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 31,

2023

2022

License revenue ⁽¹⁾

$

183,998

$

172,698

Support and cloud services revenue

330,469

257,656

Professional services revenue

35,747

35,556

Total revenue

$

550,214

$

465,910

(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,

2023

2022

Cost of revenue

$

5,089

$

4,075

Sales and marketing

16,127

12,196

Research and development

14,238

11,458

General and administrative

23,559

13,775

Total stock-based compensation

$

59,013

$

41,504

PTC Inc.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED)

(in thousands, except per share data)

Three Months Ended

December 31,

December 31,

2023

2022

GAAP gross margin

$

440,194

$

370,120

Stock-based compensation

5,089

4,075

Amortization of acquired intangible assets included in cost of revenue

9,566

6,142

Non-GAAP gross margin

$

454,849

$

380,337

GAAP operating income

$

118,713

$

104,901

Stock-based compensation

59,013

41,504

Amortization of acquired intangible assets

19,929

14,168

Acquisition and transaction-related charges

2,506

5,806

Restructuring and other credits, net

(795)

(338)

Non-GAAP operating income ⁽¹⁾

$

199,366

$

166,041

GAAP net income

$

66,387

$

75,035

Stock-based compensation

59,013

41,504

Amortization of acquired intangible assets

19,929

14,168

Acquisition and transaction-related charges

2,506

5,806

Restructuring and other credits, net

(795)

(338)

Non-operating charges, net ⁽²⁾

-

525

Income tax adjustments ⁽³⁾

(14,038)

(18,733)

Non-GAAP net income

$

133,002

$

117,967

GAAP diluted earnings per share

$

0.55

$

0.63

Stock-based compensation

0.49

0.35

Amortization of acquired intangibles

0.17

0.12

Acquisition and transaction-related charges

0.02

0.05

Restructuring and other credits, net

(0.01)

(0.00)

Non-operating charges, net ⁽²⁾

-

0.00

Income tax adjustments ⁽³⁾

(0.12)

(0.16)

Non-GAAP diluted earnings per share

$

1.11

$

0.99

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

Three Months Ended

December 31,

December 31,

2023

2022

GAAP operating margin

21.6

%

22.5

%

Stock-based compensation

10.7

%

8.9

%

Amortization of acquired intangibles

3.6

%

3.0

%

Acquisition and transaction-related charges

0.5

%

1.2

%

Restructuring and other credits, net

(0.1)

%

(0.1)

%

Non-GAAP operating margin

36.2

%

35.6

%

(2) In Q1'23, we recognized a $0.5M financing charge for a debt commitment agreement associated with our anticipated 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 Q1'24, adjustments exclude a non-cash tax expense of $3.6 million for a tax reserve related to prior years in a foreign jurisdiction.