Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 11

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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    31.4

    35.7

    (12
    )%

    (13
    )%

    Total revenue

    565.1

    550.2

    3
    %

    2
    %

    Total cost of revenue

    111.8

    110.0

    2
    %

    1
    %

    Gross margin

    453.3

    440.2

    3
    %

    2
    %

    Operating expenses

    337.8

    321.5

    5
    %

    5
    %

    Operating income
     
    $
    115.5

    $
    118.7

    (3
    )%

    (4
    )%

    Non-GAAP operating income(1)
     
    $
    191.3

    $
    199.4

    (4
    )%

    (5
    )%

    Operating margin

    20.4
    %

    21.6
    %

    Non-GAAP operating margin(1)

    33.9
    %

    36.2
    %

    Diluted earnings per share
     
    $
    0.68

    $
    0.55

    Non-GAAP diluted earnings per share(1)
     
    $
    1.10

    $
    1.11

    Cash provided by operating activities
     
    $
    238.4

    $
    187.3

    Capital expenditures

    (2.8
    )

    (4.6
    )

    Free cash flow
     
    $
    235.7

    $
    182.8

(1)See Non-GAAP Financial Measures below for a reconciliation of our GAAP results to our non-GAAP financial measures and Impact of Foreign Currency Exchange on Results of Operations below for a description of how we calculate our results on a constant currency basis.

(2)Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.

Impact of Foreign Currency Exchange on Results of Operations

Approximately 50% of our revenue and 35% of our expenses are transacted in currencies other than the U.S. Dollar. Because we report our results of operations in U.S. Dollars,