PTC Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : <_ALACRA_META_ABSTRACT>Yeah. I don't know -- we're getting live by -- there we go. There we go. All right. So let's get into this. It feels like we've been talking about uneven macros for -- when was there like a good macro for you? It feels like a long time ago, doesn't it? I don't know when the last--

Question: Matthew Hedberg - RBC Capital Markets - Analyst : That was a good -- that was good macros. Okay, and it feels like it's very intermittent. You guys continue to deliver solid double-digit growth and driven by obviously PLM, the CAD, and some of the newer stuff here. So maybe just level set us in terms of what you're seeing out there now and the business has been remarkably durable despite all the uncertainties out there, but just like what do you -- guys just reported a week or so ago? So you just refresh us what are you seeing out there today? What are you excited about over the next 12 months as you entered the fiscal year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:00PM, PTC.OQ - PTC Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets - Analyst : Yeah, the other change obviously is Neil from over the last year. You work with Jim, I worked with Jim for many, many years. And as you reflect back on the last year, there's been a lot of change. What has possibly surprised you about Neil and some of his decisions that he's made because there's been a lot of go-to-market changes. There's been -- I think philosophy on the business, talk about some of the most important things you think Neil has brought to the business.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : I think we talked that night of your call and it struck me that like the vertical oriented sales force makes so much sense to me. In fact, I was like, I thought, like, why didn't we do this like five years ago. Talk about like we both -- I'd like to focus on both the potential risks that you've assumed in guidance. But also like, what are the benefits of that? Because it just seems so logical, right, to an outside observer. But I almost took it for granted that you guys already were organized that way.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : So, I mean, you all -- some of the potential positives in this change. When you thought about the year's guidance, how did you -- there's obviously room for disruption when this thing happened? How did you handicap that when you thought about your four year (inaudible)?

Question: Matthew Hedberg - RBC Capital Markets - Analyst : It sounds like from what I'm hearing and what we talked about when you guys reported was that you were thoughtful on the potential ARR disruption. But if there's stuff that's in slight we're not going to touch that piece and we'll let that piece close where it originated and hopefully that could mitigate some of that handoff risk (inaudible). That's great to hear. Maybe pivoting to some of the business lines, you guys have been growing TLM well above market growth rates for years now. It feels like you've been going double digits for, I don't know, years -- how durable is that? Because -- you've had a lot of success with Windshield and obviously Windshield+ now, but talk about the durability of that growth when you think about that multiyear CAGR of growth, how important and how reliable is that double-digit growth within PLM?

Question: Matthew Hedberg - RBC Capital Markets - Analyst : From the go-to-market change, are there any things that you guys are doing from a cross-sell incentive to incentivize salespeople to focus even more so now they're vertically oriented to sell Codebeamer than they were before. Is there anything unique with the cross-sell go-to-market motion this year that you think could benefit from the new go-to-market --

Question: Matthew Hedberg - RBC Capital Markets - Analyst : The thinking about -- just your broad portfolio, you've been outgrowing peers pretty consistently so in particular, I'm curious there's been some changes in the broader competitive plans that Siemens is rumored -- in a rumor as it's confirmed they're buying Altair, they're in the process and Synopsys is by Ansys? Does that change the competitive dynamic? I know you were a better partner with -- you were a good partner with Ansys historically. I don't know how (multiple speakers)--

Question: Matthew Hedberg - RBC Capital Markets - Analyst : Was your partnership with Altair also -- did you have one there?

Question: Matthew Hedberg - RBC Capital Markets - Analyst : With Ansys. Does any of that change in the future? Hard to say.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : Why that would change. Does Siemens become a more formidable competitor if they have Altair as a more CAD, PLM competitor with a tighter integrated simulation tool? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:00PM, PTC.OQ - PTC Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets - Analyst : So not, although there's been a bunch of moving pieces, you don't think it really changes the -- at this point, it's hard to say, but you don't see anything on the horizon more. It's like keep an eye on this. Okay. What about CAD. With Creo+, it seems like Windchill+ gets a lot of the attention. Talk about the success of Creo+ and what that could mean for that long-term growth algorithm.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : Yeah. The idiosyncratic element that I really like about PTC is when you think about ServiceMax and the cross-sell, how would you grade your performance on ServiceMax thus far? Realizing it's still relatively early in the portfolio, it feels to me like there's this cross-sell opportunity. I know we want to be balancing when we think that could play out. But how would you grade the performance thus far of ServiceMax and integration efforts?

Question: Matthew Hedberg - RBC Capital Markets - Analyst : I guess the question is it just seems so logical if you're a PTC Windchill customer like it just seems like hand and glove in some regards. What if you're not using ServiceMaxs, what are these customers using from an SLM perspective?

Question: Matthew Hedberg - RBC Capital Markets - Analyst : I'm going to ask another question and we'll see if there is one from the group. Your confidence on free cash flow has always been high just from a relative to other aspects of your guidance. Talk to us about -- and I know in the past, you've said like even at the low end of our ARR range, I feel comfortable with the midpoint of the free cash flow range. Is there any like commentary like that you have this year of that confidence? And I know there were some moving parts this year on free cash flow relative to last year. But any thoughts on the confidence level of free cash flow, even though ARR can move around a little bit.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : That's right. Is there any from the group here? [I'll keep going.]

Question: Matthew Hedberg - RBC Capital Markets - Analyst : This November, it's just top notch. I think it's generally wider (multiple speakers)-- Unidentified Participant_1 It was just a question on the ServiceMax, Windchill integration that you mentioned. Is that something that you think is that customers have been or respective customers have been waiting for? It could be a catalyst as we had in '25 and beyond.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : We've got about ninety seconds left. [Matt, is there] -- No, he doesn't have that. If we're sitting here this time next year and you guys end up growing [12%, 13%], what's the most likely reason for macro? I'm sure -- let's just hold macro constantly. Is there something you'd say like this? I feel really good about, like, this could actually a lot better than what we're thinking.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : Is there any -- with this talk of tariffs now, are your customers thinking about that, especially the ones that are outside the US? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:00PM, PTC.OQ - PTC Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Matthew Hedberg - RBC Capital Markets - Analyst : It's not, they're thinking about it but they're not necessarily (technical difficulty) they're on markets. Okay. Excellent. Well, we're out of time unfortunately, but Kristian (inaudible) thank you and Matt, thank you for coming as well. Best of luck guys.