Fair Isaac Corporation stock research
FY2024 Q3
Fair Isaac (FICO) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and cost of revenue all rose compared to both the preceding quarter and the same quarter one year ago. Gross margin improved slightly from the prior quarter but weakened versus the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q3
Revenue, gross profit, and cost of revenue all rose compared to both the preceding quarter and the same quarter one year ago. Gross margin improved slightly from the prior quarter but weakened versus the same quarter last year.
- The increase in gross profit was supported by revenue growth, while cost of revenue increased at a slower rate relative to revenue compared to the prior quarter, contributing to the modest gross margin improvement.
- Gross margin was higher than the immediately preceding quarter but lower than the same quarter one year earlier, indicating 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
80.3%
Gross profit
$359.6M
Revenue
$447.8M
Cost of revenue
$88.2M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $389.7M | $306.9M | $82.8M | 78.7% |
| Dec 31, 2023 | $382.1M | $298.6M | $83.5M | 78.2% |
| Mar 31, 2024 | $433.8M | $346.9M | $86.9M | 80.0% |
| Jun 30, 2024 | $447.8M | $359.6M | $88.2M | 80.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.3 pts
Year-over-year change
Jun 30, 2023
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in gross profit was supported by revenue growth, while cost of revenue increased at a slower rate relative to revenue compared to the prior quarter, contributing to the modest gross margin improvement.
Gross margin was higher than the immediately preceding quarter but lower than the same quarter one year earlier, indicating a mixed sequential and year-over-year trend.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion increased year over year and may continue to pressure gross margin.