PTC Inc. stock research
FY2025 Q1
PTC (PTC) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, gross profit decreased relative to the immediately preceding quarter, while revenue also declined, leading to a weaker gross margin. Compared to the same quarter one year earlier, both revenue and gross profit increased, and gross margin improved slightly.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
In the current quarter, gross profit decreased relative to the immediately preceding quarter, while revenue also declined, leading to a weaker gross margin. Compared to the same quarter one year earlier, both revenue and gross profit increased, and gross margin improved slightly.
- The change in gross margin was driven by the relative movement of revenue against cost of revenue. Sequentially, revenue fell more than cost of revenue, compressing margin; year over year, revenue rose more than cost of revenue, expanding margin.
- Compared to the immediately preceding quarter, gross margin weakened as revenue declined while cost of revenue decreased only slightly. Compared to the same quarter one year earlier, gross margin improved, supported by a larger increase in revenue than in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.2%
Gross profit
$453.3M
Revenue
$565.1M
Cost of revenue
$111.8M
Quarter-over-quarter change
-1.8 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $603.1M | $493.0M | $110.1M | 81.8% |
| Jun 30, 2024 | $518.6M | $406.7M | $111.9M | 78.4% |
| Sep 30, 2024 | $626.5M | $513.7M | $112.8M | 82.0% |
| Dec 31, 2024 | $565.1M | $453.3M | $111.8M | 80.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.8 pts
Year-over-year change
Dec 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin was driven by the relative movement of revenue against cost of revenue. Sequentially, revenue fell more than cost of revenue, compressing margin; year over year, revenue rose more than cost of revenue, expanding margin.
Compared to the immediately preceding quarter, gross margin weakened as revenue declined while cost of revenue decreased only slightly. Compared to the same quarter one year earlier, gross margin improved, supported by a larger increase in revenue than in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the balance between them has shifted in recent quarters.