CoStar Group, Inc. stock research
FY2024 Q2
CoStar Group (CSGP) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both rose against the prior quarter and the same quarter last year, while cost of revenue was lower sequentially but higher year over year. The gross margin improved sequentially but weakened compared to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both rose against the prior quarter and the same quarter last year, while cost of revenue was lower sequentially but higher year over year. The gross margin improved sequentially but weakened compared to the year-ago period.
- The sequential improvement in gross margin was supported by revenue growth outpacing the reduction in cost of revenue. On a year-over-year basis, the margin decline was driven by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased while cost of revenue declined. Versus the same quarter one year earlier, gross margin weakened despite higher revenue, as cost of revenue grew at a faster rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.0%
Gross profit
$542.0M
Revenue
$677.8M
Cost of revenue
$135.8M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-1.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $677.8M | $542.0M | $135.8M | 80.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.5 pts
Year-over-year change
Jun 30, 2023
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was supported by revenue growth outpacing the reduction in cost of revenue. On a year-over-year basis, the margin decline was driven by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin improved as revenue increased while cost of revenue declined. Versus the same quarter one year earlier, gross margin weakened despite higher revenue, as cost of revenue grew at a faster rate.
Monitor the trajectory of cost of revenue given its year-over-year increase outpaced revenue growth, which pressured gross margin.