AD

Autodesk, Inc. stock research

Oct 31, 2024

FY2025 Q3

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

Revenue increased compared to the previous quarter and the same quarter last year, while gross profit also rose. Cost of revenue grew at a slightly faster pace, resulting in a modest decline in gross margin.

Gross margin takeaway

Quarter ended Oct 31, 2024 · FY2025 Q3

Revenue increased compared to the previous quarter and the same quarter last year, while gross profit also rose. Cost of revenue grew at a slightly faster pace, resulting in a modest decline in gross margin.

  • The primary observable driver of margin change was the increase in cost of revenue, particularly the amortization of developed technologies, which rose compared to the same quarter last year.
  • Gross margin for this quarter was slightly lower than both the prior quarter and the same quarter one year ago. Revenue was higher in both comparisons.

Gross margin snapshot

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

Gross margin

90.6%

Gross profit

$1.4B

Revenue

$1.6B

Cost of revenue

$147.0M

Quarter-over-quarter change

-0.1 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, 2024$1.5B$1.3B$130.0M91.2%
Apr 30, 2024$1.4B$1.3B$137.0M90.3%
Jul 31, 2024$1.5B$1.4B$140.0M90.7%
Oct 31, 2024$1.6B$1.4B$147.0M90.6%

Quarterly comparisons

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

Previous-quarter change

Jul 31, 2024

-0.1 pts

Year-over-year change

Oct 31, 2023

-0.4 pts

What the margin says

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

The primary observable driver of margin change was the increase in cost of revenue, particularly the amortization of developed technologies, which rose compared to the same quarter last year.

Gross margin for this quarter was slightly lower than both the prior quarter and the same quarter one year ago. Revenue was higher in both comparisons.

Monitor the trend of amortization of developed technologies, as it is a component of cost of revenue that has increased.