CDW Corporation stock research
FY2024 Q1
CDW (CDW) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and cost of revenue all declined compared to the previous quarter and the same quarter last year. Gross margin weakened sequentially but improved relative to the year-ago period, reflecting a shift in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and cost of revenue all declined compared to the previous quarter and the same quarter last year. Gross margin weakened sequentially but improved relative to the year-ago period, reflecting a shift in the relationship between revenue and cost of revenue.
- The gross margin improvement from the prior year quarter was driven by a reduction in cost of revenue that outpaced the decline in revenue. The sequential weakening was due to a larger relative drop in revenue compared to cost of revenue.
- Compared to the previous quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also lower, but gross margin was higher as cost of revenue fell more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.8%
Gross profit
$1.1B
Revenue
$4.9B
Cost of revenue
$3.8B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $5.6B | $1.2B | $4.4B | 21.0% |
| Sep 30, 2023 | $5.6B | $1.2B | $4.4B | 21.8% |
| Dec 31, 2023 | $5.0B | $1.2B | $3.9B | 23.0% |
| Mar 31, 2024 | $4.9B | $1.1B | $3.8B | 21.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.2 pts
Year-over-year change
Mar 31, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior year quarter was driven by a reduction in cost of revenue that outpaced the decline in revenue. The sequential weakening was due to a larger relative drop in revenue compared to cost of revenue.
Compared to the previous quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also lower, but gross margin was higher as cost of revenue fell more sharply.
Monitor the trajectory of cost of revenue relative to revenue, as it is the primary determinant of gross margin movements.