Carnival (CCL) Gross Margin — Quarter Ended Feb 29, 2024

Revenue was unchanged from the prior quarter, but cost of revenue rose, causing gross profit to decline and gross margin to weaken. Compared to the same quarter last year, revenue was higher, and both gross profit and gross margin improved significantly.

Gross margin takeaway

Quarter ended Feb 29, 2024 · FY2024 Q1

The increase in cost of revenue relative to revenue was the most observable factor affecting gross margin this quarter.
Sequentially, gross margin weakened as cost of revenue grew while revenue held steady. Year-over-year, gross margin improved as revenue growth outpaced cost increases.

Gross margin snapshot

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

Gross margin

31.5%

Gross profit

$1.7B

Revenue

$5.4B

Cost of revenue

$3.7B

Quarter-over-quarter change

-1.3 pts

Year-over-year change

+6.2 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
May 31, 2023	$4.9B	$1.5B	$3.5B	29.6%
Aug 31, 2023	$6.9B	$2.9B	$3.9B	42.8%
Nov 30, 2023	$5.4B	$1.8B	$3.6B	32.7%
Feb 29, 2024	$5.4B	$1.7B	$3.7B	31.5%

Quarterly comparisons

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

Previous-quarter change

Nov 30, 2023

-1.3 pts

Year-over-year change

Feb 28, 2023

+6.2 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 most observable factor affecting gross margin this quarter.

Sequentially, gross margin weakened as cost of revenue grew while revenue held steady. Year-over-year, gross margin improved as revenue growth outpaced cost increases.

Monitor the trend in cost of revenue compared to revenue, as changes in this relationship directly impact gross margin.