PTC Inc. COO transitions to strategic advisor role

BOSTON, MA - PTC Inc. (NASDAQ:PTC), a leader in prepackaged software services, announced Monday a significant change in its executive team. The company stated that Michael DiTullio, who has been serving as President and Chief Operating Officer since February 2023, will transition from his current role to become a strategic advisor to the CEO starting October 1, 2024.

DiTullio's new advisory role is part of a planned CEO succession process and will extend until June 30, 2025. In this capacity, he will be compensated with a salary of $412,500 for the term and will receive a restricted stock unit (RSU) award valued at $3.0 million, vesting over three years starting July 15, 2025.

Upon the conclusion of his advisory period, DiTullio is set to receive a severance package, contingent on a general release of claims. The package includes a cash payout equivalent to his base salary and target bonus totaling $1.1 million, continuation of health benefits, and the sustained vesting of his equity as per the terms of his Executive Agreement dated November 16, 2023.

The company's filing indicates that DiTullio's last day as President and COO will be September 30, 2024, marking the end of his service in these roles. This transition is detailed in PTC's latest 8-K filing with the Securities and Exchange Commission.

PTC, headquartered at 121 Seaport Boulevard in Boston, Massachusetts, is incorporated in the state of Massachusetts and is part of the 06 Technology organization. The company's fiscal year ends on September 30.

The information provided in this article is based on a press release statement.

In other recent news, PTC Inc. has been navigating significant strategic changes and shifts in the market. The company's stock rating was downgraded from Buy to Neutral by Mizuho Securities due to sluggish demand trends and a slower-than-expected transition to a SaaS business model.

Despite these challenges, PTC Inc. reported robust financial results, with a 12% year-over-year increase in constant currency Annual Recurring Revenue (ARR) to $2.075 billion, and a 19% rise in operating cash flow and free cash flow.

The company's mid-term ARR growth forecast has been revised to low double digits, reflecting the current market conditions. PTC Inc. also announced plans to reduce gross debt to around $1.7 billion by year-end. In addition, the company is aiming to return about 50% of its free cash flow to shareholders through share repurchases.

These recent developments indicate PTC Inc.'s strategic focus on disciplined execution and resource allocation, despite a challenging selling environment. The company remains optimistic about closing a significant pipeline of large deals in the second half of the year. Analysts, such as those at Mizuho, maintain a cautious approach towards PTC Inc.'s short-term performance, but remain optimistic about the company's long-term growth potential.

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