Company: PTC
Filing Date: 2025-01-02
Form Type: DEF 14A
Source: 0001104659-25-000041
Chunk: 71

Company: PTC INC.
Filing Date: 2025-01-02
Form: DEF 14A
Chunk 71
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 is not affected by variability in the timing of revenue under ASC 606, particularly for on-premises license subscriptions where a substantial portion of the total value of the contract is recognized at a point in time upon the later of when the software is made available, or the subscription term commences.                                                                                                                   
 ARR should be viewed independently of recognized and unearned revenue and is not intended to be combined with, or to replace, either of those items. Investors should consider our ARR operating measure only in conjunction with our GAAP financial results.                                                                                                                                                                                                                                                                                       | ​ |

Non-GAAP Financial Measures

| ​ |     | ​ | ​ | 2025 PROXY STATEMENT | ​ | ​ |     | ​ | ​ | A-1 | ​ |

TABLE OF CONTENTS

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| 2024Highlights | ​ | ​ | ProxySummary | ​ | ​ | CorporateGovernance | ​ | ​ | ExecutiveCompensation | ​ | ​ | AuditorMatters | ​ | ​ | PTC StockOwnership | ​ | ​ | Annual MeetingInformation | ​ | ​ | OtherGovernance | ​ | ​ | Appendix A | ​ |

Performance Measures Used under Our Executives’ Performance-Based Compensation We use ARR and adjusted free cash flow as performance measures because these measures exclude items that are not, in our view, indicative of our core operating results or that are not easily predictable for future periods.

| ​ | ARR                     | ​ | ​ | ​ | ARR used for executive compensation is constant currency ARR using exchange rates of September 30, 2023.                                                                                                                                                                                                                                                                                                                    | ​ |
|:--|:------------------------|:--|:--|:--|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--|
| ​ | ADJUSTED FREE CASH FLOW | ​ | ​ | ​ | Adjusted free cash flow is cash provided by operations net of capital expenditures, and application of a restructuring adjustment, foreign exchange rate adjustment, and a tax addback adjustment to eliminate the effect of restructuring payments, foreign exchange rates, and certain tax payments of the course of the year. Adjusted free cash flow is not a measure of cash available for discretionary expenditures. | ​ |

Calculations and Reconciliations The