CDW Corporation stock research
FY2024 Q2
CDW (CDW) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose in proportion, resulting in a stable gross margin. Versus the same quarter last year, revenue was lower and gross profit was roughly flat, but gross margin improved as cost of revenue declined more sharply.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose in proportion, resulting in a stable gross margin. Versus the same quarter last year, revenue was lower and gross profit was roughly flat, but gross margin improved as cost of revenue declined more sharply.
- The gross margin was unchanged from the prior quarter, indicating that the relationship among revenue, cost of revenue, and gross profit remained consistent. The improvement from the year-ago quarter was driven by a proportionally larger decline in cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable. Compared to the same quarter one year earlier, revenue was lower, gross profit was roughly flat, cost of revenue was lower, and gross margin improved.
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
$5.4B
Cost of revenue
$4.2B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $5.4B | $1.2B | $4.2B | 21.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.0 pts
Year-over-year change
Jun 30, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was unchanged from the prior quarter, indicating that the relationship among revenue, cost of revenue, and gross profit remained consistent. The improvement from the year-ago quarter was driven by a proportionally larger decline in cost of revenue relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable. Compared to the same quarter one year earlier, revenue was lower, gross profit was roughly flat, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its proportional movement has been the key factor in gross margin changes.