PTC Inc.

SUPPLEMENTAL FINANCIAL DATA FOR REVENUE AND STOCK-BASED COMPENSATION

(in thousands)

Revenue by license, support and services is as follows:

Three Months Ended

December 31,

December 31,

2021

2020

License revenue ⁽¹⁾

$                  169,108

$                  177,175

Support and cloud services revenue

244,485

216,245

Professional services revenue

44,128

35,630

Total revenue

$                  457,721

$                  429,050

(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

December 31,

December 31,

2021

2020

Cost of revenue

$                      5,972

$                      4,434

Sales and marketing

13,081

14,999

Research and development

10,176

8,443

General and administrative

16,713

18,212

Total stock-based compensation

$                    45,942

$                    46,088

PTC Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)

(in thousands, except per share data)

Three Months Ended

December 31,

December 31,

2021

2020

GAAP gross margin

$                               362,603

$                               342,220

Stock-based compensation

5,972

4,434

Amortization of acquired intangible assets included in cost of revenue

6,493

6,267

Non-GAAP gross margin

$                               375,068

$                                352,921

GAAP operating income

$                                   62,178

$                                  90,338

Stock-based compensation

45,942

46,088

Amortization of acquired intangible assets

14,977

12,814

Acquisition-related and other transactional charges

1,050

3,916

Restructuring and other charges, net

33,991

247

Non-GAAP operating income ⁽¹⁾

$                                 158,138

$                                153,403

GAAP net income

$                                  46,089

$                                   23,515

Stock-based compensation

45,942

46,088

Amortization of acquired intangible assets

14,977

12,814

Acquisition-related and other transactional charges

1,050

3,916

Restructuring and other charges, net

33,991

247

Non-operating charges (credits) ⁽²⁾

(9,766)

-

Income tax adjustments ⁽³⁾

(19,225)

27,151

Non-GAAP net income

$                                 113,058

$                                  113,731

GAAP diluted earnings per share

$                                       0.39

$                                       0.20

Stock-based compensation

0.39

0.39

Amortization of acquired intangibles

0.13

0.11

Acquisition-related and other transactional charges

0.01

0.03

Restructuring and other charges, net

0.29

-

Non-operating charges (credits)

(0.08)

-

Income tax adjustments

(0.16)

0.23

Non-GAAP diluted earnings per share

$                                       0.95

$                                       0.97

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

Three Months Ended

December 31,

December 31,

2021

2020

GAAP operating margin

13.6%

21.1%

          Stock-based compensation

10.0%

10.7%

          Amortization of acquired intangibles

3.3%

3.0%

          Acquisition-related and other transactional charges

0.2%

0.9%

          Restructuring and other charges, net

7.4%

0.1%

Non-GAAP operating margin

34.5%

35.8%

     (2) In the first quarter of 2022, we recorded a $9.8 million gain on our investment in Matterport, Inc. 

     (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. In 2021 we had recorded a full valuation allowance against our U.S. net deferred 
          tax assets. As we were profitable on a non-GAAP basis, the 2021 tax provision was calculated assuming there was no valuation 
          allowance. Additionally, our Q1'21 non-GAAP results excluded tax expense of $34.6 million related to a South Korean tax exposure, 
          primarily related to foreign withholding taxes.