AD

Autodesk, Inc. stock research

Jul 31, 2023

FY2024 Q2

Autodesk (ADSK) Gross Margin — Quarter Ended Jul 31, 2023

Revenue in the current quarter was stable compared to the immediately preceding quarter and higher than the same quarter one year earlier. Gross profit improved relative to both prior periods, while cost of revenue remained stable sequentially and was higher year-over-year, resulting in a gross margin that improved sequentially and was slightly higher than a year ago.

Gross margin takeaway

Quarter ended Jul 31, 2023 · FY2024 Q2

Revenue in the current quarter was stable compared to the immediately preceding quarter and higher than the same quarter one year earlier. Gross profit improved relative to both prior periods, while cost of revenue remained stable sequentially and was higher year-over-year, resulting in a gross margin that improved sequentially and was slightly higher than a year ago.

  • The improvement in gross margin was driven by gross profit increasing at a faster rate than cost of revenue when compared to both the immediately preceding quarter and the same quarter one year earlier.
  • Compared with the immediately preceding quarter, gross margin improved while revenue and cost of revenue were stable. Relative to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was also higher, and gross margin was slightly higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

90.6%

Gross profit

$1.2B

Revenue

$1.3B

Cost of revenue

$127.0M

Quarter-over-quarter change

+0.6 pts

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.

PeriodRevenueGross profitCost of revenueGross margin
Jan 31, 2023$1.3B$1.2B$124.0M90.6%
Apr 30, 2023$1.3B$1.1B$127.0M90.0%
Jul 31, 2023$1.3B$1.2B$127.0M90.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Apr 30, 2023

+0.6 pts

Year-over-year change

Jul 31, 2022

+0.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The improvement in gross margin was driven by gross profit increasing at a faster rate than cost of revenue when compared to both the immediately preceding quarter and the same quarter one year earlier.

Compared with the immediately preceding quarter, gross margin improved while revenue and cost of revenue were stable. Relative to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was also higher, and gross margin was slightly higher.

Monitor the impact of the transition to annual billings for multi-year contracts on the timing of billings and cash collections, as noted in the filing.