FI

Fair Isaac Corporation stock research

Mar 31, 2024

FY2024 Q2

Fair Isaac (FICO) Gross Margin — Quarter Ended Mar 31, 2024

Revenue increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross profit grew at a faster pace than cost of revenue, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q2

Revenue increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross profit grew at a faster pace than cost of revenue, resulting in a higher gross margin.

  • The gross margin improved as gross profit increased more than cost of revenue relative to the prior quarter and the year-ago quarter.
  • Gross margin was higher than the prior quarter and the same quarter last year. Revenue and gross profit were also higher in both comparisons, while cost of revenue increased but at a slower rate.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

80.0%

Gross profit

$346.9M

Revenue

$433.8M

Cost of revenue

$86.9M

Quarter-over-quarter change

+1.8 pts

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.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$398.7M$326.8M$71.8M82.0%
Sep 30, 2023$389.7M$306.9M$82.8M78.7%
Dec 31, 2023$382.1M$298.6M$83.5M78.2%
Mar 31, 2024$433.8M$346.9M$86.9M80.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+1.8 pts

Year-over-year change

Mar 31, 2023

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved as gross profit increased more than cost of revenue relative to the prior quarter and the year-ago quarter.

Gross margin was higher than the prior quarter and the same quarter last year. Revenue and gross profit were also higher in both comparisons, while cost of revenue increased but at a slower rate.

Monitor the relationship between cost of revenue growth and revenue growth in future quarters.