Specialist
Former VP, Retail & Customer Global Business Development at PTC Inc (Parametric Technology Corp)
Agenda
- Operating environment for PTC (NASDAQ: PTC) in the engineering application software market, highlighting major trends and customer demand in CAD (computer-aided design) and PLM (product lifecycle management)
- Competitive dynamics vs Dassault (PAR: DSY), Siemens (ETR: SIE), Autodesk (NASDAQ: ADSK) and others
- Onshape integration and SaaS (software-as-a-service) strategy for PTC, including SMB opportunities
- Thingworx growth outlook and Rockwell (NYSE: ROK) partnership update
- Outlook for 2022 and beyond, touching on top-line growth expectations and ability to improve margins
Questions
1.
What major trends are playing out in the CAD [computer-aided design] and PLM [product lifecycle management] software segments? Could you highlight any major themes dictating the industry narrative?
2.
Could you discuss the customer demand for CAD and PLM throughout 2021? What are your 2022
expectations?
3.
Have we reached an inflection point in SaaS [software-as-a-service]-based CAD and PLM solutions adoption? Has there been further acceleration over the last two years driven by coronavirus and remote working? Is it reflected in the numbers?
4.
Could you discuss the competitive positioning of Dassault, Siemens, PTC and other players in the CAD and PLM segments, given the impending inflection in SaaS adoption of these solutions you mentioned?
5.
How much market share do you expect PTC to capture? Where could the company’s market share shift? Where is its value proposition and first-mover mentality particularly salient within the customer bases of its competitors?
6.
Could you elaborate on Thingworx and its competitive positioning? Could you discuss the dynamics of PTC’s relationship with Microsoft and the Azure IoT [Internet of Things] platform? How is it managed from PTC to Microsoft? PTC relies on Azure infrastructure, but Azure also offers competing products.
7.
What’s your take on PTC’s SaaS strategy with Atlas and Onshape? How has this played out and what has adoption been for Onshape?
8.
Could you break down the level of customisation for PTC’s Creo and Windchill CAD and PLM solutions? How does this translate to a multi-tenant SaaS offering? Do other challenges arise from providing a certain degree of customisation within such offering?
9.
How feature-rich is Onshape? What has PTC done to eliminate this customisation issue? Were the company’s engineering and R&D resources required to build out the features for a larger customer type and make it more applicable across use cases?
10.
It seems the need to integrate into various systems is a particular issue for large enterprise. What could PTC’s approach be in this segment? To what extent is adoption being hamstrung? Is a single-tenant cloudmanaged services model the route that will be taken more for this customer type?
11.
Would you say large enterprise customers are unlimited in their ability to adopt these types of SaaS offerings? Does it just take some additional product or feature development work to support this?
12.
What are the costs for SMB customers to switch to SaaS? How does this differ from the costs for a larger enterprise client?
13.
How long does it take for an SMB to shift its CAD and PLM into SaaS? What are the one-time switching costs during the transition?
14.
How many opportunities does Onshape create to win new logos, particularly in the SMB segment? How much of Onshape’s growth within PTC is driven by new logo growth vs porting existing customers onto the platform?
15.
What are your ARR growth expectations for Thingworx? Could you discuss the key logistical issues in driving its adoption?
16.
How does Thingworx tie back into the SaaS-ification of the rest of PTC’s portfolio? To what extent are they converging factors for the company? What are the implications of those two dynamics playing out?
17.
What are your expectations for Onshape adoption within the existing PTC customer base? What proportion of PTC’s customer base could realistically move to this solution over a 2-3-year period?
18.
Could you quantify top-line growth and ARR for PTC? What are your expectations for the company’s topline growth rate given the opportunities we’ve discussed in the Onshape acquisition and SMBs?
19.
How could PTC’s margins be impacted from the business mix increasingly shifting to Onshape and those customer types, given the company relies on Azure infrastructure for Onshape?
20.
How do you assess PTC’s ability to improve its margins? Are margins more set in stone? What could be some achievable margin targets for the company over the next few years?
21.
Do you have any concluding thoughts around PTC and its opportunities? What’s your outlook for the company over the next few years? What challenges might it face?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
