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Equity Incentive Plans (Tables) | 12 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement, Recognized Amount [Abstract] |
Schedule of Classification of Compensation Expense | The following table shows total stock-based compensation expense recorded in our Consolidated Statements of Operations:
(in thousands) |  | Year ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Cost of license revenue |  | $ | 133 |  |  | $ | 145 |  |  | $ | 272 |
Cost of support and cloud services revenue |  |  | 14,479 |  |  |  | 12,801 |  |  |  | 11,022 |
Cost of professional services revenue |  |  | 6,827 |  |  |  | 7,928 |  |  |  | 11,481 |
Sales and marketing |  |  | 68,541 |  |  |  | 56,394 |  |  |  | 49,467 |
Research and development |  |  | 60,266 |  |  |  | 58,931 |  |  |  | 41,944 |
General and administrative |  |  | 73,215 |  |  |  | 70,260 |  |  |  | 60,677 |
Total stock-based compensation expense |  | $ | 223,461 |  |  | $ | 206,459 |  |  | $ | 174,863 |
Schedule of Restricted Stock Unit Activity | The following table sets forth the restricted stock unit activity for the year ended September 30, 2024.
(in thousands, except grant date fair value data) |  | Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Aggregate Intrinsic Value |
Balance of outstanding RSUs at October 1, 2023 |  |  | 2,581 |  |  | $ | 122.82 |  |  |  |
Granted(1) |  |  | 1,332 |  |  | $ | 164.73 |  |  |  |
Vested |  |  | (1,731 | ) |  | $ | 124.29 |  |  |  |
Forfeited or not earned |  |  | (118 | ) |  | $ | 133.15 |  |  |  |
Balance of outstanding RSUs at September 30, 2024 |  |  | 2,064 |  |  | $ | 147.92 |  |  | $ | 372,884 |
(1) RSUs granted include 11 shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2023 and 42 shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2023.
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) |  | Year ended September 30, 2024 |
Performance-based RSUs(1) |  |  | 97 |
Service-based RSUs(2) |  |  | 1,103 |
Relative Total Shareholder Return RSUs(3) |  |  | 79 |
(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, 2024, November 15, 2025, and November 15, 2026, 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. (2) The service-based RSUs were granted to employees, inc luding 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 m easurement period ending on September 30, 2026. The RSUs earned will vest on November 15, 2026. Up to a maximum of two times the number of rTSR RSUs eligible to be earned for the period may vest. If the stock price as of the beginning of the period is below the stock price at the end of the period, 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:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Average volatility of peer group |  |  | 49.30 | % |  |  | 41.54 | % |  |  | 34.67 | %
Risk-free interest rate |  |  | 4.65 | % |  |  | 4.12 | % |  |  | 0.81 | %
Dividend yield |  |  | — | % |  |  | — | % |  |  | — | %
Expected term (in years) |  |  | 2.87 |  |  |  | 2.87 |  |  |  | 2.87 |
Schedule of Value of Stock Issued for Vested RSUs | The value of stock issued for vested RSUs is as follows:
(in thousands) |  | Year ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Stock issued for vested RSUs |  | $ | 289,333 |  |  | $ | 240,066 |  |  | $ | 199,738 |

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