Fair Isaac Corporation stock research
FY2024 Q1
Fair Isaac (FICO) Gross Margin — Quarter Ended Dec 31, 2023
Revenue, gross profit, and cost of revenue all changed from the prior quarter, with gross profit declining more than cost of revenue relative to revenue, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit grew while cost of revenue increased less proportionally, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue, gross profit, and cost of revenue all changed from the prior quarter, with gross profit declining more than cost of revenue relative to revenue, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit grew while cost of revenue increased less proportionally, leading to an improved gross margin.
- The sequential decline in revenue combined with a slight increase in cost of revenue was the primary observable factor weighing on gross margin, as cost of revenue did not fall proportionally with revenue.
- Gross margin was lower than the immediately preceding quarter but higher than the same quarter one year earlier, reflecting a mixed sequential and year-over-year trend.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.2%
Gross profit
$298.6M
Revenue
$382.1M
Cost of revenue
$83.5M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.4 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 | $380.3M | $300.5M | $79.8M | 79.0% |
| Jun 30, 2023 | $398.7M | $326.8M | $71.8M | 82.0% |
| Sep 30, 2023 | $389.7M | $306.9M | $82.8M | 78.7% |
| Dec 31, 2023 | $382.1M | $298.6M | $83.5M | 78.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.6 pts
Year-over-year change
Dec 31, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in revenue combined with a slight increase in cost of revenue was the primary observable factor weighing on gross margin, as cost of revenue did not fall proportionally with revenue.
Gross margin was lower than the immediately preceding quarter but higher than the same quarter one year earlier, reflecting a mixed sequential and year-over-year trend.
Monitor the relationship between revenue and cost of revenue changes, as divergence in their trends could signal further margin shifts.