PTC Inc. (NASDAQ:PTC) Files An 8-K Regulation FD Disclosure

PTC Inc. (NASDAQ:PTC) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure

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New Long-Term Financial Targets

PTC is today announcing revised financial targets for the fiscal year ending September30, 2021 (FY2021) and introducing financial targets for the fiscal year ending September30, 2023 (FY2023).

Measure

FY2021 Target(1) FY2023 Target(1)

Software Revenue

$1.7 Billion $2.2 Billion

Total Revenue

$1.9 Billion $2.4 Billion

Subscription Mix

85% 85%

Annual Recurring Software Revenue

95% 95%

Non-GAAP Operating Margin(2)

Low 30% 37%

Non-GAAP EPS(2)

$4.30 $6.50

Free Cash Flow

$600 Million $850 Million
(1) These future targets do not take into consideration the impact of ASC 606, which PTC will adopt as of October1, 2018 (FY2019).
(2) These future non-GAAP financial targets cannot be reconciled to GAAP as the items that impact GAAP results that we generally exclude from our non-GAAP financial measures are not known nor estimable. Those items may cause our GAAP financial results to differ materially from our non-GAAP financial targets and results.

Stock Repurchases and Accelerated Share Repurchase

In connection with our previously announced stock repurchase program, and subject to completion of the contemplated $1.0billion investment by Rockwell Automation, Inc. to that certain Securities Purchase Agreement dated as of June11, 2018 by and between PTC and Rockwell Automation, PTC intends to enter into an accelerated share repurchase agreement with an investment bank to repurchase all or a significant portion of the additional $1.0billion of stock repurchases authorized to be undertaken after the closing of the contemplated Rockwell Automation investment. The Company’s stock repurchase program does not obligate the Company to repurchase any shares and may be terminated, increased or decreased by the Board in its discretion at any time.

Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section27A of the Securities Act and Section21E of the Exchange Act, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to our FY2021 and FY2023 financial targets, the investment by Rockwell, the use of the proceeds therefrom, and the Company’s stock repurchase program are forward-looking statements that involve a number of uncertainties and risks. Actual results may differ materially from these statements and from actual future events or results due to a variety of factors, including: our customers may not purchase our solutions when or as we expect; our businesses, including our internet of things and augmented reality businesses, may not expand or generate the revenue we expect; customers may not purchase software subscriptions or convert existing software support contracts to software subscriptions when or as we expect; the closing conditions for the Rockwell investment may not be satisfied or waived; any use of proceeds from the Rockwell investment or share repurchases may not occur as or when expected; our assumptions about anticipated tax rates and obligations may be incorrect or may change; and the other risks described in reports and documents that the Company files from time to time with the SEC, including its Annual Report on Form10-Kfor the fiscal year ended September30, 2017 and its Quarterly Report on Form10-Qfor the quarter ended March31, 2018. Undue reliance should not be placed on the forward-looking statements in this Current Report on Form8-K,which are based on information available to the Company on the date hereof. Except to the extent required by applicable law, the Company disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise.

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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.

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