PT

PTC Inc. stock research

Sep 30, 2023

FY2023 Q4

PTC (PTC) Gross Margin — Quarter Ended Sep 30, 2023

The company reported higher revenue and gross profit compared to both the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but was lower than the year-ago period.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q4

The company reported higher revenue and gross profit compared to both the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but was lower than the year-ago period.

  • The strongest driver was revenue growth while cost of revenue remained unchanged from the prior quarter, allowing gross profit to increase proportionally.
  • Sequentially, revenue and gross profit increased with stable cost of revenue, leading to a strengthened gross margin. Compared to the same quarter last year, revenue and gross profit were higher but cost of revenue also increased, resulting in a weakened gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

78.8%

Gross profit

$430.8M

Revenue

$546.6M

Cost of revenue

$115.9M

Quarter-over-quarter change

+0.2 pts

Year-over-year change

-2.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$542.2M$428.7M$113.5M79.1%
Jun 30, 2023$542.3M$426.5M$115.9M78.6%
Sep 30, 2023$546.6M$430.8M$115.9M78.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+0.2 pts

Year-over-year change

Sep 30, 2022

-2.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest driver was revenue growth while cost of revenue remained unchanged from the prior quarter, allowing gross profit to increase proportionally.

Sequentially, revenue and gross profit increased with stable cost of revenue, leading to a strengthened gross margin. Compared to the same quarter last year, revenue and gross profit were higher but cost of revenue also increased, resulting in a weakened gross margin.

Monitor the trajectory of cost of revenue, which remained stable sequentially but rose year-over-year.