Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 70

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 $
        878,294

        $
        1,062,052

        Contract asset
         
        $
        14,518

        $
        14,410

        Deferred revenue
         
        $
        726,167

        $
        775,274

      During the three months ended December 31, 2024, we recognized $340.5 million of revenue that was included in Deferred revenue as of September 30, 2024. The remainder of the change in the Deferred revenue balance was driven by additional deferrals, primarily from new billings, as well as a reduction in the balance associated with foreign currency exchange rates.Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the subscription with other software. As of December 31, 2024 and September 30, 2024, our total revenue liability was $26.9 million and $26.0 million, respectively, primarily associated with the annual right to exchange on-premises subscription software.Remaining Performance ObligationsOur contracts with customers include transaction price amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. The value of remaining performance obligations and timing of recognition may be impacted by several factors, including the performance obligation type, duration and timing of commencement, as well as foreign currency exchange rate fluctuations. As of December 31, 2024, the transaction price amounts include performance obligations of $726.2 million recorded in Deferred revenue and $1,464.4 million that are not yet recorded in the Consolidated Balance Sheets. Of the total $2,190.6 million, we expect to recognize approximately 60% over the next 12 months, 24% over the next 13 to 24 months, and the remaining amount thereafter.Disaggregation of Revenue 

        (in thousands)
         
        Three months ended

        December 31, 2024

        December 31, 2023

        Recurring revenue(1)
         
        $
        524,311

        $
        506,027

        Perpetual license

        9,405

        8,440

        Professional services

        31,412

        35,747

        Total revenue
         
        $
        565,128

        $
        550,214

      (1)Recurring revenue is comprised of on-premises subscription, perpetual