CBRE Group, Inc. stock research
FY2023 Q3
CBRE Group (CBRE) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased both sequentially and year-over-year, but gross profit declined from the prior quarter and was flat compared to a year ago. Cost of revenue grew faster than revenue, causing gross margin to weaken.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased both sequentially and year-over-year, but gross profit declined from the prior quarter and was flat compared to a year ago. Cost of revenue grew faster than revenue, causing gross margin to weaken.
- The increase in cost of revenue relative to revenue was the primary factor behind the lower gross margin, as revenue growth was outpaced by cost growth.
- Sequentially, gross margin decreased from the prior quarter, and year-over-year, it also fell compared to the same quarter last year. Both comparisons show weakened performance.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.2%
Gross profit
$1.3B
Revenue
$7.7B
Cost of revenue
$6.4B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
-2.3 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% |
| Sep 30, 2023 | $7.7B | $1.3B | $6.4B | 17.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.4 pts
Year-over-year change
Sep 30, 2022
-2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue relative to revenue was the primary factor behind the lower gross margin, as revenue growth was outpaced by cost growth.
Sequentially, gross margin decreased from the prior quarter, and year-over-year, it also fell compared to the same quarter last year. Both comparisons show weakened performance.
Monitor the trajectory of cost of revenue growth relative to revenue in upcoming quarters.