Adobe Inc. stock research
FY2023 Q1
Adobe (ADBE) Gross Margin — Quarter Ended Mar 3, 2023
In the current quarter, revenue increased and gross profit rose, with cost of revenue remaining stable compared to the prior quarter, leading to an improved gross margin. Year-over-year, revenue and gross profit both grew, but cost of revenue also increased, resulting in a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Mar 3, 2023 · FY2023 Q1
In the current quarter, revenue increased and gross profit rose, with cost of revenue remaining stable compared to the prior quarter, leading to an improved gross margin. Year-over-year, revenue and gross profit both grew, but cost of revenue also increased, resulting in a slightly weakened gross margin.
- The sequential improvement in gross margin was driven by revenue growth with no change in cost of revenue. The year-over-year decline reflected a greater increase in cost of revenue relative to revenue growth.
- Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.8%
Gross profit
$4.1B
Revenue
$4.7B
Cost of revenue
$568.0M
Quarter-over-quarter change
n/a
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 3, 2023 | $4.7B | $4.1B | $568.0M | 87.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
FY2022 Q1
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by revenue growth with no change in cost of revenue. The year-over-year decline reflected a greater increase in cost of revenue relative to revenue growth.
Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor cost of revenue trends, as its recent stability contrasted with the prior year increase, and changes could impact gross margin.