Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 84

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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ises subscriptions, resulting in a shift to up-front recognition of on-premises subscription license revenue in the period converted compared to ratable recognition for a perpetual support contract. Revenue from our cloud services (primarily SaaS) contracts is recognized ratably. We expect that over time a higher portion of our revenue will be recognized ratably as we expand our SaaS offerings, release additional cloud functionality into our products, and migrate 

18

customers from on-premises subscriptions to SaaS. Given the different mix, duration and volume of new and renewing contracts in any period, year-over-year or sequential revenue can vary significantly.

Revenue by Line of Business

    (Dollar amounts in millions)
     
    Three months ended

    Percent Change

    December 31,2024

    December 31,2023

    Actual

    ConstantCurrency

    License
     
    $
    172.8

    $
    184.0

    (6
    )%

    (7
    )%

    Support and cloud services

    361.0

    330.5

    9
    %

    8
    %

    Software revenue

    533.7

    514.5

    4
    %

    3
    %

    Professional services

    31.4

    35.7

    (12
    )%

    (13
    )%

    Total revenue
     
    $
    565.1

    $
    550.2

    3
    %

    2
    %

Software revenue growth in Q1'25 compared to Q1'24 was driven by growth in CAD in the Americas.

License revenue decreased in Q1'25, reflecting lower PLM revenue in the Americas and Europe, partially offset by growth in CAD in the Americas. License revenue was impacted primarily by a lower volume and value of large contracts renewing in Q1'25 compared to Q1'24.

Support and cloud services revenue growth in Q1'25 was mainly driven by growth in PLM, particularly in the Americas and Europe.

Professional services revenue decreased in Q1'25 as we continue to execute on our strategy of leveraging partners to deliver services rather than contracting to deliver services ourselves.

Software Revenue by Product Group

    (Dollar amounts in millions)
     
    Three months ended

    Percent Change

    December 31,2024

    December 31,