FactSet Research Systems Inc. stock research
FY2024 Q4
FactSet Research Systems (FDS) Gross Margin — Quarter Ended Aug 31, 2024
Revenue increased while gross profit was slightly lower than the prior quarter, resulting in a weakened gross margin. Compared to the same quarter last year, both revenue and gross profit were higher and cost of revenue was lower, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Aug 31, 2024 · FY2024 Q4
Revenue increased while gross profit was slightly lower than the prior quarter, resulting in a weakened gross margin. Compared to the same quarter last year, both revenue and gross profit were higher and cost of revenue was lower, leading to an improved gross margin.
- The strongest observable driver is the year-over-year improvement in gross margin, supported by a higher gross profit on increased revenue and a lower cost of revenue. The sequential weakening of gross margin from the prior quarter reflects a larger increase in cost of revenue relative to revenue growth.
- Compared to the prior quarter, gross margin weakened as gross profit decreased slightly despite higher revenue. Compared to the same quarter one year earlier, gross margin improved significantly, driven by higher gross profit and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.1%
Gross profit
$304.0M
Revenue
$562.2M
Cost of revenue
$258.2M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+3.3 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 |
|---|---|---|---|---|
| Nov 30, 2023 | $542.2M | $290.6M | $251.6M | 53.6% |
| Feb 29, 2024 | $545.9M | $290.8M | $255.1M | 53.3% |
| May 31, 2024 | $552.7M | $305.7M | $247.0M | 55.3% |
| Aug 31, 2024 | $562.2M | $304.0M | $258.2M | 54.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2024
-1.2 pts
Year-over-year change
Aug 31, 2023
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year improvement in gross margin, supported by a higher gross profit on increased revenue and a lower cost of revenue. The sequential weakening of gross margin from the prior quarter reflects a larger increase in cost of revenue relative to revenue growth.
Compared to the prior quarter, gross margin weakened as gross profit decreased slightly despite higher revenue. Compared to the same quarter one year earlier, gross margin improved significantly, driven by higher gross profit and lower cost of revenue.
Monitor the relationship between cost of revenue and revenue, as the sequential increase in cost of revenue outpaced revenue growth, contributing to the margin decline from the prior quarter.