Fair Isaac Corporation stock research
FY2023 Q2
Fair Isaac (FICO) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened relative to the year-ago period, as cost of revenue grew at a different pace than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened relative to the year-ago period, as cost of revenue grew at a different pace than revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue from the prior quarter, leading to an improved gross margin.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.0%
Gross profit
$300.5M
Revenue
$380.3M
Cost of revenue
$79.8M
Quarter-over-quarter change
n/a
Year-over-year change
-0.9 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 | $380.3M | $300.5M | $79.8M | 79.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue from the prior quarter, leading to an improved gross margin.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has shifted between periods.