PTC Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a total revenue of $636.4 million, a 6% increase from $603.1 million in the same quarter of the previous year. The company's software revenue, which includes license and support services, rose to $607.4 million, up from $570.8 million, driven by a 9% increase in license revenue and a 5% increase in support and cloud services. Net income for the quarter was $162.6 million, or $1.35 per diluted share, reflecting a 42% increase compared to $114.4 million, or $0.95 per diluted share, in the prior year.
In comparison to the previous fiscal period, PTC's financial performance showed notable improvements. The company achieved a gross margin of 83% for the quarter, up from 82% a year earlier, and operating income increased by 24% to $223.5 million. The operating margin also improved significantly, reaching 35.1%, compared to 29.8% in the same quarter last year. The increase in profitability was attributed to higher revenue and continued operational discipline, which helped offset rising costs.
Strategically, PTC has made significant moves, including the acquisition of pure-systems GmbH in October 2023 for $93.5 million, which was financed through its credit facility. The company continues to focus on expanding its product offerings and enhancing its software solutions, particularly in the areas of Product Lifecycle Management (PLM) and Computer-Aided Design (CAD). PTC's Annual Run Rate (ARR) reached $2.29 billion, a 10% increase year-over-year, indicating strong customer retention and engagement.
Operationally, PTC reported a total customer count exceeding 30,000, with a workforce of over 7,000 employees. The company noted a 1% increase in headcount compared to the previous year. Geographic revenue distribution showed growth in the Americas and Asia Pacific regions, while European revenue faced challenges due to lower volumes of large subscriptions. The company also reported a decrease in professional services revenue, as it shifts towards leveraging partners for service delivery.
Looking ahead, PTC remains optimistic about its growth trajectory, with plans to repurchase approximately $300 million of its common stock in fiscal year 2025. The company anticipates continued revenue growth driven by its subscription model and ongoing investments in its software solutions. However, PTC acknowledged potential risks, including macroeconomic uncertainties and competitive pressures, which could impact future performance.
About PTC INC.
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