Broadcom Inc. stock research
FY2023 Q1
Broadcom (AVGO) Gross Margin — Quarter Ended Jan 29, 2023
Revenue remained stable compared to the prior quarter, while gross profit increased and cost of revenue slightly decreased, resulting in an improved gross margin. Year over year, revenue and gross profit both grew, with gross profit growing faster than cost of revenue, further strengthening the gross margin.
Gross margin takeaway
Quarter ended Jan 29, 2023 · FY2023 Q1
Revenue remained stable compared to the prior quarter, while gross profit increased and cost of revenue slightly decreased, resulting in an improved gross margin. Year over year, revenue and gross profit both grew, with gross profit growing faster than cost of revenue, further strengthening the gross margin.
- The relationship between revenue, gross profit, and cost of revenue shows that gross profit increased while cost of revenue declined relative to the prior quarter, indicating that revenue was converted more efficiently into gross profit. This efficiency is the strongest observable driver of the margin improvement.
- Compared to the immediately preceding quarter, gross margin improved as revenue stayed level but gross profit rose and cost of revenue fell. Versus the same quarter one year earlier, both revenue and gross profit were higher, and gross margin strengthened further as cost of revenue increased less proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.3%
Gross profit
$6.0B
Revenue
$8.9B
Cost of revenue
$2.9B
Quarter-over-quarter change
n/a
Year-over-year change
n/a
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 |
|---|---|---|---|---|
| Jan 29, 2023 | $8.9B | $6.0B | $2.9B | 67.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue, gross profit, and cost of revenue shows that gross profit increased while cost of revenue declined relative to the prior quarter, indicating that revenue was converted more efficiently into gross profit. This efficiency is the strongest observable driver of the margin improvement.
Compared to the immediately preceding quarter, gross margin improved as revenue stayed level but gross profit rose and cost of revenue fell. Versus the same quarter one year earlier, both revenue and gross profit were higher, and gross margin strengthened further as cost of revenue increased less proportionally.
Monitor the trajectory of cost of revenue, which decreased this quarter but remains a key factor in sustaining margin improvements.