Fortinet, Inc. stock research
FY2023 Q1
Fortinet (FTNT) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was stable compared to the prior quarter, while gross profit and gross margin both decreased. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was stable compared to the prior quarter, while gross profit and gross margin both decreased. Compared to the same quarter last year, revenue, gross profit, and gross margin all improved.
- The gross margin weakened sequentially as cost of revenue increased while revenue remained flat. The year-over-year improvement in gross margin was driven by revenue growth outpacing the increase in cost of revenue.
- Compared to the prior quarter, gross margin was lower, reflecting a higher proportion of cost of revenue relative to revenue. Compared to the same quarter last year, gross margin was higher, indicating improved profitability from revenue generation.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.6%
Gross profit
$954.5M
Revenue
$1.3B
Cost of revenue
$307.8M
Quarter-over-quarter change
n/a
Year-over-year change
+2.2 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 | $1.3B | $954.5M | $307.8M | 75.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as cost of revenue increased while revenue remained flat. The year-over-year improvement in gross margin was driven by revenue growth outpacing the increase in cost of revenue.
Compared to the prior quarter, gross margin was lower, reflecting a higher proportion of cost of revenue relative to revenue. Compared to the same quarter last year, gross margin was higher, indicating improved profitability from revenue generation.
Monitor the trend in cost of revenue relative to revenue, as its increase in the current quarter contributed to the sequential decline in gross margin.