PT

PTC Inc. stock research

Sep 30, 2024

FY2024 Q4

PTC (PTC) Gross Margin — Quarter Ended Sep 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. This drove gross profit higher and improved gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q4

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. This drove gross profit higher and improved gross margin.

  • The strongest observable driver is the combination of higher revenue and nearly unchanged cost of revenue, which directly lifted gross profit and margin.
  • Gross margin improved from the immediately preceding quarter and from the same quarter one year earlier, as revenue grew faster than cost of revenue in both comparisons.

Gross margin snapshot

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

Gross margin

82.0%

Gross profit

$513.7M

Revenue

$626.5M

Cost of revenue

$112.8M

Quarter-over-quarter change

+3.6 pts

Year-over-year change

+3.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$550.2M$440.2M$110.0M80.0%
Mar 31, 2024$603.1M$493.0M$110.1M81.8%
Jun 30, 2024$518.6M$406.7M$111.9M78.4%
Sep 30, 2024$626.5M$513.7M$112.8M82.0%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+3.6 pts

Year-over-year change

Sep 30, 2023

+3.2 pts

What the margin says

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

The strongest observable driver is the combination of higher revenue and nearly unchanged cost of revenue, which directly lifted gross profit and margin.

Gross margin improved from the immediately preceding quarter and from the same quarter one year earlier, as revenue grew faster than cost of revenue in both comparisons.

Monitor cost of revenue trends, as its stability relative to revenue growth was a key factor in margin expansion.