Sector: Technology|Industry: Software - Application|Market Cap: $22.17B|Employees: 7.5K
PTC is a global software company that provides solutions for manufacturers and product companies to digitally transform how they design, manufacture, and service physical products. The company's core business model revolves around CAD and PLM software, offered primarily through a subscription model, with key markets including industrial, aerospace, electronics, automotive, and medical technology. PTC's competitive advantages lie in its end-to-end digital thread capabilities, enabling a connected flow of product data across the value chain, and a strong global presence with a diverse customer base.
Annual Run Rate (ARR) increased 7% year-over-year to $2.21 billion, driven by growth in both PLM and CAD segments. This growth highlights the continued success of PTC's subscription-based business model and its ability to generate recurring revenue.
Operating income decreased 3% YoY to $115.5 million, primarily due to costs associated with the company's go-to-market realignment. These costs include severance and consulting fees, indicating a strategic shift in the company's operational structure.
Cash provided by operating activities increased 27% year-over-year to $238.4 million, driven by higher collections, lower vendor disbursements, and reduced interest payments. This improvement shows the company's strong cash generation capabilities and efficient management of its operations.