Pursuant to Section 13 OR 15(D) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported)                                                                                                                      April 29, 2019
  PTC Inc.
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
121 Seaport Boulevard, Boston, MA
(Address of Principal Executive Offices)
(Zip Code)
(Registrant’s Telephone Number, Including Area Code)                                                                                                 (781) 370-5000
Securities Registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbols
Name of each exchange on which registered
Common Stock, $.01 par value per share
NASDAQ Global Select Market
(Former Name or Former Address, if Changed Since Last Report)
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Emerging growth company ☐
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Section 7 – Regulation FD
Item 7.01.     
Regulation FD Disclosure.
Additional Information about the Assumptions underlying our Q3’19 and FY’19 Guidance
Our Q3’19 and FY’19 guidance includes the following general considerations:
Currencies have been volatile over the past year, and as a result we estimate that for the full-year FY’19, based upon current rates, FX is an approximate 200 bps headwind to our reported bookings and revenue growth for the full year. Currency movements since we last provided guidance on January 24, 2019 have negatively impacted our full year bookings guidance by $1.4 million.
As part of our go-to-market transformation, we had planned for a certain level of new IOT and AR sales capacity to support accelerating market demand. Given the extremely tight labor market, particularly within enterprise software, competition for top sales talent is extending recruitment times, which has put us a bit behind on our hiring plans by about 30 quota-carrying sales reps, and thereby modestly impacting our bookings plans for the back half of FY’19. However, we still forecast IoT bookings to grow at the high end of the 30-40% market growth rate.
At the beginning of the fiscal year we made the strategic decision to begin managing several more of our smaller mature businesses within our Productivity Zone. Businesses in the Productivity Zone are managed for profit growth instead of revenue and bookings growth given the dynamics of these markets. These are markets where we focus on providing great solutions for a set of targeted customers, verticals, and use cases, but our strategy is not for broader market penetration given the high growth IoT and AR market opportunity for PTC.
Our FY’19 bookings guidance growth range of 7% to 11% YoY CC assumes the following:
IoT (inclusive of AR), which comprised approximately 25% of our FY’18 bookings, are expected to be at or near the high-end of the estimated market growth rate of 30-40%.
CAD and Core PLM, which together comprised approximately 60% of our FY’18 bookings, are expected to grow in the 6-8% range YoY CC.
Our Productivity Zone businesses, which now include ALM and parts of SLM, which in total comprised a mid-teens percentage of our FY’18 bookings, are expected to be down about 35% YoY CC in FY’19. We had planned bookings in the Productivity Zone to be down materially in FY’19, as part of our portfolio management process. We now expect a larger decline of approximately $8 million. We now expect our Productivity Zone businesses will represent only a high-single digit percentage of our total FY’19 bookings.
Note that our second-half estimated growth rates approximate our first-half performance, where core CAD and PLM grew in the high single digits YoY CC, IoT, inclusive of AR, grew at the higher end of the 30-40% market growth rate YoY CC, and our Productivity Zone businesses declined just above the mid-30% range YoY CC.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PTC Inc.
Date: April 29, 2019
/s/ Catherine Gorecki
Catherine Gorecki 
Senior Vice President, Corporate & Securities Counsel & Assistant Secretary