Today, June 11, 2019, PTC announces its intention to increase its target stock repurchases from 40% of annual free cash flow to 50% of annual free cash flow for FY2020.
PTC is also reaffirming its FY2023 Financial Targets under ASC 605 of:
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$2.4 Billion Total Revenue

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$2.2 Billion Software Revenue

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95% Subscription Mix

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37% Non-GAAP Operating Margin

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$6.30 Non-GAAP EPS

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$850 Million Adjusted Free Cash Flow

Our non-GAAP financial measures and the reasons we use them are described beginning on page 35 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2018. You should read that information to understand what items are excluded from our non-GAAP financial measures as those items can cause our non-GAAP measures to differ materially from our reported GAAP results and many of those items are recurring items. We cannot reconcile our non-GAAP financial targets to future period GAAP targets as the items we exclude from our non-GAAP financial targets are not known or estimable.
These FY2023 financial targets are under the ASC 605 revenue reporting standard. We adopted the ASC 606 revenue reporting standard on October1, 2018, the beginning of our 2019 fiscal year. Such financial targets would differ if formulated using the ASC 606 revenue reporting standard. We plan to provide FY2023 financial targets under ASC606 in November 2019 after we have completed our work to provide such targets.
Our FY2023 financial targets and our intention to target using 50% of free cash flow to repurchase shares in FY2020 are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. The risks and uncertainties that could cause actual results to differ materially from those projected are described 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 Form10-Q. You should read those Risk Factors to understand the risks and uncertainties that could cause our actual results to differ materially from the targets set forth above. The risks and uncertainties we describe in those reports are not the only risks we face, additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

About PTC Inc. (NASDAQ:PTC)

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.