CDW Corporation stock research
FY2023 Q3
CDW (CDW) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Gross profit remained similar across all periods, while cost of revenue decreased relative to the year-ago quarter, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Gross profit remained similar across all periods, while cost of revenue decreased relative to the year-ago quarter, resulting in an improved gross margin.
- The strongest observable driver is the improvement in gross margin, which increased from both the prior quarter and the year-ago quarter. This improvement is associated with a lower cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were essentially unchanged, but gross margin was higher. Versus the same quarter one year earlier, revenue was lower while gross profit was similar, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.8%
Gross profit
$1.2B
Revenue
$5.6B
Cost of revenue
$4.4B
Quarter-over-quarter change
+0.8 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% |
| Sep 30, 2023 | $5.6B | $1.2B | $4.4B | 21.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.8 pts
Year-over-year change
Sep 30, 2022
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the improvement in gross margin, which increased from both the prior quarter and the year-ago quarter. This improvement is associated with a lower cost of revenue relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were essentially unchanged, but gross margin was higher. Versus the same quarter one year earlier, revenue was lower while gross profit was similar, leading to a higher gross margin.
Monitor the trend in cost of revenue relative to revenue, as it has been the key factor in margin changes.