PTC Inc. stock research
FY2023 Q1
PTC (PTC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly, as the growth in cost of revenue outpaced the growth in revenue relative to gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly, as the growth in cost of revenue outpaced the growth in revenue relative to gross profit.
- The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew while cost of revenue increased, leading to a slightly lower gross margin.
- Compared to the immediately preceding quarter and the same quarter one year earlier, revenue and gross profit were higher, while gross margin was slightly lower. The prior quarter and year-ago quarter figures are identical, indicating no change in those benchmarks.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.1%
Gross profit
$428.7M
Revenue
$542.2M
Cost of revenue
$113.5M
Quarter-over-quarter change
n/a
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $542.2M | $428.7M | $113.5M | 79.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Dec 31, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew while cost of revenue increased, leading to a slightly lower gross margin.
Compared to the immediately preceding quarter and the same quarter one year earlier, revenue and gross profit were higher, while gross margin was slightly lower. The prior quarter and year-ago quarter figures are identical, indicating no change in those benchmarks.
Monitor the trend in cost of revenue relative to revenue, as its increase contributed to the slight weakening in gross margin.