eBay Inc. stock research
FY2023 Q3
eBay (EBAY) Gross Margin — Quarter Ended Sep 30, 2023
In the current quarter, revenue and gross profit remained stable compared to the prior quarter, while cost of revenue was slightly lower, leading to a marginally improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue increased at a faster pace, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
In the current quarter, revenue and gross profit remained stable compared to the prior quarter, while cost of revenue was slightly lower, leading to a marginally improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue increased at a faster pace, resulting in a weakened gross margin.
- The most observable margin driver is the relationship between cost of revenue and revenue. The slight decrease in cost of revenue from the prior quarter supported a small improvement in margin, while the year-over-year increase in cost of revenue outpaced revenue growth, contributing to a lower margin.
- Compared to the prior quarter, gross margin was slightly higher as cost of revenue decreased while revenue was flat. Compared to the same quarter one year ago, gross margin was lower as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.8%
Gross profit
$1.8B
Revenue
$2.5B
Cost of revenue
$705.0M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-1.0 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 | $2.5B | $1.8B | $700.0M | 72.1% |
| Jun 30, 2023 | $2.5B | $1.8B | $718.0M | 71.7% |
| Sep 30, 2023 | $2.5B | $1.8B | $705.0M | 71.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.1 pts
Year-over-year change
Sep 30, 2022
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relationship between cost of revenue and revenue. The slight decrease in cost of revenue from the prior quarter supported a small improvement in margin, while the year-over-year increase in cost of revenue outpaced revenue growth, contributing to a lower margin.
Compared to the prior quarter, gross margin was slightly higher as cost of revenue decreased while revenue was flat. Compared to the same quarter one year ago, gross margin was lower as cost of revenue increased more than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as changes in this ratio directly affect gross margin.