufacturing climates may not improve or may deteriorate due to, among other factors, high interest rates or increases in interest rates and inflation, volatile foreign exchange rates and the relative strength of the U.S. dollar, tightening of credit standards and availability, the effects of the conflicts between Russia and Ukraine and in the Middle East, and growing tensions with China, any of which could cause customers to delay or reduce purchases of new software, reduce the number of subscriptions they carry, or delay payments to us, which would adversely affect ARR and/or our financial results and cash flow; our investments in our software solutions may not drive expansion of those solutions and/or generate the ARR and/or cash flow we expect if customers are slower to adopt those solutions than we expect or if they adopt competing solutions; our strategic initiatives to improve organizational and operational efficiency may not do so when or as we expect; other uses of cash or our credit facility limits could limit or preclude the return of 50% of free cash flow to shareholders via share repurchases, or could change our expectations about the amount and timing of any share repurchases; and foreign exchange rates may differ materially from those we expect. In addition, our assumptions concerning our future GAAP and non-GAAP effective income tax rates are based on estimates and other factors that could change, including changes to tax laws in the U.S. and other countries and the geographic mix of our revenue, expenses, and profits. Other risks and uncertainties that could cause actual results to differ materially from those projected are detailed from time to time in reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission.

    About PTC (NASDAQ:PTC)

    PTC (NASDAQ:PTC) is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture, and service the physical products that the world relies on. Headquartered in Boston, Massachusetts, PTC employs over 7,000 people and supports more than 25,000 customers globally. For more information, please visit www.ptc.com.

    PTC.com     @PTC     Blogs

    PTC Investor Relations Contact

    Matt Shimao

    SVP, Investor Relations

    [email protected]

    [email protected]

    PTC Inc.



    UNAUDITED CONSOLIDATED STATEMENTS OF INCOME



    (in thousands, except per share data)





















































    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



























    Revenue:























    Recurring revenue

    $

    481,559





    $

    498,410





    $

    1,551,600





    $

    1,407,662



    Perpetual license



    7,050







    8,251







    22,243







    30,417



    Professional services



    30,030







    35,681







    98,082







    112,354



    Total revenue (1)



    518,639







    542,342







    1,671,925







    1,550,433



























    Cost of revenue (2)



    111,916







    115,854







    331,991







    325,150



























    Gross margin



    406,723







    426,488







    1,339,934







    1,225,283



























    Operating expenses:























    Sales and marketing (2)



    140,318







    145,083







    411,763







    392,673



    Research and development (2)



    110,253







    103,819







    323,034







    292,345



    General and administrative (2)



    49,659







    57,055







    180,391







    173,949



    Amortization of acquired intangible assets



    10,672







    10,670







    31,459







    29,352



    Restructuring and other credits, net



    -







    (39)







    (802)







    (376)



    Total operating expenses



    310,902







    316,588







    945,845







    887,943



























    Operating income



    95,821







    109,900







    394,089







    337,340



    Other expense, net



    (28,448)







    (33,374)







    (95,372)







    (93,321)



    Income before income taxes



    67,373







    76,526







    298,717







    244,019



    Provision (benefit) for income taxes



    (1,605)







    15,128







    48,907







    44,082



    Net income

    $

    68,978





    $

    61,398





    $

    249,810





    $

    199,937



























    Earnings per share:























    Basic

    $

    0.58





    $

    0.52





    $

    2.09





    $

    1.69



    Weighted average shares outstanding



    119,893







    118,483







    119,533







    118,186



























    Diluted

    $

    0.57





    $

    0.51





    $

    2.07





    $

    1.68



    Weighted average shares outstanding



    120,822







    119,392







    120,593







    119,072







    (1) See supplemental financial data for revenue by license, support and cloud services, and professional services.



    (2) See supplemental financial data for additional information about stock-based compensation.



     

    PTC Inc.



    SUPPLEMENTAL FINANCIAL DATA FOR REVENUE AND STOCK-BASED COMPENSATION



    (in thousands, except per share data)



















































    Revenue by license, support and services is as follows:

























    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



    License revenue (1)

    $

    149,104





    $

    192,940





    $

    567,423





    $

    562,631



    Support and cloud services revenue



    339,505







    313,721







    1,006,420







    875,448



    Professional services revenue



    30,030







    35,681







    98,082







    112,354



    Total revenue

    $

    518,639





    $

    542,342





    $

    1,671,925





    $

    1,550,433



























    (1) License revenue includes the portion of subscription revenue allocated to license.



























    The amounts in the income statement include stock-based compensation as follows:





























    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



    Cost of revenue

    $

    5,856





    $

    5,847





    $

    15,979





    $

    15,668



    Sales and marketing



    15,167







    14,513







    46,023







    39,554



    Research and development



    13,101







    14,801







    41,275







    41,839



    General and administrative



    13,914







    18,657







    57,965







    50,507



    Total stock-based compensation

    $

    48,038





    $

    53,818





    $

    161,242





    $

    147,568



     

    PTC Inc.



    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)



    (in thousands, except per share data)





























    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



























    GAAP gross margin

    $

    406,723





    $

    426,488





    $

    1,339,934





    $

    1,225,283



    Stock-based compensation



    5,856







    5,847







    15,979







    15,668



    Amortization of acquired intangible assets included in cost of

    revenue



    9,685







    9,841







    28,835







    25,817



    Non-GAAP gross margin

    $

    422,264





    $

    442,176





    $

    1,384,748





    $

    1,266,768



























    GAAP operating income

    $

    95,821





    $

    109,900





    $

    394,089





    $

    337,340



    Stock-based compensation



    48,038







    53,818







    161,242







    147,568



    Amortization of acquired intangible assets



    20,357







    20,511







    60,294







    55,169



    Acquisition and transaction-related charges



    154







    795







    2,962







    18,484



    Restructuring and other credits, net



    -







    (39)







    (802)







    (376)



    Non-GAAP operating income (1)

    $

    164,370





    $

    184,985





    $

    617,785





    $

    558,185



























    GAAP net income

    $

    68,978





    $

    61,398





    $

    249,810





    $

    199,937



    Stock-based compensation



    48,038







    53,818







    161,242







    147,568



    Amortization of acquired intangible assets



    20,357







    20,511







    60,294







    55,169



    Acquisition and transaction-related charges



    154







    795







    2,962







    18,484



    Restructuring and other credits, net



    -







    (39)







    (802)







    (376)



    Non-operating charges, net (2)



    -







    -







    2,000







    5,147



    Income tax adjustments (3)



    (19,538)







    (18,830)







    (48,162)







    (52,506)



    Non-GAAP net income

    $

    117,989





    $

    117,653





    $

    427,344





    $

    373,423



























    GAAP diluted earnings per share

    $

    0.57





    $

    0.51





    $

    2.07





    $

    1.68



    Stock-based compensation



    0.40







    0.45







    1.34







    1.24



    Amortization of acquired intangibles



    0.17







    0.17







    0.50







    0.46



    Acquisition and transaction-related charges



    0.00







    0.01







    0.02







    0.16



    Restructuring and other credits, net



    -







    (0.00)







    (0.01)







    (0.00)



    Non-operating charges, net (2)



    -







    -







    0.02







    0.04



    Income tax adjustments (3)



    (0.16)







    (0.16)







    (0.40)







    (0.44)



    Non-GAAP diluted earnings per share

    $

    0.98





    $

    0.99





    $

    3.54





    $

    3.14



























    (1) Operating margin impact of non-GAAP adjustments:

























    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



    GAAP operating margin



    18.5

    %





    20.3

    %





    23.6

    %





    21.8

    %

    Stock-based compensation



    9.3

    %





    9.9

    %





    9.6

    %





    9.5

    %

    Amortization of acquired intangibles



    3.9

    %





    3.8

    %





    3.6

    %





    3.6

    %

    Acquisition and transaction-related charges



    0.0

    %





    0.1

    %





    0.2

    %





    1.2

    %

    Restructuring and other credits, net



    0.0

    %





    0.0

    %





    0.0

    %





    0.0

    %

    Non-GAAP operating margin



    31.7

    %





    34.1

    %





    37.0

    %





    36.0

    %





    (2) In the first nine months of FY'24, we recognized an impairment loss of $2.0 million on an available-for-sale debt security. In the first nine months of FY'23, we recognized $4.2 million of financing charges for a debt commitment agreement associated with our acquisition of ServiceMax.



    (3) Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. Additionally, in the first nine months of FY'24, adjustments exclude a tax expense of $3.6 million for a tax reserve related to prior years in a foreign jurisdiction.



     

    PTC Inc.



    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



    (in thousands)





























    June 30,





    September 30,





    2024





    2023















    ASSETS























    Cash and cash equivalents

    $

    247,749





    $

    288,103



    Accounts receivable, net



    674,959







    811,398



    Property and equipment, net



    77,535







    88,391



    Goodwill and acquired intangible assets, net



    4,352,750







    4,299,760



    Lease assets, net



    131,297







    143,028



    Other assets



    643,855







    658,162















    Total assets

    $

    6,128,145





    $

    6,288,842















    LIABILITIES AND STOCKHOLDERS' EQUITY























    Deferred revenue

    $

    687,614





    $

    681,550



    Debt, net of deferred issuance costs



    1,811,154







    1,695,785



    Deferred acquisition payments (1)



    -







    620,040



    Lease obligations



    180,274







    193,192



    Other liabilities



    434,424







    420,985



    Stockholders' equity



    3,014,679







    2,677,290















    Total liabilities and stockholders' equity

    $

    6,128,145





    $

    6,288,842







    (1) FY'23 Deferred acquisition payments represented the fair value of the $650 million payment associated with the ServiceMax, Inc. acquisition, which was paid in Q1'24.



     

    PTC Inc.



    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



    (in thousands)













































































    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



























    Cash flows from operating activities:























    Net income

    $

    68,978





    $

    61,398





    $

    249,810





    $

    199,937



    Stock-based compensation



    48,038







    53,818







    161,242







    147,568



    Depreciation and amortization



    27,128







    27,906







    81,272







    76,943



    Amortization of right-of-use lease assets



    7,684







    8,141







    23,143







    24,705



    Operating lease liability



    (3,145)







    (6,345)







    (13,438)







    (1,360)



    Accounts receivable



    23,915







    13,043







    131,422







    99,521



    Accounts payable and accruals



    64,831







    18,726







    35







    11,368



    Deferred revenue



    (32,578)







    (17,396)







    8,393







    18,696



    Income taxes



    (19,882)







    2,259







    (1,795)







    (9,910)



    Other



    28,830







    7,673







    11,786







    (6,376)



    Net cash provided by operating activities



    213,799







    169,223







    651,870







    561,092



























    Capital expenditures



    (1,639)







    (5,085)







    (9,841)







    (18,035)



    Acquisition of businesses, net of cash acquired(1)



    -







    -







    (93,457)







    (828,271)



    Borrowings (payments) on debt, net(2)



    (195,125)







    (180,000)







    109,049







    386,000



    Deferred acquisition payment(3)



    -







    -







    (620,040)







    -



    Net proceeds associated with issuance of common stock



    -







    -







    12,709







    10,592



    Payments of withholding taxes in connection with vesting of stock-

    based awards



    (21,405)







    (19,467)







    (92,589)







    (75,489)



    Settlement of net investment hedges



    6,050







    (1,660)







    3,826







    (14,204)



    Net proceeds from sale (purchases) of investments



    -







    349







    -







    (5,474)



    Credit facility origination costs



    -







    -







    -







    (13,355)



    Other financing & investing activities



    -







    -







    -







    (371)



    Foreign exchange impact on cash



    (2,832)







    (2,346)







    (2,003)







    6,835



























    Net change in cash, cash equivalents, and restricted cash



    (1,152)







    (38,986)







    (40,476)







    9,320



    Cash, cash equivalents, and restricted cash, beginning of period



    249,474







    321,194







    288,798







    272,888



    Cash, cash equivalents, and restricted cash, end of period

    $

    248,322





    $

    282,208





    $

    248,322





    $

    282,208



























    Supplemental cash flow information:























    Cash paid for interest(3)

    $

    18,375





    $

    22,576





    $

    112,394





    $

    51,946







    (1) In Q1'24, we acquired pure-systems for $93 million, net of cash acquired. In Q2'23, we acquired ServiceMax Inc. for $1,448 million, net of cash acquired. We paid $828 million in Q2'23 and the remaining $620 million in Q1'24.



    (2) In Q1'24, we borrowed $740 million to fund the ServiceMax deferred acquisition payment and the pure-systems acquisition. Subsequently, we've made net payments of $631 million.



    (3) In Q1'24, we made a payment of $650 million to settle the ServiceMax deferred acquisition payment liability, of which $620 million is a financing outflow and $30 million is an operating outflow and included in cash paid for interest.



     

    PTC Inc.



    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)



    (in thousands)





















































    Three Months Ended





    Nine Months Ended





    June 30,





    June 30,





    June 30,





    June 30,





    2024





    2023





    2024





    2023



    Cash provided by operating activities

    $

    213,799





    $

    169,223





    $

    651,870





    $

    561,092



    Capital expenditures



    (1,639)







    (5,085)







    (9,841)







    (18,035)



    Free cash flow

    $

    212,160





    $

    164,138





    $

    642,029





    $

    543,057



     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/ptc-announces-third-fiscal-quarter-2024-results-302211503.html

    SOURCE PTC Inc.

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