Gen Digital Inc. stock research
FY2023 Q4
Gen Digital (GEN) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was slightly lower than the prior quarter but higher than a year ago. Gross profit followed a similar pattern, while cost of revenue was higher in both comparisons, resulting in a gross margin that weakened from both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q4
Revenue was slightly lower than the prior quarter but higher than a year ago. Gross profit followed a similar pattern, while cost of revenue was higher in both comparisons, resulting in a gross margin that weakened from both the preceding quarter and the same quarter last year.
- The strongest observable margin driver was the proportionally larger rise in cost of revenue compared with revenue, both sequentially and year-over-year, which compressed gross profit and reduced the margin.
- Gross margin weakened sequentially and declined more sharply versus the same quarter one year earlier, as cost of revenue increased while revenue showed mixed trends.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.5%
Gross profit
$736.0M
Revenue
$926.0M
Cost of revenue
$190.0M
Quarter-over-quarter change
n/a
Year-over-year change
-6.4 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 | $926.0M | $736.0M | $190.0M | 79.5% |
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
Apr 1, 2022
-6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the proportionally larger rise in cost of revenue compared with revenue, both sequentially and year-over-year, which compressed gross profit and reduced the margin.
Gross margin weakened sequentially and declined more sharply versus the same quarter one year earlier, as cost of revenue increased while revenue showed mixed trends.
Monitor the trajectory of cost of revenue, as its growth outpaced revenue growth in the current quarter and contributed to margin compression.