Broadridge Financial Solutions, Inc. stock research
FY2024 Q3
Broadridge Financial Solutions (BR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the previous quarter, while cost of revenue rose at a slower pace, resulting in a higher gross margin. Year over year, revenue and gross profit also grew, with gross margin showing a slight improvement.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the previous quarter, while cost of revenue rose at a slower pace, resulting in a higher gross margin. Year over year, revenue and gross profit also grew, with gross margin showing a slight improvement.
- The gross margin improvement was driven by revenue growth outpacing the increase in cost of revenue relative to the prior quarter.
- Compared to the immediately preceding quarter, gross margin was higher, reflecting a stronger relationship between revenue growth and cost control. Relative to the same quarter one year earlier, gross margin was also slightly higher, indicating a steady margin profile.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.2%
Gross profit
$539.2M
Revenue
$1.7B
Cost of revenue
$1.2B
Quarter-over-quarter change
+6.5 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.8B | $679.9M | $1.2B | 37.0% |
| Sep 30, 2023 | $1.4B | $355.8M | $1.1B | 24.9% |
| Dec 31, 2023 | $1.4B | $347.8M | $1.1B | 24.8% |
| Mar 31, 2024 | $1.7B | $539.2M | $1.2B | 31.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+6.5 pts
Year-over-year change
Mar 31, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growth outpacing the increase in cost of revenue relative to the prior quarter.
Compared to the immediately preceding quarter, gross margin was higher, reflecting a stronger relationship between revenue growth and cost control. Relative to the same quarter one year earlier, gross margin was also slightly higher, indicating a steady margin profile.
Monitor whether the trend of cost of revenue growing slower than revenue continues in subsequent quarters.