Adobe Inc. stock research
FY2024 Q1
Adobe (ADBE) Gross Margin — Quarter Ended Mar 1, 2024
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue was higher than a year ago but lower sequentially. Consequently, gross margin improved from the prior quarter and was above the year-ago level.
Gross margin takeaway
Quarter ended Mar 1, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue was higher than a year ago but lower sequentially. Consequently, gross margin improved from the prior quarter and was above the year-ago level.
- The gross margin for the current quarter is higher than both the immediately preceding quarter and the same quarter one year earlier, driven by a combination of higher revenue and a lower cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin improved, with revenue and gross profit higher while cost of revenue was lower. Year-over-year, gross margin also improved, as revenue and gross profit grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.6%
Gross profit
$4.6B
Revenue
$5.2B
Cost of revenue
$590.0M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 1, 2024 | $5.2B | $4.6B | $590.0M | 88.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 1, 2023
+1.2 pts
Year-over-year change
Mar 3, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin for the current quarter is higher than both the immediately preceding quarter and the same quarter one year earlier, driven by a combination of higher revenue and a lower cost of revenue relative to revenue.
Compared to the prior quarter, gross margin improved, with revenue and gross profit higher while cost of revenue was lower. Year-over-year, gross margin also improved, as revenue and gross profit grew faster than cost of revenue.
Monitor the trajectory of cost of revenue, as it decreased quarter over quarter but increased year over year.