CDW Corporation stock research
FY2023 Q1
CDW (CDW) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
- Gross margin improved year-over-year despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. The sequential weakening in gross margin was modest and accompanied by a proportional decline in both revenue and cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was stable, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.3%
Gross profit
$1.1B
Revenue
$5.1B
Cost of revenue
$4.0B
Quarter-over-quarter change
n/a
Year-over-year change
+2.8 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 | $5.1B | $1.1B | $4.0B | 21.3% |
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
Mar 31, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved year-over-year despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. The sequential weakening in gross margin was modest and accompanied by a proportional decline in both revenue and cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was stable, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its faster year-over-year decline was the primary factor behind the gross margin improvement.