Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 85

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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License gross margin changes in Q1'25 were in line with changes in license revenue. Cost of license revenue in Q1'25 remained consistent with Q1'24.

Support and cloud services gross margin growth in Q1'25 was in line with support and cloud services revenue growth. Cost of support and cloud services revenue grew 6% in Q1'25 compared to Q1'24, with the main driver of increased costs being compensation.

Professional services gross margin decreased in Q1'25 compared to Q1'24, primarily due to higher compensation costs, driven by severance related to our go-to-market realignment.

Operating Expenses

    (Dollar amounts in millions)
     
    Three months ended

    December 31, 2024

    December 31, 2023

    Percent Change

    Sales and marketing
     
    $
    157.5

    $
    136.9

    15
    %

    % of total revenue

    28
    %

    25
    %

    Research and development
     
    $
    115.5

    $
    105.8

    9
    %

    % of total revenue

    20
    %

    19
    %

    General and administrative
     
    $
    53.3

    $
    69.2

    (23
    )%

    % of total revenue

    9
    %

    13
    %

    Amortization of acquired intangible assets
     
    $
    11.4

    $
    10.4

    10
    %

    % of total revenue

    2
    %

    2
    %

    Restructuring and other credits, net
     
    $
    —

    $
    (0.8
    )

    (100
    )%

    % of total revenue

    0
    %

    (0
    )%

    Total operating expenses
     
    $
    337.8

    $
    321.5

    5
    %

Total headcount increased 2% between Q1’24 and Q1’25.

Operating expenses in Q1'25 increased compared to Q1'24, primarily due to the following:

•a $20 million increase in compensation expense (excluding stock-based compensation expense), mainly driven by Q1'25 severance related to the go