Broadcom Inc. stock research
FY2023 Q3
Broadcom (AVGO) Gross Margin — Quarter Ended Jul 30, 2023
Revenue and gross profit both increased compared to the preceding quarter and the same quarter one year earlier. Cost of revenue was lower than a year ago but higher than the prior quarter, resulting in gross margin that weakened from the prior quarter but improved from the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jul 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the preceding quarter and the same quarter one year earlier. Cost of revenue was lower than a year ago but higher than the prior quarter, resulting in gross margin that weakened from the prior quarter but improved from the same quarter one year earlier.
- The relationship between revenue and cost of revenue drove gross margin: revenue grew faster than cost of revenue compared to a year ago, but cost of revenue increased relative to revenue compared to the prior quarter.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue growth outpaced revenue growth. Compared to the same quarter one year earlier, gross margin improved as revenue growth exceeded cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.4%
Gross profit
$6.2B
Revenue
$8.9B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.6 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% |
| Jul 30, 2023 | $8.9B | $6.2B | $2.7B | 69.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
-0.6 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 relationship between revenue and cost of revenue drove gross margin: revenue grew faster than cost of revenue compared to a year ago, but cost of revenue increased relative to revenue compared to the prior quarter.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue growth outpaced revenue growth. Compared to the same quarter one year earlier, gross margin improved as revenue growth exceeded cost of revenue growth.
Monitor the trajectory of cost of revenue relative to revenue, as its increase versus the prior quarter led to margin compression.