PTC Inc (PTC)

Business Description

PTC is a global software company that specializes in providing digital solutions to transform the engineering, manufacturing, and servicing of physical products . The company primarily serves industries such as industrials, aerospace and defense, electronics and high tech, automotive, and medical technology and life sciences . PTC's product offerings are categorized into several key areas, including Computer-Aided Design (CAD), Product Lifecycle Management (PLM), Application Lifecycle Management (ALM), and Service Lifecycle Management (SLM) .

Product Lifecycle Management (PLM) - Offers solutions for managing the entire lifecycle of a product from inception, through engineering design and manufacturing, to service and disposal, led by the Windchill product.
Computer-Aided Design (CAD) - Provides tools for creating precise drawings and technical illustrations, driven by the Creo product.
Application Lifecycle Management (ALM) - Delivers software solutions for managing the lifecycle of applications, ensuring quality and compliance.
Service Lifecycle Management (SLM) - Focuses on optimizing the service and maintenance of products to enhance customer satisfaction and operational efficiency.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Neil Barua	President and Chief Executive Officer	February 14, 2024	Neil Barua is the President and CEO of PTC Inc. He became CEO on February 14, 2024, after being CEO-Elect since July 2023. He joined PTC through the acquisition of ServiceMax, where he was CEO .
Kristian Talvitie	Executive Vice President and Chief Financial Officer	May 2019	Kristian Talvitie has been the Executive Vice President and CFO of PTC since May 2019. He previously held roles at PTC, including Corporate VP of Finance and SVP of Financial Planning and Analysis .
Alice Christenson	Chief Accounting Officer	N/A	Alice Christenson is the Chief Accounting Officer at PTC, overseeing accounting functions. Her beneficial ownership of PTC securities was reported on February 14, 2024 .
Michael DiTullio	President and Chief Operating Officer	February 2023	Michael DiTullio served as President and COO from February 2023 until September 30, 2024. He has been with PTC since 1999, holding various roles, including EVP of Global Sales .
Catherine Kniker	Executive Vice President, Chief Strategy and Marketing Officer	February 2023	Catherine Kniker is the EVP, Chief Strategy and Marketing Officer since February 2023. She joined PTC in 2016 and has held various strategic roles, including Chief Strategy and Sustainability Officer .
Aaron von Staats	Executive Vice President, General Counsel	2003	Aaron von Staats has been the EVP, General Counsel, and Secretary at PTC since 2003. He joined PTC in 1997 and has held various legal roles before becoming General Counsel .

Questions to Ask Management

Your fiscal '25 ARR growth guidance midpoint has decreased from double digits to single digits over the past 90 days; what specific factors have led to this reduced outlook?
You've mentioned potential near-term disruptions due to the go-to-market realignment; can you elaborate on the challenges you anticipate and how you plan to mitigate them to avoid impacting sales performance?
With macroeconomic uncertainties and possible budget impacts post-election, how confident are you in achieving your fiscal '25 targets, and what contingency plans are in place if market conditions worsen?
Given that your R&D expenses are growing at approximately 11% CAGR while SG&A is growing at approximately 4%, how will this imbalance affect your ability to drive sales and marketing effectiveness in a challenging selling environment?
As you shift to a vertically aligned go-to-market strategy focusing on five key industries, how are you ensuring that specialization doesn't lead to siloed operations and that cross-industry opportunities are not overlooked?

Program Details	Program 1
Approval Date	October 1, 2024
End Date/Duration	September 30, 2027
Total additional amount	$2 billion
Remaining authorization amount	N/A
Details	Return approximately 50% of free cash flow to shareholders via share repurchases. Plan to repurchase approximately $300 million in fiscal year 2025.

Debt Maturity Schedule

Year	Amount Due (in millions)	Debt Type	Interest Rate (%)	% of Total Debt
2025	$500.0	3.625% Senior Notes	3.625	28.5% = ($500.0 / $1,753.0) * 100
2025	$21.9	Credit Facility Term Loan	6.9	1.2% = ($21.9 / $1,753.0) * 100
2028	$500.0	4.000% Senior Notes	4.000	28.5% = ($500.0 / $1,753.0) * 100
2028	$490.6	Credit Facility Term Loan	6.9	28.0% = ($490.6 / $1,753.0) * 100
2028	$262.0	Credit Facility Revolver	7.0	14.9% = ($262.0 / $1,753.0) * 100

Auditor

Name	Start Date	End Date	Reason for Change
PricewaterhouseCoopers LLP	1992	Present	Current auditor