Fidelity National Information Services, Inc. stock research
FY2024 Q2
Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Jun 30, 2024
Revenue remained stable compared to the prior quarter, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was higher and gross profit increased, with gross margin slightly higher.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue remained stable compared to the prior quarter, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was higher and gross profit increased, with gross margin slightly higher.
- The primary driver of the gross margin improvement was a reduction in cost of revenue, which declined while revenue held steady. This allowed gross profit to increase and the margin to expand.
- Gross margin improved sequentially from the prior quarter and was also higher than the same quarter one year earlier. The improvement was driven by lower cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.9%
Gross profit
$943.0M
Revenue
$2.5B
Cost of revenue
$1.5B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.4B | $912.0M | $1.5B | 37.6% |
| Sep 30, 2023 | $2.5B | $951.0M | $1.5B | 38.2% |
| Mar 31, 2024 | $2.5B | $909.0M | $1.6B | 36.8% |
| Jun 30, 2024 | $2.5B | $943.0M | $1.5B | 37.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.0 pts
Year-over-year change
Jun 30, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was a reduction in cost of revenue, which declined while revenue held steady. This allowed gross profit to increase and the margin to expand.
Gross margin improved sequentially from the prior quarter and was also higher than the same quarter one year earlier. The improvement was driven by lower cost of revenue relative to revenue.
Monitor the effects of the Worldpay sale, completed in January 2024, on future revenue and cost structure as described in the filing.