UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from_ to_
Commission File Number:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification Number) |
(Address of principal executive offices, including zip code)
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
There were
PTC Inc.
INDEX TO FORM 10-Q
For the Quarter Ended June 30, 2024
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Page Number |
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Item 1. |
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Consolidated Balance Sheets as of June 30, 2024 and September 30, 2023 |
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Consolidated Statements of Cash Flows for the nine months ended June 30, 2024 and June 30, 2023 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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Item 1A. |
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Item 5. |
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Item 6. |
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PART I—FINANCIAL INFORMATION
PTC Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
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June 30, |
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September 30, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts receivable, net of allowance for doubtful accounts of $ |
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Prepaid expenses |
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Other current assets |
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Total current assets |
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Property and equipment, net |
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Goodwill |
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Acquired intangible assets, net |
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Deferred tax assets |
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Operating right-of-use lease assets |
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Other assets |
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Total assets |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued expenses and other current liabilities |
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Accrued compensation and benefits |
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Accrued income taxes |
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Current portion of long-term debt |
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Deferred acquisition payments |
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Deferred revenue |
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Short-term lease obligations |
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Total current liabilities |
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Long-term debt |
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Deferred tax liabilities |
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Long-term deferred revenue |
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Long-term lease obligations |
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Other liabilities |
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Total liabilities |
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Stockholders’ equity: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
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$ |
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$ |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
1
PTC Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
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Three months ended |
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Nine months ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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Revenue: |
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License |
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$ |
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$ |
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$ |
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$ |
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Support and cloud services |
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Total software revenue |
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Professional services |
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Total revenue |
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Cost of revenue: |
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Cost of license revenue |
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Cost of support and cloud services revenue |
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Total cost of software revenue |
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Cost of professional services revenue |
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Total cost of revenue |
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Gross margin |
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Operating expenses: |
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Sales and marketing |
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Research and development |
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General and administrative |
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Amortization of acquired intangible assets |
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Restructuring and other credits, net |
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Total operating expenses |
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Operating income |
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Interest and debt premium expense |
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Other income (expense), net |
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Income before income taxes |
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Provision (benefit) for income taxes |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Earnings per share—Basic |
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$ |
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$ |
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$ |
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$ |
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Earnings per share—Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted-average shares outstanding—Basic |
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Weighted-average shares outstanding—Diluted |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
2
PTC Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
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Three months ended |
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Nine months ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive income (loss), net of tax: |
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Hedge gain (loss) arising during the period, net of tax of $( |
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Foreign currency translation adjustment, net of tax of $ |
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Change in pension benefit, net of tax of $ |
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Other comprehensive income (loss) |
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Comprehensive income |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
3
PTC Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
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Nine months ended |
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June 30, |
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June 30, |
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Cash flows from operating activities: |
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Net income |
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$ |
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$ |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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Amortization of right-of-use lease assets |
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Stock-based compensation |
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Other non-cash items, net |
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Changes in operating assets and liabilities, excluding the effects of acquisitions: |
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Accounts receivable |
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Accounts payable and accrued expenses |
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Accrued compensation and benefits |
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Deferred revenue |
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Accrued income taxes |
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( |
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Other current assets and prepaid expenses |
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( |
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Operating lease liabilities |
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( |
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Other noncurrent assets and liabilities |
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Net cash provided by operating activities |
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Cash flows from investing activities: |
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Additions to property and equipment |
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Acquisitions of businesses, net of cash acquired |
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Proceeds from sale of investments |
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Purchases of investments |
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Settlement of net investment hedges |
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Divestitures of businesses and assets, net |
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Net cash used in investing activities |
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Cash flows from financing activities: |
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Borrowings under credit facility |
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Repayments of borrowings under credit facility and acquired debt |
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Proceeds from issuance of common stock |
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Payments of withholding taxes in connection with stock-based awards |
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Payments of principal for financing leases |
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Credit facility origination costs |
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Payment of deferred acquisition consideration |
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( |
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Net cash provided by (used in) financing activities |
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( |
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Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
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( |
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Net change in cash, cash equivalents, and restricted cash |
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Cash, cash equivalents, and restricted cash, beginning of period |
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Cash, cash equivalents, and restricted cash, end of period |
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$ |
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$ |
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Supplemental disclosure of non-cash financing and investing activities: |
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Withholding taxes in connection with stock-based awards, accrued |
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$ |
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$ |
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Operating right-of-use assets obtained in exchange for operating lease liabilities |
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$ |
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$ |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
4
PTC Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)
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Three months ended June 30, 2024 |
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Common Stock |
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Accumulated |
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Shares |
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Amount |
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Additional |
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Retained Earnings |
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Other |
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Total |
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Balance as of March 31, 2024 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Common stock issued for employee stock-based awards |
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— |
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— |
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— |
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Shares surrendered by employees to pay taxes related to stock-based awards |
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( |
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( |
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( |
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— |
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— |
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( |
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Compensation expense from stock-based awards |
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— |
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— |
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— |
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— |
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Net income |
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— |
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— |
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— |
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— |
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Gain on net investment hedges, net of tax |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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( |
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( |
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Change in defined benefit pension items, net of tax |
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— |
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— |
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— |
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— |
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Balance as of June 30, 2024 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Nine months ended June 30, 2024 |
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Common Stock |
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Accumulated |
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Shares |
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Amount |
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Additional |
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Retained Earnings |
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Other |
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Total |
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Balance as of September 30, 2023 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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Common stock issued for employee stock-based awards |
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( |
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— |
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— |
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— |
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Shares surrendered by employees to pay taxes related to stock-based awards |
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( |
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( |
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( |
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— |
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— |
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( |
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Common stock issued for employee stock purchase plan |
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— |
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— |
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Compensation expense from stock-based awards |
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— |
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— |
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— |
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— |
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Net income |
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— |
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— |
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— |
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— |
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Loss on net investment hedges, net of tax |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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Change in defined benefit pension items, net of tax |
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— |
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— |
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— |
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— |
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Balance as of June 30, 2024 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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5
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Three months ended June 30, 2023 |
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Common Stock |
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Accumulated |
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Shares |
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Amount |
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Additional |
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Retained Earnings |
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Other |
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Total |
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Balance as of March 31, 2023 |
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$ |
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$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
Common stock issued for employee stock-based awards |
|
|
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Shares surrendered by employees to pay taxes related to stock-based awards |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Compensation expense from stock-based awards |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Loss on net investment hedges, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Change in defined benefit pension items, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance as of June 30, 2023 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
|
|
Nine months ended June 30, 2023 |
|
|||||||||||||||||||||
|
|
Common Stock |
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|||||||||
|
|
Shares |
|
|
Amount |
|
|
Additional |
|
|
Retained Earnings |
|
|
Other |
|
|
Total |
|
||||||
Balance as of September 30, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
Common stock issued for employee stock-based awards |
|
|
||||||||||||||||||||||