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,

2023

2022

2023

2022

Cash flows from operating activities:

Net income

$

63,504

$

89,679

$

138,539

$

135,768

Stock-based compensation

52,246

37,921

93,750

83,863

Depreciation and amortization

27,709

21,380

49,037

43,468

Amortization of right-of-use lease assets

8,510

8,676

16,564

17,536

Accounts receivable

(19,034)

(45,006)

86,478

12,310

Accounts payable and accruals

2,492

(55,744)

(7,358)

(39,932)

Deferred revenue

55,727

60,708

36,092

47,012

Income taxes

4,667

2,049

(12,169)

(6,279)

Other

15,127

22,662

(9,064)

(13,685)

Net cash provided by operating activities

210,948

142,325

391,869

280,061

Capital expenditures

(3,770)

(2,148)

(12,950)

(5,510)

Acquisition of businesses, net of cash acquired ⁽¹⁾

(828,271)

-

(828,271)

-

Borrowings (payments) on debt, net ⁽²⁾

566,000

(175,000)

566,000

(175,000)

Repurchases of common stock

-

(5,261)

-

(125,000)

Net proceeds associated with issuance of common stock

10,592

10,857

10,592

10,857

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

(3,599)

(1,430)

(56,022)

(50,595)

awards

Net proceeds from sale (purchases) of investments ⁽³⁾

(5,823)

42,693

(5,823)

42,693

Credit facility origination costs

(12,005)

-

(13,355)

Other financing & investing activities

(1,749)

831

(12,915)

6,615

Foreign exchange impact on cash

565

(2,078)

9,181

(3,739)

Net change in cash, cash equivalents, and restricted cash

(67,112)

10,789

48,306

(19,618)

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

388,306

296,639

272,888

327,046

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

$

321,194

$

307,428

$

321,194

$

307,428

(1) In Q2'23, we acquired ServiceMax Inc. for $1,448 million, net of cash acquired.  We paid $828 million in Q2'23 with the
remaining $650 million to be paid in Q1'24.  Of the $650 million to be paid, $620 million will be a financing outflow and $30
million of imputed interest will be an operating cash outflow.

(2) In Q2'23, net borrowings were related to a credit facility established to fund the ServiceMax acquisition.

(3) In Q2'22, we sold an equity investment in a publicly-traded company.