Equity Incentive Plans (Tables)

12 Months Ended

Sep. 30, 2022

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,
	2022		2021		2020
Cost of license revenue	$	272	$	100	$	47
Cost of support and cloud services revenue		11,022		9,900		6,910
Cost of professional services revenue		11,481		9,263		7,012
Sales and marketing		49,467		53,712		37,351
Research and development		41,944		34,272		27,005
General and administrative		60,677		70,042		36,824
Total stock-based compensation expense	$	174,863	$	177,289	$	115,149

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity for the year ended September 30, 2022 (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, 2021		3,217		$	92.46
Granted(1)		1,659		$	114.31
Vested		(1,736	)	$	92.70
Forfeited or not earned		(386	)	$	100.05
Balance of outstanding RSUs at September 30, 2022		2,754		$	105.07	$	288,068

(1)RSUs granted includes 37 shares from prior period rTSR awards that were earned upon achievement of the performance criteria and vested in November 2021 and 87 shares from prior period performance-based awards that were earned upon achievement of the performance criteria and vested in November 2021.

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)	Twelve months ended September 30, 2022
Performance-based RSUs(1)		106
Service-based RSUs(2)		1,353
Relative Total Shareholder Return RSUs(3)		76

(1)The performance-based RSUs are primarily made up of RSUs granted to our executives and are eligible to vest based upon annual increasing 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, 2022, November 15, 2023, and November 15, 2024, 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 152 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, 2024. The RSUs earned will vest on November 15, 2024. 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 152 RSUs) may vest. If the return to PTC shareholders is negative for the period 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	34.67	%
Risk-free interest rate	0.81	%
Dividend yield	—	%

Schedule of Total Fair Value of RSUs Vested

:

(in thousands)	Year ended September 30,
Value of stock option and stock-based award activity	2022		2021		2020
Total value of restricted stock unit awards at vest	$	199,738	$	171,316	$	103,265