Fortinet, Inc. stock research
FY2023 Q2
Fortinet (FTNT) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was flat compared to the prior quarter and higher than the same quarter last year. Gross profit increased both sequentially and year-over-year, while cost of revenue decreased sequentially, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was flat compared to the prior quarter and higher than the same quarter last year. Gross profit increased both sequentially and year-over-year, while cost of revenue decreased sequentially, resulting in an improved gross margin.
- The quarter's gross margin improvement was accompanied by a decline in cost of revenue relative to revenue. The filing notes risks including supply chain constraints and economic conditions.
- Compared to the previous quarter, gross margin improved as cost of revenue decreased while revenue remained stable. Year-over-year, gross margin was slightly higher, with revenue growth outpacing the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.1%
Gross profit
$997.0M
Revenue
$1.3B
Cost of revenue
$295.8M
Quarter-over-quarter change
+1.5 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.3B | $954.5M | $307.8M | 75.6% |
| Jun 30, 2023 | $1.3B | $997.0M | $295.8M | 77.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.5 pts
Year-over-year change
Jun 30, 2022
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The quarter's gross margin improvement was accompanied by a decline in cost of revenue relative to revenue. The filing notes risks including supply chain constraints and economic conditions.
Compared to the previous quarter, gross margin improved as cost of revenue decreased while revenue remained stable. Year-over-year, gross margin was slightly higher, with revenue growth outpacing the increase in cost of revenue.
Monitor cost of revenue trends, as changes in this metric coincide with gross margin movements.