CBRE Group, Inc. stock research
FY2023 Q2
CBRE Group (CBRE) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was unchanged from the same quarter one year earlier, while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, and gross margin improved.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was unchanged from the same quarter one year earlier, while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, and gross margin improved.
- Gross margin improved sequentially as gross profit grew faster than cost of revenue relative to the prior quarter. The year-over-year decline in gross margin was driven by gross profit decreasing while cost of revenue rose.
- Compared with the immediately preceding quarter, gross margin strengthened. Compared with the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.7%
Gross profit
$1.4B
Revenue
$7.6B
Cost of revenue
$6.2B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $7.3B | $1.3B | $6.0B | 17.7% |
| Jun 30, 2023 | $7.6B | $1.4B | $6.2B | 18.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.9 pts
Year-over-year change
Jun 30, 2022
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially as gross profit grew faster than cost of revenue relative to the prior quarter. The year-over-year decline in gross margin was driven by gross profit decreasing while cost of revenue rose.
Compared with the immediately preceding quarter, gross margin strengthened. Compared with the same quarter one year earlier, gross margin weakened.
Monitor the relationship between cost of revenue and revenue in upcoming quarters, as cost of revenue increased year-over-year while revenue was flat.