FactSet Research Systems Inc. stock research
FY2023 Q2
FactSet Research Systems (FDS) Gross Margin — Quarter Ended Feb 28, 2023
Revenue was higher than both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Cost of revenue was higher than both periods, and gross margin weakened compared to the previous quarter and was slightly lower than the year-ago quarter.
Gross margin takeaway
Quarter ended Feb 28, 2023 · FY2023 Q2
Revenue was higher than both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Cost of revenue was higher than both periods, and gross margin weakened compared to the previous quarter and was slightly lower than the year-ago quarter.
- The strongest observable margin driver is the faster increase in cost of revenue relative to revenue, which compressed gross margin sequentially.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew more than revenue. Compared to the same quarter one year earlier, gross margin was slightly lower, with both revenue and cost of revenue at higher levels.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.2%
Gross profit
$274.3M
Revenue
$515.1M
Cost of revenue
$240.8M
Quarter-over-quarter change
n/a
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $515.1M | $274.3M | $240.8M | 53.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Feb 28, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster increase in cost of revenue relative to revenue, which compressed gross margin sequentially.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew more than revenue. Compared to the same quarter one year earlier, gross margin was slightly lower, with both revenue and cost of revenue at higher levels.
Monitor the relationship between cost of revenue growth and revenue growth in upcoming quarters.