PTC Inc. stock research
FY2024 Q1
PTC (PTC) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue declined. As a result, gross margin improved, and the filing notes that operating cash flow also increased, supporting the company's financial position.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue declined. As a result, gross margin improved, and the filing notes that operating cash flow also increased, supporting the company's financial position.
- The primary driver of the improved gross margin was the combination of higher revenue and lower cost of revenue. Cost of revenue decreased from both the preceding quarter and the year-ago period, outpacing revenue growth in relative terms.
- Sequentially, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened. Year-over-year, the same directional changes were observed, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.0%
Gross profit
$440.2M
Revenue
$550.2M
Cost of revenue
$110.0M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+0.9 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% |
| Sep 30, 2023 | $546.6M | $430.8M | $115.9M | 78.8% |
| Dec 31, 2023 | $550.2M | $440.2M | $110.0M | 80.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.2 pts
Year-over-year change
Mar 31, 2023
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the improved gross margin was the combination of higher revenue and lower cost of revenue. Cost of revenue decreased from both the preceding quarter and the year-ago period, outpacing revenue growth in relative terms.
Sequentially, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened. Year-over-year, the same directional changes were observed, with gross margin also improving.
Monitor whether the lower cost of revenue level persists in future quarters, as it has been a key factor in margin expansion.