PTC Inc. stock research
FY2023 Q3
PTC (PTC) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was nearly unchanged from the prior quarter, while cost of revenue increased, causing gross profit to decline slightly and gross margin to weaken. Compared with the same quarter last year, revenue grew, gross profit increased, and gross margin improved.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue was nearly unchanged from the prior quarter, while cost of revenue increased, causing gross profit to decline slightly and gross margin to weaken. Compared with the same quarter last year, revenue grew, gross profit increased, and gross margin improved.
- Revenue growth over the year-ago period is the strongest observable driver of gross margin improvement. The relationship between revenue and cost of revenue remains the key factor to monitor.
- Compared with the prior quarter, gross margin weakened as revenue was stable but cost of revenue was higher. Relative to the same quarter last year, gross margin improved on higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.6%
Gross profit
$426.5M
Revenue
$542.3M
Cost of revenue
$115.9M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.7 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% |
| Jun 30, 2023 | $542.3M | $426.5M | $115.9M | 78.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.4 pts
Year-over-year change
Jun 30, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth over the year-ago period is the strongest observable driver of gross margin improvement. The relationship between revenue and cost of revenue remains the key factor to monitor.
Compared with the prior quarter, gross margin weakened as revenue was stable but cost of revenue was higher. Relative to the same quarter last year, gross margin improved on higher revenue and gross profit.
Monitor the trend in cost of revenue relative to revenue, as it increased sequentially while revenue held flat.