PTC (PTC) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Intelligent Product Lifecycle vision and customer adoption

• Focus on enabling customers to modernize product data foundations for AI-driven efficiency and quality improvements.

• Adoption of CAD, PLM, ALM, and SLM solutions is key to seamless engineering workflows and intelligence at scale.

• Customers in electronics, high-tech, and aerospace are accelerating adoption to meet speed and quality demands.

• Metrics like speed to market, quality, and defect rates are used to measure progress and drive purchase decisions.

• AI-embedded releases are driving customer interest and elevating the value of the product data foundation.

Internal transformation and operational focus

• Refocused on core priorities and product data foundation, divesting non-core assets to streamline operations.

• Go-to-market transformation aligned sales, customer success, and implementation teams for better execution.

• Increased cadence of product innovation, including new organically built products and faster releases.

• Minimal disruption from recent divestitures, with capital reallocated to innovation and core platforms.

• Strong internal KPIs include close rates, pipeline quality, new rep productivity, and renewal rates.

Deal structures, ARR, and financial visibility

• Strategic, multi-year ramp deals prioritized over short-term gains to maximize long-term customer value.

• Deferred ARR provides greater visibility and predictability, reducing price sacrifices for upfront ARR.

• Contracts are carefully structured to minimize slippage risk, with no plans for renegotiation.

• Q4 step-up in ARR is supported by increased deferred ARR, providing confidence in future performance.

• Capital allocation favors share buybacks currently, but remains balanced with ongoing R&D and potential M&A.