Cadence Design Systems, Inc. stock research
FY2024 Q1
Cadence Design Systems (CDNS) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared with the year-ago quarter, while gross profit and cost of revenue both declined slightly, leading to a marginal weakening in gross margin. Compared with the preceding quarter, revenue was lower, and gross profit and cost of revenue data for that quarter are missing.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared with the year-ago quarter, while gross profit and cost of revenue both declined slightly, leading to a marginal weakening in gross margin. Compared with the preceding quarter, revenue was lower, and gross profit and cost of revenue data for that quarter are missing.
- The gross margin remained very high and was nearly flat year-over-year, with the slight decline in gross profit tracking closely with the reduction in cost of revenue.
- Revenue was unchanged from the year-ago quarter, while gross profit and cost of revenue were both slightly lower, resulting in a gross margin that weakened marginally. No comparison to the preceding quarter is possible for gross profit, cost of revenue, or gross margin because those values are not supplied.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.6%
Gross profit
$883.9M
Revenue
$1.0B
Cost of revenue
$125.2M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.0B | $897.2M | $124.5M | 87.8% |
| Jun 30, 2023 | $976.6M | $882.8M | $93.8M | 90.4% |
| Sep 30, 2023 | $1.0B | $917.8M | $105.3M | 89.7% |
| Mar 31, 2024 | $1.0B | $883.9M | $125.2M | 87.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.1 pts
Year-over-year change
Mar 31, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained very high and was nearly flat year-over-year, with the slight decline in gross profit tracking closely with the reduction in cost of revenue.
Revenue was unchanged from the year-ago quarter, while gross profit and cost of revenue were both slightly lower, resulting in a gross margin that weakened marginally. No comparison to the preceding quarter is possible for gross profit, cost of revenue, or gross margin because those values are not supplied.
Monitor whether cost of revenue remains stable relative to the similar level seen a year ago, as any change could affect gross margin.