PTC Inc. |
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NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) |
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(in thousands, except per share data) |
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| Three Months Ended |
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| Six Months Ended |
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| March 31, |
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| March 31, |
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| March 31, |
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| March 31, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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GAAP gross margin | $ | 411,890 |
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| $ | 372,337 |
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| $ | 774,493 |
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| $ | 714,558 |
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Stock-based compensation |
| 4,264 |
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| 4,506 |
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| 10,236 |
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| 8,940 |
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Amortization of acquired intangible assets included in cost of revenue |
| 5,921 |
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| 7,117 |
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| 12,414 |
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| 13,384 |
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Non-GAAP gross margin | $ | 422,075 |
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| $ | 383,960 |
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| $ | 797,143 |
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| $ | 736,882 |
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GAAP operating income | $ | 159,190 |
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| $ | 101,690 |
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| $ | 221,368 |
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| $ | 192,029 |
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Stock-based compensation |
| 37,921 |
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| 44,740 |
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| 83,863 |
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| 90,828 |
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Amortization of acquired intangible assets |
| 14,371 |
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| 14,767 |
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| 29,348 |
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| 27,581 |
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Acquisition-related and other transactional charges |
| 3,903 |
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| 10,310 |
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| 4,953 |
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| 14,226 |
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Restructuring and other charges, net |
| (1,562) |
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| 469 |
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| 32,429 |
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| 716 |
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Non-GAAP operating income (1) | $ | 213,823 |
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| $ | 171,976 |
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| $ | 371,961 |
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| $ | 325,380 |
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GAAP net income | $ | 89,679 |
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| $ | 109,262 |
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| $ | 135,768 |
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| $ | 132,777 |
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Stock-based compensation |
| 37,921 |
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| 44,740 |
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| 83,863 |
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| 90,828 |
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Amortization of acquired intangible assets |
| 14,371 |
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| 14,767 |
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| 29,348 |
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| 27,581 |
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Acquisition-related and other transactional charges |
| 3,903 |
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| 10,310 |
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| 4,953 |
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| 14,226 |
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Restructuring and other charges, net |
| (1,562) |
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| 469 |
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| 32,429 |
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| 716 |
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Non-operating charges (2) |
| 44,613 |
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| - |
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| 34,847 |
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| - |
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Income tax adjustments (3) |
| (25,444) |
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| (51,703) |
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| (44,669) |
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| (24,552) |
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Non-GAAP net income | $ | 163,481 |
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| $ | 127,845 |
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| $ | 276,539 |
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| $ | 241,576 |
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GAAP diluted earnings per share | $ | 0.76 |
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| $ | 0.92 |
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| $ | 1.15 |
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| $ | 1.13 |
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Stock-based compensation |
| 0.32 |
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| 0.38 |
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| 0.71 |
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| 0.77 |
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Amortization of acquired intangibles |
| 0.12 |
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| 0.12 |
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| 0.25 |
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| 0.23 |
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Acquisition-related and other transactional charges |
| 0.03 |
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| 0.09 |
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| 0.04 |
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| 0.12 |
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Restructuring and other charges, net |
| (0.01) |
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| - |
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| 0.27 |
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| 0.01 |
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Non-operating charges |
| 0.38 |
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| - |
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| 0.29 |
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| - |
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Income tax adjustments |
| (0.22) |
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| (0.44) |
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| (0.38) |
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| (0.21) |
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Non-GAAP diluted earnings per share | $ | 1.39 |
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| $ | 1.08 |
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| $ | 2.34 |
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| $ | 2.05 |
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(1) Operating margin impact of non-GAAP adjustments: |
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| Three Months Ended |
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| Six Months Ended |
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| March 31, |
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| March 31, |
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| March 31, |
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| March 31, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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GAAP operating margin |
| 31.5 | % |
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| 22.0 | % |
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| 23.0 | % |
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| 21.6 | % | |||||||||
Stock-based compensation |
| 7.5 | % |
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| 9.7 | % |
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| 8.7 | % |
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| 10.2 | % | |||||||||
Amortization of acquired intangibles |
| 2.8 | % |
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| 3.2 | % |
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| 3.0 | % |
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| 3.1 | % | |||||||||
Acquisition-related and other transactional charges |
| 0.8 | % |
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| 2.2 | % |
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| 0.5 | % |
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| 1.6 | % | |||||||||
Restructuring and other charges, net |
| (0.3) | % |
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| 0.1 | % |
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| 3.4 | % |
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| 0.1 | % | |||||||||
Non-GAAP operating margin |
| 42.3 | % |
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| 37.2 | % |
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| 38.6 | % |
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| 36.5 | % | |||||||||
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(2) Expense recognized due to the reduction in value of an equity investment in a publicly-traded company. |
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(3) Income tax adjustments reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. In 2021 we had recorded a full valuation allowance against our U.S. net deferred tax assets. As we were profitable on a non-GAAP basis, the 2021 tax provision was calculated assuming there was no valuation allowance. Additionally, our non-GAAP results for the six months ended March 31, 2021 excluded tax expenses of $34.6 million related to a South Korean tax exposure, primarily related to foreign withholding taxes. |
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