PTC Inc.

Thank you for standing by, and welcome to PTC's 2025 Third Quarter Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. I would now like to turn the call over to Matt Chamau, PTC's Head of Investor Relations. Please go ahead.

Good afternoon. Thank you, Eric, and welcome to PTC's 2025 Third Quarter Conference Call. On the call today are Neil Barua, Chief Executive Officer, Christian Palvatia, Chief Financial Officer, and Robert Dada, Chief Revenue Officer. Today's conference call is being broadcast live through an audio webcast, and a replay of the call will be available later today at www.ptc.com. During this call, PTC will make forward-looking statements, including guidance as to future operating results. Because such statements deal with future events, actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in PTC's annual report on Form 10-K, Form 10-Q, and other filings with the U.S. Securities and Exchange Commission, as well as in today's press release. The forward-looking statements, including guidance, provided during this call are valid only as of today's date, July 30, 2025, and PTC assumes no obligation to update these forward-looking statements. During the call, PTC will discuss non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in today's press release made available on our website. With that, I'd like to turn the call over to PTC's Chief Executive Officer, Neil Bumrah.

Thank you, Matt, and good afternoon, everyone. I'm proud of what PTC is accomplishing in fiscal year 25, and I'm more confident than ever in the important position we hold in the market. Our vision for our customers' digital transformations is resonating. They rely on PPC software to build structured product data foundations in their engineering teams and to extend the value of that data across their enterprises. This helps them accelerate time to market, produce higher quality products, and manage complexity across their businesses. And these product data foundations are the fundamental backbone of AI-driven transformation for our customers, and become a driver for organizing and structuring data using PTC solutions. In Q3, we executed well, 9.3% constant currency ARR growth and 14% free cash flow growth year over year. We also continued deleveraging our balance sheet and repurchasing shares. With our continued visibility to solid cash generation, we expect to remain active under a $2 billion share repurchase authorization. These results reflect continued resilience in a dynamic macro environment and also indicate the early progress of our go-to-market transformation and deepening strategic engagement with customers. In Q3, policy and trade uncertainty led some customers to slow or phased deals. By quarter end, we began to see signs of stabilization as customers adapted to the environment. While it is too early to call a trend, our sense is that we are past the point of maximum disruption. Input costs and tariff discussions remain important watch items, and dynamics differ across verticals and geographies, but demand has remained resilient. To us, this underscores that our solutions continue to be mission critical for customers, even in periods of macro uncertainty. Our Q2 results also reflect steady progress with our go-to-market transformation. The team is continuing to build a more consistent operating rhythm, and we're seeing encouraging signs. Pipeline creation remained healthy. Win rates with tenured reps improved modestly, and new reps are making progress in their ramp. We're also seeing stronger collaboration across sales, marketing, and customer success, and deeper, more strategic engagement with senior decision-makers. while we're still early in this transformation. Compared to a year ago, we're structurally stronger and better positioned to support our customers. This remains a long-term effort and we'll continue to refine and adapt, but the early progress we've seen gives us confidence in the direction we're headed. We advanced our product data foundation strategy in Q3 with portfolio enhancements and customer wins across our five focus areas of CAD, PLM, ALM, SLM, and SAS. And we continued our progress with AI. In CAD, we released the most sophisticated version of Creo yet with Creo 12. This release included enhancements in several important areas, including AI-driven generative design. In PLM, we released arena supply chain intelligence, which brings AI-driven supply chain risk monitoring directly into the PLM environment. Our customer wins included a new Windchill Plus deal with a well-known MedTech brand in a competitive process, a new CodeBeamer deal with a major automotive supplier, the adoption of Windchill Plus with a longtime aerospace and defense customer, and finally, a ServiceMax expansion with a MedTech customer that is also standardized on Windchill as its enterprise PLM system. You can read more about our customer wins in the appendix slides. Our product data foundation strategy is also core to what we're doing with AI. Product data foundations are the backbone of AI-driven transformation. We have the solutions to deliver these product data foundations in PLM, CAD, ALM, and SLM, and we have a deep understanding of how our customers apply this data across their enterprises. This combination is central to our vision and will keep PTC in the driver's seat to transform our customers' businesses with product data and AI. Fiscal year 25 has been a milestone year for our AI strategy, with releases and meaningful progress from ServiceMax, Windchill, CodeBeamer, OnChip, Arena, and many of our other products. Feedback from customers has been very positive and validates the direction we're moving in. We'll release more AI capabilities and several products in Q4, followed by a strong AI roadmap for fiscal year 26. More broadly, our relationship with NVIDIA, highlighted in this morning's press release, reflects what's possible when product data intelligence meets cutting-edge innovation. NVIDIA has long used Creon Windchill, but what's even more exciting is the growing convergence between PPC solutions and the expanding category of physical AI. As AI begins to shape the physical world, not just the digital, product data becomes the connective tissue. That's the role we're playing, and it's the one we expect to deepen with NVIDIA and others. While still early, it'll be an area to watch, and it fits directly with our vision of product data foundations and AI-driven transformation. Overall, Q3 was another solid quarter. As we execute in Q4, my confidence is driven by a few things. We have a strong Q4 pipeline with several meaningful opportunities across our verticals and core products. supported by the progress of our go-to-market transformation. Our vision of product data foundations enabling AI-driven transformation is resonating well with customers and is aligned with durable secular trends rooted in their needs. These include the shift to software-defined products, regulatory-driven traceability, and the move to SaaS. With that, I'll turn things over to Christian.