AD

Autodesk, Inc. stock research

Oct 31, 2023

FY2024 Q3

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

Revenue increased while cost of revenue remained stable, resulting in higher gross profit and an improved gross margin. Compared to the prior quarter, the gross margin improved; compared to the same quarter one year earlier, the gross margin also improved from a similar level.

Gross margin takeaway

Quarter ended Oct 31, 2023 · FY2024 Q3

Revenue increased while cost of revenue remained stable, resulting in higher gross profit and an improved gross margin. Compared to the prior quarter, the gross margin improved; compared to the same quarter one year earlier, the gross margin also improved from a similar level.

  • The strongest observable driver was the increase in revenue with no corresponding increase in cost of revenue, which directly enhanced gross margin.
  • The gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

91.0%

Gross profit

$1.3B

Revenue

$1.4B

Cost of revenue

$127.0M

Quarter-over-quarter change

+0.5 pts

Year-over-year change

+0.4 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%
Oct 31, 2023$1.4B$1.3B$127.0M91.0%

Quarterly comparisons

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

Previous-quarter change

Jul 31, 2023

+0.5 pts

Year-over-year change

Oct 31, 2022

+0.4 pts

What the margin says

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

The strongest observable driver was the increase in revenue with no corresponding increase in cost of revenue, which directly enhanced gross margin.

The gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.

The impact of the transition to annual billings for multi-year contracts on the timing of billings and cash collections.