FI

Fair Isaac Corporation stock research

Sep 30, 2024

FY2024 Q4

Fair Isaac (FICO) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable sequentially and improved year-over-year.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q4

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable sequentially and improved year-over-year.

  • The strongest observable margin driver is the sustained high gross margin, which held steady at the same level as the prior quarter and improved from a year ago.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

80.3%

Gross profit

$364.2M

Revenue

$453.8M

Cost of revenue

$89.6M

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+1.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$382.1M$298.6M$83.5M78.2%
Mar 31, 2024$433.8M$346.9M$86.9M80.0%
Jun 30, 2024$447.8M$359.6M$88.2M80.3%
Sep 30, 2024$453.8M$364.2M$89.6M80.3%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-0.0 pts

Year-over-year change

Sep 30, 2023

+1.5 pts

What the margin says

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

The strongest observable margin driver is the sustained high gross margin, which held steady at the same level as the prior quarter and improved from a year ago.

Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.

Monitor the trend in cost of revenue relative to revenue, as it increased in both comparisons.