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,

2023

2022

2023

2022

Cash flows from operating activities:

Net income

$

61,398

$

70,476

$

199,937

$

206,244

Stock-based compensation

53,818

49,420

147,568

133,283

Depreciation and amortization

27,906

21,987

76,943

65,456

Amortization of right-of-use lease assets

8,141

8,612

24,705

26,149

Loss (gain) on investment

-

(2,993)

-

31,854

Gain on divestiture of business

-

(29,808)

-

(29,808)

Operating lease liability

(6,345)

(7,184)

(1,360)

(10,544)

Accounts receivable

13,043

12,918

99,521

25,228

Accounts payable and accruals

18,726

23,165

11,368

(16,768)

Deferred revenue

(17,396)

(28,975)

18,696

18,038

Income taxes

2,259

12,403

(9,910)

6,124

Other

7,673

(13,255)

(6,376)

(58,429)

Net cash provided by operating activities

169,223

116,766

561,092

396,827

Capital expenditures

(5,085)

(4,470)

(18,035)

(9,979)

Acquisition of businesses, net of cash acquired ⁽¹⁾

-

(274,974)

(828,271)

(274,974)

Purchase of intangible assets

-

(999)

-

(5,453)

Borrowings (payments) on debt, net ⁽²⁾

(180,000)

159,000

386,000

(16,000)

Repurchases of common stock

-

-

-

(125,000)

Net proceeds associated with issuance of common stock

-

-

10,592

10,857

Payments of withholding taxes in connection with vesting of stock-based awards

(19,467)

(12,261)

(75,489)

(62,856)

Net proceeds from marketable securities

-

-

-

-

Net proceeds from sale (purchases) of investments ⁽³⁾

349

4,213

(5,474)

46,906

Credit facility origination costs

-

-

(13,355)

-

Divestiture of business, net ⁽⁴⁾

-

32,518

(154)

32,518

Other financing & investing activities

(1,660)

6,736

(14,421)

17,804

Foreign exchange impact on cash

(2,346)

(10,915)

6,835

(14,654)

Net change in cash, cash equivalents, and restricted cash

(38,986)

15,614

9,320

(4,004)

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

321,194

307,428

272,888

327,046

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

$

282,208

$

323,042

$

282,208

$

323,042

Supplemental cash flow information:

Cash paid for interest

$

22,576

$

2,079

$

51,946

$

25,907

(1) In Q2'23, we acquired ServiceMax Inc. for $1,448 million, net of cash acquired. We paid $828 million in Q2'23 with the remaining $650 million to be paid in Q1'24. Of the $650 million to be paid, $620 million will be a financing outflow and $30 million of imputed interest will be an operating cash outflow. In Q3'22, we acquired Intland for approximately $275.0 million, net of cash acquired.

(2) In FY'23, net borrowings were related to funds borrowed under our credit facility to fund the ServiceMax acquisition.

(3) In Q2'22, we sold an equity investment in a publicly-traded company for $42.7 million.

(4) In Q3'22, we sold a portion of our PLM services business.