CB

CBRE Group, Inc. stock research

Sep 30, 2024

FY2024 Q3

CBRE Group (CBRE) Gross Margin — Quarter Ended Sep 30, 2024

Revenue rose compared to both the previous quarter and the same quarter last year, while cost of revenue also increased. Gross profit grew at a faster pace, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue rose compared to both the previous quarter and the same quarter last year, while cost of revenue also increased. Gross profit grew at a faster pace, resulting in an improved gross margin.

  • The improvement in gross margin from the prior quarter and year-ago period is the most notable driver, as gross profit expanded relative to revenue.
  • Compared to the previous quarter, gross margin increased, and it was also higher than the same quarter a year ago. Revenue and gross profit both showed growth over these periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

18.1%

Gross profit

$1.6B

Revenue

$8.9B

Cost of revenue

$7.3B

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$8.9B$1.8B$7.1B20.1%
Mar 31, 2024$7.8B$1.3B$6.5B17.2%
Jun 30, 2024$8.3B$1.5B$6.8B17.7%
Sep 30, 2024$8.9B$1.6B$7.3B18.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

+0.4 pts

Year-over-year change

Sep 30, 2023

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The improvement in gross margin from the prior quarter and year-ago period is the most notable driver, as gross profit expanded relative to revenue.

Compared to the previous quarter, gross margin increased, and it was also higher than the same quarter a year ago. Revenue and gross profit both showed growth over these periods.

Monitor the trajectory of cost of revenue relative to revenue to assess whether the margin improvement can be sustained.