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S ptc Strong ARR , Re ve nue , EPS , and Cash Flow Performance for the Third Quarter BOSTON , MA , July 28 , 2021 - PTC ( NASDAQ : PTC ) to day reported financial results for its fisc al third quarte rended June 30 , 2021 . " Our performance in the third quarter and year to da te re fle c ts continued strong execution . We again delivered double - dig it to p line growth , leading to so lid o pe rating and free cash flow re sults , " sa id James Heppelmann , President and CEO , PTC . PIC ANNOUNCES FISCAL THIRD QUARTER 2021 RESULTS " This performance reflects how PTC's ' Digital Transforms Physic a l ' strategy is re so na ting with customers and driving demand for our Core CAD and PLM solutions as well as our new Onshape and Are na Sa a So ffe rings , " said Heppelmann . “ Our breakthrough technologies across the product portfolio a re gaining mind share as customers are realizing the value the se innovative so lutions can bring to the ir organizations . " " The Sa a S de live ry model is just beginning to disrupt the industrial technology market and I am excited that PTC has carved out a leadership position at the fore front of that paradigm shift , " continued Heppelmann . " By de live ring CAD , PLM , IOT , and AR technologies in the cloud , customers can work faster , reduce to tal cost of ownership , be more efficient and increase the re turn on the ir investment over the long - term . " Third quarter 2021 highlights ¹ Key operating and financial highlights are set forth be low . For additional details , ple a se refer to the Q3'21 e aming s pre se ntation and financial da ta tables that have been posted to the Investor Re la tio ns se c tion of our website at inve sto r.p tc .com . ● ● ● ARR was $ 1.42 billion in Q3'21 , re p re se nting growth of 18 % , or 15 % in constant currency , compared to Q3'20 , in line with our guidance . Organic growth was 14 % in Q3'21 , or 11 % in constant currency , compared to Q3'20 . Revenue was $ 436 million in Q3'21 compared to $ 352 million in Q3'20 , growth of 24 % , or 19 % in constant currency , driven primarily by strong execution , as well as the impact of up front license revenue recognition under ASC 606 , and a modest contribution from Arena . Cash flow from operations was $ 88 million and free cash flow was $ 85 million in Q3'21 , in line with our expectations , compared to Q3'20 c a sh flow from operations of $ 105 million and free cash flow of $ 99 million . Operating margin was 17 % in Q3'21 , compared to 18 % in Q3'20 . Non - GAAP o pe rating margin in Q3'21 was 31 % , compared to 29 % in Q3 ' 20 . Total cash and cash equivalents as of the end of Q3'21 was $ 366 million ; gross debt was $ 1.5 billion . We re paid $ 30 million on our revolver in Q3'21 . Fisc al 2021 Guidance " Ye ar to da te , PTC has de live red stro ng ARR , Re ve nue , EPS , Operating Cash Flow and Free Cash Flow , consistent with our guidance throughout the year . We remain on track to deliver against 1 1 We include operating and no n - GAAP financial me a sure s in our operational highlights . The de ta ile d de finitions of the se items and reconciliations of Non - GAAP financial measures to comparable GAAP me a sure s are included below and in the reconciliation tables at the end of this press re le a se .