CDW Corporation stock research
FY2023 Q2
CDW (CDW) Gross Margin — Quarter Ended Jun 30, 2023
Revenue declined sequentially and year-over-year, while gross profit was stable compared with the same quarter last year but slightly higher than the preceding quarter. Cost of revenue decreased relative to both prior periods, and gross margin improved year-over-year but weakened slightly from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue declined sequentially and year-over-year, while gross profit was stable compared with the same quarter last year but slightly higher than the preceding quarter. Cost of revenue decreased relative to both prior periods, and gross margin improved year-over-year but weakened slightly from the immediately preceding quarter.
- Gross margin improved year-over-year as cost of revenue fell more than revenue, while sequentially the margin decreased slightly despite higher gross profit.
- Compared with the preceding quarter, revenue, gross profit, and cost of revenue all increased, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was stable, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.0%
Gross profit
$1.2B
Revenue
$5.6B
Cost of revenue
$4.4B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+2.0 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% |
| Jun 30, 2023 | $5.6B | $1.2B | $4.4B | 21.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.3 pts
Year-over-year change
Jun 30, 2022
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved year-over-year as cost of revenue fell more than revenue, while sequentially the margin decreased slightly despite higher gross profit.
Compared with the preceding quarter, revenue, gross profit, and cost of revenue all increased, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was stable, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion to revenue was lower sequentially and year-over-year.