Here are 1-3 brief analogies for PTC:

• PTC is like Autodesk for industrial product design and lifecycle management.
• PTC is like SAP for product creation and industrial digital operations.
• PTC is like Salesforce, but for managing the entire lifecycle of industrial products instead of customer relationships.

• Creo: A suite of 3D CAD (Computer-Aided Design) software for product design and development.
• Windchill: A PLM (Product Lifecycle Management) software system that manages product data and processes throughout the entire lifecycle.
• ThingWorx: An industrial IoT (Internet of Things) platform used for connecting devices, building applications, and analyzing data.
• Vuforia: An augmented reality (AR) platform that enables the creation of immersive AR experiences for industrial and enterprise use cases.
• Onshape: A cloud-native product development platform that unifies CAD, data management, and collaboration in a web browser.

PTC (symbol: PTC) primarily sells its software and services to other companies, operating on a Business-to-Business (B2B) model. Its solutions, which include CAD (Computer-Aided Design), PLM (Product Lifecycle Management), IoT (Internet of Things), and AR (Augmented Reality), are utilized across various manufacturing and industrial sectors.

According to its recent 10-K filings (e.g., for the fiscal year ended September 30, 2023), PTC states that it has a broad base of thousands of customers globally, and no single customer accounted for more than 10% of its total revenue for the fiscal years 2023, 2022, or 2021. This indicates that PTC does not rely on a few "major" customers in terms of revenue concentration.

However, PTC serves numerous large, well-known companies across its target industries. The following are examples of prominent public companies that have been identified through PTC's case studies, press releases, or general industry knowledge as users of PTC's technologies. These companies represent the caliber and type of organizations that utilize PTC's offerings, rather than being "major" in the sense of dominating PTC's revenue:

• Volvo Group (OM: VOLV B) - A global manufacturer of trucks, buses, construction equipment, and marine and industrial engines.
• Lockheed Martin Corporation (NYSE: LMT) - A global security and aerospace company.
• Caterpillar Inc. (NYSE: CAT) - The world's largest construction equipment manufacturer.
• Rockwell Automation, Inc. (NYSE: ROK) - A global leader in industrial automation and digital transformation (also a strategic alliance partner).
• Toyota Motor Corporation (NYSE: TM) - One of the world's largest automotive manufacturers.

• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)

Neil Barua, President and Chief Executive Officer

Neil Barua assumed the role of President and Chief Executive Officer of PTC on February 14, 2024. His career spans over 23 years across global operations, financial, and executive positions. Prior to joining PTC, Mr. Barua served as CEO of ServiceMax, transforming it into a leader in field service management. Following PTC's acquisition of ServiceMax in January 2023, he led PTC's Service Lifecycle Management business. Earlier in his career, Mr. Barua was CEO of IPC Systems, a global provider of specialized technology solutions, and served as an operating partner at Silver Lake, a technology investing firm.

Kristian Talvitie, Executive Vice President and Chief Financial Officer

Kristian Talvitie has served as Executive Vice President and Chief Financial Officer at PTC since May 2019. He is responsible for overseeing worldwide accounting, financial planning and analysis, tax and treasury, investor relations, and information technology functions. Mr. Talvitie previously worked at PTC from 2008 to 2016 in various capacities, including Corporate Vice President of Finance and Vice President of Investor Relations and Corporate Communications. In his time away from PTC, he held CFO roles at SaaS company Sovos and software company Syncsort. He has over 25 years of experience in finance, sales, and marketing, and has been instrumental in driving margin expansion, reducing operating expenses, and facilitating PTC's shift to a subscription business model.

Lisa Reilly, Executive Vice President and Chief People Officer

Lisa Reilly is the Executive Vice President and Chief People Officer at PTC, a role she has held since 2022. She initially joined the company in June 2020 as Senior Vice President of Global HR Business Partners. Prior to her tenure at PTC, Ms. Reilly held global HR leadership positions at Cisco Systems, Motorola, G+J Publishing, and Text100 PR.

Aaron von Staats, Executive Vice President, General Counsel & Corporate Secretary

Aaron von Staats serves as Executive Vice President, General Counsel & Corporate Secretary for PTC, overseeing the company's worldwide legal, compliance, and cyber risk management functions. His extensive responsibilities include corporate governance, SEC reporting and compliance, mergers and acquisitions, customer and partner transactions, intellectual property, technology licensing, litigation, and employment law. He also manages PTC's compliance programs focused on anti-corruption, export compliance, insider trading, and data privacy.

Jon Stevenson, Executive Vice President and Chief Product Officer

Jon Stevenson brings more than three decades of experience in product development, engineering leadership, and technology innovation across CAD, PLM, AI, and SaaS domains to his role as Executive Vice President and Chief Product Officer. Before his current position, he held executive roles at Stratasys and Grab CAD. Mr. Stevenson has also served as a board member, advisor, and investor for various product development, SaaS, and AI-focused companies, and previously held positions as a Vice President in PTC's R&D Group and Executive Vice President of PTC's CAD business unit.

1. Technological Disruption and Intense Competition: PTC operates in a highly competitive and rapidly evolving software market, requiring continuous innovation to keep pace with technological advancements and customer preferences. The company faces significant pressure from established competitors like Autodesk, Dassault Systèmes, and Siemens, as well as emerging startups. The rapid industry shift towards cloud-based and Software-as-a-Service (SaaS) solutions necessitates substantial investment and strategic foresight to maintain a competitive edge. Additionally, the recent divestiture of its Kepware and ThingWorx businesses introduces uncertainty regarding future revenue composition and growth trajectory, and could potentially weaken PTC's competitive positioning in comprehensive digital transformation projects by losing technological synergies.
2. Exposure to Macroeconomic Headwinds and Dependence on the Discrete Manufacturing Sector: A significant portion of PTC's business is tied to the discrete manufacturing sector, making it vulnerable to broader macroeconomic factors. These include tariffs, supply chain disruptions, currency fluctuations, and overall economic uncertainty, which can lead to delayed software investments and unpredictable revenue streams. Roughly 50% of PTC's revenue and 35% of its expenses are transacted in foreign currencies, subjecting the company to foreign exchange rate volatility, particularly with the Euro and Japanese Yen, which can materially affect its financial results.
3. Cybersecurity Threats: As a global software company that increasingly integrates AI into its products and relies on third-party cloud infrastructure, PTC is subject to ongoing and evolving cybersecurity risks. Despite implementing a "holistic, multi-layered" cybersecurity strategy, the company faces threats related to data security, service disruptions, and potential failures from third-party technology providers. Such incidents could harm PTC's reputation, increase expenses, and adversely impact its business operations and financial condition.

The increasing capability and adoption of hyperscaler cloud platforms (such as AWS IoT, Microsoft Azure IoT, and Google Cloud IoT) for comprehensive industrial IoT solutions pose an emerging threat to PTC's ThingWorx platform. These hyperscaler offerings provide robust infrastructure, analytics, and machine learning capabilities, often integrated with broader cloud ecosystems, enabling customers to build and manage their IoT applications with increasing ease and scale, potentially reducing reliance on specialized industrial IoT platforms.

PTC offers a portfolio of software products and services, with its main offerings including Product Lifecycle Management (PLM), Computer-Aided Design (CAD), Industrial Internet of Things (IIoT), and Augmented Reality (AR). The addressable markets for these main products are as follows:

• Product Lifecycle Management (PLM): The global Product Lifecycle Management (PLM) market size was valued at USD 26.24 billion in 2024 and is projected to grow to USD 46.81 billion by 2032. Another estimate places the global PLM market size at approximately USD 36.57 billion in 2025. North America dominated the global market with the largest market share of 36% in 2024.
• Computer-Aided Design (CAD): The global Computer-Aided Design (CAD) market was valued at USD 10.67 billion in 2024 and is estimated to reach USD 11.40 billion in 2025. Another report estimates the global CAD software market size at USD 23.75 billion in 2025, projected to reach USD 44.38 billion by 2035. North America holds the largest share of the global CAD market, at 39.87%.
• Industrial Internet of Things (IIoT) / Internet of Things (IoT) Platforms: The global Internet of Things (IoT) Platform market size is estimated at USD 60.54 billion in 2025 and is expected to reach USD 112.23 billion by 2030. North America accounts for the largest market share in the IoT Platform market in 2025.
• Augmented Reality (AR): The enterprise augmented reality market size is estimated at USD 112.91 billion in 2025 and is forecast to reach USD 422.61 billion by 2030. The global augmented reality market (broader scope) was estimated at USD 83.65 billion in 2024 and is projected to reach USD 599.59 billion by 2030. North America accounted for the highest revenue share in the augmented reality market, over 33% in 2024.
• Service Lifecycle Management (SLM): null
• Application Lifecycle Management (ALM): null

Expected Drivers of Future Revenue Growth for PTC (PTC)

PTC is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and strong market demand for its core offerings. Key drivers include the continued strength and evolution of its core product portfolio, significant integration of artificial intelligence, an accelerated shift towards cloud and SaaS models, a focused go-to-market strategy, and the strong performance of specific product lines.

• Expansion of Core PLM and CAD Solutions with an "Intelligent Product Lifecycle" Focus: PTC's foundational Product Lifecycle Management (PLM) and Computer-Aided Design (CAD) solutions remain critical revenue drivers. The company's strategic vision revolves around the "Intelligent Product Lifecycle," which aims to enhance how physical products are engineered, manufactured, and serviced. This focus is expected to fuel continued demand for its robust PLM and CAD offerings, including Creo and Windchill.
• Integration of Artificial Intelligence (AI) Across Product Portfolio: PTC is actively embedding advanced AI capabilities into its core platforms, including CAD, PLM, Application Lifecycle Management (ALM), and Service Lifecycle Management (SLM). This initiative is designed to help customers establish structured product data foundations, crucial for advanced analytics and automation. New AI features in platforms like Onshape, ServiceMax, and Arena are anticipated to boost portfolio momentum and drive adoption.
• Accelerated Cloud and SaaS Adoption: The ongoing transition to a subscription-based model and increased investment in cloud and Software-as-a-Service (SaaS) offerings are significant growth catalysts. PTC's pure-SaaS CAD and PDM platform, Onshape, has been identified as an industry growth leader. Furthermore, the introduction of SaaS capabilities to its Creo product via the Atlas platform underscores PTC's commitment to capitalizing on the advantages of cloud delivery.
• Optimized Go-to-Market Strategy and Customer Engagement: PTC is implementing a realignment of its go-to-market organization to better serve customers across key verticals by increasing the specialization of its sales and customer success teams. This strategic shift, coupled with strong demand from industries undergoing rapid digital transformation such as automotive, federal, aerospace, and defense, is expected to drive customer acquisition and expansion. Large multiyear renewals and contracts are also contributing significantly to revenue growth.
• Strong Performance and Cross-Selling of Key Products like Codebeamer and Windchill: Specific products like Codebeamer and Windchill are demonstrating strong performance and making considerable inroads in various sectors. Codebeamer is gaining traction in the software-defined vehicles space within the automotive industry. Windchill PLM has proven to be a trusted source for real-time product data, leading to significant productivity improvements and increased adoption, as seen in a medical technology customer standardizing on the platform.

Share Repurchases

• PTC's Board of Directors authorized a share repurchase program of up to $2 billion through September 30, 2027.
• The company plans to repurchase approximately $300 million of its common stock in fiscal year 2025. By the third fiscal quarter of 2025, PTC had already repurchased $225 million of this planned amount.
• During Q3'25, PTC allocated $75 million towards share repurchases.

Share Issuance

• PTC's shares outstanding increased by 0.03% in one year to 119.79 million.
• For fiscal year 2025, stock-based compensation expense is expected to be approximately $210 million to $220 million, which impacts the number of shares issued.
• The company expects its share count to remain approximately flat for fiscal year 2025, balancing repurchases with stock-based compensation.

Inbound Investments

No significant inbound investments by third parties were reported during the last 3-5 years.

Outbound Investments

• PTC acquired ServiceMax for approximately $1.46 billion, with the first installment of $835 million paid in January 2023 and the second of $650 million in October 2023. This acquisition aims to strengthen PTC's closed-loop product lifecycle management (PLM) offerings.
• In 2022, PTC acquired Intland Software for approximately $280 million to broaden its Application Lifecycle Management (ALM) footprint in safety-critical and regulated industries.
• In October 2023, PTC acquired pure-systems GmbH for $93.5 million to expand its product lifecycle management offerings.
• PTC has invested over $350 million in India over the last five years and anticipates investing $100 million annually to expand its operations in the country.

Capital Expenditures

• PTC reported capital expenditures of -$14.38 million in fiscal year 2024.
• For fiscal year 2025, capital expenditures are expected to be approximately $10 million.
• Expected capital expenditures for fiscal year 2026 are $30 million, which includes $20 million for relocating a major research and development (R&D) center.