BR

Broadridge Financial Solutions, Inc. stock research

Mar 31, 2023

FY2023 Q3

Broadridge Financial Solutions (BR) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved versus the prior quarter and was higher than the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q3

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved versus the prior quarter and was higher than the same quarter one year earlier.

  • The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose from the prior quarter and the year-ago quarter. This indicates that gross profit grew at a faster pace than revenue.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

30.9%

Gross profit

$508.0M

Revenue

$1.6B

Cost of revenue

$1.1B

Quarter-over-quarter change

n/a

Year-over-year change

+1.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.6B$508.0M$1.1B30.9%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+1.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the increase in gross profit relative to revenue, as gross margin rose from the prior quarter and the year-ago quarter. This indicates that gross profit grew at a faster pace than revenue.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.

Monitor the trend in cost of revenue relative to revenue, as it increased in absolute terms and its relationship to gross profit will affect future margin stability.

BR Gross Margin — Quarter Ended Mar 31, 2023