CoStar Group, Inc. stock research
FY2023 Q2
CoStar Group (CSGP) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit increased both sequentially and year-over-year. Gross margin improved sequentially and remained stable compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit increased both sequentially and year-over-year. Gross margin improved sequentially and remained stable compared to the same quarter one year earlier.
- The sequential improvement in gross margin was accompanied by a decrease in cost of revenue alongside revenue growth.
- Compared to the prior quarter, gross margin strengthened; compared to the same quarter last year, gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.4%
Gross profit
$493.5M
Revenue
$605.9M
Cost of revenue
$112.4M
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+0.3 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 | $584.4M | $465.2M | $119.2M | 79.6% |
| Jun 30, 2023 | $605.9M | $493.5M | $112.4M | 81.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.8 pts
Year-over-year change
Jun 30, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was accompanied by a decrease in cost of revenue alongside revenue growth.
Compared to the prior quarter, gross margin strengthened; compared to the same quarter last year, gross margin was slightly higher.
Monitor the trend in cost of revenue, which decreased sequentially but increased year-over-year.