AD

Autodesk, Inc. stock research

Jan 31, 2024

FY2024 Q4

Autodesk (ADSK) Gross Margin — Quarter Ended Jan 31, 2024

Revenue increased compared to the prior quarter and the same quarter last year. Gross profit rose year-over-year but was stable sequentially, while gross margin improved in both comparisons due to revenue growth exceeding the increase in cost of revenue.

Gross margin takeaway

Quarter ended Jan 31, 2024 · FY2024 Q4

Revenue increased compared to the prior quarter and the same quarter last year. Gross profit rose year-over-year but was stable sequentially, while gross margin improved in both comparisons due to revenue growth exceeding the increase in cost of revenue.

  • The strongest observable driver of gross margin improvement is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue, leading to a higher gross margin.
  • Sequentially, revenue increased while gross profit was stable, resulting in a slightly improved gross margin. Year-over-year, revenue and gross profit both increased, and gross margin improved.

Gross margin snapshot

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

Gross margin

91.2%

Gross profit

$1.3B

Revenue

$1.5B

Cost of revenue

$130.0M

Quarter-over-quarter change

+0.1 pts

Year-over-year change

+0.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
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%
Jan 31, 2024$1.5B$1.3B$130.0M91.2%

Quarterly comparisons

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

Previous-quarter change

Oct 31, 2023

+0.1 pts

Year-over-year change

Jan 31, 2023

+0.6 pts

What the margin says

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

The strongest observable driver of gross margin improvement is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue, leading to a higher gross margin.

Sequentially, revenue increased while gross profit was stable, resulting in a slightly improved gross margin. Year-over-year, revenue and gross profit both increased, and gross margin improved.

Monitor cost of revenue trends, as the company's filing notes risks from supply chain disruption and inflationary pressures that could affect costs.