CBRE Group, Inc. stock research
FY2024 Q1
CBRE Group (CBRE) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased while cost of revenue fell less proportionally, causing gross profit and gross margin to weaken sequentially. Compared with the same quarter a year earlier, revenue and cost of revenue both increased, but gross profit was nearly unchanged and gross margin edged lower.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased while cost of revenue fell less proportionally, causing gross profit and gross margin to weaken sequentially. Compared with the same quarter a year earlier, revenue and cost of revenue both increased, but gross profit was nearly unchanged and gross margin edged lower.
- The strongest observable margin driver is the sequential decline in gross margin from the previous quarter, as revenue contracted more than cost of revenue. This suggests that cost of revenue did not decrease in step with revenue.
- Compared with the prior quarter, revenue and gross profit were both lower, and gross margin weakened. Compared with the same quarter one year ago, revenue and cost of revenue were higher, but gross profit was similar, and gross margin was slightly lower.
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
$7.8B
Cost of revenue
$6.5B
Quarter-over-quarter change
-2.9 pts
Year-over-year change
-0.5 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 | $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% |
| Mar 31, 2024 | $7.8B | $1.3B | $6.5B | 17.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.9 pts
Year-over-year change
Mar 31, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential decline in gross margin from the previous quarter, as revenue contracted more than cost of revenue. This suggests that cost of revenue did not decrease in step with revenue.
Compared with the prior quarter, revenue and gross profit were both lower, and gross margin weakened. Compared with the same quarter one year ago, revenue and cost of revenue were higher, but gross profit was similar, and gross margin was slightly lower.
Monitor whether cost of revenue can adjust more closely to future revenue changes, given its slower decline in the current quarter.