CoStar Group, Inc. stock research
FY2024 Q1
CoStar Group (CSGP) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit grew both sequentially and year-over-year, but gross margin weakened as cost of revenue increased at a faster pace than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit grew both sequentially and year-over-year, but gross margin weakened as cost of revenue increased at a faster pace than revenue.
- The primary observable margin driver was the relative growth in cost of revenue, which outpaced revenue growth, leading to margin compression.
- Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Relative to the same quarter a year ago, revenue and gross profit were markedly higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.5%
Gross profit
$515.2M
Revenue
$656.4M
Cost of revenue
$141.2M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-1.1 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 | $605.9M | $493.5M | $112.4M | 81.4% |
| Sep 30, 2023 | $624.7M | $501.0M | $123.7M | 80.2% |
| Dec 31, 2023 | $640.1M | $504.3M | $135.8M | 78.8% |
| Mar 31, 2024 | $656.4M | $515.2M | $141.2M | 78.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.3 pts
Year-over-year change
Mar 31, 2023
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver was the relative growth in cost of revenue, which outpaced revenue growth, leading to margin compression.
Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Relative to the same quarter a year ago, revenue and gross profit were markedly higher, but gross margin was lower.
Monitor the trend of cost of revenue relative to revenue to assess future margin performance.