"In our third fiscal quarter, we again delivered strong results. We reported ARR growth of 9% and 15% on an organic constant currency basis. In addition, our recently acquired Codebeamer business had an outstanding quarter and added an additional point of ARR growth, taking constant currency ARR growth to 16%. In Q3, our cash from operations was $117 million, up 33% year over year, and our adjusted free cash flow was $132 million, up 23% year over year. The strength in Q3 was broad-based across all segments and geographic regions, driven by demand for digital transformation and SaaS," said James Heppelmann, President and CEO, PTC.
"Our differentiated product portfolio and leading SaaS capabilities position PTC to drive superior value for customers. Given the high resiliency of our business due to our subscription model coupled with our strong market position, as well as the strong execution of our teams, we are raising our key guidance measures for fiscal 2022 for the third time this year," concluded Heppelmann.
Third Quarter 2022 Highlights[1]
Key operating and financial highlights are set forth below. For additional details, please refer to the Q3'22 earnings presentation and financial data tables that have been posted to the Investor Relations section of our website at investor.ptc.com. Revenue and, as a result, operating margin, operating profit, and earnings per share are impacted by revenue recognition under ASC 606.
- ARR as reported was $1,544 million at the end of Q3'22, up 9% compared to Q3'21, including $15 million related to the acquisition of Codebeamer. On a constant currency basis (including $16 million related to Codebeamer), ARR was $1,625 million, up 16%, compared to Q3'21. On an organic constant currency basis (excluding $16 million related to Codebeamer), ARR was $1,610 million, up 15% compared to Q3'21, and above guidance of $1,580 million to $1,595 million. Foreign exchange rate fluctuations had an $81 million negative impact on our Q3'22 reported ARR. ARR at the end of Q3'22 includes a $4 million reduction associated with discontinuing our business operations in Russia in Q2'22.
- Cash flow from operations was $117 million, free cash flow was $112 million, and adjusted free cash flow was $132 million in Q3'22, up compared to Q3'21 by 33%, 33%, and 23%, respectively. All three metrics were above guidance. In Q3'21, cash flow from operations was $88 million, free cash flow was $85 million, and adjusted free cash flow was $107 million.
- Revenue was $462 million in Q3'22, up 6% compared to Q3'21. On a constant currency basis, revenue was $480 million, up 12% compared to Q3'21.
- Operating margin was 17% in both Q3'22 and Q3'21. Non-GAAP operating margin in Q3'22 was 34%, compared to 31% in Q3'21.
- Earnings per share was $0.60 in Q3'22, compared to $0.43 in Q3'21. Non-GAAP earnings per share in Q3'22 was $0.97, compared to $0.83 in Q3'21.
- Total cash and cash equivalents as of the end of Q3'22 was $322 million. Gross debt was $1.43 billion as of the end of Q3'22. The increase in gross debt during Q3'22 was primarily due to financing the Codebeamer acquisition with our revolving credit facility, partially offset by repaying $105 million on our revolving credit facility.
[1] 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.
Fiscal 2022 and Q4'22 Guidance
"PTC delivered solid third quarter results. Based on our Q3 performance and our forecast for the remainder of the year, including the impact of Codebeamer and DxP, we are raising our ARR and free cash flow and adjusted free cash flow guidance for fiscal 2022. Due to foreign exchange headwinds, we are reducing our revenue guidance," said Kristian Talvitie, EVP and CFO, PTC.
"Despite the foreign exchange headwinds and the impact of exiting our business in Russia in Q2'22, our resilient business model, consistent execution, and operational discipline position us to deliver on our updated targets for the year," concluded Talvitie.
In millions except percentages | FY'22 Previous
| FY'22 Guidance | FY'22 YoY Growth Guidance | Q4'22
|
ARR at Constant Currency(1) | $1,640 - $1,665 | $1,660 - $1,690 | 13% - 15% | $1,660 - $1,690 |
Cash from Operations(2) | ~$430 | ~$430 | ~17% | ~$35 |
Free Cash Flow(2),(3) | ~$405 | ~$410 | ~19% | ~$25 |
Adjusted Free Cash Flow(2),(3) | ~$455 | ~$465 | ~19% | ~$30 |
Revenue | $1,905 - $1,975 | $1,900 - $1,950 | 5% - 8% |
|
(1) | On a constant currency basis, using our FY'22 Plan foreign exchange rates (rates as of September 30, 2021) for all periods |
(2) | FY'22 cash from operations and free cash flow guidance include restructuring payments of approximately $45 million (current estimate is $40 million to $45 million) and acquisition and transaction-related payments of approximately $10 million, both of which are excluded from FY'22 adjusted free cash flow guidance; Q4'22 cash from operations and free cash flow guidance include expected restructuring payments of approximately $5 million which are excluded from Q4'22 adjusted free cash flow guidance |
(3) | Free cash flow and adjusted free cash flow guidance are net of expected capex of approximately $20 million in FY'22 and $10 million in Q4'22 |
Our FY'22 guidance now reflects the expected operating results of the Codebeamer business and the effect of the DxP transaction, as well as the impact of business combination accounting, incremental interest expense, and all acquisition and transaction-related charges.
Our FY'22 and Q4'22 financial guidance includes the assumptions below:
- We provide ARR guidance on a constant currency basis, using our FY'22 Plan foreign exchange rates (rates as of September 30, 2021) for all periods. Unfavorable changes in foreign exchange rates have been a headwind to our reported ARR. At end of Q3'22 foreign exchange rates, FY'22 ARR would be lower by approximately $85 million, compared to our constant currency guidance (previously $34 million, based on foreign exchange rates as of the end of Q2'22).
- We expect FY'22 organic churn, excluding the impact of our exit from Russia, to improve by approximately 150 basis points (previously 100 basis points) over FY'21.
- Due to invoicing seasonality, the majority of our collections occur in the first half of our fiscal year. Q4 is our lowest cash flow generation quarter.
- Our operating costs are expected to increase in FY'22 due to hiring, increased SaaS investments, merit increases that took effect in Q3'22, and the acquisition of the Codebeamer business in Q3'22 (updated). At the mid-point of ARR guidance, we expect FY'22 GAAP operating expenses to increase approximately 4% to 5% (previously 3% to 4%) and non-GAAP operating expenses to increase approximately 2% to 3% over FY'21.
- FY'22 GAAP P&L results are expected to include the items outlined below, totaling $281 million to $291 million (previously $293 million to $308 million), as well as their related tax effects:
- $170 million to $180 million (previously $160 million to $170 million) of stock-based compensation expense
- $61 million (previously $58 million) of intangible asset amortization expense
- $37 million (previously $35 million to $40 million) of restructuring charges
- $11 million (previously approximately $5 million) of acquisition and transaction-related charges
- $32 million (previously $35 million) of FY'22 net realized losses from the sale of investments
- $30 million gain associated with the sale of a portion of our PLM service business (new)
- Related to restructuring, for FY'22 we expect:
- P&L charges of $37 million (previously $35 million to $40 million), which have been incurred in the first nine months of FY'22.
- Cash outflows for restructuring payments of $40 million to $45 million, of which $38 million was paid in the first nine months of FY'22. Restructuring payments in FY'22 include $5 million related to prior period actions, primarily the relocation of our headquarters in FY'19.
- Our FY'22 GAAP tax rate is expected to be approximately 20% and our non-GAAP tax rate is expected to be approximately 19%.
- FY'22 capital expenditures are expected to be approximately $20 million (previously $25 million).
- 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 (updated).
PTC's Fiscal Third Quarter Results Conference Call
The Company will host a conference call to discuss results at 5:00 pm ET on Wednesday, July 27, 2022. To participate in the live conference call, dial (888) 330-2508 or (240) 789-2735 and provide the passcode 7328695, or log in to the webcast, available on PTC's Investor Relations website. A replay will also be available.
Important Disclosures
Important Information About Our 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 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-related and other transactional charges included in general and administrative expenses; restructuring and other charges, net; certain non-operating charges and credits; 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" on page 24 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. In FY'21, we incurred tax expense related to a South Korean tax matter which is excluded from our non-GAAP financial measures as it is related to prior periods and not included in management's view of results for comparative purposes. We also recorded a tax benefit in FY'21 related to the release of our U.S. valuation allowance as a result of the Arena acquisition and our conclusion that it is now more likely than not that we will realize the majority of our deferred tax assets in the U.S. As the non-GAAP tax provision is calculated assuming that there is no valuation allowance, this benefit has been excluded from our non-GAAP financial measures.
Free Cash Flow and Adjusted Free Cash Flow: PTC provides information on free cash flow and adjusted 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. Adjusted free cash flow is free cash flow net of restructuring payments, acquisition and transaction-related payments, and non-ordinary course tax-related payments or receipts. Free cash flow and adjusted free cash flow are not measures 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 rate fluctuations. To present CC information, FY'22 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, 2021, rather than the actual exchange rates in effect during that period.
Operating Measures
ARR: We provide an ARR (Annual Run Rate) operating measure to help investors understand and assess the performance of our business as a SaaS and on-premise subscription company. ARR represents the annualized value of our portfolio of active subscription software, cloud, SaaS, and support contracts as of the end of the reporting period. ARR includes orders placed under our Strategic Alliance Agreement with Rockwell Automation, including orders placed to satisfy contractual minimum commitments.
We believe ARR is a valuable operating metric to measure the health of a subscription business because it captures expected subscription and support cash generation from customers.
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 effect of ARR (other than insignificant amounts) from acquisitions in the comparative period and foreign exchange rate fluctuations.
Because our ARR measures represent the annualized value of customer contracts as of a point in time, they do not represent revenue for any particular period or remaining revenue that will be recognized in future periods.
Churn: We provide churn measures to enable investors to understand and assess our customer contract retention. Churn represents the difference between the ARR amount for all subscription software, cloud, SaaS, and support contracts ended within a reporting period and the annualized renewal transactions started within a reporting period, as of the end of the reporting period.
Forward-Looking Statements
Statements in this press release 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 when or as we expect, or may deteriorate, due to, among other factors, the COVID-19 pandemic, the effects of the Russia/Ukraine conflict, and inflation, which could cause customers to delay or reduce purchases of new software, reduce the number of subscriptions they carry, or delay payments to us, all of which would adversely affect ARR and our financial results, including cash flow; our businesses, including our SaaS businesses, may not expand and/or generate the revenue or ARR we expect if customers are slower to adopt our technologies than we expect or if they adopt competing technologies; our transactions with Intland Software and ITC Infotech may not have the expected effects on our business or results of operations; our strategic initiatives and investments, including our restructuring and our accelerated investments in our transition to SaaS, may not deliver the results when or as we expect; we may be unable to generate sufficient operating cash flow to repay amounts under our credit facility or to return 50% of free cash flow to shareholders, and other uses of cash or our credit facility limits or other matters could preclude such repayment and/or 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 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 and Quarterly Reports on Form 10-Q.
About PTC (NASDAQ: PTC)
PTC enables global manufacturers to realize double-digit impact with software solutions that enable them to accelerate product and service innovation, improve operational efficiency, and increase workforce productivity. In combination with an extensive partner network, PTC provides customers flexibility in how its technology can be deployed to drive digital transformation – on premises, in the cloud, or via its pure SaaS platform. At PTC, we don't just imagine a better world, we enable it.
PTC Investor Relations Contact
Matt Shimao
SVP, Investor Relations
Email Contact
Email Contact
PTC Inc. |
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
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(in thousands, except per share data) |
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| Three Months Ended |
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| Nine Months Ended |
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| June 30, |
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| June 30, |
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| June 30, |
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| June 30, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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Revenue: |
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Recurring revenue | $ | 415,197 |
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| $ | 387,175 |
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| 1,273,032 |
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| $ | 1,186,978 |
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Perpetual license |
| 8,203 |
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|
| 7,259 |
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|
| 26,211 |
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| 22,644 |
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Professional services |
| 39,074 |
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| 41,234 |
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| 126,179 |
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| 116,882 |
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Total revenue (1) |
| 462,474 |
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| 435,668 |
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| 1,425,422 |
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| 1,326,504 |
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Cost of revenue (2) |
| 101,995 |
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| 95,077 |
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| 290,450 |
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| 271,355 |
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Gross margin |
| 360,479 |
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| 340,591 |
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| 1,134,972 |
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| 1,055,149 |
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Operating expenses: |
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Sales and marketing (2) |
| 124,325 |
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| 134,412 |
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| 366,209 |
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| 388,315 |
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Research and development (2) |
| 88,170 |
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| 78,134 |
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| 250,639 |
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|
| 221,514 |
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General and administrative (2) |
| 54,618 |
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| 47,084 |
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| 154,027 |
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| 157,417 |
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Amortization of acquired intangible assets |
| 8,931 |
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| 7,511 |
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|
| 25,865 |
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| 21,708 |
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Restructuring and other charges, net |
| 4,458 |
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| (132) |
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| 36,887 |
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|
| 584 |
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Total operating expenses |
| 280,502 |
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| 267,009 |
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|
| 833,627 |
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| 789,538 |
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Operating income |
| 79,977 |
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| 73,582 |
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| 301,345 |
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| 265,611 |
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Other income (expense), net |
| 20,801 |
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| (15,113) |
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| (41,625) |
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| (43,378) |
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Income before income taxes |
| 100,778 |
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| 58,469 |
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| 259,720 |
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| 222,233 |
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Provision for income taxes |
| 30,302 |
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| 7,266 |
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| 53,476 |
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| 38,253 |
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Net income | $ | 70,476 |
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| $ | 51,203 |
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|
| 206,244 |
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| $ | 183,980 |
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Earnings per share: |
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Basic | $ | 0.60 |
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| $ | 0.44 |
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| 1.76 |
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| $ | 1.58 |
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Weighted average shares outstanding |
| 117,073 |
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|
| 116,934 |
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|
| 117,114 |
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|
| 116,702 |
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Diluted | $ | 0.60 |
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| $ | 0.43 |
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| 1.75 |
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| $ | 1.56 |
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Weighted average shares outstanding |
| 117,968 |
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| 118,611 |
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|
| 118,097 |
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| 118,181 |
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(1) See supplemental financial data for revenue by license, support, and professional services. |
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(2) See supplemental financial data for additional information about stock-based compensation. |
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PTC Inc. SUPPLEMENTAL FINANCIAL DATA FOR REVENUE AND STOCK-BASED COMPENSATION (in thousands, except per share data) |
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Revenue by license, support and services is as follows: |
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| Three Months Ended |
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| Nine Months Ended |
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| June 30, |
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| June 30, |
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| June 30, |
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| June 30, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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License revenue (1) | $ | 175,163 |
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| $ | 163,583 |
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| $ | 562,646 |
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| $ | 538,769 |
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Support and cloud services revenue |
| 248,237 |
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| 230,851 |
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| 736,597 |
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| 670,853 |
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Professional services revenue |
| 39,074 |
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| 41,234 |
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|
| 126,179 |
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| 116,882 |
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Total revenue | $ | 462,474 |
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| $ | 435,668 |
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| $ | 1,425,422 |
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| $ | 1,326,504 |
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(1) License revenue includes the portion of subscription revenue allocated to license. |
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The amounts in the income statement include stock-based compensation as follows: |
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| Three Months Ended |
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| Nine Months Ended |
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| June 30, |
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| June 30, |
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| June 30, |
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| June 30, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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Cost of revenue | $ | 8,429 |
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| $ | 5,094 |
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| $ | 18,665 |
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| $ | 14,034 |
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Sales and marketing |
| 14,029 |
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| 14,229 |
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| 38,556 |
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| 42,533 |
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Research and development |
| 11,002 |
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| 8,514 |
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| 30,682 |
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| 24,878 |
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General and administrative |
| 15,960 |
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| 15,231 |
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| 45,380 |
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| 52,451 |
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Total stock-based compensation | $ | 49,420 |
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| $ | 43,068 |
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| $ | 133,283 |
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| $ | 133,896 |
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PTC Inc. NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) (in thousands, except per share data) |
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| Three Months Ended |
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| Nine Months Ended |
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|
| June 30, |
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| June 30, |
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| June 30, |
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| June 30, |
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|
| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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GAAP gross margin | $ | 360,479 |
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| $ | 340,591 |
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| $ | 1,134,972 |
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| $ | 1,055,149 |
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Stock-based compensation |
| 8,429 |
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| 5,094 |
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| 18,665 |
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| 14,034 |
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Amortization of acquired intangible assets included in cost of revenue |
| 6,596 |
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| 8,260 |
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| 19,010 |
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| 21,644 |
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Non-GAAP gross margin | $ | 375,504 |
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| $ | 353,945 |
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| $ | 1,172,647 |
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| $ | 1,090,827 |
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GAAP operating income | $ | 79,977 |
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| $ | 73,582 |
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| $ | 301,345 |
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| $ | 265,611 |
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Stock-based compensation |
| 49,420 |
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| 43,068 |
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| 133,283 |
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| 133,896 |
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Amortization of acquired intangible assets |
| 15,527 |
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| 15,771 |
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| 44,875 |
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| 43,352 |
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Acquisition-related and other transactional charges |
| 6,355 |
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|
| 618 |
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| 11,308 |
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|
| 14,844 |
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Restructuring and other charges, net |
| 4,458 |
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| (132) |
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| 36,887 |
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|
| 584 |
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Non-GAAP operating income (1) | $ | 155,737 |
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| $ | 132,907 |
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| $ | 527,698 |
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| $ | 458,287 |
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GAAP net income | $ | 70,476 |
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| $ | 51,203 |
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| $ | 206,244 |
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| $ | 183,980 |
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Stock-based compensation |
| 49,420 |
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| 43,068 |
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| 133,283 |
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| 133,896 |
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Amortization of acquired intangible assets |
| 15,527 |
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|
| 15,771 |
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|
| 44,875 |
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|
| 43,352 |
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Acquisition-related and other transactional charges |
| 6,355 |
|
|
| 618 |
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|
| 11,308 |
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|
| 14,844 |
|
Restructuring and other charges, net |
| 4,458 |
|
|
| (132) |
|
|
| 36,887 |
|
|
| 584 |
|
Non-operating charges (credits), net (2) |
| (32,801) |
|
|
| - |
|
|
| 2,046 |
|
|
| - |
|
Income tax adjustments (3) |
| 1,052 |
|
|
| (12,513) |
|
|
| (43,617) |
|
|
| (37,065) |
|
Non-GAAP net income | $ | 114,487 |
|
| $ | 98,015 |
|
| $ | 391,026 |
|
| $ | 339,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
GAAP diluted earnings per share | $ | 0.60 |
|
| $ | 0.43 |
|
| $ | 1.75 |
|
| $ | 1.56 |
|
Stock-based compensation |
| 0.42 |
|
|
| 0.36 |
|
|
| 1.13 |
|
|
| 1.13 |
|
Amortization of acquired intangibles |
| 0.13 |
|
|
| 0.13 |
|
|
| 0.38 |
|
|
| 0.37 |
|
Acquisition-related and other transactional charges |
| 0.05 |
|
|
| 0.01 |
|
|
| 0.10 |
|
|
| 0.13 |
|
Restructuring and other charges, net |
| 0.04 |
|
|
| - |
|
|
| 0.31 |
|
|
| - |
|
Non-operating charges (credits), net |
| (0.28) |
|
|
| - |
|
|
| 0.02 |
|
|
| - |
|
Income tax adjustments |
| 0.01 |
|
|
| (0.11) |
|
|
| (0.37) |
|
|
| (0.31) |
|
Non-GAAP diluted earnings per share | $ | 0.97 |
|
| $ | 0.83 |
|
| $ | 3.31 |
|
| $ | 2.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(1) Operating margin impact of non-GAAP adjustments: |
|
|
|
|
| ||||||||||
|
| Three Months Ended |
|
| Nine Months Ended |
| ||||||||||
|
| June 30, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| ||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| ||||
GAAP operating margin |
| 17.3 | % |
|
| 16.9 | % |
|
| 21.1 | % |
|
| 20.0 | % |
Stock-based compensation |
| 10.7 | % |
|
| 9.9 | % |
|
| 9.4 | % |
|
| 10.1 | % |
Amortization of acquired intangibles |
| 3.4 | % |
|
| 3.6 | % |
|
| 3.1 | % |
|
| 3.3 | % |
Acquisition-related and other transactional charges |
| 1.4 | % |
|
| 0.1 | % |
|
| 0.8 | % |
|
| 1.1 | % |
Restructuring and other charges, net |
| 1.0 | % |
|
| 0.0 | % |
|
| 2.6 | % |
|
| 0.0 | % |
Non-GAAP operating margin |
| 33.7 | % |
|
| 30.5 | % |
|
| 37.0 | % |
|
| 34.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(2) Credits for the three months ended June 30, 2022 include a $29.8 million gain on the sale of a portion of our PLM services business, and a $3.0 million gain on sale of an investment. Net charges for the nine months ended June 30, 2022 include a $34.8 million expense recognized due to the reduction in value of an equity investment in a publicly-traded company, offset by a $29.8 million gain on the sale of a portion of our PLM services business, and a $3.0 million gain on sale of an investment. |
| ||||||||||||||
(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 Q3, adjustments include tax expense of $15.5 million related to the sale of our PLM service business, of which $8.1 million pertains to the basis difference on goodwill. 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 non-GAAP results for the nine months ended June 30, 2021 excluded tax expenses of $34.8 million related to a non-U.S. prior period tax exposure, primarily related to foreign withholding taxes. |
| ||||||||||||||
PTC Inc. |
| ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
| ||||||
(in thousands) |
| ||||||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
| June 30, |
|
| September 30, |
| ||
|
| 2022 |
|
| 2021 |
| ||
|
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Cash and cash equivalents | $ | 322,326 |
|
| $ | 326,532 |
|
Accounts receivable, net |
| 473,298 |
|
|
| 541,072 |
|
Property and equipment, net |
| 90,815 |
|
|
| 100,237 |
|
Goodwill and acquired intangible assets, net |
| 2,781,314 |
|
|
| 2,570,854 |
|
Lease assets, net |
| 143,388 |
|
|
| 152,337 |
|
Other assets |
| 794,397 |
|
|
| 816,528 |
|
|
|
|
|
|
|
| ||
Total assets | $ | 4,605,538 |
|
| $ | 4,507,560 |
|
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Deferred revenue | $ | 495,473 |
|
| $ | 497,677 |
|
Debt, net of deferred issuance costs |
| 1,425,084 |
|
|
| 1,439,471 |
|
Lease obligations |
| 194,836 |
|
|
| 208,799 |
|
Other liabilities |
| 332,975 |
|
|
| 323,145 |
|
Stockholders' equity |
| 2,157,170 |
|
|
| 2,038,468 |
|
|
|
|
|
|
|
| ||
Total liabilities and stockholders' equity | $ | 4,605,538 |
|
|
| 4,507,560 |
|
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, |
| ||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
| ||||
Net income | $ | 70,476 |
|
| $ | 51,203 |
|
| $ | 206,244 |
|
| $ | 183,980 |
|
Stock-based compensation |
| 49,420 |
|
|
| 43,068 |
|
|
| 133,283 |
|
|
| 133,896 |
|
Depreciation and amortization |
| 21,987 |
|
|
| 22,501 |
|
|
| 65,456 |
|
|
| 62,670 |
|
Amortization of right-of-use lease assets |
| 8,612 |
|
|
| 9,075 |
|
|
| 26,149 |
|
|
| 28,031 |
|
Loss (gain) on investment |
| (2,993) |
|
|
| - |
|
|
| 31,854 |
|
|
| - |
|
Gain on divestiture of business |
| (29,808) |
|
|
| - |
|
|
| (29,808) |
|
|
| - |
|
Operating lease liability |
| (7,184) |
|
|
| (3,124) |
|
|
| (10,544) |
|
|
| (13,106) |
|
Accounts receivable |
| 12,918 |
|
|
| 5,744 |
|
|
| 25,228 |
|
|
| (4,110) |
|
Accounts payable and accruals |
| 23,165 |
|
|
| 16,851 |
|
|
| (16,768) |
|
|
| 15,955 |
|
Deferred revenue |
| (28,975) |
|
|
| (21,477) |
|
|
| 18,038 |
|
|
| 30,733 |
|
Income taxes |
| 12,403 |
|
|
| (8,580) |
|
|
| 6,124 |
|
|
| (13,524) |
|
Other |
| (13,255) |
|
|
| (27,227) |
|
|
| (58,429) |
|
|
| (101,037) |
|
Net cash provided by operating activities |
| 116,766 |
|
|
| 88,034 |
|
|
| 396,827 |
|
|
| 323,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Capital expenditures |
| (4,470) |
|
|
| (3,420) |
|
|
| (9,979) |
|
|
| (11,662) |
|
Acquisition of businesses, net of cash acquired (1) |
| (274,974) |
|
|
| (581) |
|
|
| (274,974) |
|
|
| (717,779) |
|
Purchase of intangible assets |
| (999) |
|
|
| - |
|
|
| (5,453) |
|
|
| (550) |
|
Borrowings (payments) on debt, net |
| 159,000 |
|
|
| (30,000) |
|
|
| (16,000) |
|
|
| 472,000 |
|
Repurchases of common stock |
| - |
|
|
| - |
|
|
| (125,000) |
|
|
| - |
|
Net proceeds associated with issuance of common stock |
| - |
|
|
| - |
|
|
| 10,857 |
|
|
| 10,484 |
|
Payments of withholding taxes in connection with vesting of stock-based awards |
| (12,261) |
|
|
| (14,973) |
|
|
| (62,856) |
|
|
| (42,215) |
|
Net proceeds from marketable securities (2) |
| - |
|
|
| - |
|
|
| - |
|
|
| 58,469 |
|
Net proceeds from sale of investments (3) |
| 4,213 |
|
|
| - |
|
|
| 46,906 |
|
|
| - |
|
Divestiture of business, net (4) |
| 32,518 |
|
|
| - |
|
|
| 32,518 |
|
|
| - |
|
Other financing & investing activities |
| 6,736 |
|
|
| (488) |
|
|
| 17,804 |
|
|
| (3,570) |
|
Foreign exchange impact on cash |
| (10,915) |
|
|
| 1,103 |
|
|
| (14,654) |
|
|
| 1,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net change in cash, cash equivalents, and restricted cash |
| 15,614 |
|
|
| 39,675 |
|
|
| (4,004) |
|
|
| 90,311 |
|
Cash, cash equivalents, and restricted cash, beginning of period |
| 307,428 |
|
|
| 326,596 |
|
|
| 327,046 |
|
|
| 275,960 |
|
Cash, cash equivalents, and restricted cash, end of period | $ | 323,042 |
|
| $ | 366,271 |
|
| $ | 323,042 |
|
| $ | 366,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(1) In the three months ended June 30, 2022, we acquired Intland for approximately $275.0 million, net of cash acquired. In the three months ended March 31, 2021, we acquired Arena for approximately $715 million, net of cash acquired. |
| ||||||||||||||
(2) In the three months ended December 31, 2020, we sold all of our available-for-sale securities. |
| ||||||||||||||
(3) In the three months ended March 31, 2022, we sold an equity investment in a publicly-traded company for $42.7 million. |
| ||||||||||||||
(4) In the three months ended June 30, 2022, we sold a portion of our PLM services business. |
| ||||||||||||||
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, |
| |||||
2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| |||||
Cash provided by operating activities | $ | 116,766 |
|
| $ | 88,034 |
|
| $ | 396,827 |
|
|
| 323,488 |
|
Capital expenditures |
| (4,470) |
|
|
| (3,420) |
|
|
| (9,979) |
|
|
| (11,662) |
|
Free cash flow | $ | 112,296 |
|
| $ | 84,614 |
|
| $ | 386,848 |
|
| $ | 311,826 |
|
Restructuring and other related payments |
| 10,161 |
|
|
| 1,987 |
|
|
| 38,512 |
|
|
| 13,716 |
|
Acquisition & transaction-related payments |
| 9,684 |
|
|
| 3,767 |
|
|
| 10,116 |
|
|
| 14,842 |
|
Non-ordinary course tax payment (1) |
| - |
|
|
| 16,936 |
|
|
| - |
|
|
| 17,907 |
|
Adjusted free cash flow | $ | 132,141 |
|
| $ | 107,304 |
|
| $ | 435,476 |
|
| $ | 358,291 |
|
|
|
| ||||||||||||||
(1) In the three and nine months ended June 30, 2021, we made payments related to a non-U.S. prior period tax exposure, primarily related to foreign withholding taxes. |
| ||||||||||||||
View original content to download multimedia:
https://www.prnewswire.com/news-releases/ptc-announces-third-fiscal-quarter-2022-results-301594669.html
SOURCE PTC Inc.
| Contact: |
| Company Name: PTC Inc.
Financial data for PTC Inc. |
