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About Ptc Inc.

PTC's offerings in CAD, PLM, the IoT, and AR help customers digitize operations and collaborate. In computer aided design (CAD), its Creo offering is used to create 3D computer models for products ranging from engines to phones. PTC's Windchill software suite for product lifecycle management (PLM) enables collaborative content and process management over the internet. With ThingWorx, PTC provides a platform for developing applications for the Internet of Things (IoT). The augmented reality (AR) product, Vuforia Studio, overlays digital information such as repair instructions onto the view of physical objects and processes. The Americas and Europe each account for about 40% of PTC's revenue.

Financial Performance

PTC's revenue has increased two years in a row, but it remains below the company's record high of $1.3 billion posted in 2014, reflecting the uneven path from switching to a subscription revenue model from perpetual licenses.

In 2018 (ended September), sales rose 7% to $1.2 billion from 2017. In the company's Solutions segment, made up of CAD and PLM offerings, revenue grew 4% in 2018 from 2017 as a result of strong CAD, PLM, and global channel license and subscription bookings. The segment's professional services revenue, however, dropped 17% in 2018 from 2017 on a write-down related to a settlement of a customer dispute and the company's strategy to limit the amount of professional services. Revenue in the IoT segment, composed of the Internet of Things and augmented reality businesses, jumped 35% year over year due to increases in license and subscription bookings as well as professional services.

PTC recorded $52 million in net income in 2018 compared to about $6 million in 2017 on higher sales and a tax benefit related to the US Tax Cuts and Jobs Act.

The company held about $260 million in cash in 2018, about $20 million less than 2017. Operations produced about $248 million, while investing activities used about $49 million and financing activities used nearly $211 million.

PTC has a significant amount of debt, about $728 million, which could reduce its cash flow for working capital, capital expenditures, acquisitions, and other corporate purposes as well as limit its ability to obtain additional financing.


PTC is in the midst of the perpetual license-to-subscription model transition. At the same time, the company has de-emphasized its support services, turning over much of that work to partner companies. The percentage of revenue from subscriptions has grown to about 40% in 2018 from 10% in 2016. Support revenue shrank to 40% in revenue in 2018 from more than 55% in 2016.

The transition to subscriptions hasn't always been smooth and has slowed as customers locked into longer contracts have delayed switching. Bookings in Russia and China declined materially following the end of perpetual license sales in those countries.

While IoT and AR account for about 10% of PTC's revenue, the company is counting on them to keep growing as they did in 2017 to 2018 (up 35%). Investment in those areas as well the desire improve its operating margin prompted PTC to realign its workforce, resulting in a restructuring charge of about $18 million in 2019.

PTC in 2018 formed partnerships with companies that add PTC's capabilities to their offerings and expand PTC's markets. It formed relationships with Rockwell Automation, Microsoft, and ANSYS to jointly develop, market, and sell integrated products and services. 

The company has strong geographic distribution of its products, with no region accounting for an outsized percentage of revenue. The Americas and Europe each provide about 40% of revenue with the Asia/Pacific region accounting for the rest.


Ptc Inc.

121 Seaport Blvd
Boston, MA 02210-2050
Phone: 1 (781) 370-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: PTC
Stock Exchange: , NASDAQ
EVP Strategy: Barry F. Cohen
President and CEO: James E. Heppelmann
Chairman: Robert P. Schechter
Employees (This Location): 1,300
Employees (All Locations): 6,243

Major Office Locations

Boston, MA

Other Locations

Parker, CO
Atlanta, GA
Oakbrook Terrace, IL
Waltham, MA
Minneapolis, MN
Brandon, MS
Morristown, NJ
Albuquerque, NM
Baldwinsville, NY
Fairport, NY
Wooster, OH
Portland, OR
Greensburg, PA
Uniontown, PA
Mc Lean, VA
Guangzhou, China
Bengaluru, India
Mumbai, India
Pune, India
Bologna, Italy
Torino, Italy
Nagoya, Japan
Osaka, Japan
Toyota, Japan
Sao Jose Dos Campos, Brazil
Aix En Provence, France
Labege, France
Limonest, France
Toulouse, France
Kista, Sweden
Lund, Sweden
Stockholm, Sweden
Taichung City, Taiwan
Esslingen Am Neckar, Germany
Neu-Isenburg, Germany
Ratingen, Germany
Wolfsburg, Germany
Lausanne, Switzerland