Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 14

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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 Q1’25. 

19

Gross Margin

    (Dollar amounts in millions)
     
    Three months ended

    December 31, 2024

    December 31, 2023

    Percent Change

    License gross margin
     
    $
    162.5

    $
    173.7

    (6
    )%

    License gross margin percentage

    94
    %

    94
    %

    Support and cloud services gross margin
     
    $
    289.6

    $
    263.4

    10
    %

    Support and cloud services gross margin percentage

    80
    %

    80
    %

    Professional services gross margin
     
    $
    1.2

    $
    3.1

    (61
    )%

    Professional services gross margin percentage

    4
    %

    9
    %

    Total gross margin
     
    $
    453.3

    $
    440.2

    3
    %

    Total gross margin percentage

    80
    %

    80
    %

    Non-GAAP gross margin(1)
     
    $
    467.5

    $
    454.8

    3
    %

    Non-GAAP gross margin percentage(1)

    83
    %

    83
    %

(1)Non-GAAP financial measures are reconciled to GAAP results under Non-GAAP Financial Measures below.

License gross margin changes in Q1'25 were in line with changes in license revenue. Cost of license revenue in Q1'25 remained consistent with Q1'24.

Support and cloud services gross margin growth in Q1'25 was in line with support and cloud services revenue growth. Cost of support and cloud services revenue grew 6% in Q1'25 compared to Q1'24, with the main driver of increased costs being compensation.

Professional services gross margin decreased in Q1'25 compared to Q1'24, primarily due to higher compensation costs, driven by severance related to our go-to-market realignment.

Operating Expenses

    (Dollar amounts in millions)
     
    Three months ended

    December 31, 2024

    December 31, 2023

    Percent Change

    Sales and marketing
     
    $
    157.5

    $