Adobe Inc. stock research
FY2024 Q3
Adobe (ADBE) Gross Margin — Quarter Ended Aug 30, 2024
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved as cost of revenue declined relative to revenue growth.
Gross margin takeaway
Quarter ended Aug 30, 2024 · FY2024 Q3
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved as cost of revenue declined relative to revenue growth.
- The primary observable driver of margin improvement was the reduction in cost of revenue, which decreased while revenue grew.
- Sequentially, revenue and gross profit rose, while cost of revenue fell, leading to higher gross margin. Year over year, revenue and gross profit also increased, with cost of revenue lower, resulting in improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.8%
Gross profit
$4.9B
Revenue
$5.4B
Cost of revenue
$554.0M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Dec 1, 2023 | $5.0B | $4.4B | $634.0M | 87.4% |
| Mar 1, 2024 | $5.2B | $4.6B | $590.0M | 88.6% |
| May 31, 2024 | $5.3B | $4.7B | $598.0M | 88.7% |
| Aug 30, 2024 | $5.4B | $4.9B | $554.0M | 89.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2024
+1.0 pts
Year-over-year change
Sep 1, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin improvement was the reduction in cost of revenue, which decreased while revenue grew.
Sequentially, revenue and gross profit rose, while cost of revenue fell, leading to higher gross margin. Year over year, revenue and gross profit also increased, with cost of revenue lower, resulting in improved gross margin.
Monitor future cost of revenue trends to see if the reduction persists.