PTC Inc. is a global software company that enables manufacturers and product companies to digitally transform how they design, manufacture, and service physical products. The company's core business model is based on a subscription model, with 93% of its 2024 revenue being recurring. PTC's primary revenue streams come from its software offerings, including CAD (Computer Aided Design) solutions for product data authoring and PLM (Product Lifecycle Management) solutions for product data management and process orchestration. PTC serves customers in various industry verticals, including Industrials, Federal, Aerospace and Defense, Electronics and High Tech, Automotive, and Medical Technology and Life Sciences. The company's competitive advantage lies in its ability to enable end-to-end digital thread initiatives, which leverage a connected flow of product data across design, manufacturing, service, and reuse. PTC's market position is supported by its focus on creating value for customers, increasing Annual Run Rate (ARR), and delivering long-term value for shareholders.

PTC competes with a number of companies, including Autodesk, Dassault Systèmes SA, and Siemens AG for enterprise CAD and PLM solutions; IBM, Jama Software, Inc., and Siemens AG for ALM products; and Oracle, SAP and IFS AB for SLM products.

• Employees: 7,501 (as of September 30, 2024)
• Geographic Footprint: Global
• Headquarters: Boston, Massachusetts
• Founded: 1985
• Number of locations/facilities: 75 office locations
• Revenue: $2.30 billion (FY2024)
• Key Subsidiaries/Brands: Windchill, Codebeamer, ServiceMax, Servigistics, Arena, Creo, Onshape, ThingWorx, Vuforia

• CEO: Neil Barua
• CFO: Kristian Talvitie
• Chief Digital Officer: [Not specified in provided text]
• Chief Information Security Officer: [Not specified in provided text]
• Board Chair: Janice Chaffin

The Chief Digital Officer joined PTC in January 2022 and the CISO joined in April 2022. Both have extensive experience in their respective fields.

• Annual Revenue: $2.30 billion (FY2024)
• Net Income: $376.3 million
• Total Assets: $6.38 billion
• Employees: 7,501 (as of September 30, 2024)
• Key Financial Highlights: Annual Run Rate (ARR) grew 14% to $2.25 billion; Cash provided by operating activities grew 23% to $750 million; Free cash flow grew 25% to $736 million.

PTC offers a range of software products and services, categorized into:

• PLM Software: Includes Windchill, Codebeamer, ServiceMax, Servigistics, and Arena, which manage the product development lifecycle, application lifecycle, service lifecycle, and service parts inventory.
• CAD Software: Includes Creo and Onshape, which enable digital design, testing, and modification of product models.
• Enabling Technologies: Includes SaaS versions of Creo and Windchill, artificial intelligence software, ThingWorx Internet of Things software, and Vuforia augmented reality software.

PTC's revenue is primarily derived from two main segments:

• PLM: Includes Windchill, Codebeamer, ServiceMax, Servigistics, and Arena. PLM software revenue grew 12% in FY24.
• CAD: Includes Creo and Onshape. CAD software revenue grew 10% in FY24.

The company also generates revenue from professional services, which decreased by 12% in FY24 as the company continues to leverage partners to deliver services.

PTC's strategy focuses on creating value for customers, increasing Annual Run Rate (ARR) and cash flow, and delivering long-term value for shareholders. Key strategic initiatives include:

• Focusing resources on five core solutions: PLM, ALM, SLM, CAD, and SaaS or Software as a Service.
• Driving growth through existing customers expanding their PTC footprint and new customer acquisition.
• Transitioning operations to support the sale of SaaS solutions and developing competitive SaaS offerings.
• Investing in people and creating meaningful opportunities for career development.
• Committing to environmental sustainability through its climate action plan.

PTC operates in the software industry, specifically within the manufacturing and product development sectors. Key market trends affecting the business include:

• Increasing customer demand for SaaS solutions.
• Growing focus on digital transformation among manufacturers.
• Intense competition and disruptive technology developments.

Major competitors include Autodesk, Dassault Systèmes SA, Siemens AG, IBM, Jama Software, Inc., Oracle, SAP, and IFS AB.

• Competition: PTC faces significant competition in rapidly changing markets, which could impact its ability to attract and retain customers.
• Security Breaches: A breach of security in PTC's products or systems, or those of its third-party service providers, could compromise the integrity of its products, cause loss of data, harm its reputation, and create additional liability.
• Reliance on Third Parties: PTC increasingly relies on third-party providers for cloud infrastructure services and has a large ecosystem of strategic, technology, and software partners, which could adversely affect its business if these relationships fail or are terminated.
• Global Operations: PTC's globally dispersed sales and operations expose it to compliance risks, including anti-corruption laws, data privacy laws, and trade and economic sanctions laws.
• Sustainability Regulations: PTC and its customers are subject to an increasing number of laws and regulations related to sustainability matters, which could increase compliance costs and expose the company to risks associated with regulatory compliance.