PTC Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

Three Months Ended

Nine Months Ended

June 30,

June 27,

June 30,

June 27,

2021

2020

2021

2020

Revenue:

Recurring revenue

$

387,175

$

310,621

$

1,186,978

$

931,852

Perpetual license

7,259

6,773

22,644

23,988

Professional services

41,234

34,327

116,882

111,594

Total revenue ⁽¹⁾

435,668

351,721

1,326,504

1,067,434

Cost of revenue ⁽²⁾

95,077

79,224

271,355

249,656

Gross margin

340,591

272,497

1,055,149

817,778

Operating expenses:

Sales and marketing ⁽²⁾

134,412

104,594

388,315

319,636

Research and development ⁽²⁾

78,134

61,429

221,514

186,691

General and administrative ⁽²⁾

47,084

35,709

157,417

113,895

Amortization of acquired intangible assets

7,511

7,302

21,708

21,367

Restructuring and other charges, net

(132)

62

584

32,338

Total operating expenses

267,009

209,096

789,538

673,927

Operating income

73,582

63,401

265,611

143,851

Other expense, net

(15,113)

(18,885)

(43,378)

(64,526)

Income before income taxes

58,469

44,516

222,233

79,325

Provision for income taxes

7,266

9,838

38,253

2,036

Net income

$

51,203

$

34,678

$

183,980

$

77,289

Earnings per share:

Basic

$

0.44

$

0.30

$

1.58

$

0.67

Weighted average shares outstanding

116,934

115,759

116,702

115,521

Diluted

$

0.43

$

0.30

$

1.56

$

0.67

Weighted average shares outstanding

118,611

116,229

118,181

115,981

(1)

See supplemental financial data for revenue by license, support, and professional services. FY'21 recurring revenue includes a $6.9 million adjustment related to the fair value of acquired deferred revenue.

(2)

See supplemental financial data for additional information about stock-based compensation.