CO

ConocoPhillips stock research

Jun 30, 2024

FY2024 Q2

ConocoPhillips (COP) Gross Margin — Quarter Ended Jun 30, 2024

The company's revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year, as cost of revenue declined relative to the prior quarter while revenue rose.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

The company's revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year, as cost of revenue declined relative to the prior quarter while revenue rose.

  • The increase in gross margin was supported by revenue growth exceeding the change in cost of revenue when compared to the previous quarter.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in a stronger gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, but gross margin still improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

61.6%

Gross profit

$7.8B

Revenue

$12.7B

Cost of revenue

$4.9B

Quarter-over-quarter change

+5.0 pts

Year-over-year change

+3.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$12.6B$7.1B$5.5B56.0%
Dec 31, 2023$12.9B$7.3B$5.7B56.1%
Mar 31, 2024$12.3B$7.0B$5.3B56.7%
Jun 30, 2024$12.7B$7.8B$4.9B61.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+5.0 pts

Year-over-year change

Jun 30, 2023

+3.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The increase in gross margin was supported by revenue growth exceeding the change in cost of revenue when compared to the previous quarter.

Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in a stronger gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, but gross margin still improved.

Monitor the relationship between revenue and cost of revenue in upcoming quarters to assess whether the margin improvement can be sustained.