Adobe Inc. stock research
FY2023 Q4
Adobe (ADBE) Gross Margin — Quarter Ended Dec 1, 2023
Revenue rose in the current quarter, while cost of revenue rose at a faster pace, causing gross profit to increase but gross margin to weaken. Compared with the same quarter one year earlier, gross margin was stable, indicating that the ratio between cost of revenue and revenue remained consistent over that longer period.
Gross margin takeaway
Quarter ended Dec 1, 2023 · FY2023 Q4
Revenue rose in the current quarter, while cost of revenue rose at a faster pace, causing gross profit to increase but gross margin to weaken. Compared with the same quarter one year earlier, gross margin was stable, indicating that the ratio between cost of revenue and revenue remained consistent over that longer period.
- Gross profit increased as revenue grew, but the proportion of cost of revenue to revenue edged higher, which pressured gross margin.
- Relative to the immediately preceding quarter, gross margin was lower. Versus the same quarter one year earlier, gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.4%
Gross profit
$4.4B
Revenue
$5.0B
Cost of revenue
$634.0M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.0 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% |
| Jun 2, 2023 | $4.8B | $4.2B | $572.0M | 88.1% |
| Sep 1, 2023 | $4.9B | $4.3B | $580.0M | 88.1% |
| Dec 1, 2023 | $5.0B | $4.4B | $634.0M | 87.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 1, 2023
-0.7 pts
Year-over-year change
FY2022 Q4
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased as revenue grew, but the proportion of cost of revenue to revenue edged higher, which pressured gross margin.
Relative to the immediately preceding quarter, gross margin was lower. Versus the same quarter one year earlier, gross margin was unchanged.
Monitor whether the relationship between cost of revenue and revenue continues to shift, as it was the primary factor behind the sequential gross margin change.