F5, Inc. stock research
FY2024 Q1
F5 (FFIV) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was lower sequentially but higher year-over-year. Cost of revenue declined relative to both periods, resulting in an improved gross margin compared to both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was lower sequentially but higher year-over-year. Cost of revenue declined relative to both periods, resulting in an improved gross margin compared to both the prior quarter and the year-ago quarter.
- The gross margin improvement is primarily associated with a reduction in cost of revenue relative to revenue. Cost of revenue was lower in both comparisons, while revenue was lower sequentially and year-over-year.
- Sequentially, gross margin improved slightly from the prior quarter. Compared to the same quarter one year earlier, gross margin showed a more notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.3%
Gross profit
$556.2M
Revenue
$692.6M
Cost of revenue
$136.4M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+2.4 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $703.2M | $547.5M | $155.7M | 77.9% |
| Jun 30, 2023 | $702.6M | $561.0M | $141.7M | 79.8% |
| Sep 30, 2023 | $707.0M | $566.0M | $141.0M | 80.1% |
| Dec 31, 2023 | $692.6M | $556.2M | $136.4M | 80.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.2 pts
Year-over-year change
Dec 31, 2022
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement is primarily associated with a reduction in cost of revenue relative to revenue. Cost of revenue was lower in both comparisons, while revenue was lower sequentially and year-over-year.
Sequentially, gross margin improved slightly from the prior quarter. Compared to the same quarter one year earlier, gross margin showed a more notable improvement.
Monitor deferred revenue, which increased from the prior quarter end, as it represents future revenue that has been billed but not yet recognized.