Neil, financial and Slide everyone. a Starting in flow ARR delivered and environment. solid again both selling results Thanks, in cash continued hello, challenging of with off X, PTC free terms
As you basis. of believe performance, our know, cash and exchange we help excluding To we are metrics ARR our impact foreign the most ARR to understand ARR important results guidance our provide assess disclose the of on business. the a volatility, currency investors performance flow and free constant
of using constant QX, as end fiscal Deferred ARR up our XX% billion, the $X.XXX plan At rates 'XX came ARR FX currency in year-over-year. was our expected.
as QX, quarter. our issues free cash were results resolved timing cash also to the on last collection solid flow. saw In flow we Moving we
our cash $XXX up XX%. the full year, For flow free was million,
flow to continue non-GAAP of to with half we expect expected our at term, medium grow to roughly cash grow faster expenses ARR, our ARR. than free rate the the operating our Over
as A In fiscal ARR budgeting 'XX, basic business our natural expanded and our is operating by there's that subscription basis compared XX% tenet we model leverage in points 'XX. our XX% to grows. efficiency to operating from fiscal benefit process of XXX
takeaways Moving X. few are to key There Slide a here.
we expect approximately the will that of grow at ARR First, OpEx mentioned, rate over time. as our I just half
that see can on slide. this You
I you was can our approximately fiscal is is CAGR expected the previous CAGR This and 'XX our is constant 'XX fiscal mentioning On OpEx the on right-hand see slide. XX%, the from X%. through approximately side, leverage currency ARR
Point XX%, While little this while this is being ARR XX% is because also that and time less at business remains any delivering a it this additional rule than of we've of integrated. that about acquisitions leverage growing work there's had couple may you get OpEx as a this way over we think on growth year, that out of in medium given as exactly the and our been modeling term. think thumb a good not over those
clearly think talk up pretty this on decisions, well. Secondly, about to we our also slide and as approach disciplined budgeting and investment that shows I
is to XX% CAGR OpEx be more expected While X% in approximately really R&D. our like and overall X%, it's in SG&A
lot the some it given previously hasn't we've punctuates for we've in that matter. sense that into for a really this to that sales point been challenging the made made G&A environment or marketing be incrementally think selling I time, investing and
there Additionally, on incremental within earlier. we as is envelope effectiveness go-to-market spend by the room we evidenced today Neil the believe elaborated for have realignment
And trying flow. while point is the this future slide our final delivering brings solid me in that the free we're I'm of growth to which emphasize, cash to that investing
the On our blue trend. slide, expense the represents R&D line non-GAAP
You years to a that ago, blue the subscription the can line see X slope model. of transition following our inflected
customers challenging cash free to us this macro. support expanded, our flows growth into to drive reinvest despite enabled As R&D amounts the our has greater and future
was through expense about R&D we In and decade, CAGR For approximately expect even in to our our to 'XX our our and to products it's invest allows year, for turbulent is a to from this approximately our that, $XXX from approximately to 'XX, our because XX%. during incrementally million, million evolution 'XX was CAGR it be in fiscal us invest to $XXX expected R&D understand, non-GAAP macro. over great contrast fiscal non-GAAP to X-year XXXX X%. a is XX-year continue of fiscal average business customers important This and
Turning to Slide X.
ARR at in XX% groups. in CAD with our detail, In ARR our PLM. XX% QX, in product delivered growth we look constant and Let's starting currency growth more
are customer challenging propensity base as unique transformation the well couple portfolio over resilience years journey solid supported through own low underlying strengths prioritize line the environment our of footprint as is our R&D market our good rate, for segments times. top subscription the to These our by the the a growth Our by digital past higher-growth of we've model, shown with has customers. investments further their and and despite seen in supported our of churn
ARR our region. by to Moving
digits. growth currency we our were currency in QX the constant low Our year-over-year QX. in regions, ARR mid-double organic with rates the across growth growth constant Americas, to Europe organic to in rates solid was and APAC, all Across similar growth saw
to Turning down. debt paying been years, we've XX. of lot over past took We on diligently X and Slide that the a
cash $XX paid million and and of During million of QX, billion. down QX and $XXX ended we with debt cash gross $X.XXX equivalents
in free increase imputed This debt, QX $XXX to pay our related was fiscal balance an gross QX. in of substantially the X.Xx debt of in we all 'XX, by cash at ServiceMax, this would. During we million. end flow gross million used were debt million, $XXX decreased we partially call. for interest said generated $XXX QX to we on our by year, the pure::variants offset discussed the We which our detail as We levered and down
I'm taking you authorization clearly you, for approximately Xx, than strategic math over to shareholders our As environment the do in flow our more our while to debt-to-EBITDA long-term below have free is flow know, ratio return but free to share that pretty also of need fiscal and goal, the repurchases, place is now opportunities. rate cash to cash XX% through expect the the remains generate into interest assuming period. of we consideration don't that 'XX I we sure XX% $X billion via
and we year, as all we drawing commencing intend that with time our quarter. in in $XXX on This our cash by to February, said line to of 'XX revolving approximately intend $XXX on fiscal common which retire hand credit this also million what facility. we've that's And a back coming stock with previously, you due bond million we at in have know, buy
consistency given the and to maintain as low business. of predictability Also, cash aim you balance the a we know,
to to gives have return it have As authorization now the place And a how shareholders. in we we excess such, flexibility we in us of that. cash, lot we expect assuming do
currently diluted fiscal 'XX. 'XX to in Our we fiscal XXX in be share fully fully shares approximately was count and million, flat diluted expect
Moving to XX. Slide
ARR. guide I how guidance, and Before we let report our take through me through walk you you
earlier, currency analysis, is said I our the because way As fluctuations the it evaluate line ARR or removes performance the business of negative. top FX to believe positive best from we constant
the our reported X Slide at the you'll look FX impacted over in a XX to quarters. take past you which as appendix, If ARR volatility see extent
currency 'XX, plan we our for XX, constant of fiscal and guidance fiscal reported rates, as For all ARR FX provided XXXX. ARR using which were currency 'XX constant September periods results
constant amounts historical those recast ARR currency rates purposes. also We 'XX to back FX at fiscal 'XX plan for fiscal comparative
exact guidance, results currency all ARR fiscal For report as FX we'll constant 'XX, we're ARR 'XX the XXXX. approach. which of currency our set constant We for September using periods plan rates, our are fiscal XX, taking same and
fiscal currency 'XX purposes. for ARR 'XX historical back our FX amounts plan constant We at rates to comparative also recast fiscal
the tables ARR You the recast IR financial And are X see for find amounts you QX slide, our currency data recast posted the constant historicals for in can quarters. this can on that the on 'XX website. past
With Slide that, on guidance our I'll take you XX. through
All are of the on FX ARR based amounts on our fiscal plan rates. slide 'XX this
'XX growth get XX% For next slides. for currency into constant the constant on and approximately expect ARR I'll on we of X% to for detail ARR, X XX.X% fiscal QX. currency more
cash million flows, severance 'XX, million go-to-market and million for fees the cash outflows fiscal of $XX $XXX guiding our realignment. which in to we're related On flow consulting free for to of absorbs approximately $XXX
amount restructuring relatively calling we're the charge. small, not out is that Given any
expense sales throughout reiterating we what all So and P&L. of the back the Neil the into year. organization will the reinvesting our this to be marketing rate lines earlier, and said on expect go-to-market flow through COGS And run
to first our a flow and not free rate of cash years. expect on we XX% constant the our QX we be have and in for FX generated the X or so generation quarter. approximately expect to an be fluctuations this more flow Note expected currency guidance outflows, changes can and fiscal direction. to fiscal our on In cash half basis, similar Based is that cash 'XX, compared of cash previous in either invoicing our impact lowest year the interest seasonality
cash guiding go-to-market will $XX the year. rest For free the of million QX, related remainder flow the of outflows to the of approximately the spread approximately of throughout we're $XXX realignment. million which for of be out $XX payments absorbs million, total The
of disciplined due We for the and of cash predictability we guidance the to our place. free in high collections confidence our cash have flow degree have structure a budgeting in
customers time. our length. term over maintained consistent annually regardless one time, primarily bill the Importantly, year a practices contract of billing we've We at upfront
results cash free comparable. flow time over our So are
to through year, optimized past process. or business for based starts with we're year of increase the our to as Furthermore, able at growth over funding while investments our ARR the an low predictable the market the proceeding and on inflows, we're dynamics model having end also by our X predictable expectations. delivering funding seeing. years, environment we've of cash generates match that we And budgeting internal we progress our By this each level subscription the we the manner, It free way, fiscal a agile in in start growth cash maintain flow. business then internal
also you revenue To EPS and with your providing models, help we're guidance.
business. QX to are is contracts However, business. And rather new subject and way I'd since on that PTC refer like you assess income, reminder, revenue The our operating want on to that free performance on-premises may difficult of did relevant based the metrics of PTC. ARR predict revenue we the on subscriptions. to you're is and call fiscal significantly we revenue reiterate best I our primarily vary flow, necessarily my and recognized summary believe cash performance variables for to from XXX the makes if this that than teach-in 'XX a to the the aren't these to can sell to ASC favorite EPS
Slide Moving XX. on to
model Here's 'XX. constant for an fiscal currency illustrative ARR
past years, get our You are to can on Note and slide constant ARR FX 'XX the over to see the 'XX. results our amounts rates. FY all illustrates our using currency for the column plan on fiscal right X that this needed what's guidance
add indicates model need to to of year. illustrative million growth, $XXX The ARR this X.X% new ARR that we net hit
'XX less less in new X than Our had to we've add expected our fiscal for we'll fiscal on and in ARR incremental approximately the year assumes and deferred slightly last net fiscal for million over noting million worth ARR the 'XX. is that basis, with when years 'XX be in 'XX 'XX. the approximately 'XX $X better in guidance $XX compared range seen an to It's line to that normalizing annual $XX than we what opening million fiscal
in Additionally, with fiscal the the our had we in past remains and in churn X we've to years. than low improving expect be to churn churn rate our 'XX rates better slightly line
realignment right model challenging, resilient, remains these disruption while growth target near-term and our selling because is to Our fiscal XX% potential allowing of we ARR believe business to go-to-market due for and is environment the X% dynamics for that the that 'XX.
here's for XX, Slide model similar on illustrative a QX. Next,
quarter, As years, renewal volatile based results any such deferred level slide over dynamics and in on somewhat quarter these years, quarter, shows in results our be cetera. new how you in some expect ARR past on we given the years, the any sequential new This that of our million few see and of can dynamics in precision. bookings, in new to the ARR in we that it's QX. the over the expect starting, growth seasonality, our churn over any quarterly net couple our any as few timing right to clearly starts We've know, given in of growth seen given our of ARR et net predict the past bookings volatility sequential quarter, hit we how much of much $XX column or given new of new QX.
Obviously, past quarter with net XX.X% illustrates ARR to need impossible given
net there QX worth are sequential past factors over we've both had ARR And years. of the couple the below X such, think that as is related. timing this that new note you'll sure I'm However, noting, for I
impact later to factors of as but of linearity come the QX will $XX the mechanics mindful Together, this our fiscal potential be ARR X is 'XX. new and churn ARR; are show the up sequential into in an from go-to-market adversely First have but couple we that of net secondly, to contracted will ARR we're approximately disruption by these Also, are not year. changes deferred million back impact a on QX, expected fiscal contracts need to making. any of
is for continue we investment over on keep to Importantly, the think worth With emphasizing normalizing that the incremental approximate our after said, we out, million course make impact full just decisions ballpark our of how the past ARR this $XX QX timing will same in as the focus as the called the all be year sequential I couple it's of that year. we years.
Turning you most free balance which sheet know to Slide flow starting that P&L as cash XX. indirect and I of a model the the using uses point. method,
be XXX, related is complexities However, challenges the The indirect method PTC. inherent using based on in flow are cash the on model for reach to given free forecast slide to we this ASC looking out there what help. we free of know some if to at internally. you, way can I please that use so it may unfamiliar to feel this of be
top, 'XX, midpoint we're Starting for constant guidance of currency growth, the at using range. the fiscal our X.X% ARR
related to items our of significant a no X because DxP These cash us it portion for to assuming the is time. is year, our modeled get line professional to over expected business, fluctuations revenue generation moving FX primary in our services fiscal reason And is perpetual which is primarily Kepware revenue that our decline Next, to time. the is in transitioning subscription rates. 'XX to over
to that cost go-to-market related expenses $XX the in approximately outflows realignment Moving our cash line. operating and like to the million of sections. cost to the down are revenue I'd of highlight embedded
realign recurring Even of operating as combined efficiency our the process. expansion we see 'XX, reinvest business to with organization the subscription metric our go-to-market budgeting we due and in continue our in to model
the move interest down guidance amortization, model, Continuing tax provide we cash CapEx, stock comp, for and to cash assumptions payments payments.
in by utilization Pages these of the lower by primarily are of significantly deferred income, decrease 'XX, and tax taxable find impact approximately the the significantly fiscal on in in of 'XX, driven our payments interest Note release. Also, $XXX Section $XX in -- are debt. higher payments Internal 'XX, than also X than be cash and to XX the on Slide XXX. earnings press X and deck in expected a be of expected assets 'XX, million the can reflecting fiscal cash You to fiscal higher fiscal tax Revenue Code that million
primarily capital. finally, a category. let's working And 'XX, to fiscal FX was $XX In the related other and take million movements the look at
the here fiscal being continued are as $XX working modeled significantly For as main already support drivers well rates, since XX, to of which growth. XXXX, the 'XX, have million FX September capital moved
generation that In impact and captured the in In disbursements, fluctuations that free of basis fluctuations a and result this and cash in FX cash on are net the net higher disbursements. simplified line. free reality, model, illustrative flow for lower FX fluctuations generation cash flow FX negative other are are positive cash for cash cash result in
free of which free midpoint of expected this million, approximately flow guidance cash to of our fiscal flow sums $XXX our is cash All 'XX up the range.
operations in focused and has consistent value So of scale and can operational so on accordingly most that our strong for in We're creation customers, we're conclusion, a our a business strategy, portfolio we clear record a discipline, our PTC aligning track matters what and manner. opportunities.
the over to With call I'd for to session. like the that, operator today's turn Q&A
