Broadcom (AVGO) Gross Margin — Quarter Ended Apr 30, 2023

Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit increased slightly from the prior quarter and rose from a year ago, while cost of revenue declined, leading to a higher gross margin compared to both periods.

Gross margin takeaway

Quarter ended Apr 30, 2023 · FY2023 Q2

The most observable driver of the margin improvement was the decrease in cost of revenue, which fell more than the decline in revenue, allowing gross profit to rise despite lower revenue.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.

Gross margin snapshot

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

Gross margin

70.0%

Gross profit

$6.1B

Revenue

$8.7B

Cost of revenue

$2.6B

Quarter-over-quarter change

+2.7 pts

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%
Apr 30, 2023	$8.7B	$6.1B	$2.6B	70.0%

Quarterly comparisons

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

Previous-quarter change

Jan 29, 2023

+2.7 pts

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 most observable driver of the margin improvement was the decrease in cost of revenue, which fell more than the decline in revenue, allowing gross profit to rise despite lower revenue.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.

Monitor the trend in cost of revenue relative to revenue, as it was the primary driver of margin change.