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

December 31,

December 28,

2020

2019

License revenue ⁽¹⁾

$

177,175

$

123,430

Support and cloud services revenue

216,245

190,936

Professional services revenue

35,630

41,744

Total revenue

$

429,050

$

356,110

(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 28,

2020

2019

Cost of revenue

$

4,434

$

3,043

Sales and marketing

14,999

7,452

Research and development

8,443

6,932

General and administrative

18,212

10,509

Total stock-based compensation

$

46,088

$

27,936

PTC Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)

(in thousands, except per share data)

Three Months Ended

December 31,

December 28,

2020

2019

GAAP gross margin

$

342,220

$

268,705

Stock-based compensation

4,434

3,043

Amortization of acquired intangible assets included in cost of revenue

6,267

6,799

Non-GAAP gross margin

$

352,921

$

278,547

GAAP operating income

$

90,338

$

30,425

Stock-based compensation

46,088

27,936

Amortization of acquired intangible assets

12,814

13,576

Acquisition-related and other transactional charges

3,916

7,129

Restructuring and other charges, net

247

14,034

Non-GAAP operating income ⁽¹⁾

$

153,403

$

93,100

GAAP net income

$

23,515

$

35,455

Stock-based compensation

46,088

27,936

Amortization of acquired intangible assets

12,814

13,576

Acquisition-related and other transactional charges

3,916

7,129

Restructuring and other charges, net

247

14,034

Income tax adjustments ⁽²⁾

27,151

(31,966)

Non-GAAP net income

$

113,731

$

66,164

GAAP diluted earnings per share

$

0.20

$

0.31

Stock-based compensation

0.39

0.24

Amortization of acquired intangibles

0.11

0.12

Acquisition-related and other transactional charges

0.03

0.06

Restructuring and other charges, net

-

0.12

Income tax adjustments

0.23

(0.28)

Non-GAAP diluted earnings per share

$

0.97

$

0.57

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

Three Months Ended

December 31,

December 28,

2020

2019

GAAP operating margin

21.1

%

8.5

%

Stock-based compensation

10.7

%

7.8

%

Amortization of acquired intangibles

3.0

%

3.8

%

Acquisition-related and other transactional charges

0.9

%

2.0

%

Restructuring and other charges, net

0.1

%

3.9

%

Non-GAAP operating margin

35.8

%

26.1

%