PTC Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

Twelve Months Ended

September
30,

September
30,

September
30,

September
30,

2023

2022

2023

2022

Cash flows from operating activities:

Net income

$

45,603

$

106,837

$

245,540

$

313,081

Stock-based compensation

58,891

41,580

206,459

174,863

Depreciation and amortization

27,817

22,238

104,760

87,694

Amortization of right-of-use lease assets

7,697

8,198

32,402

34,346

Loss (gain) on investment

-

-

-

31,854

Gain on divestiture of business

-

-

-

(29,808)

Operating lease liability

(569)

(3,066)

(1,929)

(13,610)

Accounts receivable

(198,128)

(190,235)

(98,607)

(165,006)

Accounts payable and accruals

12,395

17,080

23,763

312

Deferred revenue

37,876

39,549

56,572

57,586

Income taxes

31,225

21,510

21,315

27,634

Other

26,962

(25,192)

20,586

(83,620)

Net cash provided by operating activities

49,769

38,499

610,861

435,326

Capital expenditures

(5,779)

(9,517)

(23,814)

(19,496)

Acquisition of businesses, net of cash acquired ⁽¹⁾

-

(7,969)

(828,271)

(282,943)

Purchase of intangible assets

(800)

(998)

(800)

(6,451)

Borrowings (payments) on debt, net ⁽²⁾

(43,000)

(75,000)

343,000

(91,000)

Repurchases of common stock

-

-

-

(125,000)

Net proceeds associated with issuance of common stock

11,060

10,350

21,652

21,207

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

(6,959)

(6,135)

(82,448)

(68,991)

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

-

-

(5,474)

46,906

Credit facility origination costs

-

-

(13,355)

-

Divestiture of business, net ⁽⁴⁾

-

-

(154)

32,518

Other financing & investing activities

6,283

10,164

(8,138)

27,968

Foreign exchange impact on cash

(3,984)

(9,548)

2,851

(24,203)

Net change in cash, cash equivalents, and restricted cash

6,590

(50,154)

15,910

(54,159)

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

282,208

323,042

272,888

327,047

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

$

288,798

$

272,888

$

288,798

$

272,888

Supplemental cash flow information:

Cash paid for interest

$

37,855

$

22,618

$

89,801

$

48,525

(1) In FY'23, we acquired ServiceMax Inc. for $1,448 million, net of cash acquired.  We paid $828 million in FY'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. In FY'22, we acquired Intland for approximately $278 million, net of
cash acquired.

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

(3) In FY'22, we sold an equity investment in a publicly-traded company for $43 million.

(4) In FY'22, we sold a portion of our PLM services business.