Cadence Design Systems, Inc. stock research
FY2024 Q3
Cadence Design Systems (CDNS) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a higher rate, resulting in a slight decline in gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a higher rate, resulting in a slight decline in gross margin.
- The decline in gross margin was accompanied by a larger proportional increase in cost of revenue relative to the increase in revenue.
- Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.6%
Gross profit
$1.1B
Revenue
$1.2B
Cost of revenue
$163.0M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-3.1 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $1.0B | $917.8M | $105.3M | 89.7% |
| Mar 31, 2024 | $1.0B | $883.9M | $125.2M | 87.6% |
| Jun 30, 2024 | $1.1B | $921.4M | $139.3M | 86.9% |
| Sep 30, 2024 | $1.2B | $1.1B | $163.0M | 86.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.3 pts
Year-over-year change
Sep 30, 2023
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was accompanied by a larger proportional increase in cost of revenue relative to the increase in revenue.
Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trend of cost of revenue relative to revenue growth.