Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 21

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 21
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AAP net income—GAAP net income

•non-GAAP diluted earnings per share—GAAP diluted earnings per share

•free cash flow—cash flow from operations

The non-GAAP financial measures other than free cash flow exclude, as applicable: stock-based compensation expense; amortization of acquired intangible assets; acquisition and transaction-related charges included in General and administrative expenses; Restructuring and other charges (credits), net; non-operating charges (credits), net; and income tax adjustments as defined in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and as reflected in the reconciliation tables.

24

The items excluded from the non-GAAP financial measures often have a material impact on our financial results, certain of those items are recurring, and other such items often recur. Accordingly, the non-GAAP financial measures included in this Quarterly Report on Form 10-Q should be considered in addition to, and not as a substitute for or superior to, the comparable measures prepared in accordance with GAAP. The following tables reconcile each of these non-GAAP financial measures to its most closely comparable GAAP measure on our financial statements.

    (in millions, except per share amounts)
     
    Three months ended

    December 31, 2024

    December 31, 2023

    GAAP gross margin
     
    $
    453.3

    $
    440.2

    Stock-based compensation

    5.9

    5.1

    Amortization of acquired intangible assets included in cost of revenue

    8.3

    9.6

    Non-GAAP gross margin
     
    $
    467.5

    $
    454.8

    GAAP operating income
     
    $
    115.5

    $
    118.7

    Stock-based compensation

    55.9

    59.0

    Amortization of acquired intangible assets

    19.7

    19.9

    Acquisition and transaction-related charges

    0.2

    2.5

    Restructuring and other credits, net

    —

    (0.8
    )

    Non-GAAP operating income
     
    $
    191.3

    $
    199.4

    GAAP net income
     
    $
    82.2

    $