CBRE Group, Inc. stock research
FY2023 Q4
CBRE Group (CBRE) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to the prior quarter and the same quarter a year earlier, while cost of revenue also rose. Gross profit grew at a faster pace than cost of revenue, leading to an improved gross margin relative to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to the prior quarter and the same quarter a year earlier, while cost of revenue also rose. Gross profit grew at a faster pace than cost of revenue, leading to an improved gross margin relative to both periods.
- The strongest observable margin driver was the expansion of gross profit relative to revenue. Gross profit increased more than cost of revenue, which directly lifted the gross margin.
- Compared with the immediately preceding quarter, gross margin was higher, driven by a larger increase in gross profit than in cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.1%
Gross profit
$1.8B
Revenue
$8.9B
Cost of revenue
$7.1B
Quarter-over-quarter change
+2.8 pts
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.
| 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% |
| Dec 31, 2023 | $8.9B | $1.8B | $7.1B | 20.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+2.8 pts
Year-over-year change
Dec 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 was the expansion of gross profit relative to revenue. Gross profit increased more than cost of revenue, which directly lifted the gross margin.
Compared with the immediately preceding quarter, gross margin was higher, driven by a larger increase in gross profit than in cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue and gross profit both higher.
Monitor future capital expenditure commitments and co-investment funding obligations, as disclosed in the company's liquidity and capital resources discussion.