F5, Inc. stock research
FY2024 Q4
F5 (FFIV) Gross Margin — Quarter Ended Sep 30, 2024
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. Cost of revenue increased slightly, but gross profit grew at a faster pace, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q4
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. Cost of revenue increased slightly, but gross profit grew at a faster pace, leading to a higher gross margin.
- The strongest observable margin driver is the consistent improvement in gross margin, which has risen sequentially and year-over-year. This suggests that revenue growth has outpaced cost of revenue increases.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue also increased. Gross margin improved slightly. Versus the same quarter last year, all metrics were higher, with gross margin showing a modest improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.8%
Gross profit
$603.0M
Revenue
$746.7M
Cost of revenue
$143.7M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $692.6M | $556.2M | $136.4M | 80.3% |
| Mar 31, 2024 | $681.4M | $540.2M | $141.1M | 79.3% |
| Jun 30, 2024 | $695.5M | $559.1M | $136.4M | 80.4% |
| Sep 30, 2024 | $746.7M | $603.0M | $143.7M | 80.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.4 pts
Year-over-year change
Sep 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the consistent improvement in gross margin, which has risen sequentially and year-over-year. This suggests that revenue growth has outpaced cost of revenue increases.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue also increased. Gross margin improved slightly. Versus the same quarter last year, all metrics were higher, with gross margin showing a modest improvement.
Monitor the trend in cost of revenue relative to revenue, as any acceleration in cost growth could pressure gross margin.