Cadence Design Systems, Inc. stock research
FY2023 Q1
Cadence Design Systems (CDNS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the preceding quarter and the same quarter a year earlier. However, gross margin weakened versus the year-ago quarter, as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the preceding quarter and the same quarter a year earlier. However, gross margin weakened versus the year-ago quarter, as cost of revenue grew faster than revenue.
- The strongest observable driver is the increase in cost of revenue, which outpaced revenue growth and led to a lower gross margin compared to the year-ago quarter.
- Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit improved compared to the year-ago quarter, while gross margin declined over that same period. Cost of revenue was higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.8%
Gross profit
$897.2M
Revenue
$1.0B
Cost of revenue
$124.5M
Quarter-over-quarter change
n/a
Year-over-year change
-1.3 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 | $1.0B | $897.2M | $124.5M | 87.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Apr 2, 2022
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the increase in cost of revenue, which outpaced revenue growth and led to a lower gross margin compared to the year-ago quarter.
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit improved compared to the year-ago quarter, while gross margin declined over that same period. Cost of revenue was higher than the year-ago quarter.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters.