F5, Inc. stock research
FY2024 Q2
F5 (FFIV) Gross Margin — Quarter Ended Mar 31, 2024
In the current quarter, gross margin was higher than the same quarter last year but lower than the previous quarter. Revenue and gross profit decreased compared to both periods, while cost of revenue increased sequentially but decreased year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
In the current quarter, gross margin was higher than the same quarter last year but lower than the previous quarter. Revenue and gross profit decreased compared to both periods, while cost of revenue increased sequentially but decreased year-over-year.
- The year-over-year improvement in gross margin was associated with a greater decline in cost of revenue relative to the decline in revenue. Sequentially, the gross margin weakened as cost of revenue increased while revenue decreased.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.3%
Gross profit
$540.2M
Revenue
$681.4M
Cost of revenue
$141.1M
Quarter-over-quarter change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $681.4M | $540.2M | $141.1M | 79.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.0 pts
Year-over-year change
Mar 31, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was associated with a greater decline in cost of revenue relative to the decline in revenue. Sequentially, the gross margin weakened as cost of revenue increased while revenue decreased.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Monitor the relationship between cost of revenue and revenue, as the sequential increase in cost of revenue contributed to the margin decline.