Broadcom Inc. stock research
FY2024 Q1
Broadcom (AVGO) Gross Margin — Quarter Ended Feb 4, 2024
Revenue and gross profit increased while cost of revenue also rose. Gross margin declined compared with both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Feb 4, 2024 · FY2024 Q1
Revenue and gross profit increased while cost of revenue also rose. Gross margin declined compared with both the immediately preceding quarter and the same quarter one year earlier.
- The change in gross profit relative to revenue was smaller than the change in cost of revenue relative to revenue, with cost of revenue increasing at a faster pace than gross profit. Gross margin weakened as a result.
- Compared with the immediately preceding quarter, gross profit and revenue were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, yet gross margin was again lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.7%
Gross profit
$7.4B
Revenue
$12.0B
Cost of revenue
$4.6B
Quarter-over-quarter change
-7.3 pts
Year-over-year change
-5.7 pts
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 |
|---|---|---|---|---|
| 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% |
| Feb 4, 2024 | $12.0B | $7.4B | $4.6B | 61.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 29, 2023
-7.3 pts
Year-over-year change
Jan 29, 2023
-5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross profit relative to revenue was smaller than the change in cost of revenue relative to revenue, with cost of revenue increasing at a faster pace than gross profit. Gross margin weakened as a result.
Compared with the immediately preceding quarter, gross profit and revenue were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, yet gross margin was again lower.
Monitor the trend in cost of revenue relative to revenue, as its increase outpaced gross profit growth this quarter.