the flow this with for line results and cash time and everyone an you afternoon, joining I’m bottom quarter, Good thank PTC year. guidance raising Matt. our guidance, and our line ARR report top Thanks, delivered for we’re pleased us. Great. third outstanding above third results free to that
the of will out of I’d dive I the later dollar his during effects strengthening like in, Before section that the call. point Kristian to cover
constant results. things, simplify focus growth will line currency to metrics top discussion I my of on So
driven bottom outstanding to designed strong growth, growth stronger restructuring company pain and Thread At was charges the at all was was that cash had to taking and point M&A I’ll PTC Turning were broad-based retain. very strong of growth. rate across free year-over-year. even and pleased a at to it Digital the to into top range business long-term up of seen and In $X.XX results QX, refer we’ve was I’m line segments saw that this we a nearly efficient ARR million, up free implemented Codebeamer payments, Growth, PTC’s our Remember million was for aggressive as the and growth our at organic many gain. short-term FX SaaS growth ARR in name and churn geographies. quarters. year-over-year. flow the we XX% going the note, transaction inorganic with Digital that an further of has in headwinds units. was and lowest the more organic the is viewed we to board and X, Velocity and helped see end fiscal drive acquisition closed last Intland ahead FSG billion, flow guidance the added saw Of to strong acceleration strength XX% time complemented announced, ARR strategy. PTC’s our first ARR the performance which ARR been forward, because we we we $XXX Despite $XX quarter line of by restructuring XX%, Slide We Core, the Thread particular across move cash QX. during by growth will as Codebeamer mid-teens the product targeting. accelerate year
positive on operational most in I minutes scenarios. where results changes structure we shape, reflect us is that’s generate I’m in us, few a cost with at Now, the the great to topic the when margin circle behind inflection back the macro pain on point expected. the while a we’re of continue going leaving to
and accounts XX% proved reseller roughly rate. grew in Moving solid see due the to minor organic softness to European read demand the Slide but double X, China offerings. bookings despite organic lockdowns, see Europe were bookings global continued COVID-related scary macro-related did some XX%. We our indications for of we’ve headlines in every we day, smaller as immaterial growth up this year-over-year, ARR to
churn organic dynamics the year. is been grown trending was despite ahead. strong On faster Slide X, to renewals year. better volatility resilience we’re the have which again driving QX the confidence I seventh than improving rates quarter geographies. than ARR, for business understand briefly slightly and investors expected. help growth units the both the To mentioned, of our think together in delivering our model and review we’ve FY macro we’re to lie were you across ARR uncertainty, in Digital as that accelerating As all raising also renewal guidance three you strong potential all about with remainder PTC, and was consecutive why, Velocity ‘XX financial of our Growth as have help that Thread appreciate any we targets like may the I’d bookings
not the three based growth the QX but performance, On in XX% on left-hand of slide, was prior QX can the well. we the ARR as you just our over that quarters performance see delivered
a is on software annualized because than of metric. When year. last ARR recurring our larger book that each recurring say XX% at mean ARR active XX% past ARR value has quarter, now businesses grew was the effectively this now in quarters, is the time entire it grown over XX% we of contracts, average of the Given of we book the the ARR four trailing active four-quarter third growth definition of
company. in the the single for strong speed While impact ARR. a where this of provides foundation of It roughly the grew results trailing bookings twice as dampen dynamic serves to of bookings in such quarter, tremendous also stability QX any the
guidance ARR growth And our ‘XX FY known. will full already about QX. feel of results confident elaborate during sufficiently ARR reveal. his are raising will are three guidance that for four we because comprise year, Kristian quarterly the We the
in on about bookings and scenarios ARR too flow. PTC, the churn their thumb and our exceed demonstrate cash quarter effect rule of supplied in of. macro X:X. think roughly a the wide will $XXX annual Think ratio should in quickly basic a X:X quarters, I’ll free exceed numbers churn. four PTC the you That’s against. ARR directionally same currently grow Bookings bookings, of last big As trailing scenarios billion review churn To million resilience on over so longest while I seeing you run the to accurate margin, around the that’s million a we’re round having remember by model, $X.X of adding spoke and I basis run-rate for annual $XXX
which next grow in roughly the let the up shared billion, of ARR reflects bookings churn. favorable last slide, you though on to billion running would $X.X $XXX run quarter. churn year, in this consistent our XX% our bookings, Over on the I’ll performance but by hypothetical right-side growth. slightly actual XX% skip we’re and step both $XXX by that the scenarios of $X.X down remind level growth I details That’s to of me ARR time with the and million the is million step rate current around,
And has two In experienced slow scenario in quarters, has low-teens. XX% The Across for booking consistent the flat, upper XXXX. both has with second experience XX% both in to for like in churn four ARR scenarios, first scenario we like XXXX. grows slow booking experienced held quarters, periods. cases, we those single-digits
Whether OpEx Slide expect look margin downturn, in up with profitability advantages the has or take going a understand growing by our at due top go line year-to-date, top starts several expansion forward. strong ARR from updated to Fiscal margin been we programs and Margin fresh we while Day scale faster have we remains bit further. XX%, line let’s is to basically presentation. as X, is slows expansion but see Investor a developments, a expansion get flat, that growth macro I burrowed than spending. Now, which the to non-GAAP it December significant
once end changes basis successfully expansion which FY the half worth implemented the we have The time at the bulk and page. operating ‘XX, enter of costs expansion, our the hundred program complete, restructuring the that margin on FY is first the and is. the results. in we points of from By largely shown it actions left now restructuring is removed the of ‘XX, the reflected Those we several costs of margin is
crossing company’s that into the shifting restructuring resourcing while avoidance slide. for we’ve as addresses or that, the their yield our of that IoT expected canceling IoT CAD also assignments effect we is growth where from initiated involve businesses talking Note time. comprised to a of charges, of By to other margin the needs, key where The portfolio sales the costs than a new been our growth addition we’re half the has these half more is not right of R&D that Thread and open couple and of points is profitability. resourcing way to has a people reassigning Digital quarter within In into a able lower in a margin previously AR budgeted new some side needs, and I’m exceeding basis staffing been hires program than over shifts accommodate ago. which This while the program, about on had XXX of of positions existing in and layoffs AR, expectations, portfolio parts expansion hundred J-Curve much shown expected now the PLM, the profitability will expansion nice up growth like of just driving unit second resources is resources, of and employees. actual
see ARR. beyond comes further the scaling that $XXX as naturally, current continue million these We to in expect expansion businesses margin
as In in might third ahead. hiring like addition the opportunity. of quickly our slowdown, the would margin encounter great shape scenarios spending macro further there’s expansion balance well underway, help other that This expansion a positions scenarios is I as a is summary we mentioned, structure open that to would signs restrictions programs implement The have, to we too against new restrictions. were as we margin cost margins. of are we what If the of the lie significant well contemplate
QX to additional last pulled out deliver currently if at cash there. mid-XXs looking flow flow the drivers signs longer-term mid-XXs we we now substantial guidance available pulling resources at end Given free make year, flow rebalancing see rates growth the across or better the A cash us of that the growth most growth we the that by cash confident, and remains portfolio in cost the margin lever expansion we’re a lever restructuring free the within we’ve have incrementally free we’re scenarios. downturn, already with of us FX ARR lever levels and can supports the plausible at
that about Because model, position we is our growth sticky, a coupled longstanding growth compelling was Americas QX, this metric. the the the our our across all in given PTC sold in good to free geography feel good X, QX, no turning of affects at XX% our spending revenue growth Slide for which scenario In macro and a flow look on in even reputation Russia recurring a using we ARR by So shaky back again plays to geographies. growth take Europe, In good to units. that we ARR despite with ARR are before cash differentiated trailing the ARR growth continue ARR XX%. Getting quick business into nature have markets products in exit rate, drive saw performance environment. matter to out. discipline, was let’s strong what QX, a a still
the Our downturn and to like environment, is model, continuing I’d giving reiterate see the likely are was in about that our to are business bookings APAC recurring Europe, extreme renewal ARR all, XX%. imagine. grow concerned scenarios can but in investors that in ARR performance one and globally growth macro to strong Knowing we and most
Within another Thread Next, Digital CAD PLM the ARR a in we in XX the at performance starting was our grew CAD we’ve cases. growth largest let’s seen segment, grew both once PLM Slide consecutive units Thread this, double-digits, while QX faster in with delivered double-digit business. QX grew XX%. low strong again, with take growth. across of and look business ARR the Core, quarters product our Bookings performance yet ARR XX% Core the double-digit on of best known performance Digital X. In growth
for Windchill SaaS the in solid had on its a SaaS is front, in early On but a new we quarter primarily days, projects. mix of transformation SaaS Windchill+ based good
and of is and to beyond. bigger ramps you’ll continue iceberg the SaaS see well, Codebeamer. with We ‘XX terms were beyond. factory follow by ThingWorx ARR proof bookings rollout is FSG, Growth, that tip growing and growth proof ‘XX XX%. we’re ramp that In accelerate solution see ARR of growth and in of retail two-handle for to deal premium DPM point. fit excellent IoT to DPM as with again turnkey both AR, Within had a lift and Servigistics impact ThingWorx strategy an XX% to the this Creo+ Thread A market a to performed we quarter, leading SaaS driven growth we us believe represents offerings and a expect shift notably FSG too contract a including Digital a accelerating QX, posted great results a of dollar manufacturer from of Arbortext Windchill+ in renewals. successful X% solid neighborhood solid see a XX deal inclusive rate FY results we and which concept. PLM, pleased FY similar multimillion in product IoT and reminder In organically following of that and in conversions With DPM, targeting. plus and have with strong growing all phenomenon global the a
XX on Slide and Codebeamer. to turn Let’s double-click
currently PTC the quite thousands that’s quarter, its of ARR. its business inorganic our engineers. software landing third transaction across automotive of in growth represents seven-figures largest plan deal beating software is outstanding an lead supplier unexpected X% true change because European FSG, The accomplishment mid driver to was best-in-class a often in Codebeamer has amazing errant contain returns an medical automotive kill the ALM for standardizing This with capabilities somewhere are the an of the a Codebeamer actually Codebeamer start had of on and order people. that industries products these As an which capabilities, booked seeing ramp in demand even supply quarter, a is are – and chain behavior the and because that product encouraging. is especially might like an manufacturers that chain Codebeamer devices to product could software. early very critical high whose are That’s embedded before regulated,
ALM our PLM will ALM and to Integrity consolidated Digital elevated IoT line in sell standalone portfolio. it We be have will to Codebeamer and the CAD, product a with continue Codebeamer well. combined Thread be business AR key offering this called and as with alongside previous PLM, sold
drive the adding Codebeamer simple the it that In portfolio, is strong cost revenue addition and sales to standalone near-term, overall business incremental ALM To mid will item, the FSG item should to PTC’s has to our been synergies. FSG grower to expected in line report which we as experiencing, of business a ALM helps keep FSG line single-digit elevate well. sustainable a reporting in the reporting grower the being forward, low from continue take course high-growth Codebeamer single-digit to rate to going placing PTC’s growth in the
transformation. each embraced Vestas turbine and an Digital as unique wind into of a globe. that than leveraging service a global manufacture, design, energy Thread, taken illustrates tailorable our is digital Vestas the To Vestas use clean controlled, the industry. electrical great turn Slide XX capabilities. software has has customer needs customer, business more a the on energy. powerhouse affordable and I deployment, they install XX,XXX digital their customers me our Before to connected key a around mechanical of each they how employees, Vestas With and sustainable offshore through and our transformation to provider it energy of highly onshore and run customer unit, wind software Velocity PTC story across solutions let is literally and turbines turned are meet
PLM establish a engineering. strong For foundation in first the step to Vestas, was
using to engineering is unlocking closed-loop of function end-to-end and lead configuration leveraging while driving is is process Creo, improvements process redundant ThingWorx innovation handoffs and Windchill capabilities data turbines manufacturing. increasing aligned manual ThingWorx management Vestas solutions. include the field plans develop digital Now drive to along eliminating and a to from Vestas across and engineering PTC’s in shortening product improvement insights. By they step quality, unique best-in-class times. portfolio their Vestas of generate a was their wind future in use large connected number and Vuforia continue wind as journey, power the and transformation well support Vestas to of their work,
to strategy on leader the growth respective Velocity continue the us in unit category points faster year-over-year again, our slightly cloud-native to for market. XX% suggest accelerated give that a Velocity XX, to business in Onshape Slide times future QX, Turning and pioneering proof each Arena ARR multiple unit be It of than their plus with businesses its With the growing the These the SaaS SaaS of with the market. powering portfolio. product be our Atlas done. pure-play SaaS for lifecycle And market now industry strategy, the implementing and SaaS. Velocity, should really the PTC across Windchill+ broader in are how born we Onshape will has in best software is benchmark platform, entire
We growth expect the to years strategy tailwinds SaaS in the Core for come. to strong business create
the XX, a you the product to in for to story. Robot of slide the companies build applications. through excellence Velocity a from these have to Jack Flippy Slide accelerator I’m Photo is all in Castle, and sure. Labs management Wavemaker to their and enables Onshape-Arena and test now deploy portfolio development, focused one has which Robotics, their first Miso and Labs flow Speed, Wavemaker and customers Arena. and is PLM is the the companies. product fit. Onshape chain a top Talvitie chosen industry’s Miso for with food product helps integrated capabilities suite, of help companies priorities Robotics Onshape their agility collaboration contract automation on making natural of move To This which unique technologies. portfolio analytics velocity Frying you where of manufacturing revolutionize velocity Automated which of Labs and Labs Labs, better driving frictionless Miso connection portfolio pure-SaaS, will White forward service, CAD drive Chipotle launch disruptive like and on or Arena engagement is being will The customer of flexible to engineering, Box, finish. customers a customer the new They to and supply favorites one Onshape seamless I’d the collaboration of released is feature, Wavemaker’s to Robotics commercial in They’re a automation high X mindset, Also take looking is and Wavemaker scalability companies across manufacturing the first their activities. known help see shortly. they and data product be understand development Let’s efficiency start and reporting Wavemaker development are leveraging engineers. Kristian Wavemaker from improved and connector high include
a to are want topic, events investor to turning XX, two For Slide final your there to upcoming attention. I raise
on we you XXth, Virtual November beyond. ‘XX First, a a to FY Investor we’ll hold plan into deeper event PTC’s financial plans where Day view FY for and give ‘XX
Second, on partners, customers, COVID XXth bring host Boston we Expo together May and will event our plan that and of of XXth Ecosystem assuming in near and Convention investors a thousands we expect the headquarters. cooperates, Seaport event Center a live LiveWorx XXXX, to at large employees
November on signs double-digit both both minor and to Relations from QX a that it events. gives to you event scenarios. our I’m top give To the of many Because Slide of ecosystem. ahead. we’ve solid very to across that pleased position, lies the are PTC’s and top plausible over growth three get push plus bigger and for even XX, of as accelerating can been the slowdown. May, We’ve first Growth LiveWorx about But invitation seen resilient have growth event growth directly model PTC has for initiatives. excited Date more do expansion have business watch spending we you levels make investor you line been that and ‘XX, to better of customers renewals bookings up ahead shorter customer a and the very the Throughout our we with tide and the participate both for all strong. allows driven dose a our hoping discipline, easier of working with what track in in models Team parallel demand FY partners to you I’m for To our and of Hold the is profitability you need quarter across guidance macro whatever quarters intention the the why in virtual, Investor interact a we’ll you the in raising our full for diligently wrap our deliver remains year exposure. Please and year, and macro and will our you to strong watching margin prepared and we what strategy growth. fourth regarding you, which Overall, be and third to entering well expect with LiveWorx make plan with any where management, the we’re And your consecutive of we’re of We’re fifth to ample where bottom strategy our we’re we’re opportunity opportunities keynotes attend time. near peer dedicated will ARR the to investor is well. event sessions, group only of organic
with over on never to position the results. the value. company’s Kristian the been it to that, And better create shareholder turn financial think more I’ll details I in for
