SUBSCRIPTION PROGRAM AND LONG-TERM FINANCIAL MODEL UPDATE. November 8, 2016

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1 SUBSCRIPTION PROGRAM AND LONG-TERM FINANCIAL MODEL UPDATE November 8, 2016

2 SAFE HARBOR STATEMENT Today s presentation and Q&A session will include forward-looking statements regarding PTC s future financial performance, strategic outlook and expectations, anticipated future operations, and products and markets. Because such statements deal with future events, actual results may differ materially from those projected in the forward-looking statements. 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. During the presentation PTC will discuss operating and non-gaap financial measures and targets. All prior period results and future period expectations and targets discussed are non-gaap measures. These non-gaap measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the fiscal 2016 and 2017 non-gaap financial measures to the most directly comparable GAAP measures can be found on our website. An explanation of our subscription transition operating measures can also be found on our website. 2

3 STRATEGY UPDATE James Heppelmann President and CEO November 8, 2016

4 OUR MISSION Unlocking the value created by the convergence of the PHYSICAL and DIGITAL worlds 4

5 PHYSICAL WORLD DIGITAL WORLD 5

6 PHYSICAL WORLD PHYSICAL PRODUCT 3D Printing Smart Manufacturing (Industry 4.0) IOT & Analytics Augmented Reality Virtual Reality Engineering CAD / PLM DIGITAL TWIN Service - SLM DIGITAL WORLD 6

7 Maximize Long-Term Shareholder Value 1 Increase our Growth Rate 2 Increase our Margins 3 Convert to Subscription 7

8 STRATEGY FOR GROWTH Capitalize on High-Growth IoT Market Opportunity Leverage IoT in the Core Improve Focus and Execution 8

9 THOUGHT LEADER PTC continues to exemplify excellence and innovation in the IoT market, and the successful growth trajectory into multiple industries and the enterprise is a testament to its overall market leadership. Stephanie Atkinson Chief Executive Officer 9

10 MARKET SHARE LEADER TECHNOLOGY PLATFORMS FOR THE INTERNET OF THINGS (IoT) PTC 27% Telit (ILS) 12% Cumulocity 7% Gemalto-SensorLogic 5% LogMein-Xively 3% Arrayent 2% Amazon (2lmentry) 2% Zebra Technologies 2% ABO Data 2% Bosch Software Innovations 1% Autodesk SeeControl 1% Other 36% Total market size 2015: $221M PTC IS THE CLEAR MARKET LEADER WITH 18% MARKET SHARE Total market size 2015: $298M PTC 18% PTC 18% Telit (ILS) 4% icontrol networks 4% Arrayant 3% Samsung Smartthings 3% IBM IoT Foundation 2% BlackBerry 2% Ayla Networks 2% Zebra Technologies 2% Prosyst 2% Etherios 2% Exosite 2% Pubnub 2% General Electric 1% Amazon (2lmentry) 1% Other 49% Source: BCC Research Source: IoT Analytics 10

11 Portfolio Attractiveness TECHNOLOGY LEADER INDUSTRIE 4.0/IOT VENDOR BENCHMARK 2016 Product Challenger Leader 100% Device Insight Cumulocity Eurotech Cognizant Infosys PTC Bosch SI Atos IBM Capgemini Microsoft Deutsche Telekom CSC Axiros QSC HP Intel 50% 0% Follower Market Challenger 0% 50% 100% Competitive Strength Source: Experton Market Insight 11

12 MOMENTUM AgXchange >1,200 Customers 12

13 MOMENTUM >250 Partners 13

14 $100M REVENUE 14

15 LEVERAGE IoT IN THE CORE 15

16 PACKAGED IOT SOLUTIONS Engineering Manufacturing Service 16

17 FASTEST GROWING PRODUCT LINE IN PTC S HISTORY 17

18 FOCUS EXECUTION

19 INCREASE OUR MARGINS 19

20 COMMITTED TO LONG-TERM MARGIN EXPANSION $2, % 30.0% 20.0% 10.0% $0 FY15A FY16A FY17G FY18E FY19E FY20E FY21E 0.0% 20

21 CONVERT TO SUBSCRIPTION 21

22 17% 56% 65% 85% FY15 FY16A FY17G FY18E 22

23 Maximize Long-Term Shareholder Value SUMMARY 1 2 Increase our Growth Rate FY21 Target: 10%+ CAGR Increase our Margins FY21 Non-GAAP Target: low-30% Range 3 Convert to Subscription FY21 Target: ~95% Recurring Software Revenue 23

24 LONG-TERM FINANCIAL MODEL UPDATE Andrew Miller EVP and CFO November 8, 2016

25 FY16 RECAP 25

26 FY16 RECAP BOOKINGS $335M $401M 26

27 FY16 RECAP ACV $43M $114M 27

28 FY16 RECAP MIX 25% 56% 28

29 1 $1.6B Revenue 10% Growth NOVEMBER 15 PRIOR FY21 TARGETS % Subscription Mix Low-30% Non-GAAP OPM 4 $450M Free Cash Flow 29

30 1 $1.8B Revenue 10% Growth NOVEMBER 16 NEW FY21 TARGETS % Subscription Mix Low-30% Non-GAAP OPM $4.15 Non-GAAP EPS 5 $525M Free Cash Flow 30

31 BOOKINGS 31

32 IN MILLIONS MARKET GROWTH RATES SUPPORT MID-TEENS BOOKINGS GROWTH BY FY21 $750 $0 FY16A FY17E FY18E FY19E FY20E FY21E Solutions IoT 32

33 IN MILLIONS OUR MODEL: 10%+ SUSTAINABLE BOOKINGS GROWTH THROUGH FY21 $750 $0 FY16A FY17G FY18E FY19E FY20E FY21E Solutions IoT 33

34 KEY ELEMENTS OF THE MODEL TRANSITION 34

35 ELEMENT 1: SUBSCRIPTION MIX Prior Annual Targets 25% 45% 70% New Annual Targets 56% 65% 85% FY16A FY17G FY18E 35

36 ELEMENT 2: REVENUE ACCELERATES AFTER FY16 36

37 IN MILLIONS YEAR AGO: SOFTWARE REVENUE TROUGHS IN FY18 $1, % $0 FY16E FY17E FY18E FY19E FY20E FY21E 0% 37

38 IN MILLIONS NOW: SOFTWARE REVENUE GROWS IN FY17 $1, % $0 FY16E/FY16A FY17E/FY17G FY18E FY19E FY20E FY21E 0% 38

39 IN MILLIONS SOFTWARE REVENUE GROWTH BEGINNING IN FY17 $1, % $0 FY16A FY17G FY18E FY19E FY20E FY21E 0% 39

40 ELEMENT 3: CONTINUED COST DISCIPLINE 40

41 IN MILLIONS OPEX DISCIPLINE REMAINS A KEY TENET $850 $0 FY16A FY17G FY18E FY19E FY20E FY21E Current Non-GAAP Estimates 41

42 ELEMENT 4: P&L NORMALIZES IN FY20 42

43 IN MILLIONS YEAR AGO: NON-GAAP MARGIN TROUGHS IN FY18 $2, % 30.0% 20.0% 10.0% $0 FY15A FY16E FY17E FY18E FY19E FY20E FY21E 0.0% 43

44 IN MILLIONS NOW: NON-GAAP MARGIN TROUGHED IN FY16 $2, % 30.0% 20.0% 10.0% $0 FY15A FY16A FY17G FY18E FY19E FY20E FY21E 0.0% 44

45 IN MILLIONS NOW: NON-GAAP MARGIN EXPANSION BEGINS IN FY17 $2, % 30.0% 20.0% 10.0% $0 FY15A FY16E/FY16A FY17E/FY17G FY18E FY19E FY20E FY21E 0.0% 45

46 Attractive Operating Models: FY21 UNDER THE COVERS 1 2 Solutions: Modest Growth + High Margins IoT: High Growth + Modest Margins 46

47 IN MILLIONS IN MILLIONS FOCUSED OPERATING MODELS LEAD TO A STRONG FY21 $2,000 $2,000 Solutions IoT Revenue Non-GAAP Operating Margin Revenue Non-GAAP Operating Margin 47

48 IN MILLIONS FOCUSED OPERATING MODELS LEAD TO A STRONG FY21 $2,000 PTC Revenue Non-GAAP Operating Margin 48

49 COMMITTED RETURN OF CAPITAL 49

50 SHARES IN MILLIONS PLANNED BUYBACKS WILL REDUCE SHARE COUNT m 100 FY16A FY17G FY18E FY19E FY20E FY21E 50

51 ONE YEAR AHEAD 51

52 NASDAQ: PTC Contact Investor Relations: Website: investor.ptc.com PTC Corporate Headquarters 140 Kendrick Street Needham, MA 02494, USA

53 FORWARD-LOOKING STATEMENTS Statements in this presentation that are not historic facts, including statements about our fiscal 2017 targets and other future financial and growth expectations are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include: the macroeconomic and/or global manufacturing climates may not improve or may deteriorate; customers may not purchase our solutions when or at the rates we expect; our businesses, including our IoT business, may not expand and/or generate the revenue we expect; foreign currency exchange rates may vary from our expectations and thereby affect our reported revenue and expense; our customers may purchase more of our solutions as subscriptions than we expect, which would adversely affect near-term revenue, operating margins, and EPS; customers may not purchase or renew subscriptions at the rate we expect, which could impact our ability to achieve expected subscription bookings and margins; we may be unable to generate sufficient operating cash flow to return 40% of free cash flow to shareholders and other uses of cash or our debt covenants could preclude share repurchases; and a significant portion of our cash is held overseas and could be subject to significant taxes if repatriated. Other risks and uncertainties that could cause actual results to differ materially from those projected are detailed from time to time in reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10K and Quarterly Report on Form 10Q. 53

54 IMPORTANT INFORMATION ABOUT NON-GAAP REFERENCES PTC provides non-gaap supplemental information to its financial results. We use these non-gaap measures, and we believe that they assist our investors, to make period-to-period comparisons of our operational performance because they provide a view of our operating results without items that are not, in our view, indicative of our core operating results. We believe that these non-gaap measures help illustrate underlying trends in our business, and we use the measures to establish budgets and operational goals, communicated internally and externally, for managing our business and evaluating our performance. We believe that providing non-gaap measures affords investors a view of our operating results that may be more easily compared to the results of peer companies. In addition, compensation of our executives is based in part on the performance of our business based on these non-gaap measures. However, non-gaap information should not be construed as an alternative to GAAP information as the items excluded from the non-gaap measures often have a material impact on our financial results and such items often recur. Management uses, and investors should consider, non-gaap measures in conjunction with our GAAP results. Non-GAAP revenue, non-gaap operating expenses, non-gaap operating margin, non-gaap gross profit, non-gaap gross margin, non-gaap net income and non-gaap EPS exclude the effect of the following items: Fair value of acquired deferred revenue is a purchase accounting adjustment recorded to reduce acquired deferred revenue to the fair value of the remaining obligation, so our GAAP revenue after an acquisition does not reflect the full amount of revenue that would have been reported if the acquired deferred revenue was not written down to fair value. We believe excluding these adjustments to revenue from these contracts (and associated costs in fair value adjustment to deferred services cost) is useful to investors as an additional means to assess revenue trends of our business. Stock-based compensation is a non-cash expense relating to stock-based awards issued to executive officers, employees and outside directors, consisting of restricted stock, stock options and restricted stock units. We exclude this expense as it is a non-cash expense and we assess our internal operations excluding this expense and believe it facilitates comparisons to the performance of other companies in our industry. Amortization of acquired intangible assets is a non-cash expense that is impacted by the timing and magnitude of our acquisitions. We believe the assessment of our operations excluding these costs is relevant to our assessment of internal operations and comparisons to the performance of other companies in our industry. Acquisition-related charges included in general and administrative costs are direct costs of potential and completed acquisitions and expenses related to acquisition integration activities, including transaction fees, due diligence costs, severance and professional fees. In addition, subsequent adjustments to our initial estimated amount of contingent consideration associated with specific acquisitions are included within acquisition-related charges. These costs are not considered part of our normal operations as the occurrence and amount will vary depending on the timing and size of acquisitions. U.S. pension plan termination-related costs include charges related to our plan that we began terminating in the second quarter of Costs associated with the termination are not considered part of our regular operations. Legal accrual includes amounts accrued to settle our SEC and DOJ FCPA investigation in China, which was ultimately settled and paid in the second quarter of 2016 for $28.2 million, and other amounts in respect of related regulatory and other matters. We view these matters as non-ordinary course events and exclude the amounts when reviewing our operating performance. Restructuring charges include severance costs and excess facility restructuring charges resulting from reductions of personnel driven by modifications to our business strategy and not considered part of our normal operations. These costs may vary in size based on our restructuring plan. Non-operating credit facility refinancing costs are non-operating charges we record as a result of the refinancing of our credit facility. We assess our internal operations excluding these costs and believe it facilitates comparisons to the performance of other companies in our industry. Income tax adjustments include the tax impact of the items above and assumes that we are profitable on a non-gaap basis in the U.S. and one foreign jurisdiction, and eliminates the effect of the valuation allowance recorded against our net deferred tax assets in those jurisdictions. Additionally, we exclude other material tax items that we view as non-ordinary course. PTC also provides information on free cash flow, adjusted free cash flow, and free cash flow return to enable investors to assess our ability to generate cash without incurring additional external financings and to evaluate our performance against our announced long term goal of returning approximately 40% of our free cash flow to shareholders via stock repurchases. Free cash flow is net cash provided by (used in) operating activities less capital expenditures, adjusted free cash flow is free cash flow excluding restructuring expenses and certain legal accruals, free cash flow return is the value of shares repurchased divided by free cash flow. Free cash flow and adjusted free cash flow are not measures of cash available for discretionary expenditures. 54

55 RECONCILIATION BETWEEN GAAP AND NON-GAAP FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 Consolidated Statements of Operations - Yr Ended Yr Ended Yr Ended Yr Ended Quarter Ended Yr Ended Quarter Ended Yr Ended Reconciliation between GAAP and Non-GAAP 30-Sep 30-Sep 30-Sep 30-Sep 3-Jan 4-Apr 4-Jul 30-Sep 30-Sep 2-Jan 2-Apr 2-Jul 30-Sep 30-Sep (in millions, except per share amounts and %) GAAP revenue $ 1,167 $ 1,256 $ 1,294 $ 1,357 $ 325 $ 314 $ 303 $ 313 $ 1,255 $ 291 $ 273 $ 289 $ 288 $ 1,141 Fair value adjustment of acquired deferred subscription revenue Fair value adjustment of acquired deferred support revenue Fair value adjustment of acquired deferred perpetual license revenue Fair value adjustment of acquired deferred services revenue Non-GAAP revenue $ 1,170 $ 1,258 $ 1,297 $ 1,358 $ 327 $ 315 $ 304 $ 313 $ 1,259 $ 292 $ 274 $ 290 $ 289 $ 1,144 GAAP cost of revenue $ 357 $ 372 $ 373 $ 374 $ 93 $ 86 $ 79 $ 76 $ 335 $ 80 $ 80 $ 82 $ 83 $ 326 Software stock-based compensation expense (3) (3) (3) (4) (1) (1) (1) (1) (4) (2) (1) (1) (1) (5) Professional services stock-based compensation expense (5) (6) (6) (6) (2) (2) (1) (1) (6) (1) (1) (1) (1) (5) Fair value adjustment to deferred services cost Software amortization of acquired intangible assets (15) (16) (19) (18) (5) (5) (5) (5) (19) (5) (7) (6) (6) (25) Professional services amortization of acquired intangible assets Non-GAAP cost of revenue $ 334 $ 347 $ 345 $ 345 $ 86 $ 79 $ 72 $ 69 $ 306 $ 72 $ 71 $ 74 $ 74 $ 291 GAAP gross profit $ 810 $ 884 $ 921 $ 983 $ 233 $ 228 $ 224 $ 236 $ 921 $ 211 $ 192 $ 206 $ 205 $ 815 Fair value adjustment of acquired deferred revenue Stock-based compensation expense Fair value adjustment to deferred services cost (0) (0) (0) (0) (0) (1) (0) (0) (0) (0) (0) Amortization of acquired intangible assets Non-GAAP gross profit $ 836 $ 911 $ 952 $ 1,013 $ 241 $ 236 $ 232 $ 244 $ 953 $ 220 $ 202 $ 216 $ 215 $ 853 GAAP gross margin 69.4% 70.4% 71.2% 72.5% 71.4% 72.6% 73.8% 75.6% 73.3% 72.5% 70.6% 71.4% 71.3% 71.4% Fair value adjustment of acquired deferred revenue 0.2% 0.2% 0.2% 0.1% 0.4% 0.4% 0.3% 0.2% 0.3% 0.2% 0.4% 0.4% 0.3% 0.3% Stock-based compensation expense 0.7% 0.7% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 1.2% 0.9% 0.9% 0.9% 0.9% Fair value adjustment to deferred services cost 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Amortization of acquired intangible assets 1.3% 1.3% 1.4% 1.3% 1.5% 1.5% 1.6% 1.6% 1.5% 1.8% 2.5% 2.2% 2.2% 2.2% Non-GAAP gross margin 71.5% 72.4% 73.4% 74.6% 73.8% 75.0% 76.3% 78.0% 75.7% 75.4% 74.0% 74.6% 74.4% 74.6% GAAP sales and marketing expense $ 356 $ 386 $ 373 $ 367 $ 89 $ 84 $ 88 $ 85 $ 347 $ 82 $ 87 $ 95 $ 103 $ 367 Stock-based compensation expense (11) (16) (14) (13) (3) (4) (4) (3) (14) (4) (4) (3) (3) (15) Non-GAAP sales and marketing expense $ 344 $ 370 $ 359 $ 354 $ 86 $ 80 $ 84 $ 82 $ 333 $ 78 $ 83 $ 92 $ 100 $

56 RECONCILIATION BETWEEN GAAP AND NON-GAAP FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 Consolidated Statements of Operations - Yr Ended Yr Ended Yr Ended Yr Ended Quarter Ended Yr Ended Quarter Ended Yr Ended Reconciliation between GAAP and Non-GAAP 30-Sep 30-Sep 30-Sep 30-Sep 3-Jan 4-Apr 4-Jul 30-Sep 30-Sep 2-Jan 2-Apr 2-Jul 30-Sep 30-Sep (in millions, except per share amounts and %) GAAP research and development expense $ 211 $ 215 $ 222 $ 226 $ 61 $ 60 $ 54 $ 52 $ 228 $ 58 $ 57 $ 57 $ 58 $ 229 Stock-based compensation expense (9) (9) (9) (10) (3) (3) (3) (3) (12) (3) (3) (3) (3) (10) Non-GAAP research and development expense $ 203 $ 206 $ 213 $ 216 $ 58 $ 57 $ 51 $ 50 $ 216 $ 55 $ 54 $ 55 $ 55 $ 219 GAAP general and administrative expense $ 108 $ 109 $ 119 $ 132 $ 35 $ 32 $ 46 $ 111 $ 225 $ 39 $ 34 $ 35 $ 38 $ 146 Stock-based compensation expense (18) (18) (17) (17) (2) (4) (5) (4) (14) (13) (6) (6) (6) (30) Acquisition-related costs (8) (4) (10) (13) (4) (2) (3) (0) (9) (1) (1) (1) (0) (3) US pension plan termination-related costs (0) (2) (2) (2) (68) (73) Pending legal settlement accrual (14) (15) (28) (3) (3) Non-GAAP general and administrative expense $ 82 $ 88 $ 93 $ 102 $ 27 $ 25 $ 23 $ 25 $ 101 $ 24 $ 27 $ 29 $ 29 $ 109 GAAP operating income (loss) $ 117 $ 128 $ 127 $ 197 $ 38 $ 4 $ 22 $ (22) $ 42 $ (13) $ 2 $ 8 $ (33) $ (37) Fair value adjustment of acquired deferred revenue Stock-based compensation expense Fair value adjustment to deferred services cost (0) (0) (0) (0) (0) (1) (0) (0) (0) (0) (0) Acquisition-related costs US pension plan termination-related costs Pending legal settlement accrual Restructuring and other charges (credits) (0) Amortization of acquired intangible assets Non-GAAP operating income (loss) $ 207 $ 247 $ 286 $ 340 $ 70 $ $ 88 $ 304 $ 62 $ 38 $ 41 $ 32 $ 173 GAAP operating margin 10.0% 10.2% 9.8% 14.5% 11.6% 1.3% 7.1% -6.9% 3.3% -4.6% 0.6% 2.6% -11.5% -3.2% Fair value adjustment of acquired deferred revenue 0.2% 0.2% 0.2% 0.1% 0.4% 0.4% 0.3% 0.2% 0.3% 0.2% 0.4% 0.4% 0.3% 0.3% Stock-based compensation expense 3.9% 4.1% 3.8% 3.7% 3.5% 4.1% 4.6% 3.9% 4.0% 8.0% 5.4% 4.8% 4.9% 5.8% Fair value adjustment to deferred services cost 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Acquisition-related costs 0.7% 0.3% 0.8% 1.0% 1.2% 0.6% 0.9% 0.1% 0.7% 0.4% 0.4% 0.3% 0.1% 0.3% US pension plan termination-related costs 0.0% 0.0% 0.0% 0.0% 0.5% 0.5% 0.7% 21.7% 5.8% 0.0% 0.0% 0.0% 0.0% 0.0% Pending legal settlement accrual 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.5% 4.7% 2.2% 0.0% 0.0% 0.0% 1.1% 0.3% Restructuring and other charges (credits) 0.0% 2.0% 4.0% 2.1% -0.1% 12.3% 1.4% 0.3% 3.5% 12.8% 1.7% 1.0% 11.0% 6.7% Amortization of acquired intangible assets 2.9% 2.9% 3.5% 3.7% 4.4% 4.4% 4.6% 4.3% 4.4% 4.6% 5.5% 5.1% 5.0% 5.1% Non-GAAP operating margin 17.7% 19.6% 22.1% 25.1% 21.4% 23.4% 24.1% 28.0% 24.2% 21.3% 14.0% 14.1% 10.9% 15.1% 56

57 RECONCILIATION BETWEEN GAAP AND NON-GAAP Reconciliation Between GAAP and Non-GAAP (CONTINUED) FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 Consolidated Statements of Operations - Yr Ended Yr Ended Yr Ended Yr Ended Quarter Ended Yr Ended Quarter Ended Yr Ended Reconciliation between GAAP and Non-GAAP 30-Sep 30-Sep 30-Sep 30-Sep 3-Jan 4-Apr 4-Jul 30-Sep 30-Sep 2-Jan 2-Apr 2-Jul 30-Sep 30-Sep (in millions, except per share amounts and %) GAAP net income (loss) $ 85 $ (35) $ 144 $ 160 $ 30 $ 5 $ 17 $ (6) $ 48 $ (24) $ (5) $ 3 $ (28) $ (54) Fair value adjustment of acquired deferred revenue Stock-based compensation expense Fair value adjustment to deferred services cost (0) (0) (0) (0) (0) (1) (0) (0) (0) (0) (0) Acquisition-related costs US pension plan termination-related costs Pending legal settlement accrual Restructuring and other charges (credits) (0) Amortization of acquired intangible assets Non-operating gains (losses) 5 1 (6) Income tax adjustments (28) 99 (78) (44) (3) (14) (7) (27) (51) 5 (5) (6) (13) (20) Non-GAAP net income (loss) $ 152 $ 183 $ 219 $ 260 $ 59 $ $ 77 $ 259 $ 59 $ 26 $ 30 $ 23 $ 138 GAAP basic net income (loss) per share $ 0.73 $ (0.30) $ 1.20 $ 1.36 $ 0.26 $ 0.05 $ 0.15 $ (0.05) $ 0.41 $ (0.21) $ (0.05) $ 0.03 $ (0.25) $ (0.48) Fair value adjustment of acquired deferred revenue Stock-based compensation expense Fair value adjustment to deferred services cost (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) Acquisition-related costs US pension plan termination-related costs Pending legal settlement accrual Restructuring and other charges (credits) (0.00) Amortization of acquired intangible assets Non-operating gains (losses) (0.05) Income tax adjustments (0.24) 0.83 (0.65) (0.37) (0.03) (0.12) (0.06) (0.23) (0.45) 0.04 (0.05) (0.05) (0.12) (0.17) Non-GAAP basic net income (loss) per share $ 1.29 $ 1.54 $ 1.83 $ 2.20 $ 0.51 $ 0.53 $ 0.54 $ 0.68 $ 2.26 $ 0.51 $ 0.23 $ 0.26 $ 0.20 $ 1.20 GAAP diluted net income (loss) per share $ 0.71 $ (0.30) $ 1.19 $ 1.34 $ 0.26 $ 0.05 $ 0.15 $ (0.05) $ 0.41 $ (0.21) $ (0.05) $ 0.03 $ (0.25) $ (0.48) Fair value adjustment of acquired deferred revenue Stock-based compensation expense Fair value adjustment to deferred services cost (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) Acquisition-related costs US pension plan termination-related costs Pending legal settlement accrual Restructuring and other charges (credits) (0.00) Amortization of acquired intangible assets Non-operating gains (losses) (0.05) Income tax adjustments (0.23) 0.83 (0.64) (0.36) (0.03) (0.12) (0.06) (0.23) (0.44) 0.04 (0.05) (0.05) (0.11) (0.17) Non-GAAP diluted net income (loss) per share $ 1.26 $ 1.51 $ 1.81 $ 2.17 $ 0.50 $ 0.53 $ 0.53 $ 0.67 $ 2.23 $ 0.51 $ 0.23 $ 0.26 $ 0.20 $

58 FY17 GAAP AND NON-GAAP GUIDANCE 58