Broadcom Inc. stock research
FY2023 Q4
Broadcom (AVGO) Gross Margin — Quarter Ended Oct 29, 2023
Revenue and gross profit both increased compared to the preceding quarter and the same quarter one year earlier. Cost of revenue also rose, but gross margin was slightly lower than the prior quarter while remaining higher than the year-ago level.
Gross margin takeaway
Quarter ended Oct 29, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the preceding quarter and the same quarter one year earlier. Cost of revenue also rose, but gross margin was slightly lower than the prior quarter while remaining higher than the year-ago level.
- The gross margin improved relative to the same quarter last year, driven by a larger proportional growth in gross profit compared to cost of revenue. The sequential decline from the prior quarter indicates a slight shift in the relationship between revenue and cost growth.
- Compared to the immediately preceding quarter, gross margin was lower, though revenue and gross profit both rose alongside a higher cost of revenue. Versus the same period one year ago, gross margin was higher, supported by a stronger increase in gross profit relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.9%
Gross profit
$6.4B
Revenue
$9.3B
Cost of revenue
$2.9B
Quarter-over-quarter change
-0.5 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% |
| Oct 29, 2023 | $9.3B | $6.4B | $2.9B | 68.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 30, 2023
-0.5 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 gross margin improved relative to the same quarter last year, driven by a larger proportional growth in gross profit compared to cost of revenue. The sequential decline from the prior quarter indicates a slight shift in the relationship between revenue and cost growth.
Compared to the immediately preceding quarter, gross margin was lower, though revenue and gross profit both rose alongside a higher cost of revenue. Versus the same period one year ago, gross margin was higher, supported by a stronger increase in gross profit relative to cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential uptick in cost growth narrowed margin despite higher revenue.