PTC Inc. stock research
FY2024 Q3
PTC (PTC) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue was slightly higher. Gross margin weakened as a result, and compared to the same quarter one year earlier, gross margin was stable.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q3
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue was slightly higher. Gross margin weakened as a result, and compared to the same quarter one year earlier, gross margin was stable.
- The decline in gross margin from the prior quarter was driven by a larger proportional decrease in revenue relative to the reduction in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.4%
Gross profit
$406.7M
Revenue
$518.6M
Cost of revenue
$111.9M
Quarter-over-quarter change
-3.3 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $546.6M | $430.8M | $115.9M | 78.8% |
| Dec 31, 2023 | $550.2M | $440.2M | $110.0M | 80.0% |
| Mar 31, 2024 | $603.1M | $493.0M | $110.1M | 81.8% |
| Jun 30, 2024 | $518.6M | $406.7M | $111.9M | 78.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-3.3 pts
Year-over-year change
Jun 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin from the prior quarter was driven by a larger proportional decrease in revenue relative to the reduction in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin was stable.
Monitor the trajectory of revenue relative to cost of revenue, as the current quarter showed a larger revenue decline without a proportional cost reduction.