Broadcom Inc. stock research
FY2024 Q4
Broadcom (AVGO) Gross Margin — Quarter Ended Nov 3, 2024
Revenue and gross profit both rose compared to the prior quarter, while cost of revenue increased at a roughly similar pace, resulting in a slightly higher gross margin. Versus the same quarter last year, revenue and gross profit were substantially higher, but cost of revenue grew more rapidly, causing gross margin to weaken.
Gross margin takeaway
Quarter ended Nov 3, 2024 · FY2024 Q4
Revenue and gross profit both rose compared to the prior quarter, while cost of revenue increased at a roughly similar pace, resulting in a slightly higher gross margin. Versus the same quarter last year, revenue and gross profit were substantially higher, but cost of revenue grew more rapidly, causing gross margin to weaken.
- The most observable driver of gross margin was the relationship between revenue and cost of revenue; revenue increased quarter over quarter while cost of revenue also rose, leading to stable gross margin improvement.
- Compared to the immediately preceding quarter, gross margin was slightly higher. Compared to the same quarter a year ago, gross margin was lower, reflecting a larger relative increase in cost of revenue versus revenue over that period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.1%
Gross profit
$9.0B
Revenue
$14.1B
Cost of revenue
$5.1B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-4.9 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 |
|---|---|---|---|---|
| Feb 4, 2024 | $12.0B | $7.4B | $4.6B | 61.7% |
| May 5, 2024 | $12.5B | $7.8B | $4.7B | 62.3% |
| Aug 4, 2024 | $13.1B | $8.4B | $4.7B | 63.9% |
| Nov 3, 2024 | $14.1B | $9.0B | $5.1B | 64.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 4, 2024
+0.1 pts
Year-over-year change
Oct 29, 2023
-4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin was the relationship between revenue and cost of revenue; revenue increased quarter over quarter while cost of revenue also rose, leading to stable gross margin improvement.
Compared to the immediately preceding quarter, gross margin was slightly higher. Compared to the same quarter a year ago, gross margin was lower, reflecting a larger relative increase in cost of revenue versus revenue over that period.
Monitor the trajectory of cost of revenue relative to revenue, as a faster pace of cost growth could pressure gross margin.