Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 41

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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 due to the timing and value of new and renewal contracts. Under ASC 606, the timing of revenue recognition for on-premises subscription revenue can vary significantly, impacting reported revenue and growth rates. Operating income was down 3% compared to Q1'24, mainly due to costs related to our go-to-market realignment. Diluted earnings per share grew 23% to $0.68 in Q1'25 compared to Q1'24, primarily driven by lower interest expense and a non-cash tax benefit associated with the release of a tax reserve related to prior years in a foreign jurisdiction.

17

Results of Operations

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

    Percent Change

    December 31, 2024

    December 31, 2023

    Actual

    ConstantCurrency(1)

    ARR
     
    $
    2,205.3

    $
    2,057.2

    7
    %

    11
    %

    Total recurring revenue(2)
     
    $
    524.3

    $
    506.0

    4
    %

    3
    %

    Perpetual license

    9.4

    8.4

    11
    %

    11
    %

    Professional services

    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