FactSet Research Systems Inc. stock research
FY2024 Q1
FactSet Research Systems (FDS) Gross Margin — Quarter Ended Nov 30, 2023
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue was also higher, and gross margin was lower.
Gross margin takeaway
Quarter ended Nov 30, 2023 · FY2024 Q1
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue was also higher, and gross margin was lower.
- The strongest observable driver is the improvement in gross margin from the prior quarter, which coincides with a reduction in cost of revenue relative to revenue. This contributed to a higher gross profit even as revenue grew modestly.
- Gross margin improved from the prior quarter but weakened compared to the same quarter one year ago. Revenue and gross profit were higher on both comparisons, while cost of revenue was lower sequentially and higher year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.6%
Gross profit
$290.6M
Revenue
$542.2M
Cost of revenue
$251.6M
Quarter-over-quarter change
+2.8 pts
Year-over-year change
-1.4 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% |
| May 31, 2023 | $529.8M | $288.1M | $241.7M | 54.4% |
| Aug 31, 2023 | $535.8M | $272.1M | $263.7M | 50.8% |
| Nov 30, 2023 | $542.2M | $290.6M | $251.6M | 53.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2023
+2.8 pts
Year-over-year change
Nov 30, 2022
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the improvement in gross margin from the prior quarter, which coincides with a reduction in cost of revenue relative to revenue. This contributed to a higher gross profit even as revenue grew modestly.
Gross margin improved from the prior quarter but weakened compared to the same quarter one year ago. Revenue and gross profit were higher on both comparisons, while cost of revenue was lower sequentially and higher year-over-year.
Monitor the trend in cost of revenue, which increased on a year-over-year basis while gross margin declined.