PTC Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

Six Months Ended

March 31,

March 31,

March 31,

March 31,

2024

2023

2024

2023

Cash flows from operating activities:

Net income

$

114,445

$

63,504

$

180,832

$

138,539

Stock-based compensation

54,191

52,246

113,204

93,750

Depreciation and amortization

26,922

27,709

54,144

49,037

Amortization of right-of-use lease assets

7,735

8,510

15,459

16,564

Operating lease liability

(5,340)

(2,910)

(10,293)

4,985

Accounts receivable

(46,443)

(19,034)

107,507

86,478

Accounts payable and accruals

(109)

2,492

(64,796)

(7,358)

Deferred revenue

70,065

55,727

40,971

36,092

Income taxes

4,620

4,667

18,087

(12,169)

Other

24,644

18,037

(17,044)

(14,049)

Net cash provided by operating activities

250,730

210,948

438,071

391,869

Capital expenditures

(3,639)

(3,770)

(8,202)

(12,950)

Acquisition of businesses, net of cash acquired ⁽¹⁾

-

(828,271)

(93,457)

(828,271)

Borrowings (payments) on debt, net ⁽²⁾

(254,230)

566,000

304,174

566,000

Deferred acquisition payment ⁽³⁾

-

-

(620,040)

-

Net proceeds associated with issuance of common stock

12,709

10,592

12,709

10,592

Payments of withholding taxes in connection with vesting of stock-based awards

(20,858)

(3,599)

(71,184)

(56,022)

Settlement of net investment hedges

5,123

(1,749)

(2,224)

(12,544)

Purchases of investments

-

(5,823)

-

(5,823)

Credit facility origination costs

-

(12,005)

-

(13,355)

Other financing & investing activities

-

-

-

(371)

Foreign exchange impact on cash

(5,860)

565

829

9,181

Net change in cash, cash equivalents, and restricted cash

(16,025)

(67,112)

(39,324)

48,306

Cash, cash equivalents, and restricted cash, beginning of period

265,499

388,306

288,798

272,888

Cash, cash equivalents, and restricted cash, end of period

$

249,474

$

321,194

$

249,474

$

321,194

Supplemental cash flow information:

Cash paid for interest ⁽³⁾

$

49,263

$

24,546

$

94,020

$

29,370

(1) In Q1'24, we acquired pure-systems for $93 million, net of cash acquired. In Q2'23, we acquired ServiceMax Inc. for $1,448
million, net of cash acquired. We paid $828 million in Q2'23 and the remaining $620 million in Q1'24.

(2) In Q1'24, we borrowed $740 million to fund the ServiceMax deferred acquisition payment and the pure-systems acquisition.
We made $181 million in payments on our debt in Q1'24 and $254 million in Q2'24.

(3) In Q1'24, we made a payment of $650 million to settle the ServiceMax deferred acquisition payment liability, of which $620
million is a financing outflow and $30 million is an operating outflow and included in cash paid for interest.