Automatic Data Processing, Inc. stock research
FY2024 Q4
Automatic Data Processing (ADP) Gross Margin — Quarter Ended Jun 30, 2024
Revenue decreased from the prior quarter but increased year over year. Gross profit declined relative to the preceding quarter yet rose compared with the same quarter last year, while the gross margin weakened versus the sequential quarter and was slightly improved versus the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q4
Revenue decreased from the prior quarter but increased year over year. Gross profit declined relative to the preceding quarter yet rose compared with the same quarter last year, while the gross margin weakened versus the sequential quarter and was slightly improved versus the year-ago period.
- The movement in gross margin primarily reflects the relationship between a lower revenue and a proportionally smaller decrease in cost of revenue quarter over quarter, alongside a year-over-year pattern where revenue growth slightly outpaced cost growth.
- Compared with the previous quarter, revenue was lower, gross profit was lower, and gross margin weakened. Versus the same quarter one year ago, revenue was higher, gross profit was higher, and gross margin was slightly improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.8%
Gross profit
$2.1B
Revenue
$4.8B
Cost of revenue
$2.6B
Quarter-over-quarter change
-2.5 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $4.5B | $2.0B | $2.5B | 44.3% |
| Dec 31, 2023 | $4.7B | $2.1B | $2.6B | 45.1% |
| Mar 31, 2024 | $5.3B | $2.5B | $2.8B | 47.3% |
| Jun 30, 2024 | $4.8B | $2.1B | $2.6B | 44.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-2.5 pts
Year-over-year change
Jun 30, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The movement in gross margin primarily reflects the relationship between a lower revenue and a proportionally smaller decrease in cost of revenue quarter over quarter, alongside a year-over-year pattern where revenue growth slightly outpaced cost growth.
Compared with the previous quarter, revenue was lower, gross profit was lower, and gross margin weakened. Versus the same quarter one year ago, revenue was higher, gross profit was higher, and gross margin was slightly improved.
Monitor the trend in gross margin stability, as it showed mixed movement across the sequential and year-over-year comparisons.