PTC Inc. (NASDAQ:PTC), a leader in prepackaged software services, has announced the appointment of Robert Bernshteyn to its Board of Directors, effective September 9, 2024. The company confirmed this development in a recent SEC filing dated August 27, 2024.
Bernshteyn, a seasoned professional in the technology sector, joins PTC's board with a wealth of experience. He has been a General Partner at ICONIQ Capital since February 2024, and previously led Coupa Software (NASDAQ:COUP) Incorporated as CEO and Chair of the Board from February 2009 to May 2023. His background also includes roles at Success Factors Inc. and Siebel Systems, Inc., and he has served on the board of Medallia (NYSE:MDLA), Inc.
At 51, Bernshteyn brings a strong educational background to the table, holding a B.S. in Information Systems from the State University of New York at Albany and an M.B.A. from Harvard Business School.
As per the filing, Bernshteyn's compensation aligns with that of other outside directors. He will receive an annual cash retainer of $60,000, prorated for the current year, and an annual equity retainer of Restricted Stock Units (RSUs) valued at approximately $250,000, vesting in March 2025 or at the 2025 Annual Meeting of Shareholders, whichever comes first. Moreover, he will get a one-time initial grant of RSUs valued at $375,000, vesting over two years.
Bernshteyn's role will also extend to the Compensation & People Committee of the Board, where he will be compensated similarly to other committee members, excluding the Committee Chair, with a prorated annual cash retainer of $12,500.
This strategic appointment comes as PTC Inc. continues to strengthen its leadership and corporate governance structures. The information provided in this article is based on a press release statement from the company.
In other recent news, PTC Inc. has seen several adjustments to its stock price target, with BMO Capital raising it to $206 and maintaining an Outperform rating, while Piper Sandler increased its target to $182, retaining a Neutral rating. Conversely, Mizuho Securities downgraded the stock from Buy to Neutral and reduced the target to $190, citing sluggish demand trends and a slower-than-expected transition to a SaaS business model.
PTC Inc. reported an approximate 11.5% year-over-year growth in annual recurring revenue (ARR), aligning with expectations, despite a slightly lowered exit trajectory for the fourth quarter. The company's ability to secure larger deals in the upcoming fourth quarter is seen as vital to meet the ARR growth outlook, which is expected to be a challenging ramp year-over-year.
Furthermore, PTC Inc. announced significant strategic changes, with Michael DiTullio transitioning from his role as President and COO to become a strategic advisor to the CEO. This move is part of a planned CEO succession process. Despite market concerns and a downgrade from Mizuho Securities, PTC Inc. reported a 12% year-over-year increase in constant currency 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 current market conditions. PTC Inc. also announced plans to reduce gross debt to around $1.7 billion by year-end and return about 50% of its free cash flow to shareholders through share repurchases.
InvestingPro Insights
PTC Inc.'s recent board appointment comes at a time when the company is demonstrating solid financial metrics, according to real-time data from InvestingPro. With a market capitalization of $21.52 billion and a robust gross profit margin of 79.81% over the last twelve months as of Q3 2024, PTC Inc. is in a strong position to leverage Bernshteyn's expertise in technology and software services. The company's impressive gross profit margins are a testament to its operational efficiency and underline the potential value Bernshteyn could bring to the table.
InvestingPro Tips highlight that PTC Inc. is trading at a high earnings multiple, with a P/E ratio of 71.69, indicating investor confidence in the company's future growth prospects. This is further supported by the fact that 13 analysts have revised their earnings upwards for the upcoming period. Moreover, PTC Inc. has been profitable over the last twelve months, which is a strong indicator of its financial health and may influence the strategic decisions made by the Board of Directors.
For those interested in a deeper analysis, there are more InvestingPro Tips available, which can be explored at https://www.investing.com/pro/PTC for a comprehensive understanding of PTC Inc.'s financials and market performance.
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