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Stock-based Compensation (Tables) | 3 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement, Recognized Amount [Abstract] |
Schedule of RSU Activity | The following table shows RSU activity for the three months ended December 31, 2022:
(in thousands, except grant date fair value data) |  | Number of RSUs |  |  | Weighted-Average Grant Date Fair Value Per RSU |
Balance of outstanding restricted stock units, October 1, 2022 |  |  | 2,754 |  |  | $ | 105.07 |
Granted(1) |  |  | 817 |  |  | $ | 131.58 |
Vested |  |  | (1,090 | ) |  | $ | 103.61 |
Forfeited or not earned |  |  | (72 | ) |  | $ | 111.90 |
Balance of outstanding restricted stock units, December 31, 2022 |  |  | 2,409 |  |  | $ | 114.54 |
(1) Restricted stock units granted includes 38 thousand shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2022, and 61 thousand shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2022. The following table presents the number of RSU awards granted by award type:
Schedule of Number of RSU Awards Granted by Award Type | The following table presents the number of RSU awards granted by award type:
(in thousands) |  | Three months ended December 31, 2022 |
Performance-based RSUs(1) |  |  | 69 |
Service-based RSUs(2) |  |  | 580 |
Relative Total Shareholder Return RSUs(3) |  |  | 69 |
(1) The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual performance measures over a three-year period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2023, November 15, 2024, and November 15, 2025, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (up to a maximum aggregate of 139 thousand RSUs). (2) The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant. (3) The rTSR RSUs were granted to our executives and are eligible to vest based on the performance of PTC stock relative to the stock performance of an index of PTC peer companies established as of the grant date, as determined at the end of the measurement period ending on September 30, 2025. The RSUs earned will vest on November 15, 2025. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period (up to a maximum aggregate of 139 thousand RSUs) may vest. If the PTC stock price as of September 30, 2022 is higher than the PTC stock price as of September 30, 2025, but still meets or exceeds the peer group indexed return, a maximum of 100% of the rTSR RSUs may vest.
Schedule of Valuation Assumptions | The significant assumptions used in the Monte Carlo simulation model were as follows:
Average volatility of peer group |  |  | 41.54 | %
Risk free interest rate |  |  | 4.12 | %
Dividend yield |  |  | — | %
Schedule of Total Fair Value of RSUs Vested | Total value on vest date of RSUs vested are as follows:
(in thousands) |  | Three months ended |
Value of stock option and stock-based award activity |  | December 31, 2022 |  |  | December 31, 2021 |
Total value of restricted stock unit awards at vest |  | $ | 143,794 |  |  | $ | 134,330 |
Schedule of Classification of Compensation Expense | Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows:
(in thousands) |  | Three months ended |
|  | December 31, 2022 |  |  | December 31, 2021 |
Cost of license revenue |  | $ | 37 |  |  | $ | 38 |
Cost of support and cloud services revenue |  |  | 2,790 |  |  |  | 3,478 |
Cost of professional services revenue |  |  | 1,248 |  |  |  | 2,456 |
Sales and marketing |  |  | 12,196 |  |  |  | 13,081 |
Research and development |  |  | 11,458 |  |  |  | 10,176 |
General and administrative |  |  | 13,775 |  |  |  | 16,713 |
Total stock-based compensation expense |  | $ | 41,504 |  |  | $ | 45,942 |

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- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the total intrinsic value of options exercised (or share units converted), share-based liabilities paid, and the total fair value of shares vested during the year. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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